How does the depreciating rupee affect one’s personal savings and finances? A new book explains it

This article was first published in the Scroll. 

https://scroll.in/article/1093589/how-does-the-depreciating-rupee-affect-ones-personal-savings-and-finances-a-new-book-explains-it

An excerpt from ‘The Economy Is Personal: How Big Economic Forces Shape Your Money – And What You Can Do About It’

Have you ever heard someone say, “The rupee is falling against the dollar”? It might sound like financial jargon, but it actually has a very real impact on your day-to-day expenses – even if you’re not travelling abroad. Let’s break it down.

Every country has its own currency. When countries trade with each other, they need to convert their currency into the other’s. So, for example, if India wants to buy something from the US – like crude oil, electronics or machinery – it has to pay in US dollars, not rupees.

Today, 1 US dollar = Rs 75. But next month, 1 US dollar = Rs 80.

This means the rupee has weakened, depreciated or lost value compared to the dollar. Earlier, India needed Rs 75 to buy something worth $1. Now, it needs more rupees, that is, Rs 80, to buy the same thing. That extra Rs 5 has to come from somewhere – and that “somewhere” is your wallet.

So, when the rupee weakens, imports become more expensive, because we need more rupees to buy the same goods from abroad. And since India imports many essential items, like fuel, cooking oil, smartphones, and electronics, those prices go up for everyone. This increase in prices contributes to overall inflation.

Think of it like shopping at a store where the price tag is in dollars. If your rupees are worth less each week, you’ll have to spend more to buy the same things.

That’s why economists and policymakers closely watch the exchange rate. A weak rupee can make imported goods expensive, and that, in turn, can raise prices across the economy – even for things made in India, because transport and input costs can go up.

Why does a falling rupee make your grocery bill heavier?

Because when imported goods and transport get pricier, those costs ripple through the entire supply chain. When the rupee drops, even your shampoo bottle, bus ticket or smartphone can feel the pinch.

So … What does the exchange rate have to do with the price of milk? If fuel prices rise due to a weaker rupee, transport costs go up and, suddenly, your morning milk costs Rs 2 more.

Inflation refers to the rate at which the prices of goods and services rise over time. In India, this is most commonly measured using the consumer price index (CPI). It is a statistical measure that captures the average change in prices of a fixed basket of items, such as food, fuel, clothing, housing and healthcare, that households typically consume. The base year, currently 2012, is assigned a CPI value of 100. All subsequent values show how much prices have risen since that year.

CPI in 2024: 190. CPI in 2025: 194

This means that prices in 2025 were 94% higher than in 2012. But to find inflation for one year, we look at the rate of change between the two years.

So, inflation is 2.11%, even though the CPI level is 194. The CPI tells us prices are almost double what they were in 2012, but the year-on-year increase is what we refer to when we say that inflation is 2.11%.

The Ministry of Statistics and Programme Implementation (MoSPI) publishes CPI data every month. The RBI monitors it closely to make interest rate decisions. If CPI rises sharply, even due to something like a tomato price spike, it can prompt the RBI to raise interest rates, which affects loans, EMIs, savings returns and overall economic activity.

Can everyday consumers affect global inflation?

Absolutely. When millions of people suddenly start spending more (like after the Covid-19 lockdowns), businesses struggle to keep up with demand. As we saw earlier, this pushes prices higher and is known as ‘demand-pull inflation’. For example, when Americans began “revenge spending” in 2021, global supply chains couldn’t catch up, which drove up the prices of electronics, furniture, fuel and even shipping containers. What you buy, how much and when – these choices affect the entire economy.

Now let’s bring this back to your wallet. Where does Rs 10,000 go in five years?

Similarly, suppose you save Rs 5,000 every month for ten years in a savings account that earns 3% interest. By the end of ten years, you’ll have saved about Rs 7 lakhs. Sounds like a decent amount, right?

But now imagine inflation has averaged 6% during that time. To buy the same things you could have bought with Rs 7 lakhs ten years ago, you would now need over ₹9 lakhs.

So even though your savings have grown in number, their real value has shrunk. That’s the silent, invisible power of inflation – it eats into your future, rupee by rupee.

And this affects your dreams:

The house you planned to buy: Now out of reach.

The college education you thought you’d covered: Now costs double.

The retirement you hoped would be peaceful: Suddenly feels uncertain.

This is why just saving isn’t enough. You need to make your money grow faster than inflation, and that means you’ll need to invest. But every investment carries uncertainty. Risk isn’t something to fear; it’s something to understand.

Credit card is not for impromptu Bali trips. Use it to invest in yourself

This article was first published in the Print, June 16, 2026; https://theprint.in/pageturner/credit-card-bali-trips-invest/2961457/

Credit can be a powerful bridge between today’s desires and tomorrow’s means, but it must be used with care. At its core, credit means borrowing now and agreeing to repay later, with an additional cost known as interest. Lenders—banks or fintech platforms—charge an annual percentage rate (APR) to compensate for the risk of non-repayment and forgo the opportunity to deploy those funds elsewhere.

In a healthy economy, credit fuels growth. Students use education loans to gain skills, businesses tap working-capital lines to bridge seasonal cash-flow gaps, families stretch EMIs over decades to buy homes. However, when credit is misused, debt piled on high-interest credit cards or personal loans, the same tool that creates opportunities can turn into a persistent burden.

Credit-card APRs often exceed 25–30% annually, turning unpaid balances into a mounting liability. Suppose you have a ₹2,00,000 credit card balance at 30% APR. Let’s see what happens if you are not able to pay the full amount on the due date. Let’s assume the minimum payment is 2% of the opening balance. Therefore, you pay ₹4,000.

After paying the minimum, the remaining amount accrues monthly interest. The remaining amount, or the new principal will be: ₹2,00,000 – ₹4,000 = ₹1,96,000 Now let’s add one month’s interest: ₹196,000 × (1+0.025) = ₹200,900. So, after one month, despite paying ₹4,000, you still owe ₹200,900, an increase of ₹900 due to interest. If you again pay only the 2% minimum on the new balance, the process repeats. Thus, it barely reduces the principal and can let your balance and total interest rise over time.

Pro Tip: Before you swipe your card, remember: if you can’t pay your balance in full each month, high‐APR debt can quietly grow even while you’re making payments. Always run these numbers first. You’ll often find it makes more sense to borrow less or choose a lower‐cost alternative. Responsible credit use hinges on three pillars: understanding costs, maintaining discipline and aligning borrowing with your long-term goals.

First, know your APR and repayment terms. A loan or card that seems attractive on an ad may carry hidden fees such as late-payment penalties, annual charges or high default rates, that transform convenience into a trap. Second, treat credit like a knife: indispensable in skilled hands, dangerous when misused. Always ask, ‘Can I repay this in full by the due date?’ If not, reconsider the purchase or seek a lower-cost alternative. Third, use credit to invest in yourself or essential assets—a degree, a home or a temporary shortfall—rather than funding fleeting indulgences, like an impromptu trip to Bali.

Credit scores, summaries of your repayment history and utilisation of credit, determine not only your access to credit but also the rates you pay. Consistently paying on time and keeping utilisation low builds a strong score, unlocking cheaper loans and premium card benefits in the future. Macroeconomic forces shape credit availability and cost.

When central banks lower policy rates to spur growth, borrowing costs fall, making mortgages, car loans and even credit card interest more affordable. Conversely, in times of rising inflation, central banks may hike rates, EMIs on floating-rate loans climb and credit card charges mirror the market tightening.

Economic downturns can trigger stricter lending criteria, as banks guard against rising defaults. Across the globe, credit cultures differ. In the US, credit card penetration is high, and APRs can soar above 20%, yet rewards programmes entice responsible users. In Germany, consumers favour debit and cash, shunning high-interest cards.

In India, soaring education and housing costs have fuelled rapid growth in personal and home loans, even as credit card adoption remains nascent. Understanding your country’s credit norms helps you benchmark your own borrowing habits.

Why corporate gains alone aren’t enough for true gender equality

This article was first published in the Financial Express on April 10, 2025; https://www.financialexpress.com/business/industry-why-corporate-gains-alone-arent-enough-for-true-gender-equality-3804891/

Corporate India is making significant strides—women directors have risen from 5% in 2014 to 20% in 2025, and the Female Labor Force Participation Rate surged from 23.3% in 2017–18 to 41.7% in 2023–24 (Press Information Bureau, Government of India, 2023). Despite these promising advances driven by proactive government and institutional initiatives, true gender equality remains an unfulfilled promise. Without a shared commitment from both men and women to challenge traditional norms, progress in the workplace risks remaining isolated from broader societal change. This dual reality sets the stage for our exploration of a Tale of Two Spheres—where impressive professional breakthroughs coexist with enduring traditional expectations at home.

A Tale of Two Spheres

Professionally, women have made remarkable advances globally, including in India. Even as workplaces evolve, the domestic sphere continues to demand an unacknowledged “mental load”—the invisible cognitive labor of managing household tasks, scheduling, caregiving, ritualistic religious demands, and keeping track of endless family needs, forcing many women into a relentless cycle of planning and multitasking that is rarely recognized. This imbalance forces capable women into making excruciating choices: pursue professional advancement while juggling disproportionate domestic duties, or retreat from the workforce entirely.

Even when they remain in the workforce, the persistent gender pay gap ensures that their contributions are systematically undervalued. This reality not only stifles individual potential but also curtails broader societal progress (World Bank, 2021; International Labour Organization, 2020).

Entrenched Patriarchy

Patriarchy—a social system where men wield more power than women based on the belief in male superiority, a notion that has seeped into the mindset of both genders.

It is said that good cinema often mirrors the society. Let us consider the 2020 short film Ghar ki Murgi, featuring Sakshi Tanwar, which delivers a potent commentary on domestic realities. In the film, a housewife longs for a moment of respite—a simple, human desire to reclaim personal time. Yet when she contemplates taking a break, her family immediately calculates the financial cost of her absence, reducing her vital contributions to mere numbers. Ultimately, she decides against taking the break, reasoning that she cannot leave her family because vacations are meant to be shared—a decision that underscores her deeply internalized belief that women are not entitled to self-care or personal fulfillment.

Similarly, the OTT-Zee5 film Mrs., a 2024 Hindi-language drama starring Sanya Malhotra, portrays unyielding domestic expectations. The film shows a world where the men are entitled and even the other women, steeped in patriarchal norms, fail to imagine a life beyond traditional roles like cooking and housekeeping.

But what is bothersome are the discussions that erupted on social media and WhatsApp groups following the release of Mrs. Many men questioned why women should be lauded for performing household chores, dismissing tasks like running a washing machine or making rotis as trivial—completely missing the underlying point. At the same time, some women were quick to blame themselves for not raising their children to break this cycle, worrying that such discussions might upset the equilibrium of society. This duality—of external dismissal and internalized self-blame—lays bare the pervasive influence of patriarchy, one that not only restricts women's roles but also perpetuates the very beliefs that keep them confined.

A Collective Call for Change

While economic shifts have boosted women’s participation in formal employment, many men remain insulated by traditional roles. This selective inattention perpetuates a domestic environment where change is painfully slow. Genuine progress, therefore, cannot rest on women alone; it demands a collective, inclusive effort.

True gender equality is not a zero-sum game. It is not about elevating one gender at the expense of the other but about creating a society where every individual—regardless of gender—is empowered to realize their full potential. This vision requires a fundamental rebalancing of responsibilities in both public and private spheres. It is about recognizing every contribution, whether paid or unpaid.

For equality to be truly realized, the progress seen in boardrooms must be mirrored at home. Every breakthrough in the public domain must be accompanied by a corresponding shift in domestic life—a transformation that requires the active participation of both men and women.

In the Final Reckoning

As we stand at the crossroads of progress and possibility, let our rallying cry echo from boardrooms to living rooms. Let this be our clarion call—a future where every daughter, every son, every partner, and every individual can dream freely, work equitably, and live without the weight of outdated norms. When the scales of responsibility and recognition are finally balanced, true freedom and human dignity will flourish. In dismantling these age-old shackles together, we do not simply liberate one gender—we set humanity free.

Breaking the Cycle: Business Families Must Lead in Safeguarding Women

This article was first published in Business Standard on September 12, 2024; https://www.business-standard.com/opinion/columns/breaking-the-cycle-business-families-must-lead-in-safeguarding-women-124091201362_1.html

The recent tragedy at RG Kar Medical College has once again thrust the issue of women's safety into the national spotlight. As the horrific details emerge, the frustration and anger felt by many are palpable. For those of us who vividly recall the outcry following the Nirbhaya case, this feels all too familiar. Despite the countless articles, protests, and promises of reform, here we are again, grappling with another atrocity that shakes our collective conscience.

Frankly, I don’t want to write this article. After Nirbhaya, there was an outpouring of words, and yet, what has changed? The news of another young woman brutalized makes my blood boil, and it’s hard to see how more words will prevent the next tragedy. But there is something I can say, something I can urge: Business families, the backbone of our economy, it is time to take a stand. The nation needs you to be the change.

The Potential Power of Business Families

Business families wield immense power—not just in terms of economic capital, but also in shaping societal norms. The decisions made within these families often set the tone for how women are perceived and treated, not just within the family business, but in society at large. Unfortunately, these decisions are too often swayed by outdated cultural norms, where women are relegated to the background, serving as silent supporters rather than active participants.

Take a moment to reflect: how many women in your family are truly involved in the decision-making processes of your business? Are they empowered to lead, to innovate, to drive change? Or are they merely rubber stamps, there for the sake of appearances?

The Case for Inclusion: A Lesson from Apollo Hospitals

Consider the example set by the women of the Apollo Hospitals family, who recently released a powerful video message pledging to ensure a safe working environment for all women within their organization. These women, who are not just figureheads but active leaders, understand the impact they can have in creating a culture of safety and respect. Their commitment sends a clear message: when women are empowered, they can drive meaningful change.

Business families have the unique ability to foster gender-neutral environments, where women are given equal opportunities to lead and influence. Yet, many remain bound by the constraints of tradition—whether it’s the expectation that daughters will leave the family business upon marriage, or the belief that sons are the rightful heirs to leadership.

But imagine the impact if business families across the nation decided to break free from these constraints. Imagine if they championed their daughters, daughters-in-law, wives, sisters, and mothers, encouraging them to take on leadership roles, to be the voices of reason and compassion in boardrooms dominated by patriarchal norms.

The Responsibility to Lead by Example

The onus is on business families to lead by example. By promoting women within their own ranks, they not only strengthen their businesses but also contribute to a broader cultural shift. A woman who is empowered in her family business is likely to advocate for the safety and well-being of all women in the workplace. She is likely to challenge norms that have long gone unchallenged and to inspire others to do the same.

It’s easy to feel powerless in the face of such heinous crimes as the one at RG Kar, but business families are anything but powerless. You have the resources, the influence, and the platform to effect real change. You have the ability to make your businesses not just profitable, but also pillars of safety and equity.

A Call to Action

I urge you—business families, family businesses—don’t let this moment pass without taking action. Empower the women in your family to be leaders, not just in name but in deed. Create policies that protect all employees, particularly women, from harm. Use your influence to advocate for a society where safety is a given, not a privilege.

Be the change. The nation is watching, and it needs you to lead.

Build a legacy where names like Nirbhaya and Abhaya are never repeated, and candles are lit only in celebration, not in mourning. Pass your enterprises from one generation to the next, while ensuring that what we women hand down to our daughters is empowerment and safety, not candles.

Two is Company

This Book Review was first published in the Business Standard on March 25, 2024; https://www.business-standard.com/book/two-is-company-124032500642_1.html

Book: An Uncommon Love: The Early Life of Sudha and Narayana Murthy

Author: Chitra Banerjee Divakaruni

Price: 799/-

Pages: 352

Year: 2023

Publisher: Juggernaut Books, India

Chitra Banerjee Divakaruni's latest, a non-fiction, "An Uncommon Love: The Early Life of Sudha and Narayana Murthy," unveils the captivating narrative of two eminent figures, Sudha Murty and Narayana Murthy. It offers an exploration of their formative years. Divakaruni's adept narrative style, characterized by poetic simplicity and robust character portrayals, particularly resonates with aficionados of profound storytelling.

Departing from the world of mythological heroines, the book unfolds the ordinary yet remarkable lives of the Murthys before the establishment of Infosys, portraying their journey as an allegorical epic awaiting narration. Vividly depicted are the everyday trials and triumphs of a working couple, encapsulating the essence of support, sacrifice, and solidarity, compelling readers to root for their success.

Their story reminded me of the scenes from Basu Chatterjee’s 1976 classic Choti si Baat, starring Amol Palekar and Vidya Sinha. A simple boy. In love with a simple cotton saree-clad girl. Enjoying small things such as holding hands, walking on the roads, and eating at Poona Coffee House. “With her [Sudha] by his [Narayana] side, he felt he could take on even the toughest challenges” (p85).

You want them to succeed. You cheer for them. You feel for them. Sudha and Narayana Murthy's early life experiences together are relatable and Divakaruni captures them in the most endearing manner.

The narrative poignantly addresses the dilemma faced by individuals who find themselves overshadowed or relegated to supporting roles, despite possessing substantial capabilities and accomplishments—a sentiment to which Sudha Murty's journey lends credence. It would have been easy to portray Sudha Murty as the victim, as someone who had to give up her career to support Narayana Murthy’s passion, and it would have been largely true. However, it would do grave injustice to Sudha’s resilience and commitment to personal growth, exemplified through her writings, contributions to the Infosys Foundation, and her subsequent foray into public service [the recent nomination to the Rajya Sabha]. Divakaruni maintains a fine balance that never lets Sudha’s character slide into being inconsequential.  Rather she serves as a beacon of inspiration.

Another aspect that touched a chord with me was the challenge of imparting values amidst prosperity, as Sudha navigates the complexities of instilling humility and “living withing one’s means and not trying to keep up with the ‘neighbours’…the importance of being practical in matters of spending, recognizing wasteful behaviour, and getting good value for your money” (p309-310) in her children. This segment will resonate deeply with individuals who have experienced economic scarcity and now grapple with the task of nurturing similar sensibilities in their offspring.

On the professional development side of the couple, of notable significance is the portrayal of Narayana Murthy's evolution from a socialist idealist to a compassionate capitalist, alongside the inception of Infosys, underscoring the fervour, altruism, and perseverance that culminated in its establishment.

Unlike conventional biographies of business luminaries, which frequently overlook the intricacies of personal challenges and emotions, Divakaruni's portrayal transcends superficiality, reveals the interplay of relationships among its seven founders and elucidates the philosophical underpinnings of the compassionate capitalism intrinsic to Infosys's corporate ethos. Furthermore, the narrative sheds light on Sudha Murty's sacrifices and her steadfast support of Narayana Murthy's endeavours, emblematic of the pivotal role spouses play in each other's professional pursuits.

The exemplary financial stewardship demonstrated by the Murthys underscores a vital lesson for startup founders and business owners: the importance of judiciously managing company and investor funds. In an environment rife with instances of poor companies- rich promoters, the Murthys' narrative serves as a beacon of integrity and foresight, illustrating the enduring value of principled financial management for long-term sustainability. By assimilating these invaluable insights, aspiring entrepreneurs can play a pivotal role in cultivating a culture of accountability and integrity within India's corporate landscape, thus fostering a legacy of responsible entrepreneurship and sustainable growth.

I am reminded of an incident when I accompanied my brother to the optician, a family friend, shortly after his graduation from an IIT. Upon learning of my brother's employment at a multinational corporation, the optician remarked, "We heard so much about you. That you are so good in studies and all. And you still didn't get a job in Infosys?" This anecdote encapsulates the profound impact of the Murthys' creation, Infosys, on the national consciousness. It was a pleasure to delve into the lives of this extraordinary couple, whose visionary leadership catalyzed the information technology wave in the country, capturing the imagination of a nation and leaving an indelible mark on the annals of Indian business history.

In sum, "An Uncommon Love" is a testament to Divakaruni's narrative prowess and her ability to unravel the complexities of human experience. Through meticulous storytelling and emotional depth, the book illuminates the transformative journey of two icons, offering readers a compelling narrative of love, sacrifice, and resilience amidst the backdrop of nascent entrepreneurship in India. 

Nurturing diversity and women’s leadership in family enterprises: A call to action

This article was first published in the Economic Times, December 24, 2023; Co-author: Sougata Ray; https://economictimes.indiatimes.com/news/company/corporate-trends/nurturing-diversity-and-womens-leadership-in-family-enterprises-a-call-to-action/articleshow/106247865.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 

Introduction

In a world where 50% of the population, representing 3.95 billion individuals, is women, it is both a moral imperative and an economic necessity to address the pervasive exclusion of this substantial talent pool from the workforce. The Thomas Schmidheiny Centre for Family Enterprise at the Indian School of Business recently convened a roundtable addressing the pressing issue of Women in Family Business. In the intricate realm of family enterprises, the strategic imperative of empowering women's active involvement goes beyond mere progressive ideals; it is the key to sustainable success.  

Against the backdrop of India's low female labour force participation rate of 24% in 2022, one of the lowest globally, the discussion aimed to explore strategies within family businesses to empower women, thus contributing to elevating this rate and advancing Sustainable Development Goal 5. The focus encompassed nuanced considerations, including factors enabling women's engagement, impediments they face, self-preparation for leadership roles, and the pivotal characteristics of a gender-inclusive family structure.

Drawing from the discussions of the roundtable, this article aims to delve into the critical aspects of promoting women's leadership within family businesses. By focusing on dual role balancing, the importance of support networks, gender inclusivity, and drawing lessons from successful women peers, we can unravel a comprehensive roadmap for transformative change.

Empowering Women's Leadership: Balancing dual roles within the family and the business remains a pivotal concern for women leaders in family enterprises. Successful strategies encompass the delineation of clear boundaries, fostering open communication channels, and implementing flexible work structures. Recognizing and actively addressing these challenges not only promotes women's leadership but also enhances the overall performance of family businesses by tapping into a broader talent pool.

Case studies of successful women leaders navigating the delicate balance between familial responsibilities and professional commitments provide actionable insights. The implementation of flexible work arrangements, tailored mentorship programs, and a commitment to work-life integration emerges as a recurring theme. These strategies empower women within family enterprises, contributing to a more inclusive and adaptive organizational culture that recognizes and values the diverse contributions of women leaders.

The Importance of Support Networks: Building robust support networks is foundational to nurturing the active involvement of women in family enterprises. Research underscores the positive correlation between support systems and the professional advancement of women. Establishing mentorship programs, peer networks, and targeted development initiatives creates a conducive environment that empowers women to overcome challenges, fostering a culture of inclusivity and shared success.

Further exploration into the concept of support networks reveals their impact beyond individual empowerment, influencing the overall resilience of the family enterprise. Mentorship programs, where seasoned women leaders guide the next generation, accelerate leadership development and facilitate the transfer of tacit knowledge and values across generations. Peer networks, characterized by shared experiences and collaborative problem-solving, emerge as dynamic catalysts for innovation and adaptability, creating a vibrant ecosystem for women's active participation.

Promoting Gender Inclusivity: A call to action for family enterprises involves deliberate efforts to dismantle gender stereotypes and promote the active involvement of women. Rigorous adherence to merit-based practices, equal opportunities, and policies addressing gender bias are pivotal in creating an environment where women's talent thrives. The economic and social benefits of gender diversity are well-documented, reinforcing the urgency for family enterprises to prioritize and champion this cause.

The strategic importance of promoting gender inclusivity is underscored by research indicating a direct correlation between diverse leadership teams and enhanced business performance. Fostering an organizational culture that actively seeks and values diverse perspectives positions family enterprises for innovation and resilience in a complex and competitive global landscape. The integration of gender-inclusive practices becomes not only a moral imperative but a strategic imperative for long-term success and relevance.

Leadership Lessons from Successful Women Peers: Drawing lessons from successful women leaders within family enterprises provides invaluable insights. Their journeys serve as blueprints for navigating challenges and seizing opportunities. Documenting and disseminating these narratives not only highlights the transformative power of women's leadership but also inspires the next generation. By fostering a culture of shared experiences and mentorship, family businesses can cultivate a reservoir of women leadership talent poised for sustained success.

In examining leadership lessons from successful women peers, it becomes evident that these narratives extend beyond individual accomplishments to embody collective wisdom. The power of storytelling in transmitting organizational values and fostering a sense of shared identity cannot be overstated. By documenting and disseminating these narratives, family enterprises create a repository of knowledge that transcends generations, ensuring a seamless transfer of women's leadership acumen and a perpetuation of the values that underpin the business.

Conclusion

In conclusion, the imperative for empowering women's active involvement in family enterprises transcends mere rhetoric; it is a strategic imperative for long-term viability. As we embark on this transformative journey, let us remember that embracing women's leadership is not just a moral obligation but a sound business strategy. By fostering a culture that values and empowers every woman member, family enterprises can harness the full spectrum of talent, ensuring a legacy that stands resilient against the test of time. The future of family businesses lies in the hands of leaders who recognize the power of women's active involvement, making it not only a call to action but a commitment to lasting prosperity.

Overcoming Barriers and Unlocking Potential

This article was first published in the Economic Times on September 29, 2023. Co-author: Sougata Ray.

The role of women in family businesses has been a subject of enduring debate and scrutiny. Traditionally, women within business families have encountered barriers that limited their participation in key decision-making processes and leadership roles. However, the past few decades have witnessed significant transformations in social, economic, and cultural spheres, leading to a reevaluation of gender roles in family businesses. It In this article, we argue that recognizing and promoting women's participation in family businesses is not merely a matter of gender equality, but a strategic imperative that can have far-reaching implications for the success and sustainability of such businesses.

Women in Family Businesses

Historical Perspectives: The historical treatment of women in family businesses has often been marked by discrimination and exclusion. Women were frequently relegated to secondary roles, if not entirely barred from participating in the decision-making and operational aspects of family enterprises. Such traditional norms and practices stemmed from deeply entrenched patriarchal structures within both family and society. However, as society has evolved and become more inclusive, there is growing recognition that women possess valuable skills and attributes that can contribute significantly to the success of family businesses.

Shifting Paradigms: Recent years have witnessed remarkable examples of women breaking through barriers and excelling in leadership roles within family businesses. Both locally and globally, numerous success stories highlight the significant contributions of women in various sectors, underscoring the transformative impact of female leadership. The success stories proove that when given equal opportunities, women can demonstrate exceptional leadership qualities and drive business growth.

Feminine Leadership Characteristics: One key aspect that sets women apart in leadership roles is their possession of traditionally feminine characteristics. These characteristics, such as loyalty, concern for others, sensitivity, patience, problem-solving, and conflict resolution skills, are highly relevant in the context of family businesses. Effective leadership in family businesses often requires managing complex family dynamics and reconciling multiple viewpoints. Women, with their well-developed social skills and inclination towards maintaining harmony, are well-suited to address these challenges through collaboration and consultation.

Enriching the Talent Pool: In addition to their leadership qualities, the participation of women in family businesses can significantly enhance the talent pool within these enterprises. Historically, family businesses have relied heavily on a limited set of family members to fill leadership and expert roles. The inclusion of women in these roles can broaden the family's skill set, bringing fresh perspectives, diverse expertise, and innovation to the business.

Preparing Women for Family Business Roles

Early Socialization and Education: To realize the potential of women in family businesses, it is imperative that both men and women within business families are actively socialized from an early age. This socialization process should involve garnering knowledge of the business and receiving the necessary education and training to prepare them for future roles within the family enterprise. Early exposure to the business environment can help women and men develop a strong foundation of business acumen and leadership skills.

Beyond Individual Preparation: While individual preparation is crucial, the effectiveness of women in family business roles is also contingent upon systemic changes within both the family and the business. Preparing women for leadership roles must go beyond tokenism and address structural and cultural barriers that may hinder their progress.

Systemic Changes for Gender Diversity

Ownership and Inheritance: One of the fundamental challenges in promoting gender diversity in family businesses is addressing issues related to ownership and inheritance. Traditionally, these matters have favored male heirs, perpetuating gender imbalances. To rectify this, family businesses must reevaluate their succession plans and adopt more equitable approaches to property and asset distribution.

Next Generation Grooming: Effective succession planning involves grooming the next generation of leaders, irrespective of their gender. Family businesses should invest in comprehensive leadership development programs that prepare both women and men to take on leadership roles within the company. These programs should focus on building the skills, knowledge, and confidence necessary to lead effectively.

Redefining Family Roles: The inclusion of women in family businesses necessitates a redefinition of traditional family roles. Family members should be encouraged to break free from traditional gender expectations, allowing individuals to choose their roles within the family and the business based on their interests and competencies.

Dynamics of Family Relationships: The involvement of women in family businesses can sometimes strain family relationships due to the increased complexity of overlapping roles. Effective communication, conflict resolution, and family governance mechanisms are essential for maintaining healthy relationships while managing business responsibilities.

Work-Life Balance: Balancing family responsibilities with business commitments is a challenge faced by both men and women in family businesses. Supportive policies, such as flexible work arrangements and family-friendly policies, can help address this issue and create a conducive environment for all family members involved in the business.

The involvement of women in family businesses is a topic of growing significance in today's evolving business landscape. While historical discrimination and exclusion have limited their participation, there is ample evidence to suggest that women can excel in leadership roles within family enterprises (and beyond). Their feminine leadership characteristics, combined with the potential to enrich the talent pool, make them valuable assets to family businesses.

To harness this potential, active socialization, education, and grooming of both women and men within business families are essential. Furthermore, systemic changes within family and business structures are necessary to ensure meaningful gender diversity that goes beyond tokenism. Such changes will not only benefit women but also the entire family business system and society at large, leading to greater sustainability and success in an ever-changing business environment.

Considering the prevailing trend towards smaller nuclear families, the integration of women into family businesses seems not only natural but also inevitable. Therefore, the question is not whether women should be involved in family businesses, but how best to prepare and support them in their dual roles within the family and the business for the benefit of all stakeholders.

Give Her Wings to Fly

This article was first published in the Times of India, March 08, 2022

Men are from Mars. Women are from Venus. There is no denying the differences.

There are obvious differences in size and anatomy. They did matter when it was required that people went hunting to provide food for their families. It also mattered, and still matters, when hard labour or physical strength was/is required. But does the physical strength matter so much when most of the work is automated, digitized, and brain power has become more important than muscle power in most of the industries?

Psychological differences also exist. Research has consistently shown that women are more emotional, sensitive, anxious, and friendlier. Men are more assertive and open to new ideas. This has been found to be true across cultures, indicating that the difference is biological rather than cultural.

There have been women who transcended all biases, disadvantages, and segued into territories reserved for men. This article is about the norm. The norm is that the Gender Inequality Index shows vast inequality between men and women. That many governments and organizations such as the UN are taking steps to bring about gender equality. As a result, we have come far from where we were a few decades ago. Yet, we are far from equality. Change is happening. It’s just not happening at the speed we want it to. Why?

Mindset: We have come a long way from the days when most girls did not go to school and formal school education for girls was a rarity rather than a norm. The male-female literacy gap has consistently reduced from a peak of 26.62 per cent in 1981 to 16.68 per cent in 2011. The Census 2021 data is awaited but this gap is expected to have reduced further due to the enactment of the Right to Education Act in 2009, ongoing efforts for hygiene, separate toilets for girls, and slowly yet steadily changing cultural and societal norms. A good education is the steppingstone to a good career. It gives one the foundation to think creatively and the confidence to charge ahead.

Consequently, women are charging ahead. Though, the gap remains huge. Many corporations are now starting to recognize the gap, acknowledge it, talk about it, and pledge to narrow it. For example, HDFC Bank published data on representation of women at different levels of management in their annual report and set a target for improvement.

All the above are welcome improvements. But there are biases that keep many girls from pursuing an aggressive career. Statements such as, “your place is at home”, “you must come back home by 7pm”, “you must not travel”, impede growth at work and prevent women from utilising their full potential. These are not things people would say to a man.

It is time the society realises that women are not a subset of men. They are their own identities and have their own aspirations. Don’t weigh us down by biases, expectations, and preconceived notions of what is appropriate for us to do.

Mental Load: It is a known fact that women take on greater burden of household chores. Increasing levels of education, awareness, and changing demography has also resulted in larger percent of women in managerial and senior management roles. The gradual shift in mindset has made households more open to seeking external help for chores, outsourcing day care of children, and technology is aiding in reducing time taken to do many chores. Though none of this can be generalized, there is certainly a positive shift in general.

Yet, the percent of women that reach the top management teams in organizations remains dismal. Why? Even though many of us manage to keep afloat when at relatively junior levels in the organization, at senior levels of management, it becomes difficult to balance the requirements of the job along with the expectations at home. Our hands are freer. Our minds remain cluttered. Our load has changed its form, like energy. We may not be doing a lot of work on our own, but we need to get it done. At senior management levels also, most of the work entails getting work done, guiding, and crisis management. Women do that at work, and also at home.

The challenge is that it is difficult to explain mental load. I get asked many times, “what do you do at home? You have help for everything. What challenges?” At other times we are told to simply “ask for help”. The assumption when we are told to ask for help is that we are responsible for that task, not our partner. So, the burden of getting something done remains with the woman.

Another challenge is that we women ourselves have grown up seeing our mothers do more physical work at home, be physically present, and a “Mother India” image of being an ideal parent. This notion leaves us in a shroud of guilt for not being a “good parent”, for having fun, for not sacrificing enough, and for being ambitious. This leads us to greater anxiety, worrying, trying to compensate in different ways, and generally, unhappy.

Men: I asked a few male friends to read Indira Nooyi’s book, “My Life in Full.” None of them said No. But to the best of my knowledge, none of them did. On the other hand, many of them did read Harsh Mariwala’s Harsh Realities. Why? This is a loaded question and points to the unconscious bias that exists in the minds of men, as well as women.

Discounting women and their achievements is the biggest disservice that men, and even women, inflict on women. When men succeed, and their career is their only job, most of the times, it is due to their skills. When women succeed, despite taking on unreasonable share of household responsibilities, it is “because” they have a supportive husband. Family support is a must to be able to work uninhibitedly, for men, as well as for women. Most husbands who help their wives at home make it sound as though they are doing a favor to their wife. They are not. The house and the household belong to the men as well and so must its responsibilities.

While many of us try and create an external support system of creches and daycares and nannies, it only helps us do a 9 to 6 job. Not beyond that.

Last Word: To bring about any meaningful change and achieve true gender equality, mindset must change at the societal as well as individual level, mental load should be acknowledged and shared, and men must equally involve in bringing about change rather than treating it as a “women’s issue”.

Educating a girl child is like giving her wings. But then not supporting her to give her best, is like not giving her the sky to fly, despite the wings.

Pandemic Puts India’s Diversity Record to a Test

This article was first published in the Risk Intelligence, GARP, July 02, 2021

https://www.garp.org/risk-intelligence/culture-governance/conduct-ethics/a1Z5d000008elqaEAA

The banking system has stood out with high-profile women CEOs, but a national gender diversity index has declined

Gains in gender diversity, among other inequality issues getting high-level policy attention before COVID-19 struck, have been set back since. It is a harsh reality now being faced in India, one of the countries hit hardest by the coronavirus.

The big emerging market’s banks were held out as exceptions to old norms, with several major institutions led by women, but the departures of some of them now stand out, at least symbolically, as reminders of a persisting gender gap.

The global backdrop, as described by International Monetary Fund chief economist Gita Gopinath in the fund’s spring 2021 Finance & Development publication, is that “low-skilled workers, women, and youth – who are vastly over-represented in jobs where social distancing is difficult or impossible – experienced the largest increases in unemployment in many countries, exacerbating pre-pandemic inequalities.”

An IMF working paper in March on women in the so-called she-cession, a study of 38 advanced and emerging economies, found “over half to two-thirds exhibiting larger declines in women’s than men’s employment rates.”

Legislating a Standard

Official measures to promote women’s advancement in Indian corporations included the Companies Act of 2013, Section 149 (1), requiring listed companies to have at least one woman on their board. By 2020, 17% had women directors, up from 4% in 2013.

However, a 2020 gender balance scorecard from 20 First shows that of the 175 executive team members in the top 20 Indian companies, only 6% (11) were women. Seven of the companies had women on their executive teams.

Discriminatory factors can be more or less subtle: exclusionary and “men’s club” environments, sexism in recruiting, males ignoring or disrespecting female colleagues, and pay disparities. In the World Economic Forum Global Gender Gap Index for 2021, India fell 28 places, to 140th out of 156 countries. Women’s labor force participation decreased to 22.3%, from 24.8% the year before.

Iceland is the world’s most gender-equal country, India ranks 140th, according to the World Economic Forum Global Gender Gap Index. India is farther below the population-weighted average (♢) in the Economic Participation and Opportunity subindex.

Exception to the Rule

India’s banking industry stood in contrast to the “dominant norm” of gender asymmetry across the corporate sector. It was one of the first instances of an emerging market employing gender quotas and women leaders to promote diversity. HSBC’s Naina Lal Kidwai, UBS’ Manisha Girotra, Axis Bank’s Shikha Sharma and ICICI Bank’s Chanda Kochhar rose to the top of their respective organizations.

Besides being run by women, these banks employed relatively more women at each level. One study estimated that between 2001 and 2011, hiring of women officers in banks increased to 14.45% from 6.69%, with smaller growth seen in subordinate and clerical positions. By 2019, the banking, financial services and insurance (BFSI) sector was just under 20% women, and 50% parity was projected by 2027 for the 100 Best Companies for Women in India. 

According to primeinfobase.com, there has been a steady increase in the number of women employed as board members in private and public sector banks, insurance companies, non-banking financial companies (NBFCs) and asset management firms. The percentage of women board members on Nifty 100 companies rose to 16% in 2021 from 7% in 2012, while at NBFCs it jumped to 18.43% from 3.68%.

Changes at the Top

Among other things, the trend is credited to one of the largest private banks, ICICI Bank, for nurturing women leaders during a period of economic liberalization and expansion. Chanda Kocchar in 2009 was the first ever female CEO at an Indian bank.

However, Kocchar, Sharma of Axis Bank and Usha Ananthasubramanian of Allahabad Bank had untimely exits due to governance issues at their respective banks. In addition, declining percentages of women board members at two major public sector banks between 2020 and 2021 – State Bank of India’s to 4.5% from 6%, and Punjab National Bank’s to 11% from 14%, according to primeinfobase – could be worrying from a diversity perspective if it is more than a temporary blip.

As investors and other stakeholders continue to be vocal about the need for corporate diversity, and more research reveals the benefits of gender parity, women in the critical financial services sector could lead a real cultural revolution in India. The industry has genuinely gone beyond just ticking off a list of regulatory requirements and token gestures, given its past record of female representation on boards, in senior management positions and at other levels.

HDFC Bank provided diversity data in its annual report, stating, “We strive to create and maintain an inclusive work environment for all our employees irrespective of gender, caste, creed, color, sexual orientation, religion, among others.”

HDFC Bank, India’s largest private bank, in its 2020-21 annual report, disclosed diversity indicators, acknowledging the gaps and pledging improvements. The bank has a target of 25% women in its workforce (excluding frontline staff and sales officers) by fiscal year 2025 and says it is “working simultaneously on talent acquisition, as well as talent retention.”

Women role models in leadership positions give hope and impetus to millions of others to dream big – an impact that can be compounded if the industry stays on course as an exceptional North Star for others.

  

A generational shift in purpose and influence

Women constitute 18 percent of family business leaders globally. The highest percentage belonging to family businesses in Europe and Central Asia. Traditionally, women have been relegated to “invisible” role in the family businesses in administrative duties, or as informal advisors or to exclusively managing the household. However, the role of women in family business has been evolving over the last few decades.

The STEP Project Global Consortium and KPMG Private Enterprise surveyed over 1,800 family businesses from 33 countries across the globe, to reflect upon how demographic shifts are changing the role of women in family businesses – the value that women contribute, the various forms of influence they may have on the success of their businesses and the families and the unique competitive advantages they can deliver. Thomas Schmidheiny Centre for Family Enterprise, Indian School of Business being the only member from India conducted the survey in India with responses from 53 companies across both manufacturing and services sectors.

The report finds that women in family businesses are slowly breaking the stereotype and engendering greater diversity at the workplace. Though women continue to face the dilemma and role conflict, they are equipping themselves to balance the obligations at work and at home. “Both men and women contribute to gender stereotyping and hence they need to work together and clearly define the roles, responsibilities and communicate to all stakeholders”, said Dr. Nupur Pavan Bang. “Organizational practices and policies are required that promote fairness and minimize bias”, she further adds. Some of the salient findings of the report are: 

Emerging from the shadows: Women are now equipped with the required education and training and actively taking up positions of power, authority, and decision-making roles in the family business. They are taking up leadership positions in the so-called masculine industries such as manufacturing, mining, and construction. 

The ‘hidden’ CEO: The societal and cultural bias have women play the role of a chief emotional officer. They are required to nurture and take care of the emotional needs of the family, keeping the family together and perpetuating the family’s values and traditions across generations. Instinctively, these unique characteristics make women holistic leaders with unique management styles and are an asset to the organization. 

Redefining “women’s work”: Women in family businesses, especially Millennials, are breaking down the barriers and redefining how women in non-traditional businesses are perceived. Many highly competent women leaders are successfully managing their family businesses in male-dominated industries such as steel and scrap-metal processing, cement manufacturing and the production of hardware products. They have the knowledge, experience and skills in their business and are valued and respected by the employees and customers. 

Transformational power of women: Though women continue to face role conflicts, they are able to balance the need at the workplace and at home. They have sophisticated and transformational leadership style, judgement, and unique outlook. 

Succession by merit: Traditionally in family businesses, succession is based on primogeniture, which discourages women to consider professional careers in their family’s business. However, certain country level rules such as gender equality movements and one-child policy in China have given women better access to resources. Family firms’ decision on succession are increasingly being driven on merit and capability instead of gender. 

Societal change and family business leadership: There has been a push from governments around the world to address the issue of under-representation of women in business. For example, In India, the amendment to the Hindu Succession Act in 2005 conferred property rights to daughters (married or unmarried) and granted them equal rights as the sons. Also, the mandatory gender quota for women on corporate boards introduced by the Companies Act (2013) prompted family firms to have higher percentage of women representation on the boards as compared to non-family firms. However, most of the family business leaders believe that quotas are not the answer and only help to generate awareness of the existing bias. 

Outdated mindsets: Women in family businesses can bring about the change in organization and society and help mentor, guide, and develop the pipeline for future women leaders. 

The findings of the survey are relevant to the family businesses in India too. Women in Indian family businesses have been breaking the various cultural and societal biases and perpetuating the businesses to new frontiers. Yet, in India, female participation in work force is decreasing and is one of the lowest in the world. India is placed at 95 out of the 129 member countries in the UN SDG gender index score and is ranked below the global average on gender equality. Women in family businesses are well placed to lead the way to bring about greater gender parity, offer and create opportunities for other women too. 

The editorial team behind the report comprised of Dr. Nupur Pavan Bang and Yashodhara Basuthakur (Thomas Schmidheiny Centre for Family Enterprise, Indian School of Business), Andrea Calabrò, (STEP Global Academic Director & IPAG Family Business Institute, IPAG Business School), Mary Jo Fedy, Karmen Yeung and Tom McGinness (KPMG) amongst others.

Health: Journey of self-discovery

This article was first published in ISB's inhouse periodical, Spandan, September 2020 issue, https://sway.office.com/AGMm76bE9xBWptwE

In the middle of September 2017, I suffered from acute lower back pain that was diagnosed as Degenerative Spondylosis. A couple of days of rest and working from home along with the medication and exercises suggested by the doctor eased the situation.

I have always been fitness conscious and have undertaken varied activities from time to time, viz. aerobics, yoga, frisbee, badminton, gym, swimming, walking, and more, all in pursuit of being fit. However, over the years, especially post-delivery, I started to put on weight. I was 55kgs when I got married in 2008 and 80kgs in 2017. Of and on dalliances with physical activities resulted in a 3-4 kgs of weight loss only to get back to where I was and to continue the upward trend.

I am an avid reader and enjoy watching movies too. Eating when reading or watching movies takes the experience to an almost cosmic level! When did the “once in a while” eating sweets when reading or watching something at night turn into a habit and then addiction is difficult to pinpoint. As most women, being in-charge of keeping the kitchen stocked, I ensured a steady supply of ice creams, chocolates, wafers, and cakes for myself. I would feel something was missing and would not fall asleep until I had something sweet. Provocations and objections from my husband would result in a siesta of a week to ten days and then the sweet tooth would prevail, again.

While prescribing the medicines for the degenerative spondylosis, the doctor mentioned very casually that the core issue is weight for all such ailments, and it will keep happening as long as I was overweight. However, being obese himself, he laughed it off saying that he was not the right person to advise me to lose weight. The informal jest struck a chord. It also worried me that a recurring back ache at a fairly young age would mean living with it for another 30-40 years. The future with different types of aches didn’t seem appealing.

As a first step, upon encouragement from my husband and inspiration from a fit friend, I decided to leave all forms of processed sugar for a few months. The first few weeks were difficult, to say the least. Mood swings, tears, periods of craving, not being able to sleep- avoiding a single morsel of sweet was like going through thousands of emotions and turmoil in my mind each time, again and again, and with a straight or a smiling face. For the opportunity to eat sweets presented itself everywhere: at work, birthday parties, weddings, festivals, casual meetings with friends and family. Not everyone understood when I said “No” because everyone knew that I am fond of sweets.

We cannot control the actions, reactions, and provocations by others. But restraining myself from reacting to all the insinuations, mocking, show of non-confidence and discouragements has been another battle all together. Visits to the toilet to hide the tears and saying no when each cell in my body was craving for that sweet being offered was no different from the accounts of those in drug rehabilitation centres.

The immediate result in terms of weight loss was encouraging. With moderate levels of physical activity, in 6 weeks I had lost 6 kgs. But it was clear to me that my body had gotten used to a no sugar diet and I was not going to lose any more weight with the status quo. I decided to start with supervised training to strengthen my muscles, tone up and increase the metabolism, which is otherwise very low due to Hypothyroidism.

No sugar, workout three days a week and cardio the rest of the four days for an hour each day started to make me feel lighter, fitter, and agile. But it did not result in further weight loss. That is when I started to think about what I always knew but never gave any importance to; that weight loss is more about diet than exercise. It is easier to cut calories than burn them.

In all my years of being fitness conscious, I was not diet conscious. Hence, was neither fit nor healthy. The quest to get my diet right led me to a celebrated dietician. I had heard about her from a few other friends. I had seen a friend transform under her supervision. Others had experienced different degrees of weight loss but all of them recommended her highly. I did my own research too and decided to take the plunge.

December 8, 2017 was the beginning of my journey with eating right. It is not difficult was my first reaction. I was eating my regular dal and curry, occasionally phulka and rice too, and tasty food like paneer tikka and stir fry vegetables. I was not majorly into junk food (apart from sweets), nor did I eat too much of fried food. So, I still maintain that the diet plan given by the dietician was not difficult. Plus, she always guided me when I needed to eat out or had to travel outside Hyderabad. It was the quantity of food and the hours of eating that became critical.

The difficult part however was to tell the detractors to back off. People felt sorry for me. They felt I was torturing myself. Many did not understand that it was a choice, not a prescribed activity in a prison. I was getting fitter and healthier. I was not sick and did not feel weak because I was eating less. Similarly, there were many who would keep telling me that I had lost enough weight and need not lose any more. People often forgot that I was educated, aware, technology and internet savvy, I can search, I can read, and I knew who to approach for advice. Deflecting unsolicited advice without the “well-wishers” feeling bad is as much of a struggle as following the diet.

There are many who were genuinely concerned that I might fall sick if I don’t eat. I had to explain to them that I was not starving myself. I was eating as much as my body needed. I was just not overeating. Which I was doing earlier. Then there were those who felt that I should eat now, enjoy my life and worry about weight when I get some disease, to them I had to tell that I AM enjoying my life. I do not want to wait till I get a disease. Prevention is better than cure. Why should I wait till I get diabetes or cholesterol to lose weight? Yes, I can still fall sick for various reasons. But I want to try while I still can, to be fit and healthy.

Six months after I started the diet and with moderate levels of exercise, I reached my right BMI. I had lost 20 kgs. I went into maintenance diet. That meant lesser restrictions. It’s been more than two years since I stopped seeing the dietician. I have been able to maintain my weight with a few kgs plus/minus. Overall, I have been fit. I can do 500 breathe-in-breathe-outs in Kapalbhati, I am comfortably able to do Chakrasana, Halasana and a 21k. I can cycle 60kms at a stretch. I aim to be able to do a full marathon, fifty pushups without stopping, and 100kms of cycling in the near future. 

What has worked for me is eating right with a combination of yoga, cardio and weight training and above all, the discipline to consistently do it. Without the discipline, it is all meaningless. Discipline involves saying NO, consistently. To yourself. To others. Not giving in to temptations. Also, that you can eat everything but have the discipline to moderate the quantity.

As you become healthier and fitter, you will keep raising the bar for yourself. Initially it is weight. Then it is strength. Then flexibility. Then speed. Ultimately, mental and spiritual well-being. The quest is never ending. Take the path less trodden. You have miles to go. But keep going. The journey itself is pleasurable. You will discover many things along the way. What worked for me may not work for you. But something will. So, start and the path will reveal itself!

Goals of Workplace Inclusion Remain Elusive

This article was first published in GARP, Risk Intelligence on June 14, 2019. Co-author: Sai Nitya Bodavala;

https://www.garp.org/#!/risk-intelligence/culture-governance/conduct-ethics/a1Z1W0000054wahUAA

Data supporting gender diversity, though hard to refute, doesn’t automatically change behavior

It is well within the reach of companies to make the effort to ensure that there are more women in leadership positions, and that those who are receive sufficient support to flourish at their jobs. It costs little when compared to the profit that will come as a result of being more gender-inclusive.

Numerous studies indicate a positive correlation between profitability and the presence of women in leadership, but in practice it appears that many are unconvinced.

For example, in a 2016 paper based on a survey of 21,980 firms in 91 countries, the Peterson Institute for International Economics concluded that “for profitable firms, a move from no female leaders to 30% representation is associated with a 15% increase in the net revenue margin.”

McKinsey and Co.'s Delivering through Diversity  found that companies in the top quartile for gender equality not only had a greater likelihood of earning higher profits, but also outperformed companies in the bottom quartile by 27% in long-term value creation.

Recruitment firm Phaidon International, surveying its employees in 2018, found that six out of 10 felt that management did little to promote the benefits of gender diversity in the workplace. Seven out of 10 employees believed that whenever the issue of gender diversity came up, it was presented as a matter pertaining to human resources, rather than its potential contribution to the goal of diversity.

Employees' lack of awareness of the benefits that women can bring to the table, as well as managements' apathy with regard to educating them about it, paints a dismal picture. This is because in many cases, the management is itself unconvinced of this fact.

In a survey that IBM conducted of 2,300 executives and professionals worldwide, 43% could not definitively answer yes or no when asked if they thought gender-inclusive companies were more successful financially. Two-thirds believed that women weren't in leadership positions because they were more likely than men to prioritize their families over their careers.

It seems counterintuitive to think that executives of companies that primarily chase profit would be unaware of evidence linking gender diversity to profit. It may be more of an issue of prejudice than lack of awareness.

Preconceived Notions

Certain ideas have become deeply rooted regarding what a woman can and cannot, or must and must not, do. In India, where gender roles are rigid, women who are in the workforce face a double-edged sword. On the one hand, being assertive and being go-getters leads to them being perceived as “bossy” or “insufferable.” On the other hand, being quiet and conforming to what is asked of them reinforces the general idea that women are subservient and unsuitable for positions of power.

Those who make hiring and firing decisions seem to have skewed ideas of what women are supposed to be like. This idealized perception does not allow them to see the reality. When these two versions are presented as diametric opposites, companies are discouraged from hiring women.

According to a study by LeanIn.org and McKinsey and Co., participants (employees) “rated mothers as the least desirable job candidates and deemed them as less competent and committed than women without children or men.” Companies subscribe to the notion that motherhood makes the quality of work suffer. What is often overlooked, however, is the boost in productivity that could occur if companies chose to accept the reality of motherhood and to support women instead. If working mothers were assured of a conducive work environment and policies that facilitate their growth, it could greatly decrease turnover rates as well as the cost that companies incur when hiring and training replacements for those who leave.

Not an Immediate Issue

Gender equality isn't considered to be an immediate concern. Although the benefits of having more women in leadership positions are undeniable, less-inclusive organizations aren't necessarily suffering huge losses. So long as profit-making doesn't seem to be affected, companies just push the problem to tomorrow. It is far easier to blame the societal perception of women than to try to create and implement inclusive policies.

Not recognizing and addressing the issue of gender inequality means that fewer steps are being taken to bring women into leadership positions. The lack of women at the decision-making level means that there aren't enough people invested in the problem to bring it up and address it, which perpetuates this vicious cycle.

Investment in Inclusion

Effective inclusion takes time, research, money, collaboration and constantly evolving ideas.  Companies lack incentive to invest when the pay-off could take a while. Further, a bias training program or a policy borrowed from another organization does not amount to inclusion.

Inclusive policies must begin by keeping in mind the employees currently working with the company and those that it wishes to hire. It is fairly easy to label as corporate policy a checklist that contributes little to employees' well-being. For a policy to work, it has to be well-researched and thoroughly thought out.

Organizational support is crucial for implementing and sustaining inclusive policies. Over time, the idea of inclusion must be built into the very culture of the organization. As a result, when issues come up, there are mechanisms in place to handle them. On the other hand, dealing with problems as and when they come up is not very efficient. It also does not allow for the company to come up with new and innovative ways of inclusion, instead being far too busy putting out small fires.

Misled Men

IBM's study brings out the misconceptions that men have about working women. Sixty-five percent of the male respondents said that they would have been just as likely to be promoted if they were women; 68% said that they would have received the same compensation had they been women.

That just indicates how far society still has to go in making gender equality a reality. Men are not bystanders, but rather active participants who play a pivotal role in ensuring the closing of the gap between genders.

Excluding men from the conversation about equality only serves to alienate those who currently hold most of the decision-making power. IBM found that 75% of the male executives were willing to commit to certain measurable outcomes that would bring about greater equality over the next five years.

Conclusion

The reasons for companies holding back from implementing inclusive policies are many. It is naïve to think that mindsets and norms that have developed over decades will change overnight. However, it is undeniable that change is not around the corner, but here and now, and soon older attitudes will lose their sway. Every woman who has managed to reach a leadership position that allows her to change conventional ideas, every company that helps women grow and come into their own, and every woman who has just entered the job market, ready to take on all of the challenges that it poses, is proof of that.