 "Arun Duggal")
Arun Duggal, chairman of Shriram Capital, who heads the Federation of Indian Chambers of Commerce and Industry (Ficci)'s centre for corporate governance, has been closely involved with a mentoring initiative to get more women on corporate boards. Duggal, an ex-banker, tells Sudipto Dey it will take five to 10 years for India Inc to see value from gender diversity in its boards and business. Edited excerpts:
Is corporate India ready to have women on boards?
Yes! This is a social change and will take time. We have to move in that direction and, in time, people will be convinced they need to have gender diversity at the board level, not only to meet regulations but to do what is good for the company. To have different points of view and perspectives leads to better decision-making. Once they are convinced, the issue of having more women on boards will be addressed in five to 10 years. This will become an automatic process.
You recently managed a mentorship programme to help 40 women directorship aspirants. What are your key takeaways?
I found women serious and focused in learning about corporate governance. But I also find them a little hesitant, not as aggressive as they should be. It is still very early. Mere placement of women on boards isn't enough; it is important to make them effective on boards and see to it that they distinguish themselves. That is the goal of the mentorship programme.
Board placement is a complex process. Promoters and board chairmen need to develop a lot of comfort and trust about the candidate before having her (or him) on the board.
I hope once women join boards, they distinguish themselves. Then, we can shut the mentorship programme. The sooner we reach that point, the happier I will be. You don't have a mentorship programme for men. So why should we have one for women? This is an interim step.
What are the key concerns first-time women directors have on stepping into boards?
I think their concerns start with: "Do they really want me? Or is it just because they have to check the box?" The second is: "Will I be put on a pedestal? Will I be judged in a harsher way than a male colleague? Do I have to work extraordinarily well to be considered OK?"
One of the things I tell them is once you join a board, persuade the management to have not one, but at least two women directors.
How should aspiring women directors deal with concerns about whether they are fit for the job?
Those aspiring for directorship positions should be distinctive in their fields. They should have a record of superior accomplishments. Also, there are judgemental factors such as maturity, leadership qualities, the ability to be part of a team, but have individual strengths and gravitas to make a positive change.
In corporate India, many boardrooms are seen as 'old boys clubs'. Do boards need to re-orient themselves to welcome women?
I would say it is a mixed picture. But on an average, boards are not that well prepared. They will have to be pushed a little bit, as the regulations are doing.
In time, opinions will change, as more women step into boards and begin to contribute. They will see the merit of this initiative.
When will this change come about?
Globally, this is a gradual process. In India, it will take five to 10 years. When the issue is addressed, whoever is capable - man or woman - will come on the board.
Are companies open to senior management executives taking up board positions in other organisations?
More and more progressive companies are allowing this. First, this is in the interest of companies, as it allows senior executives to develop their governance capabilities and for personal growth.
As senior executives move in other circles as board members, their contacts and learnings are beneficial to the company. It benefits both companies and senior executives.
There is a concern many board positions will be taken by women from promoter families.
It is a fact of life. In family businesses, too, the sons and nephews often join boards. Now, the daughters and nieces, who are equally capable, will step in. I hope they will compete with their brothers and cousins and demonstrate they are better. I think there is a struggle ahead for women on boards, irrespective of whether they are from promoter families or not.
What are your plans for Ficci's centre for corporate governance?
Soon, we will start the second batch under Anjali Bansal's leadership of the mentorship programme for women on corporate boards to improve boards' effectiveness.
By the year-end, we plan to have a Directors Forum, a peer group programme and a resource centre to assist directors on specific governance issues , and a Board Evaluation programme.
