A code of good practice to promote gender equality on boards of directors of medium-sized enterprises as a corporate sustainability goal

Abstract

This paper presents a Code of Good Practice to promote gender equality within senior management and on boards of directors of companies. The underrepresentation of women on such bodies indicates the need to promote inclusive, diverse leadership based on the fundamental principle of the right of equality in the private sector also, without forgetting the advantages that this brings to the companies themselves. The gradual incorporation of “hard law” regulations to foster equality derived from the initiatives of the national legislator and promotion via European regulations falls far short of guaranteeing a balanced presence in this sphere. This lends significance to “soft law” instruments. Measures are proposed with regard to the selection and promotion of candidates, work–life balance and training and internal and external communication at companies. The measures are initially focused on small and medium-sized enterprises in Gipuzkoa (Basque Country), but could be implemented at larger companies and elsewhere, taking into account the legal framework. At the same time, a number of 20 indicators have been proposed to quantify the impact of the implementation of these recommendations.