Gender Equality Vs Gender-washing

Gender Equality Vs Gender-washing

KAKALI DAS

Have you heard about Greenwashing?

It’s pervasive and effective because it involves marketing spin. Companies often mislead consumers about their environmental credentials, making it challenging to discern the truth behind such claims, which contributes to the success of greenwashing.

This strategy has become so effective that it’s now being applied to other corporate agendas, such as Gender-washing. Gender Washing is a relatively new term that functions similarly to Greenwashing.

Gender-washing, as the term suggests, describes situations where multinational companies make promises of equal opportunities for female employees, but fail to follow through effectively.

In 2023, data highlighted a concerning trend: a record number of women returning to work after the pandemic found themselves lacking the high-level positions they previously held.

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In recent years, Gender washing has significantly increased. More companies are making claims of supporting gender equality, committing to improving gender balance, promoting gender diverse leadership, and organizing women’s summits, press conferences, and equality podcasts.

You enter the elevator of your office building, rushing to reach the conference room for a meeting. Upon arrival, you notice a stark gender disparity: there are only two women compared to at least seven or eight male employees. This immediate observation highlights the ongoing reality of gender inequality, despite decades of campaigning and awareness-raising efforts.

Gender equality persists as a significant issue in the United States, with the number of women breaking through the glass ceiling into C-suite positions actually declining. Currently, women hold less than 8% of senior leadership roles. Despite more women participating in the workforce than ever before, achieving gender equality remains a formidable challenge, not only in America but globally as well.

Recent research reveals that the growth of women’s representation in senior leadership positions across America plummeted to its lowest point in over a decade in 2023. Experts caution that companies may be deprioritizing gender diversity, putting their reputation and financial benefits at risk. One possible explanation for this disconnect is Gender-washing.

In the US, across all C-suite positions, women lost ground for the first time in two decades. Women’s representation in senior leadership roles also experienced a significant decline, with the growth rate plummeting to its lowest level in over a decade.

It dropped to 0.5% in 2023, compared to an average of 1.2% in previous years. The situation was already poor to begin with, and now it has worsened, despite all claims of progress towards gender parity.

Because the C-suite is a broad term encompassing all upper levels of management, such as Chief Financial Officer or Chief Marketing Officer, gender equality becomes increasingly obscured as you ascend to the Chief Executive Officer position.

Experts argue that while companies are publicly committing to addressing gender inequality issues, the measures taken often fail to align effectively with women’s needs. Consequently, there has been a decrease in the number of women candidates in key decision-making roles.

“Here’s the problem women are entering the workforce at the same rates as men. Say you started about 50:50 at that very first level of leadership, when you become frontline leaders it immediately shifts to 60:40, men to women. So, the problem starts early, and that’s why it’s exacerbated all the way up to the CEO level” – A Resident, Catalyst.

Increasing evidence also indicates the critical role of diverse leadership in fostering diversity. Research indicates that businesses with greater diversity are more adaptable and innovative, which ultimately leads to enhanced economic success.

Last month, during the New York City Gender Gap campaign, it was highlighted that American women, on average, earn approximately 84% of what men earn.

“Throughout our research we learned that words that are actually gender diverse are 27% more likely to outperform financially than those that are not gender diverse. On top of that, we also learned that ethnically diverse sports are 13% more likely to outperform sports that aren’t as well” – Chief Brand Officer, E.L.F Beauty.

Globally, only 5.4% of CEOs are women, highlighting a significant disconnect. Despite companies committing to achieving better gender balance, women’s participation remains persistently low. What are the reasons behind this disparity?

First reason – many of these commitments are superficial. Empty promises are often made simply to appease stakeholders and deflect criticism.

The second reason lies within the labour market itself, which is entrenched with biases, stereotypes, and entrenched ways of working. Addressing these requires more than just bold public statements, as actions speak louder than words.

This leads to the third reason — gender equity fatigue. Many companies have adopted DEI (Diversity, Equity, and Inclusion) initiatives, which have become both a legal and political target in recent years. Some argue they are a waste of time and money, while others fear they could lead to the exclusion of men, which is a misconception.

But when top CEOs like Elon Musk publicly criticize diversity and inclusion, it undermines logic, and such actions carry significant repercussions. Firstly, their company’s reputation suffers because empty promises are detrimental to public perception. Secondly, there are financial consequences. Study after study demonstrates that firms with greater representation of women in senior positions tend to be more profitable, socially responsible, innovative, and resilient.

The ironic thing is that most people desire the same outcomes: competitive organizations, successful leaders, and meritocracy. This should naturally advocate for gender equality. However, it often ends up as an empty promise because it’s easy to say the right thing, but actually implementing it requires substantial effort and commitment.

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