Gender Equality in the Workplace

Business Dispute Lawyer

Through multiple movements over the years, it is clear that women are unhappy with how they are treated in society and that their underrepresentation in the corporate world is something they want to fix. California is taking a step towards remedying the issue in its own state. Gov.

Jerry Brown signed California Senate Bill 826, which would require publicly held companies based in California to have a minimum of one woman on their boards of directors by the end of 2019, and by the end of July 2021, companies must at least two women on boards of five members and at least three women on boards of six or more. This bill is causing quite a bit of controversy as some believe it would push current board members out based on their gender and many others believe the bill will be challenged in the courts. While some are against the bill there are others that believe the pushback is only showing us that there is an issue and it's about time we fix it. While some are against it there is evidence to support that diversity on boards is essential to the growth and profitability of a company. Studies suggest that women on corporate boards contributed to the companies performance and increase in profits. Laws requiring more women on corporate boards are nothing new to European countries so why are we so opposed to it?

Evidence in European countries suggests that while it is a risky law to pass the long-term effects are worth it. Some European countries require 40 percent of their boards to be women because the different viewpoints only benefit the companies when it's decision-making time. While the California bill leaves quite a bit to be figured out one thing is clear, there needs to be a change and we should work together to fix it. It could potentially benefit us to make board diversity a priority in America so that people from all backgrounds have equal representation when decisions are made about the companies they are working for. Equal representation is proving to be beneficial for everyone within the companies as well as for the companies themselves and is something that should be explored to see how efficient we can be when we all work together.

It will be interesting to see what happens going forward and whether the courts will uphold this new law or will they return to the drawing board.

If you have any questions about business law or have been discriminated against in a business setting, a business dispute lawyer in Arlington, TX can help. Contact a law firm today.

Thanks to Brandy Austin Law Firm, PLLC for their insight into business law and women in corporate positions.


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