WOMEN comprised 40 percent of executive leadership teams (ELT) among companies listed on the Philippine Stock Exchange from 2020-2022, research released on Tuesday by the Philippine Business Coalition for Women Empowerment (PBCWE) showed.

The research, titled "Census on Women in Leadership Roles in Philippine Publicly Listed Companies," highlighted the critical role that gender diversity plays in the country's corporate leadership landscape.

According to the census, from 2020-2022, two-fifths of ELTs in publicly listed companies (PLCs) are women, with the number of female chief executive officers (CEOs) also seeing a gradual increase.

In addition, the census claims that many women in ELTs continue to occupy functional or support roles, adding that the data indicates there has been an improvement in the representation of women in line or operational roles.

The number of women on companies' boards of directors also grew, reaching 21 percent in 2022, while female chief executive officers remain underrepresented at just 13 percent.

The census noted that despite some progress in diversity, there was a need for concrete gender targets, as only 2.0 percent of large firms and none of the small and medium-sized firms have set specific gender diversity targets. Furthermore, most firms have broad diversity policies that must be complemented by concrete targets in order to be measured and achieved.

"'The Census on Women in Leadership Roles in Philippine Publicly Listed Companies' is more than just a report; it's a call to action for the Philippine business community to embrace gender equality as a driver of sustainable growth," said Ma. Aurora Geotina-Garcia, founding chairperson and president of the Philippine Women's Economic Network and chairperson of the PBCWE's Governing Council.

"This study is a vital resource for organizations committed to strengthening gender equality in the workplace," she emphasized.

Geotina-Garcia said that women in corporate boardrooms comprise only around 1 percent a year, adding that there are two schools of thought on how to increase representation: regulators should make women representation mandatory or make women representation voluntary.

"Ideally, the desired representation of women in boards should be around 30 percent. We have countries who've actually imposed quotas, including Malaysia, which is [a member of] Asean, and countries like France," she said, referring to the Association of Southeast Asian Nations.

However, if regulators impose quotas for gender diversity, companies would have the tendency to deliberately and intentionally recruit females, or they would just comply by putting their wives or daughters in their ELTs.

"It doesn't necessarily follow that if you put a female relative on the board, that they're incompetent. So, the understanding should be that, yes, you put them on the board to meet the quota, with the assumption that they have the ability to contribute to the board," she explained.

The other approach is to make it voluntary, but making it voluntary will make the increase slower, and will take a lot of effort and time before gender equality in the workplace will happen.

"In my view, make it mandatory but not penalize them immediately. Give them time to comply. And then eventually, they don't consciously and intentionally say that when we start looking for board members, we should also deliberately have a goal of [hiring] women," she added.

For his part, Securities and Exchange Commission (SEC) Commissioner lawyer Javey Paul Francisco said, "We at the SEC are uniquely positioned to lead by example. We are committed to implementing policies that enhance corporate governance and champion gender equality, ensuring that our actions contribute to a more equitable and effective business environment."

He added that amid the challenges that lie ahead, the journey toward gender equality is far from over.

"Our vision is a future where gender equality is a given; where it is not just a matter of social justice but rather a strategic necessity and a smart business move leading to greater employee retention, enhanced creativity, and overall better business outcomes," he said.