Pop Quiz

1. Pop Quiz • Please PRINT your name clearly • Answer all questions • 5 minutes

2. Pop Quiz: Answer True or False:1 pt. each • 1. O’brien argues that Virtue Ethics makes it clear that the SEC should promulgate rules mandating the appointment of more women to BoD. • 2. O’brien discusses the situation in Norway in her article where she states that Norway’s quota required that publicly-held companies raise the percentage of women on boards from 9 percent in 2006 to 40 percent by 2008. • 3. O’brien thinks that the SEC diversity disclosure rule is ineffective. • 4. Merchant makes it clear that there is plenty of evidence to support the claim that women are more effective BoD members than men. • 5. The fact that Merchant mentions Kant several times in her article makes it clear that she is arguing from a Deontological orientation. • 6. Marks thinks that women are under less social pressures than men.

3. T/F Quiz Answers • 1. O’brien argues that Virtue Ethics makes it clear that the SEC should promulgate rules mandating the appointment of more women to BoD. F • 2. O’brien discusses the situation in Norway in her article where she states that Norway’s quota required that publicly-held companies raise the percentage of women on boards from 9 percent in 2006 to 40 percent by 2008. T • 3. O’brien thinks that the SEC diversity disclosure rule is ineffective. T • 4. Merchant makes it clear that there is plenty of evidence to support the claim that women are more effective BoD members than men. T • 5. The fact that Merchant mentions Kant several times in her article makes it clear that she is arguing from a Deontological orientation. F • 6. Marks thinks that women are under less social pressure than men. F

4. Should Quotas for Women on Corporate Boards be Mandated by Law? YES: O’brien NO: Merchant

5. YES: Gael O’Brien • Quotas might be bad • Stir up discomfort • Undermine corporate governance • Dilute the caliber of the board members • Insult women currently sitting on boards • US not showing leadership in gender diversity • 2000: 11.7% women on boards; 2010: 15.7% • SEC new disclosure rule, no teeth; firms allowed to report about diversity

6. Countries that have imposed quotas • Norway, Finland, Denmark, Iceland, Sweden, The Netherlands, France, Italy, Spain [Socialist?] • See U. of Michigan Study criticizing Norway • O’brien: More study needed

7. Quotas are necessary to make progress • Sally Kennedy, Tulane: Quotas needed “to overcome women’s barriers to office.... Just as it is no longer defensible to deny women the vote, the right to serve on juries...so too, do basic principles of democracy, representation, and nondiscrimination require that women serve on corporate boards.”

8. Why there should be quotas • “Without outside pressure from the SEC, a prestigious commission, or even the threat of a quota, I don’t see the momentum for change that will put sufficient value on the contributions of talented, qualified women and minorities to aggressively recruit them.”

9. NO: Nilofer MerchantQuotas for Women on Boards are Wrong • Author is on a board herself, she says • “Board readiness events...” she went to: • No one seemed to be surprised about the “woman’s seat” on BoD at meeting; assumed as the norm • Why? Evidence to the contrary: BoD with high ratio of women to men: • Return on Equity: 53%+ (over firms with low ratio) • Return on Sales: 42%+ • Return on invested Capital: 66%+ • Women more effective BoD members • What’s the problem?

10. Merchant, continued • “The thinking is that quotas will create a force function to overcome gender gap barriers that have been well documented...I have doubts, for four main reasons: • Quotas signal tokenism: “woman’s seat” issue • Groups don’t change dynamics until they decide to change their dynamics • Quotas don’t necessarily increase the right kind of diversity • Quotas de-emphasize qualifications • Imposing quotas only target symptoms • The goal should not be just “more female board members,” but more female board members who are capable and credible once serving. To do that, we need to promote women into roles where they can gain the relevant experience:…leading a company….” But do women really want this experience? See Gene Mark’s article

11. Gene Marks: Do women really want to be CEO? Why Most Women Will Not Become CEO” • “… less than 3% of our largest companies have female leaders…” Why? • Example of the difference in behavior between boys and girls—boys will be boys… • “There is still sexism in the workplace, it is just more concealed.” • “Women also have more personal and social pressures than men And this affects their ability to further their careers and get the experience they need to become good managers…”

12. Women have more socialpressures than men • “But as much as women have achieved in earning their equality, there are still some age old cultural habits that won’t die. Children need their mommies. And most moms I know, whether they have a full time job or not, want to be there for their child.”

13. Social pressures on women • “She can be earning twice what her husband earns but that’s still not enough. She’s also expected to be a good mom too (and a good daughter-in-law, and a good housekeeper and a good neighbor). And if she’s not “there” for her kids then she’s criticized. She can’t win.”

14. “Women are held to a much higher standard.” • “…quadruple that pressure for women trying to raise children on their own.”

15. “Don’t deny it- a female’s looks are held to a much higher level of scrutiny than a man’s” • Do you think a woman who looks like Reid Hoffman stands a chance at becoming CEO?

16. “All these things add up. • The surreptitious judgments in the office. • The social pressures. • The double-standard of behaviors. • The burden of maintaining physical appearances. • And you know what happens? Most women throw in the towel. They don’t want to put up with it. They leave the corporate world to raise families. Or start their own small businesses.”