Accelerating Gender Equity: The Business Case for Women in Leadership

Despite growing awareness and corporate pledges toward gender diversity, women continue to be underrepresented in leadership roles across corporate India. While they make up 37% of entry-level hires, their representation dwindles to just 14% in executive leadership positions (McKinsey, 2023). This stark drop-off highlights deep-rooted structural barriers, unconscious biases, and systemic challenges that hinder their career progression.

Bridging this leadership gap is not just a moral imperative but a business necessity. Studies consistently show that companies with diverse leadership teams outperform their peers in financial returns, innovation, and employee satisfaction. However, achieving true gender parity requires more than symbolic representation—it demands proactive strategies, policy interventions, and a fundamental shift in corporate culture.

This article explores the key barriers preventing women from rising to leadership roles, examines industry-specific disparities, and highlights how evolving regulatory frameworks and corporate commitments—such as SEBI’s mandates, Business Responsibility & Sustainability Reporting (BRSR), and the UN Global Compact’s Forward Faster initiative—are shaping a more equitable future for women in business.

The Leaky Pipeline: Understanding the Barriers

Women in corporate India encounter multiple structural and cultural barriers that impede their advancement into leadership roles. These obstacles contribute to what is commonly referred to as the “leaky pipeline,” wherein a significant proportion of women drop off at various career stages.

  • Lack of Sponsorship and Strategic Networks

Access to influential mentors and sponsors is crucial for career advancement. However, a study by DDI revealed that 63% of women reported never having had a formal mentor, limiting their exposure to strategic networks and advocacy opportunities. This absence of mentorship can impede women’s progression into senior roles. ​

  • Unconscious Bias in Promotions

Unconscious biases within organizational structures often result in women being overlooked for promotions. A report by Avtar indicated that attrition among women in the tech sector is higher at 26% compared to the overall attrition of women across industry sectors at 21%. This suggests that biases and lack of advancement opportunities contribute to higher turnover rates among women in tech.

  • Career Break Penalty

Career breaks, often taken for caregiving responsibilities, can negatively impact women’s professional trajectories. According to LinkedIn’s Workforce Report, 38% of women in India list a career break for parenting on their profiles, compared to only 9% of men. This disparity highlights the challenges women face in resuming their careers post-break, as they often encounter skepticism regarding their commitment and capabilities. ​

Addressing these barriers requires targeted interventions, including the establishment of formal mentorship programs, implementation of unbiased promotion practices, and supportive reintegration policies for those returning from career breaks.​

Industry-Specific Gaps: Where Women Leaders Are Missing

The gender leadership gap is particularly pronounced in certain industries, highlighting the uneven distribution of opportunities and the necessity for industry-specific interventions. While women have demonstrated exceptional capabilities in these fields, systemic barriers continue to restrict their advancement.

Technology & AI: A Missed Opportunity for Gender-Inclusive Innovation

Despite high female participation in STEM education, women occupy only 7% of CXO-level roles in India’s technology sector (NASSCOM, 2024). This underrepresentation is a significant loss, as diverse leadership teams drive 35% higher returns on equity in tech companies (McKinsey, 2023). A strong example of success is the biotechnology sector, where women-led firms like Biocon (founded by Kiran Mazumdar-Shaw) have set industry benchmarks. With equitable representation, Indian women can bring fresh perspectives to emerging fields like AI ethics, cybersecurity, and software engineering.

Pharmaceuticals & Healthcare: A Sector Women Can Lead

Women constitute 47% of India’s healthcare workforce but hold just 9% of board seats in the top 50 pharmaceutical companies (FICCI, 2023). Despite this disparity, female leaders in healthcare—such as Dr. Swati Piramal (Piramal Group) and Dr. Preetha Reddy (Apollo Hospitals)—have played pivotal roles in revolutionizing patient care and pharmaceutical innovation. A stronger female leadership presence can drive better public health policies, more patient-centered healthcare innovations, and inclusive workplace policies for caregivers.

Manufacturing & Heavy Industry: Reimagining Leadership in Male-Dominated Sectors

Manufacturing and steel industries remain overwhelmingly male-dominated, with less than 5% of plant-level leadership positions occupied by women (ASSOCHAM, 2023). The perception of these industries as physically demanding and traditionally male-oriented deters women from entering, despite the growing presence of automation and advanced robotics reducing physical labor requirements. Companies like Tata Steel have already set a precedent by hiring women in operational roles, proving that a diverse workforce can improve efficiency and workplace culture.

Finance & Investment: Breaking the Glass Ceiling in Decision-Making

Although women make up 24% of the finance sector workforce, they hold only 11% of leadership positions in investment and banking (RBI, 2024). Research shows that companies with more women in financial leadership have lower risk exposure and higher long-term profitability (World Economic Forum, 2023). Leading financial executives like Arundhati Bhattacharya (former SBI Chairperson) have demonstrated that with strategic mentorship and policy support, women can play a transformative role in banking and corporate finance.

By ensuring that women have equal opportunities to rise into leadership roles, these industries can harness diverse perspectives, drive innovation, and enhance overall economic growth.

The underrepresentation of women in leadership roles is not just a social concern—it is a business imperative. Companies with diverse leadership teams have been shown to outperform their competitors in terms of financial returns, innovation, and employee satisfaction. Recognizing this, policymakers, regulators, and global sustainability frameworks have introduced structured interventions to accelerate gender diversity in corporate leadership.

SEBI’s Boardroom Mandate (2024): A Step Towards Gender-Parity Leadership

The Securities and Exchange Board of India (SEBI) has mandated that the top 1,000 listed companies appoint at least one independent woman director. This policy aims to integrate gender diversity into corporate governance structures and enhance the decision-making processes at the highest levels of business. However, despite this requirement, women still hold only 21% of board seats in NSE-listed firms (Prime Database, 2024). The slow pace of change highlights the need for organizations to go beyond regulatory compliance and actively nurture, mentor, and promote women into leadership pipelines.

Business Responsibility & Sustainability Reporting (BRSR): Accountability in Action

In response to the growing global emphasis on Environmental, Social, and Governance (ESG) criteria, SEBI’s Business Responsibility & Sustainability Reporting (BRSR) framework requires companies to disclose gender diversity data. This ensures that gender equity is not just a corporate social responsibility initiative but an integral part of sustainable business growth. By making gender representation in leadership publicly measurable, BRSR fosters transparency and encourages businesses to develop actionable strategies for gender inclusivity, such as leadership training programs, mentorship initiatives, and return-to-work policies for women.

Forward Faster Commitment on Gender Equality: Corporate India’s Global Pledge

As part of the United Nations Global Compact’s Forward Faster Initiative, companies worldwide are making ambitious pledges to achieve equal gender representation in leadership by 2030. In India, industry leaders like Infosys and Tata Steel have publicly committed to this goal, recognizing that gender-balanced leadership is essential for long-term business success. This initiative pushes businesses to implement measurable and time-bound strategies, such as:

  • Leadership acceleration programs to increase the pipeline of women in senior management.

  • Flexible work policies and childcare support to reduce career break penalties.

  • Bias-free promotion and appraisal systems to ensure equitable career advancement.

Moving from Compliance to Cultural Transformation

While regulatory frameworks provide a necessary foundation, real change comes from corporate leadership and cultural transformation. Policies alone cannot shift deep-seated biases or structural challenges. Companies that proactively go beyond compliance—by fostering inclusive workplaces, holding leadership accountable for diversity metrics, and investing in the professional growth of women—are the ones that will set new benchmarks for sustainable, high-performing businesses.

By embracing these policy-driven commitments, corporate India has an opportunity to not just meet regulatory requirements but to lead the way in creating workplaces where gender diversity drives innovation, profitability, and long-term resilience.

UN Global Compact Network India’s (UN GCNI) Women’s Leadership Program

To address these persistent challenges, UN GCNI is developing a One-Year Women’s Leadership Program designed to support corporate India in fostering a more inclusive and equitable leadership landscape. This initiative aims to provide structured mentorship, leadership training, and corporate advocacy for gender diversity.

Program Objectives

  • Enhancing Leadership Capabilities: Equip mid-level women professionals with essential skills required for executive roles through targeted training and mentorship.
  • Closing the Gender Gap: Strengthen organizational retention strategies and ensure structured career progression pathways for women.
  • Promoting Inclusion and Equity: Encourage allyship and inclusive policies that foster a supportive work environment for women.
  • Driving Measurable Business Impact: Align leadership diversity goals with broader corporate ESG commitments and sustainability objectives.
  • Increasing Representation in Decision-Making Roles: Aim for at least a 30% increase in women advancing to senior leadership positions within three years.

The underrepresentation of women in leadership roles is not merely a gender equity issue but a business imperative that affects corporate performance, innovation, and overall economic growth. Addressing this challenge requires a multi-faceted approach that includes policy interventions, corporate commitment, and leadership development programs. UN GCNI’s Women’s Leadership Program seeks to drive systemic change by equipping women with the tools they need to thrive and by advocating for more inclusive corporate policies.

References

  • Avtar. (2024). “Women in the Workforce: Attrition and Advancement in Tech.” Economic Times. Retrieved from https://m.economictimes.com/jobs/mid-career/indias-five-big-it-firms-see-net-exit-of-25000-women-in-fy24/articleshow/110570669.cms
  • DDI. (2023). “The Importance of Mentorship in Leadership Progression.” Mentorink. Retrieved from https://www.mentorink.com/blog/mentoring-statistics/
  • FICCI. (2023). “Women in Pharmaceuticals & Healthcare Leadership.”
  • LinkedIn Workforce Report. (2023). “Career Breaks and Workforce Reintegration.” LinkedIn News. Retrieved from https://www.linkedin.com/news/story/career-breaks-6224516/
  • McKinsey & Company. (2023). “Women in Leadership: A Corporate Perspective.”
  • NASSCOM. (2024). “Women in Tech: Barriers and Opportunities.”
  • Prime Database. (2024). “Gender Diversity in NSE-Listed Firms.”
  • RBI. (2024). “Women in Finance Leadership.”
  • SEBI. (2024). “Boardroom Mandate for Gender Diversity.”
  • World Economic Forum. (2023). “The Business Case for Gender Diversity in Finance.”

To learn more about how your organization can participate in this initiative, reach out to ges@globalcompact.in