Women in the economy

My work consists of three parts. I will start with reasoning about the role of women in the economy at different stages of development of the society; will talk about what business woman differs from a man. In the second part I will report on women in economic decision-making in the EU and on specific initiatives to improve the gender balance in business leadership, offered by the EU. In the third part I will talk about two women economists, known worldwide, who are my influencers.
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Introduction
Woman – the new factor in economics.
Women in economic decision-making in the EU: Initiatives to promote gender balance in business leadership
Ursula Burns and Christine Lagarde - some of the most influential women in the economics
Conclusion

The question of the status of women and their role in the economy now is very topical. The leaders of all countries in the world are looking for ways to increase number of women employed in the economy. Themselves women have during the long years of fighting for freedom, equality and elimination of gender differences. Despite the fact that women's participation in the labor process continues to grow at the global level, existing gender inequality in relation to working conditions and remuneration increases in each country.

Women now earn 57 percent of bachelor degrees and 59 percent of master’s degrees. More doctorates are awarded to women than men in the humanities, social sciences, education, and life sciences and medicine. Women now serve as presidents of Harvard, MIT, Princeton, the University of Pennsylvania and other leading research universities. Their position in the corporate world has increased exponentially. «Women have always been dynamic no matter what field they choose to enter», says Nancy Koehn, a historian, author, and Harvard Business School professor. «But now we are seeing the fruit of their labors so to speak because their talents in various fields are too impressive to ignore». Yet even in 2012, women hoping to succeed in business are cautioned to «act like a man». No one has really explained what «acting like a man» means. The author writes that «If it means being aggressive in a take-no-prisoners push for success, then I have to say that this is not gender-specific. I know women as well as men who have that ability. I have seen women be just as tough as men when it comes to budgets, corporate takeovers, business dealings, military expertise, medical practices and complex financial matters». My personal opinion is that when it comes to succeeding in a chosen field, women excel. The only difference is that, besides being strong and decisive, women use positions of authority to create a supportive environment for all workers, something that can be sorely missing in male-only dominated positions of power. Being nurturing and supportive of your co-workers is actually a good attribute for leadership. Dr. John C. Maxwell, a leadership expert, says that the qualities of a charismatic leader combines love of life, valuing the potential in other people, giving hope in troubling situations and sharing their talents and their success in a positive way that benefits all. These are seen as "female qualities" but according to Dr. Maxwell, successful male leaders like Bill Gates and Steve Jobs incorporate these qualities as well.So if men and women seem to be pretty equal in many ways as far as intelligence, strength of convictions and the instinct to get ahead goes, is there one necessary thing women can learn from men? Yes, and it involves valuing your own talents to the point of making sure you get the salary and benefits you deserve. Women also need to learn the art of salary negotiation. A recent article in The New Yorker revealed that only 7 percent of women negotiate their salaries up front when entering a new position compared to 57 percent of men. Ask for more than you feel you will get; that's the art of negotiation, a give-and-take relay, something men are taught as little boys. Girls traditionally tend to be the peacemakers and will settle for less because they don't want to be perceived as greedy. Women are generally more motivated by the purpose or meaning of their work than men, who are typically more focused on compensation and job title. They are more risk averse and can make practical decisions for a company’s profitable goals. Women also are more comfortable with compromising and finding mutually beneficial consensus among executives and employees.Of course, women don't have to be «more like a man» to get ahead. If men are allowed to be curmudgeon without suffering serious consequences, while women aren’t, then even well-behaved men have a threat-point that women are denied. One of the most primal reasons to treat someone nicely is the fear of a mistreated person’s anger or revenge. That doesn’t work well for women, because getting angry either makes them look like a harridan, or look overly emotional—both of which carry a big penalty in lost status.All that a woman needs in order to achieve success in any field, not only in the economy is to be a woman of conviction and strength and have faith in your own abilities. «Be respectful of your own talents and demand respect for yourself. No one is more powerful than a person, man or woman, who has respect for themselves».Women in economic decision-making in the EU: Initiatives to promote gender balance in business leadershipAs I reported earlier, the gender imbalance is actual and serious problem of all countries of the world at the moment. Confirmation of my words can serve as The Europe 2020 Strategy, which was developed by representatives of the European Union in 2010. I'd like to tell you about the main purpose of this strategy, initiatives to address gender inequality, as well as results achieved so far in this area. This strategy is presented in the Progress report of the European Union, which I needed to learn. Section one of this report recalls the economic importance of gender diversity in corporate boardrooms. Section two provides a review of the current situation in terms of gender representation at the top level of major publicly listed companies across the EU and how it has changed over recent years. Section three gives a brief overview of recent important initiatives developed in Member States.Firstly, I will focus on the first part of the report and will inform about the main provisions set out in the introduction. In the introduction it is written that gender imbalance on corporate boards remains an important challenge for all EU Member States. It constitutes an untapped potential of skilled human resources, as evidenced by the discrepancy between the high number of female graduates and their underrepresentation in top-level positions. As women still face numerous barriers on the way to the top, this discrepancy can be seen as a waste of much highly-qualified and needed human resources.The Europe 2020 Strategy – the EU’s growth strategy – leans on knowledge, competences and innovation. Human capital is key for addressing the demographic challenges of falling birth rates and an ageing society. One of the ways to improve Europe’s competitiveness can be a more balanced representation of women and men in economic decision-making positions, which can contribute to a more productive and innovative working environment and overall improved company performance. There is a growing body of research showing the benefits of gender diversity and the positive correlation between women in leadership and business performance. Further, the report provides economic arguments in advantage of gender equality at the microeconomic level. For example, studies from various countries show that companies with a higher share of women at top levels deliver strong organizational and financial performance. A gender-balanced board is more likely to pay attention to managing and controlling risk. More women in management positions also can therefore provide a broader insight in economic behavior and consumers’ choices, leading to market share gains through the creation of products and services more respondent to consumers’ needs and preferences. The important argument is to improve the quality of decision-making. Diversity among employees and board members boosts creativity and innovation by adding complementary knowledge, skills and experience.In addition, the gender balance leads to better use of the talent pool. More than half of the students graduating from Europe’s universities are women. By not including them in decision-making positions, female talent would be underutilized and the quality of appointments may be compromised. So The European Commission and several Member States have set the importance of fast improving women’s presence in business leadership, in particular on corporate boards, high on the political agenda. A range of new initiatives have been undertaken at EU and national level by governments, EU social partners, individual businesses and other stakeholders in order to accelerate progress. These can be divided into two groups: legislative measures and voluntary initiatives, including corporate governance codes, charters, training, mentoring and networking programmers, as well as databases promoting female candidates. Voluntary measures have the advantage of greater flexibility and an improved sense of ownership for the companies that undertake such measures but they have not given a marked impetus to the improvement of gender balance on boards. The figures show that it is the legislative measures that result in substantial progress, especially if they are accompanied by sanctions.I would now like to talk about specific measures taken by the Member States and the industry. It is known that to increase gender diversity in boardrooms, an increasing number of Member States have resorted to legislative measures establishing quotas or targets for gender representation on company boards.There are quotas with sanctions and no sanctions. The first type of quotas contains strict requirements and rules. In this case a company that does not have a board that fulfills the statutory requirements may be dissolved by a court order. Quotas without the sanction set the rules, which are much softer, because they are not binding or tied to any significant sanctions. For example, Spanish legislation adopted in 2007 encourages large companies to alter the membership of their boards gradually until each sex makes up at least 40 % of board membership by 2015. The relevant provision is a recommendation. Across many EU Member States, a wide range of voluntary initiatives and tools have been developed to address the underrepresentation of women in senior leadership position. These include the setting of voluntary targets In the United Kingdom. The government appointed Lord Davies to lead a review into how obstacles can be removed for the participation of women on boards. In his report, he recommended that UK listed companies should aim for a minimum of 25 % female board member representation by 2015. The report said that companies should set targets for 2013 and 2015 to ensure that more talented women can get into the top jobs in UK companies.Popular tools are the Charters that companies can sign. In Denmark, the «Charter for more women in management» encourage companies to inspire more women to take up management positions and to evaluate their initiatives every second year. Moreover, since 2010, Denmark implements the «Recommendation for more women on boards» according to which the companies undertake to work to recruit more female managers to the boards of Danish companies.Some countries are asking state-owned companies to promote gender equality. In Finland, the government adopted in November 2011 a resolution outlining the objectives and principles for state ownership policy which pays attention to the composition of companies’ board and emphasizes the need to promote gender equality. Steps must be taken to ensure that people of both sexes have equal opportunities for promotion when senior management and executive appointments are made. Representatives of both sexes should be appointed, on an equal basis, to the bodies responsible for board nominations and remuneration. But for example in Australia, professional networks and leadership trainings are provided by the Federal Ministry of Economy, the Federation of Austrian Industries and the Austrian Federal Economic Chamber.In Sweden, the program «Board power» aims to increase the share of women as board members in enterprises or organizations by supporting the participating women in the development of the boards of the own companies and to build networks for women membership in external boards. The program includes board training, networking and mentorship. The participants are provided with a mentor for a year and they receive financing for a board training class of their own choice. The majority of the participating women have received an offer for a board position. In Austria, Belgium, Denmark, databases with female candidates for board functions have been set up in order to ensure the visibility of qualified women for these functions.There are numerous programs on the development of women's entrepreneurship that contribute to improving the participation of women in management in largest companies. In Sweden, the Government has commissioned the Swedish Agency for Economic and Regional Growth to implement and coordinate a national program focusing on women’s entrepreneurship from 2011-2014. Some Europe’s leading business schools have published a Call to Action designed to increase the number of women on company boards. The manifesto has four components: to play a significant role in identifying and promoting qualified senior female leadership; to inspire and enable women to choose professional and informal networks and mentoring; to increase the flow of women in business schools and to adapt the curriculum and focus more on capability building.Ursula Burns and Christine Lagarde - some of the most influential women in the economicsDespite the fact that gender inequality still exists today, a large number of influential women, involved in the economy, remained in world history.