1. Ministry of Trade and Industry A tool for regulatory transparency Case: Balanced gender representation on company boards Regional Capacity-Building Seminar on RIA Istanbul, Turkey, November 20 th 2007 Sjur Eigil Dahl

2. 2 The Case – Balanced gender representation on company boards Prepared over a long time Involves a number of Ministries Policy objective assessed in various stages Policy instruments analyzed

3. 3 Defining the problem General aspects: –Gender equality –Democracy Company boards are too homogeneous Necessity to make use of all human resources Imperfect utilization of expertise in the market Diversity stimulate competitiveness

4. 4 Company incentives Socially aware Right image Competitive advantage

5. 5 Government areas –Equality rights –Industrial economics –Socio-economic benefits –Company law

6. 6 Assessing proportionality Scope – which companies Transition Alternatives Policy instrument

7. 7 Transparency Policy outline Impact assessment Public hearing Policy meetings with business representatives Public arrangement concerning private sector

8. 8 Policy objective in 2003 Private sector –Applies to Public limited companies, PLC –Expecting voluntary compliance –Transitional period –Implementation put off for private sector Public owned companies –Applies from start 2004

9. 9 Simplification Number of persons on the board Gender representation 2 or 3Both sexes represented 4 or 5At least 2 of each 6 to 8At least 3 of each 9 At least 4 of each 10 or moreAt least 40%

10. 10 Enforcement No new mechanisms Using Company legislation rules regarding composition of the board Requirements enforced through the normal control routines Register of Business Enterprises will refused to register a company board not complying Non-compliance to requirement may be dissolved

11. 11 Monitoring up to 2005 Year Share of women on PLC boards 20038,5 % 200513,1 % Press release in July every year Names of non-compliant PLC made public

12. 12 Policy objective 2005 Implementation necessary New RIA Transition period started January 1 st 2006

13. 13 Monitoring up to 2007 Year Share of women on PLC boards 20038,5 % 200513,1 % 200621 % 200729,7

14. 14 Taking stock All PLC must comply by 2008 By October 2007 140 PLC do not fulfil the requirements By November 2007 79 PLC do not fulfil the requirements Minister: “Companies not complying in 2008 will be dissolved” Incentives in PLC’s are less strong than assumed

15. 15 Developing new method Two stage assessment 1.Investigating incentives  Finding strata of stakeholders  Picking at random a small number businesses  Interviewing  Analysing results 2.Confirm results  Survey in same strata  Survey in larger population

16. 16 Workshops with Government officials Offering workshop, containing: –Explaining the elements of the method –Participant prepare an investigation plan –Examining the project plan together Outcome –Governments official get kick start –Early intervention