Failure to address disparity between genders could lead to various forms of societal and economic losses. We’ve been engaging with 26 of Asia’s most influential companies on this topic.
Gender and the risk to GDP
Gender disparity is a chronic problem in many Asian countries and a failure to address this issue could directly and indirectly lead to various forms of societal and economic losses. Not doing so means that half the population risks being systematically marginalised and excluded in the workplace. We discuss the socio-economic issues prevalent in these markets and explain how we have been engaging with companies at the board level. Our ambition is to make companies aware of related issues and help them understand how to improve gender inequality and reduce potential negative impacts on their businesses and the wider economy.
Societal and economic losses
Loss of productivity and human capital – despite being among the most economically advanced markets in the region, gender roles in Japan and Korea remain very clearly defined and deeply entrenched. In the World Economic Forum’s 2023 Global Gender Gap Index (June 2023), Japan ranks 126 out of 146 countries, ranking last among the most developed nations. South Korea has the worst gender pay gap1 among the OECD countries. Despite having one of the most accessible education systems in the region, gender biases still appear to limit the career paths that women pursue. Reports from Human Rights Watch2 highlighted that discrimination against women with children or married women of child-bearing age is still prevalent in the region. This discrimination risks wasting talent and can serve to discourage working women from having children. These in turn can lead to loss of productivity and harm societal generational contracts for pension systems or care work.
Demographic and economic crisis – a country needs a birth rate of at least 2.1 to ensure productivity and the stability of the population. Yet, that’s not the case for many developed countries particularly in Asia. According to the CIA’s The World FactBook (February 2024), four Asian countries/regions had the lowest estimated fertility rate globally in 2023: Hong Kong (1.23), Singapore (1.17), South Korea (1.11) and Taiwan (1.09). Low fertility rates in conjunction with an aging population create the risk of even greater long-term societal harm. Declines in production and innovation, stagnating economic growth together with increases in health expenditure and a pension crisis, are issues that we are seeing rear their head in Japan.
The causes of gender disparity
Culture norms – the traditional Confucian system influenced the formation of contemporary societies in the region, and against this backdrop, women are still expected to the be main caretakers for the family. While both men and women face mounting pressure from the cost of housing, elderly care and children’s education, women still predominantly bear the responsibility for household maintenance and caregiving in many advanced Asian economies. With limited infrastructure support, women tend to face greater pressure to give up their careers after having children. This has devastating impacts on workforce diversity and productivity.
Interested in learning more?
We discuss gender diversity as a chronic problem in many Asian countries. We have engaged with 26 of the most influential companies across Asia with all male boards to share our aspirations around board diversity.
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