JJoouurrnnaall ooff IInntteerrnnaattiioonnaall WWoommeenn''ss SSttuuddiieess Volume 13 Issue 1 Article 8 March 2012 PPrreesseenntt bbuutt AAbbsseenntt:: WWoommeenn iinn BBuussiinneessss LLeeaaddeerrsshhiipp iinn SSoouutthh AAffrriiccaa Catherine Ndinda Ufo Okeke-Uzodike Follow this and additional works at: https://vc.bridgew.edu/jiws Part of the Women's Studies Commons RReeccoommmmeennddeedd CCiittaattiioonn Ndinda, Catherine and Okeke-Uzodike, Ufo (2012). Present but Absent: Women in Business Leadership in South Africa. Journal of International Women's Studies, 13(1), 127-145. Available at: https://vc.bridgew.edu/jiws/vol13/iss1/8 This item is available as part of Virtual Commons, the open-access institutional repository of Bridgewater State University, Bridgewater, Massachusetts. This journal and its contents may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Authors share joint copyright with the JIWS. ©2022 Journal of International Women’s Studies. This journal and its contents may be used for research, teaching and private study purposes. Any substantial or Ndinda and Okeke-Uzodike: Women in Business Leadership in South Africa systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. ©2012 Journal of International Women’s Studies. Present but absent: women in business leadership in South Africa By Catherine Ndinda1 and Ufo Okeke-Uzodike2 Abstract Women constitute forty six (46) percent of the economically active population in South Africa. Although both South African, African men and women are well represented in the economically active population, questions arise when it comes to their presence and effective representation at higher decision-making levels. Indeed, while African men and White women are present, White men dominate in top management. Through a gender analysis of current data on the labour force, this paper examines women‟s representation in top decision-making for all employers (government and business) in South Africa. In discussing the trends, the paper highlights gender disparities in the advancement of women into top decision-making positions. The analysis further explores and identifies areas that need redress in bridging the gender divide in top management not only because of employment equity requirements, but also for the good business sense it makes to include women in leadership. The contribution of this paper lies in its identification of the barriers to women's advancement in business leadership and the recommendations for policy and practice both at the micro- (firm) and macro- (national-) levels. Keywords: Women, business leadership, South Africa Introduction South Africa is among the countries that boast having achieved about 45% women representation in political leadership (Potter, 2009). According to the World Economic Forum (WEF) that uses the Global Gender Gap Index (GGGI) to determine the scope and magnitude of gender inequalities South Africa is ranked 9th in the world in terms of political empowerment (WEF, 2010). The gender gap index measures gender- based inqualities in terms of key outcome variables relating to access to resources such as economic opportunities, education, health and political empowerment (WEF, 2010). While South Africa's overall GGGI ranking (12) is better than that of rich countries like USA (ranked 19) its performance in economic participation and opportunity is below average, and is worse than a country like Uganda (overall ranking is 33), which is ranked 42 in the gender gap index for economic participation and opportunity (WEF, 2010). The GGGI ranking of South Africa (at 55) on economic participation and opportunity is a reflection of gender inequality that exists in economic participation. In this paper the South African population is discussed in terms of the apartheid racial classifications of African, Coloured, Indian and White which have continued to be used by both government and business in the post-apartheid period in order to determine the rate of 1 Human Science Research Council, Pretoria and Research fellow of School of Politics University of KwaZulu-Natal 2 School of Politics, University of KwaZulu-Natal, Pietermaritzburg. Journal of International Women‟s Studies Vol. 13 #1 March 2012 127 Published by Virtual Commons - Bridgewater State University, 2012 1 Journal of International Women's Studies, Vol. 13, Iss. 1 [2012], Art. 8 social and economic transformation. The term black is used in the employment equity sense to denote African, Coloured and and Indians. The Commission for Employment Equity (CEE) data indicates that from 2000- 2006 the deficit in terms of the professionally qualified women in SA was -6.9% (CEE, 2007). However, a dissagregation of the data in terms of race suggests that, this deficit was caused by the absence of African women at the professional management level; their overall deficit was -13.3% (2000-2006) (CEE, 2007). No deficits were reported among other groups of females and instead there were increases (1.2% Coloureds, 1% Indians, 3.8% White). Such data was not presented in the 2008 -2010 report so further comparative analysis is difficult. In 2007 there was an overall increase of 3.7% in women's representation in top management and this increase was shared by women across the racial divide (CEE, 2008). Reporting on gender in South Africa is complex because the question that always arises is which women, given the entrenched racial inequalities rooted in apartheid policies which discriminated against and segregated South Africans in terms of their race. Whites were the most privileged and Africans most disadvantaged and the effects of the institutionalised apartheid racism persist in the post- apartheid period and manifest not only in terms of incomes and positions held in the workforce but also the level of expertise amongst different groups. Given the above context, this paper seeks to locate and situate women in corporate decision-making and to assess the implications that the current trends have for policy and practice in general. As such, this paper begins by setting the policy context for understanding women in management in general. It then proceeds to examine the current data on women in management, focusing on the national scenario. Before concluding we explore how different countries have addressed the barriers to women's advancement in management, drawing out the policy options and their implications for practice. This paper contributes to the debates on women in business leadership in Africa and South Africa in particular. While there is an abundance of scholarly and grey literature on women in political leadership in South Africa (Makoro, 2007; Phendla, 2008; Mogadime, Mentz, & Armstrong, 2010), there is a dearth of literature on women‟s participation in business leadership (Nkomo & Ngambi, 2009). Although the existing literature on women in leadership and business leadership (Msomi, 2006; Moorosi, 2010; Nkomo & Ngambi, 2009) in particular takes a feminist perspective, this paper employs the concept of intersectionality (Crenshaw, 1991) in locating women in business leadership in South Africa. The paper argues that to understand the position of women in leadership in South Africa it is important to explore gender and race concurrently because racism and sexism intersect in complex ways to reproduce either the subordination or the privileging of certain groups of women. Redressing women‟s absence in business leadership needs to be grounded in intersectionality, among other theoretical perspectives, for only then can we fully comprehend the multi-layered forms of domination and seek contextually relevant, dynamic and empowering solutions. Affirmative Action and Gender Equity in South Africa Since the transition to democracy in 1994 South Africa has developed a bulwark of legislation all underpinned by the Constitution (1996) that is reputedly among the most progressive in the world (RSA, 1996). Gender equality is enshrined in the South African constitution which, in subsection 9 (1) stipulates that “Everyone is equal before the law Journal of International Women‟s Studies Vol. 13 #1 March 2012 128 https://vc.bridgew.edu/jiws/vol13/iss1/8 2 Ndinda and Okeke-Uzodike: Women in Business Leadership in South Africa and has the right to equal protection and benefit of the law”. The Constitution not only enshrines equality but goes further to outlaw discrimination on any grounds imaginable in subsection 9 (3) : “The state may not unfairly discriminate directly or indirectly against anyone on one or more grounds, including race, gender, sex, sexual orientation, age disability, religion, conscience, belief, culture, language and birth”. Discrimination by entities or individuals is specifically prohibited in the constitution. In these sub-sections of the Constitution lies the basis for the argument postulated in this paper regarding gender equality and access to opportunities in top management and leadership in South Africa. The provision for equality in the Constitution is galvanised by a bulwark of sectoral policies which seek to ensure fairness and equality of opportunity for all. However, this paper focuses on labour policies in understanding the current trends in terms of women‟s representation in top management and leadership positions in the workplace. Policies and legislations such as Employment Equity Act (1997), Broad-based Black Economic Empowerment (2003), Basic Conditions of Employment (1997), and the Labour relations Act (1995) have been implemented. Affirmative action is legal in South Africa and it seeks to redress the past injustices wrought by colonialism and apartheid that discriminated against black people (Africans, Coloureds and Indians) and kept them in low wage occupations because of the colour of their skin. Affirmative Action in the workplace is informed by the Employment Equity Act (EEA, 1998). In addition to these policies, the Commission for Employment Equity (CEE) was created in the same period to monitor the implementation of affirmative action policies and transformation in the workplace in terms of race, gender and disability. According the CEE (2001:6), the EEA „was introduced against a background of extreme disparities in the distribution of labour market opportunities particularly in terms of race, gender and disability. The CEE notes that 'Most of the disparities in the workplace are a direct legacy of past discriminatory laws, particularly those laws that deliberately excluded black people, women and people with disabilities from key jobs, skills development opportunities and ownership of property. The disparities in this country‟s labour market are rather extreme and systemic. One of the key indicators of the disparities is labour market segregation particularly in terms of race, gender and disability' (DOL, 2001:6). Employment equity is not only about ethics but also social justice given the history of institutionalised racism and discriminiation against blacks. Apartheid racism and discrimination resulted in many productive people, mainly blacks and women being under-utilised. The passing of the EEA (1998) was meant to curb discriminatory practices based on race and gender in the appointment, promotion and retention of workers. Under apartheid, racial discrimination pervaded all spheres of life including the workplace. Beyond the apartheid legal framework, White privilege was further institutionalised through their superior education system and the freedom they were accorded in making career choices. Bantu education for Africans was meant to keep them in the lowest and most demeaning, menial jobs in the economy. In employment, Whites got first priority in terms of appointment and promotion to the exclusion of all others. Yet racial discrimination meant that Whites were most privileged and in areas such as the Cape, the Job Reservation Act (1926) meant that Coloureds got priority in employment over Africans. In KwaZulu-Natal Indians also got priority in appointment over Africans. Journal of International Women‟s Studies Vol. 13 #1 March 2012 129 Published by Virtual Commons - Bridgewater State University, 2012 3 Journal of International Women's Studies, Vol. 13, Iss. 1 [2012], Art. 8 Although all women were discriminated against relative to men of the same race in the workplace, White women had the choice to either work or not work. Black women did not have the freedom of choice; often, they either worked or their families starved. At the end of apartheid, White women were included in the designated category for prioritisation in terms of affirmative action due to their underrepresentation in the formal work environment. In essence then, the purpose of Employment Equity Act (1998) is to ensure that equity in the workplace is achieved through a range of measures such as 'a) promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and b) implementing affirmative action measures to redress disadvantages in employment experienced by designated groups in order to ensure their equitable representation in all occupational categories and levels in the workforce'. Herein, lies the crux of the discussion on women‟s status in the South Africa workforce. Section 15 of the EEA (1998) states that „Affirmative Action measures are measures designed to ensure that suitably qualified people from designated groups have equal employment opportunities and are equitably represented in all occupational categories and levels in the workforce of a designated employer”. The Employment Equity Act applies to all employers except the National Defence Force, National Intelligence Agency and the South Africa Secret Service. In implementing affirmative action, the EEA not only addresses the issue of equal opportunities but also stipulates that employers must be proactive in removing the barriers that stand in the way of designated groups accessing equal opportunities. Noting that it is not sufficient to simply appoint designated groups such as women, the policy goes further to note that employers must take measures to ensure the retention of those appointed from designated groups. While the intentions of the EEA policy are indeed noble and in support of the advancement of previously disadvantaged groups particularly women, the provisions of the Act are watered down by the inclusion of a clause in section 15 (3) „The measures referred to in sub-section (2) ( d) include preferential treatment and numerical goals but exclude quotas. Sub-section (2)(d) stipulates that subject to subsection (3), measures [ should be put in place] to (i) ensure the equitable representation of suitably qualified people from designated groups in all occupational categories and levels in the workforce; and (ii) retain and develop people from designated groups and to implement appropriate training measures, in terms of an Act of Parliament‟. Generally the EEA is useful as a tool for monitoring the transformation of the workplace in terms of race, gender and disability. The clause regarding the non-admissibility of quotas to ensure greater representation of the designated groups defeats the purpose of the EEA. Another piece of legislation useful in understanding the position of women in the workplace is the Basic Conditions of Employment Act (BCEA, 1997). The purpose of the BCEA is “to advance economic development and social justice by fulfilling the primary objects… a) to give effect to and regulate the right to fair labour practices….”. The BCEA, like the LRA, applies to all employees and employers except members of the National Defence Force, the National Intelligence Agency and the South African Secret Service and volunteers working for charitable organisations. The BCEA covers important aspects of work such as the regulation of working time, leave, employment and remuneration, termination of employment and variation of basic conditions of employment. All these aspects are supportive in terms of ensuring a conducive working environment. Employees are protected against discrimination and their rights are also Journal of International Women‟s Studies Vol. 13 #1 March 2012 130 https://vc.bridgew.edu/jiws/vol13/iss1/8 4 Ndinda and Okeke-Uzodike: Women in Business Leadership in South Africa protected. Yet the monitoring and enforcement of the conditions laid out in the BCEA are debatable as these depend on complaints lodged by workers against employers. Employers can contravene the conditions of employment for as long as no one lodges a case against them. One of the most useful legislations in terms of monitoring gender transformation is the Broad-Based Black Economic Empowerment (BBBEE, 2003) legislation. Generally the BBBEE aims to achieve the constitutional rights to equality and increase the participation of Black people in the South African economy, promote growth, job creation and equitable distribution of income. The policy also aims to promote the economic unity, equal opportunity and access to government services. The BBBEE seeks to ensure the meaningful participation of black people in the South African economy. Section 1 of the BBEEE Act specifically states that its focus is not only on ownership of business enterprises but also on management by including among its objectives, "achieving a substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises”. Key among the objectives in section 1 of the BBBEE legislation is "increasing the extent to which black women own and manage existing and new enterprises, and increasing their access to economic activities, infrastructure, and skills training”. Embedded in the BBBEE legislation is the concept of intersectionality that recognises that gender and race combine in complex ways to socially construct the marginalisation of Black women. In addition to the enabling legislating, a statutory body, the Commission for Gender Equality (CGE) was created in 1996 to monitor the rate of gender transformation in South Africa (RSA, 1996). While the performance of the CGE in meeting its mandate of monitoring the pace of gender transformation is subject to debate, the work of the department of labour in monitoring gender and employment seems to have generated much interest. The Department of Labour has consistently released annual data on the distribution of workers across different occupational categories in terms of race and gender. The annual release of the labour statistics is often followed by a flurry of debates ranging from those who agree with the statistics to those who disagree with everything reported (SRI, 2011). As such, debate rages, the impact of almost 300 years of racial discrimination persists and pervades every aspect of South African life. In particular, racial dimension of gender discrimination in South Africa cannot be ignored for to do so would be to deny that White privilege was institutionalised in South Africa until 1994. This paper discusses the findings of the Commission for Employment Equity (CEE) (CEE, 2010)3 on the workforce profile for all employers (government and business) in terms of race and gender. The paper focuses on business leadership on three levels: top management, senior management and the level of professionally qualified, experienced specialists, mid-management. The CEE is a statutory organisation established in terms of the EEA to advise the minister of Labour on the implementation of the EEA with regard to the Codes of Good Practice issued in terms of section 54 of the EEA. The CEE is also mandated to advise the Minister of Labour on policy and any other matters concerning the EEA (DOL, 2001). 3 This article was written before the release of the 2011 CEE Report. We however note that the under- representation of women noted in the 2010 report persists in the 2011 report. Journal of International Women‟s Studies Vol. 13 #1 March 2012 131 Published by Virtual Commons - Bridgewater State University, 2012 5 Journal of International Women's Studies, Vol. 13, Iss. 1 [2012], Art. 8 Women in Top-Management in South Africa for all employers Transformation in the workplace, in terms of race and gender, has since the transition to democracy become an area of interest in determining the success in dismantling the apartheid structures of oppression. The demographic profile of the country suggests that Africans comprise the majority followed by Whites (see table 1). Table 1: Employment by Race and Gender Black Coloured Indian/Asian White (percent) % (percent) ( %) (percent) % (percent) % Male Female Male Female Male Female Male Female Employed 41 28 55 43 65 40 73 59 Unemployed 20 24 15 16 9 9 3 4 Not economically active 34 45 24 38 23 48 19 33 Unspecified 2 2 2 2 2 2 2 2 Institutions 2 1 3 1 1 1 3 2 Total 100 100 100 100 100 100 100 100 Source: (http://www.statsonline.gov.za/news_archive/12March2008_1.asp An underlying, yet often unstated, assumption held in most societies is that the national demographics should be reflected in the population of the economically active population but given the abnormal past that South Africa has emerged from, this assumption does not hold true. The scenario is different as shown in the Table on the economically active population (Table 2). Table 2: Percentage of the economically active population by Race and Gender Male Female Total Race (%) (%) (%) African 39.2 34.2 73.4 Coloured 6.1 5.2 11.3 Indian 1.9 1.1 3 White 6.7 5.5 12.2 Total 54 46 100 Source: CEE 2010. The 10th Annual Report. Pretoria: Department of Labour A gender analysis of the South African workforce (Table 3) points to the dominance of White men in top management. The proportion of White men in top management is 3.8 times more than that of African men in the same position. African women are almost absent in top management as they comprise a mere 6.1% compared to White women (9.3%). Table 3: Top management by Race and Gender Male Female Total Race (%) (%) (%) Journal of International Women‟s Studies Vol. 13 #1 March 2012 132 https://vc.bridgew.edu/jiws/vol13/iss1/8 6 Ndinda and Okeke-Uzodike: Women in Business Leadership in South Africa African 14.2 6.1 20.3 Coloured 3.7 1.3 5 Indian 5.6 1.3 6.9 White 54.5 9.3 63.8 Foreign 3.5 0.4 4.0 Total 81.5 18.4 100 Source: CEE 2010. The 10th Annual Report. Pretoria: Department of Labour White men and women dominate in senior management (Table 4). The proportion of White women in senior positions is double that of African women who comprise a mere 6.5% in senior management. The percentage of White men is three times higher than that of African men and seven times higher than that of African women. Table 4: Senior Management Category by Race & Gender for all Employers Race Male(%) Female (%) Total (%) African 13.5 6.5 20 Coloured 4.3 2.1 6.4 Indian 6.6 2.5 9.1 White 46.3 15.6 61.9 Foreign 2.1 0.5 3.6 Total 72.8 27.2 100 Source: CEE 2010. The 10th Annual Report. Pretoria: Department of Labour At the professional level White men dominate but there is an almost equal distribution of African men, White women and African women. It is however notable that generally in each category of management from professional management to the top, the proportion of men is higher relative to that of women of the same race. Whites may dominate in top management, but there are more White men than women. Similarly, there might be few African men compared to White men in top management, but the percentage of African males is much higher than that of African females. Clearly then, strategies aimed at fast-tracking the advancement of women into senior and top management must bear in mind the diversity of women. The idea is to achieve proportional representation. Professionally Qualified, experienced specialists, mid-management In the category of professionally qualified, experienced specialists in middle management, the gap has not only narrowed between White males and African men but also between men and women generally across all the racial categories. Gender sensitive policies appear to be comparatively more relevant at this level as is evident in the minimal variance (0.5%) between African men and White women in middle management positions. The narrow gap between White women and African women is represented by the 0.3% variance in middle management. However, the variance between the proportion of African men in middle management and White women is minimal (0.8%). The gap between the representation of White women and African women is narrowing as shown by the 0.5% variance between the two social categories. African men, White women and Journal of International Women‟s Studies Vol. 13 #1 March 2012 133 Published by Virtual Commons - Bridgewater State University, 2012 7 Journal of International Women's Studies, Vol. 13, Iss. 1 [2012], Art. 8 African women are almost at par in the professional category. Although present and growing quickly at the professional, specialist level, African women remain largely absent (albeit growing) in the senior and top management levels. This points clearly not only to the continued presence of a glass ceiling but also the relevance of race as a barrier to women‟s advancement in business leadership. The data points to the malleability of the glass ceiling; some change is occurring albeit slowly. The legal instruments put in place for gender transformation are beginning to have effect. How then do we begin to understand the how race and gender intersect to determine African women‟s position in business leadership? This question is addressed in the discussion section with the concept of the glass escalator to explicate how gender might explain where women are located within business leadership. Yet alluding to gender alone does not fully account for the apparent meteoric rise of White women and the continued slow rise and sometimes stagnancy of African women in business leadership. The notion of intersectionality becomes useful in explaining how gender and race interact to construct the location of Black women in general and African women in particular, in business leadership in South Africa. Table 5: Professionally qualified specialists (mid-management) category by Race & Gender Race Male(%) Female (%) Total (%) African 16.8 16 32.8 Coloured 6.3 7.2 13.5 Indian 5 3.1 8.1 White 27.4 16.3 43.7 Foreign 1.3 0.5 1.8 Total 56.8 43.1 100 Source: CEE 2010. The 10th Annual Report. Pretoria: Department of Labour Discussion Although present at the professional, specialist level, African women remain largely absent in the senior and top management levels where White women have successfully found their place. This scenario then presents the presence of a glass ceiling for Black women in general and African women, in particular, and a glass escalator for White women (Williams, 1992). The presence of a glass ceiling needs to be broken for African women to advance to senior and top management in numbers proportional to their representation at the professional and skilled technical levels. The policy framework has largely contributed to the presence of African women in business leadership and indeed they are almost at par with White women at level of mid-management. Yet African women are stuck in mid-management hence the notion of the glass ceiling bearing hard on them. The data seems to suggest that race and gender interact in a complex way to determine African women‟s position in employment and it appears that beyond a certain level, invisible barriers exist which constrain their advancement. The concept of intersectionality, in feminist theory which, deconstructs how race and gender interact to determine Black women‟s employment outcomes, seems best to account for African women‟s concentration in the professional mid-management. Writing about race and rape Crenshaw postulates that race and gender interact in complex ways to make the Journal of International Women‟s Studies Vol. 13 #1 March 2012 134 https://vc.bridgew.edu/jiws/vol13/iss1/8 8 Ndinda and Okeke-Uzodike: Women in Business Leadership in South Africa experiences of White women qualitatively different from those of women of colour (Crenshaw, Mapping the Margins: Intersectionality, Identity Politics, and Violence Against Women of Colour, 1991). Similarly, race and gender in South African interact in complex ways to make the experiences of White women qualitatively different from those of African women in the workplace. Such difference is reflected in the rate of advancement of both groups of women in business leadership. The large percentage of African women at the professional and specialist category provides a pool from which they can be trained, appointed and promoted to take up positions in senior management. African women comprise 34.2 percent of the economically active population and that implies that the population of economically active African women is five times more than that of White men, 6.2 times more than Coloured women and 31 times more than Indian women. This numerical dominance of African women in the labour force has not translated into their representation in leadership. The representation of White women in top management (15.6 percent) is higher than that of African women and at senior management the percentage of White women is more than double that of African women (6.5 percent) and more than all black women combined (11 percent). Yet the representation of white women at the professional/specialist level is only 0.3 percent higher than that of African women (16 percent), and in fact lower than all black women combined (26.3 percent). Given that all black women comprise 40.5 percent of all the economically active population, they are grossly under-represented in leadership. The glaring absence of Black women in top and senior management positions and their abundant representation in the professional category points a a number of scenarios. First is that the critical mass of black women that occupy the professional category faces significant barriers in advancing to senior management and a harder glass ceiling in advancing to top management. Among black women as a group it the proportion of Indian women in top management (1.3 percent) women is high compared to their economically active population (1.1 percent). The percentage of coloured women in top management positions is the same as that of Indian women but lower than their proportion (5.2 percent) of the economically active population. The percentage of African women in top management positions (6.1 percent) is grossly below their economically active population (34.2 percent). How then do we begin to understand the glass ceiling that continues to bear hard on African women than other groups of women? A number of explanations have been advanced for male dominance in top management and leadership positions. Ng & Wiesner (2007:179) posit that the „social dominance perspective promotes inquality and legitimizes discrimination on the basis of gender, ethnic prejudice, cultural elitism, meritocracy, and other social systems'. The authors (Ng & Wiesner, 2007) argue that men appear to enjoy a 'structural advantage' that ensures that they occupy top positions even when they enter into female-dominated occupations, such as nursing and teaching. This 'structural advantage' is often lost in when employment equity in terms of gender is enforced. In the South African context, we argue that men regardless of race continue to enjoy the structural advantage. With the introduction of employment equity which prioritises Blacks (Africans, Coloureds and Indians), White women and people with disabilities, White women appear to be having a “structural advantage” over black women in general; they dominate in top (9.3 percent) and senior management positions (15.6 percent). Journal of International Women‟s Studies Vol. 13 #1 March 2012 135 Published by Virtual Commons - Bridgewater State University, 2012 9