Ariel Gerson
Pronouns: she/her
Research Mentor(s): Cindy Schipani
Research Mentor School/College/Department: Business Law / Business
Program:
Authors: Ariel Gerson, Cindy Schipani
Session: Session 7: 4:40 pm – 5:30 pm
Poster: 61
Abstract
Historically, women have been systematically underrepresented on corporate boards, and corporations have failed to look at qualified female candidates for board positions. To combat this inequality and promote gender diversity in the boardroom, in the United States, California took the first steps toward mandating gender diversity by passing SB 826, which requires a minimum of one woman director on public corporate boards headquartered in the state. The law is being litigated in the courts, but in the meantime, this study examines the efficacy, importance, and effects of gender requirements for female boards, especially California’s SB 826, through a combination of literature review and data analysis. Using data about the composition of company boards in California coupled with commentary about gender diversity laws, we concluded that: 1) SB 826 was successful at appointing more women to corporate boards; 2) new women appointees were similarly qualified as the women appointed before SB 826; 3) similar laws outside the U.S. have been implemented with some success; 4) opinions are mixed on the constitutionality and effectiveness of the law. These results suggest that SB 826 has allowed more qualified females to be a part of corporate boards; however, the unique circumstances of the United States may present certain challenges in implementing a gender mandate. Being that SB 826 is the first law of its kind in the country (i.e., the first law mandating a specific number of women to be included), such insight into this law ties into a larger discussion of advancing gender diversity in the United States and legal avenues to provide women more opportunities in organizational leadership.
