Image credit: JobStreet.com
PETALING JAYA: Top industry leaders, including Khazanah Nasional Bhd’s chief, have urged Malaysian companies to step up the adoption of diversity, equity and inclusion (DEI) practices.
Boards of directors, in particular, have a key role in pushing for DEI across various job levels within respective companies.
Speaking during a virtual forum organised by The 30% Club Malaysia, Khazanah Nasional managing director Datuk Amirul Feisal Wan Zahir said DEI practices should not be seen as a “nice to have”.
“It is central to how an organisation should be. Diversity of thought is necessary for any type of business,” he said yesterday.
The forum was organised ahead of the International Women’s Day, to be celebrated today.
Interestingly, the forum is also organised about six days after Berjaya Corp Bhd, one of Malaysia’s biggest conglomerates, announced the formation of an all-female board of directors for the first time.
Amirul also mentioned that gender diversity should be practiced across various levels of management, and not just within the board.
“I have seen companies with more than 30% of women directors on their boards, but at the senior management level, there is only one or very few women,” he said.
He also highlighted the importance to respect and listen to the views of women directors, even if a company has already achieved the 30% female representation in its board.
“This is where the chairperson is important. They have to make sure that everyone’s views are respected,” said Amirul Feisal.
As at end-February 2023, women hold 29.4% board seats among top 100 public-listed companies (PLCs) and 21.9% of all PLCs on Bursa Malaysia, according to The 30% Club Malaysia.
However, it is noteworthy that a total of 159 companies on Bursa Malaysia have no women representation on their boards.
Bursa Malaysia requires all PLCs to have at least one female director on their boards by June 1, 2023.
Maybank Investment Banking Group chairperson Hasnita Hashim, who also spoke alongside Amirul, said the “tone from the top” is important in promoting DEI in an organisation.
“The board has an extremely important role to play because it has the power, access to resources and social responsibility.
“We have to be serious in improving workplace equity and take a serious look at the workforce and leadership.
“If necessary, leadership changes should be made to reflect the commitment to diversity and inclusion,” she said.
Hasnita also pointed out that companies in the top quartile for gender diversity among executives were 21% more likely to perform on profitability and 27% more likely to have superior value creation.
“Meanwhile, companies in the top quartile for ethnic and cultural diversity among executives were 33% more likely to have industry-leading profitability.
“This is according to a report by McKinsey,” she said.
Source: https://www.thestar.com.my/business/business-news/2023/03/08/msian-firms-urged-to-embrace-diversity