Japan pushing for more inclusive corporate leadership
It would appear that Japan has some way to go to improve gender diversity within corporate leadership, with only 68 out of 1,834 organisations listed on the Prime Market Index of the Tokyo Stock Exchange has reached the milestone of having 30% or more women represented on their boards.
The analysis from Nikkei Asia showed that only 3.7% of the Prime Market organisations have managed to surpass this threshold, a target advocated by the Japanese government for all top-listed organisations. While the figures remain modest, this represents an improvement from the 2.7% recorded in 2022.
This incremental advancement underscores efforts by the government to encourage Tokyo Stock Exchange-listed organisations to embrace gender diversity as a core principle. Earlier this year, official plans were unveiled, aligning with Japan’s broader objectives to address demographic challenges stemming from an ageing and shrinking population. The government has set a goal for top-tier Prime Market organisations to attain over 30% female board representation by 2030.
Japan’s persistent endeavour to diversify its corporate leadership structure is evident, with the country’s ongoing commitment to integrating more women into the workforce a response to demographic complexities. Yet, despite these efforts, the country faces challenges in achieving diversity objectives within its management tiers. This was highlighted in the World Economic Forum’s 2022 Global Gender Gap Report, ranking Japan at 116th out of 146 countries, reflecting a gap compared to its Group of Seven peers.
However, in reflecting the trend towards gender diversity, the proportion of Prim Market organisations with no female directors has decreased to 10.9% from 2022, reported The Japan Times.