The number of women in the company's board of directors and senior management in Turkey is far below the world average. To improve this, a range of policy actions are needed, such as better regulation, reporting, incentives and supportive policies.
In the closing session of the workshop organized under the leadership of the European Bank for Reconstruction and Development (EBRD) and hosted by the Union of Chambers and Commodity Exchanges, business world organizations, regulators, relevant ministries and academics came together in Istanbul recently. Turkey (TOBB). Participants were there to review the regulatory framework for women's representation on the boards and senior management of Turkish companies and propose regulatory reform to align the numbers with local context and international best practices.
The workshop is the first implementation activity under the relevant roadmap developed in 2021 with the help of the EBRD and approved by a multi-stakeholder Steering Group.
The discussions highlighted the persistent underrepresentation of women in institutional decision-making in Turkey, well below the OECD average of 33,2 percent. Only 475 percent of the members of the board of directors of 17,5 companies traded on the Turkish stock exchange Borsa Istanbul are women, and 158 companies listed on the stock exchange are managed by all male boards of directors. There are no female members on the board of directors of 100 of Borsa İstanbul's 21 largest companies. Only 3 percent of listed companies have a female CEO.
EBRD Vice President for Turkey Şule Kılıç emphasized that gender equality is one of the Bank's main priorities: “We are committed to an inclusive future in Turkey. We work closely with our partners and customers to promote the economic participation of women and their equal representation, especially in leadership positions.”
He emphasized that economies are frequently tested against global shocks and that it is important to make sound decisions in overcoming crises.
“Without diverse and inclusive leadership, effective decision-making cannot exist. We believe that harnessing the enormous potential of women as business leaders makes businesses more resilient, innovative, environmentally responsible and better at serving their consumers. We support enhanced diversity at the board and senior management level. The figures unequivocally prove that Turkish companies need to improve themselves in this regard.”
Various areas for regulatory improvement were identified by the participants, including mandatory targets for more advanced segments of the capital market, changes in the reporting regime, incentives and enforcement measures.
The core tenet of the workshop was that dialogue between the private sector, regulators and other policy makers is an integral part of designing legislative and regulatory tools that encourage women's participation in economic decision-making and foster inclusive leadership.
Participants also highlighted the recently approved Council of Europe directive, which stipulates that by 2026, at least 40 percent of non-executive managerial positions in listed companies from European Union member states will be held by members of the underrepresented gender.
However, it was noted that regulatory tools are only part of an effective environment and companies need to adopt better nomination policies, training, mentoring and support mechanisms that strengthen gender equality at all levels and attract and retain female talent. Financial institutions were also encouraged to provide incentives to companies where gender equality was promoted and acted as a priority.
TOBB Board Member Cengiz Günay said, “As TOBB, we are happy to host this project, which aims to increase the representation of women on company boards of directors.”
We have been working intensively since 2007 to increase women's participation in business life and strengthen their position in society. We lead many projects in 81 provinces of Turkey in cooperation with national and international stakeholders. Increasing women's employment and women's representation in decision-making mechanisms are the main priorities of our TOBB Women Entrepreneur Boards. We aim to increase the visibility of women entrepreneurs in the country and we take this goal very seriously.
“We approach the recommendations of this workshop very comprehensively. I would like to thank the EBRD for making this important case visible and providing financial support. I would also like to thank Arvid Tuerkner, EBRD's General Manager for Turkey, and all EBRD employees.”
The workshop was attended by Sabancı University Corporate Governance Forum Founding Director Prof. Dr. It was directed by Melsa Ararat. Participants from the Ministry of Family and Social Services, the Ministry of Treasury and Finance, the Ministry of Labor and Social Security, the Ministry of National Education, the Ministry of Trade, the Strategy and Budget Department. Other participants included members of finance and business associations such as the Banks Association of Turkey, the Turkish Industrialists' and Businessmen's Association, TOBB, the Banking Regulation and Supervision Agency and the Turkish Capital Markets Board.
The EBRD is Turkey's leading institutional investor, with approximately €390 billion invested in 17 projects. The Bank supports companies through dedicated financing and technical advisory services to increase the share of women in their operations, in line with the EBRD's Strategy to Promote Gender Equality (SPGE) 2021-25. In 2022, the EBRD worked with more than 20 clients to adopt new institutional practices that strengthen women's empowerment and economic participation in Turkey.
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