Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Japan Inc seen struggling to boost female executive ranks - Reuters poll

Published 07/19/2023, 07:12 PM
Updated 07/19/2023, 07:16 PM
© Reuters.
UK100
-
JP225
-

By Sam Nussey and Anton Bridge

TOKYO (Reuters) - An overwhelming majority of Japanese firms think it would be difficult or impossible to fill at least 30% of executive positions with women by 2030, a Reuters poll showed.

The results underscore the challenge the world's third-largest economy faces to close its gender gap. Japanese Prime Minister Fumio Kishida set a target in June for women to hold at least 30% of executive positions at leading companies by 2030.

The latest initiative to raise female management participation was announced to boost female roles from 2.2% as of July 2022.

According to the poll, 60% of corporate managers said it would be difficult to hit such a target and 29% said it would be impossible.

The results reflect the lack of momentum in Japan towards enhancing the role of women in the workforce to improve diversity and boost economic growth.

This year Japan ranked 125th out of 146 countries in an annual World Economic Forum report measuring gender parity, down from 116th last year and below China, Saudi Arabia and Turkey.

Japan's biggest business lobby, Keidanren, launched a similar initiative in 2020. Respondents to a Reuters survey two years ago were also pessimistic of expanding their female executive ranks.

Overcoming Japan's male-oriented corporate culture remains a roadblock, the survey respondents said.

Although there are young women in positions with the prospect of promotion, there is a lingering impact from older hiring practices that tended to allocate general office work to women, said a manager at a chemical company.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

For others, the timeline to reach the 30% target would be too tight.

"It's an extremely short period in which to achieve the goal," said a manager at a construction firm.

More than half of companies polled said they have hired or plan to hire female managers externally, with 45% of companies introducing or planning to introduce measures to help juggle work and home life.

Other countries have pushed to enhance the role of women in business. For example, nearly 40% of board positions at companies on Britain's FTSE 100 index are occupied by women compared with 12.5% a decade earlier.

In contrast, women held 14.5% of board seats at Nikkei 225 companies in 2022.

On the overall business environment, corporate managers remained pessimistic with 74% saying conditions would be "not so good" or "bad" at the end of October. Additionally, 60% of companies said they were considering raising prices this year.

The survey, conducted for Reuters by Nikkei Research, canvassed around 500 large- and mid-size non-financial firms. About 250 firms answered the question on condition of female executives.

Click here for a more detailed breakdown of the poll result.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.