Japan is known for being one of the safest and most technologically advanced societies in the world. Yet it lags far behind the West when it comes to women’s participation in society and the business world. Among the Group of Seven countries, Japan has the lowest percentage of women in executive positions in major corporations — a dismal 10% compared to the 30%-plus achieved by other nations. France heads the list, with 40% of top-tier corporate jobs held by women.
In 2020, Keidanren (the Japan Business Federation) decided that something must be done to improve Japan’s gender balance, and announced that by 2030, the percentage will go up to 30.
The 30% baseline was an idea spawned in the U.K. in 2010. An organization called the 30% Club was launched by Dame Helena Morrissey as a call to increase the number of women in leadership positions at companies throughout the world. During the club’s inception, more than 1,000 board chairs and CEOs across 20-plus countries signed up as members and aimed to boost to at least 30% the female representation in both their boardrooms and executive positions. Today, the 30% Club spans six continents with chapters from Mexico to Australia.
The 30% Club Japan officially kicked off on May 1, 2019. Since then, the chapter has advanced by leaps and bounds. By 2023, the percentage of women in board member positions among the TOPIX 100 companies had almost doubled to 19.6%.
The Japan chapter operates on the belief that a healthy gender balance in the top ranks of a major corporation will lead to a much better corporate environment in the present and long-term sustainability in the future. The chapter is fully aware that for many Japanese companies, the endorsement of gender diversity and equality are priority goals and believes that the 30% Club Japan can aid their realization. Becoming an active member of the club will lead to more productive discussions, which in turn will lead to a more informed approach to bridging Japan’s gender gap.
Membership is not limited to the corporate sector. The Japan chapter operates through three different working groups and other groups. The first group, the President’s Committee, consists of Topix 100 companies and Mid 400 companies. The second is made up of institutional investors. The third consists of top-level universities.
The 30% Club Japan runs on volunteers, and all membership is free. For the first group, members are limited to CEOs of companies listed in the TOPIX 100 and Mid 400. For the second group, before becoming members, institutional investors are asked to sign a statement of intent that includes a passage saying, “Boards that genuinely embrace cognitive diversity, as manifested through appropriate gender representation and a broad spectrum of skills and experience, are more likely to achieve better outcomes for investors.” The third group operates by the slogan “from classroom to boardroom” and endorses a pipeline from university campuses to companies that seek a robust corporate culture through hiring and achieving gender diversity.
What the 30% Club Japan aims for, not just in Japan but worldwide, is to push forward the notion that gender diversity can, and will, make a genuinely positive change in the corporate environment. There is evidence in worldwide studies that says women are more likely than men to focus on emerging and urgent issues such as company culture and employee development — that the presence of women in leadership positions points to better corporate performance and the gaining of a more competitive edge in global markets.
Among other key findings, women are three times more likely to recommend ethnic diversity. Women are also 50% more inclined to raise performance on ESG (environmental, social and governance) issues as an area for improvement.
Hanneke Smits, global chair of the 30% Club, said: “The findings further confirm that a more gender-diverse group of board members will consider a greater variety of issues and ask a wider range of questions. There is evidence that female board directors place a greater priority on hiring diverse teams and therefore increasing access to a broader pool of skills and experience.”
In other words, women occupying top-tier positions in the business world bring something different to the table than their male counterparts. And in this rapidly changing era, “different” is what makes the business world go round. In Japan, there is certainly a lot to hope for from the 30% Club. As Smits said, “Against the backdrop of a challenging macro and geopolitical environment, it’s critical that companies harness the power of diverse talents at all levels of their organization to succeed.”
