Norway’s Companies Act: A 10-Year Look at Gender Equality

Abstract

This analysis assesses the amendment to Norway’s Companies Act, in light of the 10-year anniversary of the mandate of female representation on corporate boards. First, I discuss the implementation of the quota, Section 6-11a. Second, I compare three statistical studies that analyze the effects of the quota on corporate profitability, overall firm performance, and the changing dynamics of the managerial positions. Finally, I evaluate the various avenues to fully achieving diversity, such as the successes and failures of a quota-type system and possible initiatives that governments and companies can enact to achieve gender-balance in the workplace. While some hypothesize that the quota negatively affects overall firm capability and value, the statistical data on the effects of the legislation is not dispositive. Ultimately, it is in the best interest of corporations to learn from Norway’s example in implementing mandatory female representation, and to explore other avenues to achieving diversity. I. BACKGROUND ON NORWAY’S COMPANIES ACT “Power is not something that is given, it is something that you have to take.” 1 A Danish economist, Benja Stig-Fagerland, * Kristen Carroll received her J.D. cum laude with an International Law Certificate from Pace Law School in 2014. Upon graduation she was a recipient of the Adolf Homburger Humanitarian Award, and served as Editor-inChief of Pace International Law Review and Co-Chair of the Moot Court Honor Board in 2013-2014. 1 Nicola Clark, The Female Factor: Getting Women into Boardrooms, by