Is Australia's gender gap threatening economic progress?

MELBOURNE – Australia’s reputation as an equal opportunity leader came under question last month in a global gathering of thinkers at the Creative Innovation (ci2013) conference in Melbourne. Attracting a crowd of corporates, nonprofits, senior government executives, academics, small- to medium-sized business owners and entrepreneurs, the panel discussion on ethical leadership turned into a heated gender debate making it one of the most talked about topics on Twitter in Australia.
Although it was acknowledged that diversity went beyond gender issues, the panel speakers were clearly driving a women’s agenda in the session. “We won’t have ethical leadership in Australia until we have shared power,” declared Australian Sex Discrimination Commissioner Elizabeth Broderick, addressing over 600 delegates.
Australia claims to be a proponent of gender balance, however recent statistics reveal a major shortfall of women in leadership. According to the Australian Government's Workplace Gender Equality Agency, only 3 percent of Australian CEOs are female, a statistic that seems counterproductive considering studies show that companies with more women in leadership positions are more profitable.

The Australian Institute of Company Directors corroborate this under-representation, revealing that as of last month, only 16 percent of board positions were held by women in the ASX 200 (Australian stock exchange companies).
A 2012 study by the University of Singapore, reveals a more positive snapshot. It reported Australia, along with New Zealand and the Philippines, ranked among the top three for women’s economic opportunity in the Asia-Pacific Region. However, the Global Gender Gap Index shows Australia, once a leader worldwide, is falling behind. The country dropped eight places in the rankings between 2006 and 2011.
While the government debates the efficacy of quotas and targets, key groups in Australia are already taking an active role in reversing this trend.
It is puzzling why women's input have not been more broadly sought in government's top positions when studies have shown women to be of measurable benefit to business. A Reibey Institute 2010 study reported ASX 500 companies with female board representation outperformed companies without gender diversity by more than an 8 percent return on equity over five years.
This potential financial impact extends beyond corporations. Goldman Sachs, a global investment bank, revealed that closing the gender gap could boost Australia’s GDP by 11 percent.
The global context of women in leadership and its economic impact are two compelling reasons for reform in Australia.
“We need to break down the walls and silos which divide us and foster 'positive human collisions,'” Ci2013's producer Tania de Jong said, reflecting on the leadership discussions. “Ethical and visionary leadership in all spheres of business, community and society will enable the honesty and collaboration required to deal with the challenges of the future.”
This post was originally published on Smartplanet.com