The GBB index: A proposal to measure the gender balance on company boards

Abstract

Gender balance on company boards is one of the core goals of greater social justice and gender equality in societies (Council of Europe, 2003). To this end, it is pivotal to adequately measure whether boards are balanced and close to parity. This research proposes a gender balance on boards (GBB) index to measure the balance between women and men on the boards of directors of firms. It varies between zero, when the board is homogenous with only women or only men, and one, when the board is totally balanced with 50% women and 50% men. It is designed so that it can be adapted according to the theoretical framework, and it can serve as a practical tool for measuring and monitoring the results and progress of the firm, industry, or context against the desired benchmark. The index can be used as a guide for policymakers, regulators, and other social actors including the media on the degree of uptake of actions required to improve governance practices. It provides simple, objective, and comparable data that can be used to raise awareness in society about progress towards a greater gender-balanced representation on corporate decision-making bodies.