From Tokenism-Driven Compliance to Value-Driven Governance: The Need for Gender Diversity in Indian Corporates

Abstract

A decade after the landmark mandate for at least one woman director on corporate boards, Indian corporate governance stands at a critical juncture. Regulatory interventions under Section 149 of the Companies Act, 2013, and SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations have successfully moved the needle on quantitative representation. However, a growing body of evidence reveals a pervasive “check-the-box” compliance mindset, where the appointment of a solitary woman director often serves as a token gesture rather than a step towards substantive inclusion. This research article argues that India’s journey from tokenism-driven compliance to genuine value-driven governance is imperative for sustainable corporate success. It analyses the current landscape, where despite near-universal compliance, women remain significantly underrepresented in influential roles such as board chairs, executive directors, and CEOs.

The article critiques the limitations of the current quota-based approach, highlighting issues like the concentration of appointments within promoter families, the “golden skirt” phenomenon, and persistent cultural biases that marginalize women’s voices in the boardroom. Drawing on, legal analysis, and comparative governance models, the paper makes a compelling business case for gender-diverse boards, linking them to enhanced financial performance, robust risk management, and superior stakeholder trust.

The conclusion presents a multi-stakeholder framework for action, urging regulators to move beyond binary mandates, companies to embrace strategic inclusion, and the ecosystem to build a robust pipeline of women leaders. The central thesis is that true governance value is unlocked not by mere presence, but by the authentic participation and influence of women in corporate decision-making.