“Injustice anywhere is a threat to justice everywhere.” Ruth Bader Ginsberg
In December 2023 in a report by the Australian Institute of Company Directors (AICD) and the Australian Council of Superannuation Investors (ACSI), a revealing contrast emerged within Australia’s corporate leadership concerning their readiness to tackle workplace sexual harassment and discrimination.
Despite a notable shift—85 per cent of ASX 300 directors now recognize the importance of addressing these issues, a significant jump from just 19 per cent two years prior—a mere 38.5 per cent felt fully prepared to do so. Among female directors, this confidence was even lower, with only 20 per cent feeling their boards were adequately versed in the responsibilities of positive duty, compared to 39 per cent of their male counterparts.
This lack of preparedness becomes even more pronounced against the backdrop of recent disclosures around Australia’s gender pay gaps. The enduring explanations attributing these gaps to ‘family choices‘, ‘uncontrollable’ forces at play, or explained by reminding us they’re an equal pay employer.
‘Equal pay for equal work’ has been the law for more than 50 years, so thank goodness it is less than 1 per cent in many of the gender pay gap statements I’ve reviewed that fail to grasp the broader implications of the Positive Duty (Sex Discrimination Act) legislation in force since December 2023.
The gender pay gap transcends mere financial disparity; it signals deeper issues of gender inequality in the workplace, closely intertwined with the primary catalysts of sexual harassment: power imbalances, insufficient understanding of harassment drivers, and a notable deficiency in commitment to diversity and inclusion.
The legislative requirement introduced on 12 December 2023 mandates a ‘positive duty’ on organizations, compelling them to actively eliminate discrimination, sexual harassment, and any conduct fostering a hostile work environment based on sex. This isn’t merely a legal obligation but a moral and human rights imperative to safeguard dignity and equality in the workplace.
For organisations grappling with a median gender pay gap exceeding 5 per cent (look out, next year WGEA is set to release the average gender pay gap, and in our experience, it can be significantly higher than the median), or there is less than 35 per cent female representation within any leadership team, the message is clear: these gaps are your warning system, warranting further investigation and satisfaction that discrimination in pay, performance evaluations, and promotion practices are addressed, and that exposures to abuse of power psychologically unsafe work practices are mitigated.
In essence, closing the gender pay gap and fulfilling the positive duty are not isolated or disparate initiatives but interconnected facets of the same fundamental objective: creating safe, equitable, and respectful workplaces. And directors can no longer be complacent and allow gender pay gaps to be mansplained away when the reputation of their organisation, not to mention their duties as a director, are at stake.
So while the law can be an ass, it’s also been a long term ally to the women’s movement. And so as I reflect on the evolution of women’s rights ahead of this year’s International Women’s Day, I’m not just hopeful, I’m confident that directors will now act swiftly to understand their legal and governance duties, and view the positive duty and the gender pay gap as evidence of the need to invest in women.
Counting Her In, of course, isn’t just about women – it’s the pathway to ensuring workplaces respect and value every employee, irrespective of gender.