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Europaudvalget 2011-12
EUU Alm.del Bilag 609
Offentligt

MINISTRY OF BUSINESS A N D GROWTH

DENMARK

IJill

Ministryof

GenderEqualityand

l / i l l

Ecclesiastical Affairs

LVIIJ

Ms VivianeReding

Vice-Presidentof the EuropeanCommission

Mr MichelBarnier

MemberofEuropeanCommission

Rue de la Loi,200

B-1049Bruxelles

Belgium

MINISTRY OF G E N D E R

EQUALITY AND E C C L E S I -

ASTICAL AFFAIRS

Frederiksholm« Kanal 21

DK-1220 KøbenhavnK

www.ligedk

Tal.:

+452268 8566

E-mail: kgaONge.dk

DearVice-President Redingand CommissionerBarnier

The Danish Governmentsharesthe concerns ofthe Commissionwith regard to

gender imbalance incorporate boards inthe European Union.Atthe moment

weare not makingoptimal use of the existingtalent pool ofcandidates and this

may impede the economic growth throughout the European Union and its

memberstates.

The Danish Government finds that measures should be flexible, respect the

rightofcompaniestoself-management andshouldavoid unnecessaryadminis-

trative burdens. Therefore the DanishGovernment does not support manda-

toryquotas forwomenoncompanyboards.

The DanishGovernmenthoweveragreeswiththe Commission'sstancethatac-

tions to improvethe gender balance incorporate boards are needed, and that

the efforts made sofarare notenough. Therefore,wewould liketoinformyou

that the DanishGovernment is currently preparing two proposals to amend

relevant legislationinorder to counteract this imbalanceinthe proportion of

women in boardrooms. The Government's legislativeproposal will primarily

encompass the 1,100 largest companies which among others includelisted

companies,state-owned companiesandcommercial foundations.

Thesecompanies will be requiredtoset targetfiguresofthe number oftheun-

der-represented gender in the corporate boards. Bygivingthe companies flexi-

bility to set their own target figures the model takes into account the differ-

ences between various industries and the characteristics of the individual

companies. Such an approach balances the promotion of gender equalityin

governing bodies with the respect for the right of companies to self-

management.

Hence,the principleofflexibility allowsforthe companiestoset ambitiousand

realistictargetfiguresthatreflects the broader contextofthe givenindustryas

well as the current conditionofthe company itself.This will in turn create a

senseof ownershiptothe process and motivatethe companiesto further focus

on balancedrecruitmentand other specific initiatives.

The companieswill havetoreport annuallyontheirtargetfiguresand progress

in theannual report which will be publiclyavailable.Thecompanies havetoin-

MINISTRY OF B U S I N E S S

A N D GROWTH

SlotshoJmegade 10-12

DK-1216 CopenhagenK

www.avm.dk

Tal.

+46 3302 33 50

E-mail: evmOevm.dk

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form - where appropriate - ofthe reasons for not meetingwith the set target

figures.The transparency will create an incentiveto be ambitious in setting

targetsandworkingtowardsthem.

The 1,100 companies will be required to formulate a policy to increase the

number ofthe under-represented gender when itcomes to executives ingen-

eral within the organisation.This will help to promote a more equal balance

and toincreasetherecruitmentbaseof candidatestocompanyboards.

Ifthe companiesdonot complywith the requirements ofsettingatarget figure

and establishpolicies,theywill bemetwith sanctions (fines).

State-owned companies and central government institutions must set target

figures and prepare a policyto increasetheshare of women inmanagement as

well. State-owned companies should seek an equal gender balance. However

therecanbereasons whyitisnotpossibletoachievethe goalset bylaw which

is whyitis a"should"andnot "shall"provision.Thereasonforhavingthisgoal

is simple:theStateshouldtake thelead.

This regulatoryapproach has alreadyprovenits meritsinthe broader context

of corporate social responsibility.Since2009 the same group of1,100 Danish

companieshas been obliged to report on their workwith CSR intheirannual

reports.Thisinitiativehas significantly heightened the focuson CSR amongthe

companiesand their willingness to incura social responsibility.Thekey prin-

ciplesbehindthissuccessare flexibility and transparency.

SeveralMemberStatesof the EuropeanUnion haveexpressed concernsabouta

"onefitsall-solution"duetothedetrimentaleffects forEuropeanbusinesses.

In this regard the Danish government would like to underlinethat a flexible

approach which can encompass the varietyofbusinesses isextremelyimpor-

tant in order not to interfere vigorously with the responsibility of corporate

boards.

The Danish Governmentfindsthat the outlinedprinciples can lead toequally

successful results ifapplied ininitiativestopromotegender diversitybothna-

tionallyandinthe EuropeanUnion.We hope the Danish modelcanbeofinspi-

ration,and wewould be pleased to givefurther detailsand discussthe matter

withthe Commission.

Ministeriet

for Ligestilling

ogKirke

S4e2

sø?-

ManuSareen

Ministerof GenderEquality

and Ecclesiastical Affairs

CC:TheEuropeanCommission

Yourssincerely

<'J

AÅA^

Ole Sohn

Minister of BusinessandGrowth