Mirror of Justice

A blog dedicated to the development of Catholic legal theory.
Affiliated with the Program on Church, State & Society at Notre Dame Law School.

Saturday, November 11, 2006

Women on Corporate Boards: A Matter of Equity, not "Difference"

I find myself increasingly frustrated by the conversation about the Wellesley "study" regarding women on corporate boards. That "study" was worse than useless; it's silliness makes it difficult to take as seriously as we should the question of whether the presence of women on boards would make a difference to corporate governance. Why is the study silly? Let me count the ways: the sample size is absurdly small; it is a survey of opinion, rather than anything measurable; the survey has no clear idea of how a critical mass of women would make a difference; it also has no clear idea of what the difference between good governance and bad governance might be; so the opinions it elicits are incommensurable with each other let alone anything coherent or tangible. The fatuousness of the study makes it look like special interest pleading supported by pseudo-scientific data. This is unfortunate, because feminist legal scholars have raised interesting questions about whether corporate law, and our models of corporate governance, are gender determined in some pernicious ways. I will add, however, that some distinguished female corporate law scholars find this whole line of inquiry fruitless. I will leave that debate to others. It strikes me as more important to figure out how we can get more women into the boardroom as a matter of equity, not because we should assume that corporations will be run differently, let alone "better" if more of them were there. In any event, I actually have spent a lot of time as a member of corporate boards and the boards of SROs (such as the New York Stock Exchange and the NASD) in the financial/securities world. I have served with many female co-directors. One cannot generalize from personal experience, but I can testify that my experience with highly professional, accomplished and hard nosed female directors from that world is that they were absolutely no different in any respect from their male colleagues ijn the way they approached their responsibilities and in the types pf decisions they made and the issues they considered important. They weren't "men in dresses"; they were people who adhered to the same professional/business/fiduciary ethos as the men. I was also delighted to see in the recent Hewlett Packard imbroglios with first Carly Fiorina and then Patricia Dunn that they are also equally prone to the same temptations of power as us guys. I think it is very dangerous to fall into a kind of essentialism about what women are like -- and I know some feminists would agree with that -- and to assume that a "critical mass" of women would produce a particular type of "better" corporate governance. As I stated above, it is silly to even begin this discussion without a very clear idea of what "better" governance is, or to continue it without a plausible explanation of how women would be more likely to produce it than men.

-Mark

Women on Corporate Boards

Michael -- Thanks for sharing your colleague's comments on my post about the Wellesley study finding that the presence of three or more women on corporate boards enhances governance.  I haven't read more than the abstract of the study, either, and I agree that it doesn't sound like a particularly rigorous study.  I will freely admit that my deeply held belief that the presence of some critical mass of women in any group engaged in any sort of enterprise -- from organizing an academic conference to running a parish committee to conducting a book club to acting as an advisory panel for Thompson/West's Selected Commercial Statutes Supplement -- perceptibly changes the dynamic, the process, and the experience, is based on personal experience and anecdote.  Whether it has a measurable impact on the outcome or the success of the enterprise is a different question, and your colleague is probably right that this study doesn't prove that, one way or the other.  I can't help but think that it would, but I also think it would be impossible to test this proposition at this time, given the dearth of critical masses of women on corporate boards.

I can appreciate your colleague's frustration at the dearth of women with credentials usually associated with board members, such attaining positions as CEO's and CFO's of public companies.  Indeed, a couple of the articles posted under my name on the sidebar document the dearth of women in the upper echelons of the workplace generally, as well as in academia. 

Your colleague asks:  "Does a woman have a different take on issues of drug development than a man?  I can't see how - we do our research in limited areas - HIV and Hepatitis drugs, where gender doesn't seem to play a role."  Although I'm certainly not an expert on drug development, it seems to me that gender does play a significant role in choices about what sorts of drugs are developed and how they are marketed.  I'm not going to be able to point to specific cites, and I'm open to being proved to have been foolishly swayed by "urban myths" by MOJer's and readers who know more about this than I, but isn't there some controversy about basic drugs having different effects on women's body's than mens, and about the prevalence of female contraceptive drugs that are much more intrusive on women's body's than men's contraceptive drugs might need to be on theirs?  And isn't there significant concern about the spread of HIV among women in Africa and the marketing and sale of HIV drugs in Africa?  It seems to me there might be some significant gender issues involved in drug development.   Of course that doesn't establish that having a significant number of women on the board of a drug company might change the direction the company might take, or the eventual stock price of that company.

Finally, your colleague does suggest that "There may be companies where gender might matter.", speculating that "Consumer product companies where the market is largely composed of women is an obvious example.  There may be other companies faced with charges or complaints involving gender, such as discrimination, where women's insights could be valuable." 

I'd be curious to hear more about the particular difference in men's and women's perspectives that your colleague thinks might make a difference in those situations.  Are women swayed by different kinds of marketing or advertising than men?  Are women going to have different analysis of appropriate institutional reactions to certain charges and complaints than men, when faced with the same facts and the same legal schemes?  I think probably so, and I think that these insights and the different reactions flowing from those insights might be equally valuable in almost every corporation in almost every situation.  I'd be interested to hear more about why your colleague would limit the value of women's different insights to those two situations.

Lisa

Recommended Reading

A new essay by MOJ-friend, Greg Kalscheur, SJ.

       
Moral Limits on Morals Legislation:
Lessons for U.S. Constitutional Law
from the Declaration on Religious Freedom

GREGORY A. KALSCHEUR
Boston College - Law School
       
Boston College Law School Research Paper No. 111                  
Southern California Interdisciplinary Law Journal, Vol. 16, Fall 2006          
Abstract:    
A persistent American confusion regarding the proper relationship between law and morality is manifest in the opinions in Lawrence v. Texas. The Second Vatican Council's Declaration on Religious Freedom provides the foundation for an analytical framework that can bring clarity to that confusion. The heart of this framework is the moral concept of public order. This concept offers a principled explanation of both the holding in Lawrence and the limitations the Court placed on that holding. The Court could clarify the confusion manifest in Lawrence by explicitly acknowledging that a state interest only becomes legitimate for purposes of rational basis review when the asserted interest constitutes a public order concern. A constitutional jurisprudence that aspires to be faithful to the sort of limited government that is demanded by respect for human dignity should recognize that the state can only use law to restrain human freedom when that limitation serves a public order function.

To download/print/read, click here.

Urban Renewal's Final Implosion

Here is an article about New Haven's "Veterans Memorial Coliseum, which for the past three decades has occupied -- some say blighted -- a downtown block of this oft-maligned city, [and which] is expected to be demolished next month."

The coliseum's destruction will be a depressing coda for Urban Renewal, the controversial nationwide movement that reshaped dozens of American cities from the late 1940s through the 1970s, claiming large swaths of rundown neighborhoods for huge government public works projects. Its foremost laboratory was New Haven, where officials spent $745 per resident on urban renewal projects from the 1940s through the late '60s, more than twice as much as the next most ambitious city (Newark, $277). The coliseum was the showpiece.

Urban renewal spread quickly after a 1949 housing act authorized and partly funded the taking of private land by eminent domain. Flush with federal money, states and cities rushed to adopt the model perfected by Robert Moses, a mid-20th-century power broker responsible for most of New York City's modern infrastructure of bridges and tunnels, parkways and highways. His imitators around the country seized entire neighborhoods, bulldozed them flat, and constructed new roads and grandiose civic buildings.

I'm sure my thinking on these matters is shaped (or distorted) by my reading of, and admiration for, Jane Jacobs.  But, much of the "urban renewal" discussed in the piece, and for which Moses and his ilk were responsible, seems -- hindsight being 20-20, perhaps -- disastrously misguided.  What are the lessons for today's urban planners, particularly the "urbanists" and neo-traditionalists?

"Freedom from Religion"

In the case of Savanna Club Worship Service, Inc. v. Savanna Club Homeowners' Ass'n, Inc., 2005 U.S. Dist. LEXIS 43775 (S.D. Fla. 2005), a homeowners' association adopted a rule prohibiting any religious services in the subdivision's common areas, responding to complaints about the use of the club house by a group of association members for a worship services.  The religious "club" alleged a violation of the Fair Housing Act's prohibition on religious discrimination.  The court rejected the claim in the following sentences:

The club has a large membership and has impeded the rights of other members in their enjoyment of their facilities.  The right to religious freedom must encompass the right to be free from religion.  In this case, the Associations' member voted 714-434 to prohibit religious services in their common areas.

I'm not sure about the second sentence.  Yes, I take it that religious-freedom-under-law should include legal protection from state-sponsored burdens on religious conscience (i.e., "freedom from religion").  But it seems very different to suggest that "religious freedom" includes the right not to be exposed or bothered by other private citizens' (peaceable) religious expression and activities.

Brownstein & Amar on the Future of the Religion Clauses

Professors Alan Brownstein and Vik Amar have posted a two-part essay on what we might expect in the future -- i.e., from the Roberts Court, after O'Connor -- in terms of Religion Clauses doctrine, particularly the doctrine dealing with religious messages that are sponsored by the government or that are expressed in public forums.  Brownstein and Amar are always thoughtful, and worth reading.

2004 redux, and a reminder

A few recent posts have referenced the debates, on MOJ and elsewhere, that went on during the lead-up to the 2004 presidential contest between John Kerry and George W. Bush.  For newer MOJ readers, some context might be helpful:

Here is Notre Dame's Dean Mark Roche's New York Times op-ed, "Voting Our Conscience, Not Our Religion."  He wrote, among other things, that:

History will judge our society's support of abortion in much the same way we view earlier generations' support of torture and slavery - it will be universally condemned. The moral condemnation of abortion, however, need not lead to the conclusion that criminal prosecution is the best way to limit the number of abortions. Those who view abortion as the most significant issue in this campaign may well want to supplement their abstract desire for moral rectitude with a more realistic focus on how best to ensure that fewer abortions take place.

Professors Robert George and Gerard Bradley responded with this essay, "Not in Good Conscience," in National Review.  George and Bradley criticized what they called Dean Roche's "shoddy logic," and contested his claim that what were asserted or presumed to be John Kerry's positions on the death penalty, health care, and the war in Iraq should lead Catholics to support Kerry over Bush, notwithstanding Kerry's positions on abortion and embryonic-stem-cell research.  Responding to Dean Roche's suggestion that Catholics inclined to vote for Bush "supplement their abstract desire for moral rectitude with a more realistic focus on how best to ensure that fewer abortions take place," George and Bradley responded:

[W]ould [Roche] have said the same thing about efforts to ban slavery? Would he have lectured those who sought to ban it about "their abstract desire for moral rectitude"? Would he have proposed economic policies to reduce the market demand for slaves, as some opponents of abolition suggested, rather than supporting the party that promised to extend to all human beings — regardless of race — the equal protection of the law? Somehow we doubt that he would have regarded the cause of abolition as a mere "abstract desire for moral rectitude."

My Notre Dame colleague, Professor Cathy Kaveny, responded to the George & Bradley piece with this essay -- which is referenced in her recent post responding to Michael Scaperlanda -- and also here.  Professor Kaveny objected to the rhetoric and arguments of those she identified as "Rambo Catholics," i.e., "those Catholics who are
trying to bully their fellow brothers and sisters in faith into voting for a second Bush term" and "who tell their co-religionists, that no pro-life Catholic can vote in good conscience for Kerry--i.e., without committing a serious sin."  In Professor Kaveny's view,

[T]he culture of death v. the culture of life rhetoric is prophetic [i.e., as opposed to "practical moral reasoning or casuistry"] in the way it functions in our moral discourse.  It has real destructive consequences for our common conversation, even if those who deploy it do so for a constructive end.  Once someone tells you you're part of the culture of death, or voting for the contemporary equivalent of Nazis, or slaveowners, there's just nowhere for the conversation to go.

For what it's worth, I thought Dean Roche's arguments in his New York Times op-ed were not persuasive.  That said, it seems worth coming back to what I said, a few days ago, was the animating commitment behind Mirror of Justice:

Mirror of Justice is a public conversation among friends / lawyers / scholars about what the Faith means for "legal theory."  And, it is a conversation among people who disagree strongly about many things and who might -- this side of Heaven -- understand the Faith differently.  We have never promised that all of our posts will be sensible, let alone orthodox.  But, I hope readers know, we are doing our best.  No matter how misguided I have thought some of my fellow bloggers' views and conclusions were, I have believed from the beginning of this enterprise that the conversation was worth having -- and worth having in public -- if only to "model" for students and fellow citizens what good-faith searching-in-community might look like.  (This is not to say, of course, that all views are equally correct, or to pretend it does not matter whether or not we get it right.)

Friday, November 10, 2006

Undertow

Lonergan advanced the metaphor of the "double undertow" to describe the obstacle faced by persons who seek to do good in a (significantly) defective culture.  Having grown up on the shores of the Pacific, I know the force of the aquatic undertow.  Living in this culture, I recall Lonergan's suggestion that reversals of the cultural undertow may come to pass thanks to irony, satire, humor, or other modest-but-powerful means.  Prophecy always needs to be tested.  "Reason" always needs to be purified, as the Holy Father reminds us.  The more shocking the prevailing culture, including its capture of "reason," the more needful will be means tightly calibrated to correct the mistakes at their points of entry.  A corrective that is helpful today, in my judgment, is the Catholic insight that we live under law -- not mere "practical reason."  Yes, we discover, implement, and give specification to that law through and thanks to "practical reason."  And yes, that requires casuistry.  The dilemma between "prophecy" and "practical reason," though helpful to a point, may be false.   

A Message from Cathy Kaveny, Prompted by Michael Scaperlanda's Post

[Michael S's post here.  Now, Cathy's message:]

Dear Michael,

I heard you posted my Commonweal blog contribution on Mirror of Justice, and I just learned of Michael Scaperlanda’s quite negative reaction to it.  And I wanted to take a minute to respond to him.  He is quite right to point out that my response to Robby George and Gerry Bradley two years ago was heated.   I was hurt and angered by their response to Dean Roche'’s op-ed, which strongly implied that Roche, and by implication, other hold-your-nose -and-vote-for-Kerry types ­like me, were either stupid ­ dupes of the NY Times, or else in bad faith about being pro-life.   Remember, at the time, prominent conservative Catholics were saying that it was a mortal sin to vote for Kerry-- a sin, if done with full consent of the will and sufficient reflection, would deprive one of eternity with God.  It saddens me that Catholics like Professor Scaperlanda can't see how deeply hurtful this way of framing the debate is to their fellow believers. I thought then, and continue to think now, that the rhetorical strategy Bradley and George used was not a helpful way to conduct a discussion of complicated issues involving prudential judgment. It shuts down conversation, it doesn’'t open it up. Professor Scaperlanda suggests that I continued the tone in protesting it.  Perhaps.  But then, I didn'’t know ­ and still don'’t know -- how one can effectively protest what one believes is an attack on one'’s fundamental integrity as a Catholic.

I took this dust-up very seriously, though.  After the election, I started to think more systematically, and academically, about how moral conversation should take place;  ­ more specifically, I started to think about the relationship of rhetoric and morality.  I came to recognize that there were two types of moral discourse dominating the religious discourse around the 204 election: 1) practical reason or casuistry and 2) prophetic discourse.  I looked at these issues in light of abortion and torture in the 2004 election, and examined when and how both the religious right and the religious left employed both rhetorical forms.  I came to the conclusion that 1) practical moral reasoning or casuistry is our normal form of discourse; 2) prophetic discourse rightly comes in when the conditions for the possibility of  sound moral discourse have broken down.  But it has its dangers.  Prophecy is best viewed as a moral chemotherapy.  It aims at destroying a cancer within the moral conversation, in order to reconstruct on a sound basis.  But like actual chemotherapy, sometimes it destroys too much good along with the bad and ends up seriously harming the polity it purports to be saving. The full-blown 80 page analysis (Latin footnotes and all) is in “Prophecy and Casuistry: Abortion, Torture, and Moral Reasoning,” Villanova Law Review, 2006.  I hope to turn it into a book.

My bottom -line position, right now is this: the culture of death v. the culture of life rhetoric is prophetic in the way it functions in our moral discourse.  It has real destructive consequences for our common conversation, even if those who deploy it do so for a constructive end.  Once someone tells you you’re part of the culture of death, or voting for the contemporary equivalent of Nazis, or slaveowners, there’s just nowhere for the conversation to go.

My take on the 2006 election:  Most Americans now believe the country needs a reasonable conversation; they want practical reason, not prophecy. The culture wars rhetoric has to fade into the background for that conversation to occur.

Best,

Cathy

Response to a Post by Lisa Schiltz

I shared with a colleague Lisa's post titled  "Support for Complementarity" (here).  I thought that my colleague's response would be of interest:

About the Wellesley College study on the impact of women on corporate boards.  I couldn't get web access to the study itself, only to the abstract of the study.  The abstract doesn't tell me much about the methodology of the study. I do know that of 62 persons interviewed, 50 were women directors who, not surprisingly, tell us that having lots of women on boards is a good thing for corporations.  Why only 12 CEOs?  How many of them were women?  Is bias possible here?

The next problem with the methodology is the interview format.  Economists care more about what behavior reveals than what people say, and thus are always suspicious of survey results.  In this particular area of corporate governance, the question that is usually asked about various practices that have been studied is "do they improve corporate performance, as evidenced in stock prices?"  There are studies that demonstrate that even long term anticipated benefits, such as from research, are reflected in current stock prices. There is no suggestion in this blog or the abstract of any such rigor in this study.

I serve on the Nomination and Governance Committee of [name deleted], which I currently chair.  (We have one woman on our board, a representative of a venture capital firm that is an investor.)  We have been looking for new directors, using both the contacts of our current board members and a search firm.  Very few women have shown up in the pool, and their experience has generally been more limited than that of the men, many of whom have served as CEOs and COOs of public companies.  The limited number of women CEOs and COOs thus explains the thin pool of women candidates, as far as I can tell.

One response to this problem might be - why not think outside the box, and pick candidates with other kinds of experiences?  On our board, I'm an example of such a pick - an academic.  One of the problems is that I add value only in certain limited areas to the board's deliberations.  I don't understand science, and I have no experience in the drug industry. Here I learn from and rely on others, which is proper.  But how many such semi-ignorant board members do we need?  Does a woman have a different take on issues of drug development than a man?  I can't see how - we do our research in limited areas - HIV and Hepatitis drugs, where gender doesn't seem to play a role.  Has the company hired women for responsible positions? Two of our vice presidents (regulatory affairs and alliance and project management) are women.  We have one Hispanic vice president. What we look for are the smartest and most experienced people we can attract, because the united goal of the board is to (1) find the financing to allow us to develop and test our present and future drugs, (2) get them through the clinical process to FDA approval, and (3) then get them into the market where they can save lives and earn a return for our investors, some of whom have been stockholders for eight years without any return at all.  This kind of patience is what it takes in the drug  development business.  I can't see how gender makes a difference here.

There may be companies where gender might matter.  Consumer product companies where the market is largely composed of women is an obvious example.  There may be other companies faced with charges or complaints involving gender, such as discrimination, where women's insights could be valuable.  But proving that would require a focused empirical study, not simple assertions or anecdotal observations.