Increasing Women on Nissan's Board: A Diversity Plan

Introduction: The Case for Gender Equity at Nissan

Traditional glass ceilings that have long limited women's access to leadership positions are shattering around the world, and a growing number of multinational corporations have reached the same conclusion: gender equity in corporate boardrooms translates into improved organizational performance and productivity. A growing body of scholarship confirms that gender equity in the corporate boardroom can yield numerous other benefits for companies of all sizes and types, a conclusion that top leadership teams across virtually all industries and cultural settings have likewise embraced. There remains, however, a profound lack of progress in achieving this outcome in far too many multinational corporations, due in large part to the time required to accumulate the requisite experience in historically male-dominated industries — such as the automotive industry in which Nissan Motor Co., Ltd. currently competes.

The purpose of this plan is to provide upper management and board members of Nissan Motor Co., Ltd. (hereinafter alternatively "Nissan" or "the company") with the information and guidance they need to facilitate an increase in the number of women on the board and to shift perspectives about the value of such membership to the company's present and future success. Although the company has made some modest progress in this regard in recent years, far greater emphasis must be placed on achieving gender equity in Nissan's board of directors in order for aspiring female candidates to even have the opportunity for consideration.

The results of a study by Orbach (2017) identified numerous constraints that many women typically encounter in their efforts to break through a seemingly solid glass ceiling, including "low representation of women in traditional pipelines to board seats, lack of flexibility in the workplace, male-driven work cultures, and disproportionate mentorship and sponsorship opportunities" (p. 203). Unfortunately, all of these constraints remain applicable, in varying degrees, to Nissan's corporate culture and executive recruiting practices — issues that form the basis for this plan's focus.

The plan first establishes relevant goals and a timeline to achieve them, followed by a description of the roles of change agents selected to champion this initiative and the manner in which change efforts will be communicated throughout the process. The plan also presents a discussion of the pros and cons of selecting an internal woman manager for board membership, followed by a description of the various factors that will be incorporated into the change plan to facilitate the mentoring of the company's women managers and their recommendation for board membership elsewhere.

Goals, Timeline, and Change Agent Roles

The goal of this plan is to increase gender diversity in Nissan's upper management and representation on its board of directors by 10% each year until gender equity is achieved or exceeded — a goal that was established as early as 2004 by Nissan's former chief executive officer (Another 10%, 2017). Moreover, notwithstanding the significant boost to the company's global brand and reputation, there is growing recognition among the company's current top leadership that achieving this goal is in Nissan's best financial interests. As Kline (2015) explains, "Firms with higher [female] board representation not only generate higher returns for investors, they tend to have stronger corporate governance and ethics practices, a better feel for consumer preferences and are more likely to consider sustainability factors when setting corporate strategy and making business decisions" (p. 2).

Research to date also indicates that increased gender diversity on boards of directors can produce other benefits that are not readily quantifiable but that nonetheless contribute to organizational performance and productivity (Gong et al., 2021). Achieving gender equity in the company's boardroom can also strengthen Nissan's overall financial success. As Orbach (2017) notes, "A balanced boardroom with more women's perspectives will lead to an improved understanding of a company's stakeholders and its customers' needs. Increased diversity can also enhance a board's ability to meet its fiduciary duties" (p. 203). In sum, increasing gender diversity on Nissan's board of directors is not a mere exercise in corporate greenwashing but is rather a mandated, evidence-based initiative that stands to benefit the company in multiple ways.

Based on the current representation of just two female board members out of 12 total, this goal can be achieved within a four-year period, assuming that the plan and its instructions are followed as set forth herein.

The general roles of the change agent tasked with overseeing this process will include the following:

Change agents for the plan will be selected primarily based on their past experience in serving in this capacity, thereby limiting the amount of specialized training they will require to implement and administer the plan. These individuals will be periodically interviewed to determine whether they feel they require any additional specialized training to become more effective in achieving the plan's goals. Should such a need be identified, training can be provided in-house if the expertise exists, or outsourced to a competent third-party provider.

Communicating the Change Initiative

The company should build on its global reputation for integrity and reliability by publicizing the initiative throughout the organization as well as to the broader global public. The change initiative for increasing female representation on the company's board of directors will be communicated throughout the company during its operation using several methods, including Nissan's monthly newsletter sent to all employees (Nissan News, 2022). This strategy is not only highly cost-effective; it will also serve as a motivational tool that can encourage other management-minded women at Nissan to follow suit. As Kline (2015) emphasizes, "When women are added to a board, female employees at that company notice" (p. 3).

In addition, the change initiative will be communicated through the company's social media platforms as well as through press releases distributed to mainstream and specialty media sources. These corporate communications will specifically highlight women's rights and the automotive industry, updating the general public — and the company's target market in particular — on the goals of the plan and its overarching purpose of increasing gender diversity on the board of directors today and in the future.

Conclusion: Top-Down Commitment and Long-Term Benefits

It is important to note that continuing and visible support of this plan is absolutely essential to achieving its intended outcomes, because effecting lasting, meaningful, organization-wide change will require more than just change agents championing the cause. When Nissan's 130,000-plus employees and the global public see that the company is fully committed to achieving gender equity in its leadership ranks through this level of top-down support, enthusiasm and motivation will likely rise in response, and the company will realize both immediate and long-term benefits as a result. Despite the challenges and obstacles involved, this initiative can be achieved within the timeframe outlined above — and perhaps even sooner — provided that the plan receives the attention and support it deserves.

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