Closing the gap at the top: Advancing women’s leadership in business

Despite growing awareness and global commitments to gender equality, women are disproportionately underrepresented in corporate leadership roles.

Female participation in the workforce has increased, but progress at the top remains stagnant and even regressing in some areas. To unlock the world’s full potential, businesses must take meaningful action to remove the structural barriers that hinder women from advancing into decision-making positions.

Supporting women’s rise to leadership is strategically vital for innovation, resilience and growth. Achieving gender equality in senior leadership aligns directly with Sustainable Development Goal 5.5, which calls for ensuring women’s full and effective participation in and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

Gender equality, especially in leadership, is a powerful catalyst for business success and societal development. 

Companies with gender-balanced leadership are 20 per cent more likely to report improved business outcomes. When women are present in decision-making roles, organizations benefit from broader perspectives that represent the business’ stakeholders, more inclusive workplace cultures and stronger performance and enhanced governance. 

It’s not only the right thing to do — it's a smart business strategy.

Despite advances in education and labour force participation, significant obstacles continue to limit women’s progress towards top leadership positions. 

As of 2024, women accounted for only 22 per cent of executives and 27 per cent of senior managers. Just 7 per cent of companies have a female CEO, and only 9 per cent have a female board chair.

The 2025 Gender Gap Report from the World Economic Forum shows that the global gender gap has closed by 68.8 per cent, yet significant inequalities persist in the workplace. According to recent data, women are closer to parity in administrative and support roles but remain significantly underrepresented in technical, managerial and executive functions. 

In addition to longstanding structural barriers, emerging global trends are compounding gender inequalities in the workplace. Algorithmic bias in AI-driven recruitment and performance evaluations risks entrenching existing stereotypes and excluding qualified women from advancement opportunities. 

Return-to-office policies — often designed without a gender lens — disproportionately impact women, particularly those with caregiving responsibilities, threatening hard-won gains in workplace flexibility. 

Meanwhile, chronic underinvestment in women-led sectors remains a critical barrier: the care economy continues to be undervalued, and women entrepreneurs still receive less than 2 per cent of global venture capital funding. These dynamics reinforce gender gaps at every stage of the employee life cycle, particularly in leadership pipelines.

Occupational shifts are also a concern. Women are more likely than men to move into declining sectors. According to a recent report by the McKinsey Global Institute, by 2030, only two-thirds of women will be in growing occupations, compared to over three-quarters of men..

Backlash against gender equality initiatives comes in many forms, from pervasive online harassment to internal resistance within organizations. These challenges must be met with strong, visible leadership that sets the tone from the top, demonstrating that gender equality is a core organizational value, and clear, transparent policies that actively support women leaders and engage male allies.

Women’s underrepresentation in business reflects systemic bias, unequal access to opportunities and outdated workplace structures — not a lack of talent or ambition.

While mentorship supports career development, it is often insufficient to propel women into senior roles. 

What truly accelerates progress is sponsorship, when influential leaders actively advocate for high-potential women and connect them to visible, high-impact opportunities.

Sponsors champion talented women, ensure their work is recognized and help secure strategic promotions. When senior executives model this approach, it has a ripple effect: mid-level managers are more likely to adopt inclusive practices, contributing to a stronger, more diverse leadership pipeline.

Achieving gender balance in leadership must move beyond pledges and become a concrete priority. Diverse executive teams make more effective decisions, stimulate innovation and deliver better financial outcomes. Yet, equal representation remains the exception rather than the norm.

The Forward Faster initiative of the UN Global Compact calls on companies to meet two ambitious Gender Equality Targets by 2030. One of them is to achieve gender parity in leadership roles. To achieve this, businesses must commit to measurable progress: setting clear targets, ensuring transparency and embedding accountability at every level. 

Now is the time to turn commitments into action. Join the Forward Faster initiative and lead the way toward gender-equal leadership. Because inclusive leadership is not just aspirational, it’s the future of successful business.