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A New Bill Seeks To Improve Gender Diversity on Corporate Boards

Male Judge Signing Document At DeskIn March of this year, U.S. Rep. Carolyn Maloney of New York introduced the Gender Diversity in Corporate Leadership Act. The bill is intended to increase the number of women on corporate boards, and would require public corporations to report the gender composition of their boards and board nominees to the U.S. Securities and Exchange Commission (the “SEC”). It would also create an SEC advisory group to study and recommend ways to increase gender diversity on corporate boards.

In January, the Government Accountability Office (“GAO”) released a study showing that women held just 16% of seats in corporate boardrooms. This number was up from 8% in 1997. Based on these numbers, even if equal proportions of women and men joined boards each year beginning in 2015, it would take until 2065 for women’s representation on boards to be on par with that of men’s.

Proponents of the Bill argue that what gets measured, gets results. The theory is that, by turning the resources of Congress to the issue of board diversity, it is likely that public companies will devote more effort to diversifying their boards. Research shows that public companies with boards that are reflective of the diversity of the population of the United States have better decision-making processes and overall stronger organizational health. In other words, diverse boards are good for business and this translates into being good for the economy.

Those opposed to the Bill suggest that it is an unnecessary intrusion into the boardroom. Importantly, however, the Bill stops short of creating any mandatory quotas. Many European countries, on the other hand, have attempted to achieve boardroom diversity through quotas.

Germany recently became the latest country so far to pass a law that requires some of Europe’s biggest companies to give 30% of supervisory seats to women. In passing the law, Germany joined a trend in Europe to accomplish what has not happened organically, or through general pressure: to legislate a greater role for women in boardrooms.

Norway was the first country in Europe to legislate boardroom quotas, joined by Spain, France and Iceland, which all set their minimums at 40%. Italy has a quota of 1/3 and Belgium of 30%. Britain has not legislated quotas, but a voluntary effort, known as the 30% Club, has helped to substantially increase women’s representation. The group has used persuasion to help double the percentage of women on the boards of major British companies since 2010 – up to 23%.

The notion of government quotas for company boards has met substantial resistance in the United States. Representative Maloney’s Bill is one example of an advocate attempting to achieve boardroom diversity in another way. The Bill has been referred to the House Committee on Financial Services.

If you have questions or would like to speak to Attorney Sally P. McDonald, please call 401-824-5100 or email her at smcdonald@pldw.com.

Sally P. McDonald, Esq.
Attorney, Pannone Lopes Devereaux & West LLC

The Woman Business Enterprise

Cafe worker

In my forty-three years of working in and around the earth/road construction field, being impressed has not been a regular occurrence! However, when I began working in thearea of supportive services with the Disadvantaged Business Enterprise (DBE), Minority-Owned Business Enterprise (MBE), and Women-Owned Business Enterprise (WBE) community, I’ve been in awe on several occasions. This month we look at woman-owned businesses and what this special group is about–in issues past we’ve reviewed, exposed, and dissected a wide range of topics regarding MBE/DBE community however–full disclosure here–with little focus on our women. Why?

I am guilty of “lumping” this group right in with all small business in an attempt to generalize and stick to our mission of support on the broad view. Not this month! WBE’s are a very different type of business and should be recognized as such for the distinctive set of challenges these owners and operators face each and every day! We can’t ignore the fact that woman have been faced with the “glass ceiling,” sexism, and equality issues simply because of their gender and that’s just in their employment role.

When a woman answers the entrepreneurial call, she now magnifies these issues in the eyes of her peers and is now positioned to engage her competition, mostly men, by a whole different set of rules. She must always be the best she can be, always ready to prove that she “belongs,” and is always the expert in her field. Now, all things being equal, it needs to be said that gender issue is not unique to small business. I’ve been in the company of moderate to large size companies where women head-up projects, represent the owner or, in rare cases, own the company themselves and I have to say…it isn’t much different!

Obviously we as a small state have a long way to go (as does the rest of the country) but we have made progress. In my role in supportive services, I’ve seen woman start-ups do very well in these men dominated markets, although not easy when dealing with some of the stereotypes and bias attitudes, it can be done! As I’ve focused on in prior articles, any change in social thinking rarely is effective within the target generation, it has to be initiated in the prior one. Young women should be shown that there are better and more effective ways to establish themselves in the business market. Young men need to be educated regarding the contribution of all individuals, male or female, as well as how to interact with them.

I’m not attempting to create anything new here, we have amazing organizations dealing with these issues, with great success right here in the Ocean State! As always I offer Rhode Island resources for you; Mission (360) 275-5840, the Center for Women & Enterprise (401) 277-0800, RI Small Business Development Center (401) 598-2702. These are just a few organizations that are willing to get WBE off on the right track through group, one-on-one, and various mentoring models available. As usual, if I can help, my phone is always on –see you on the job site!

Michael Brito
Team Member, Managing the Road Ahead
managetheroadahead.com

2016 Rhode Island Young Entrepreneur of the Year

ElainaEliana Parada

Owner, Las Delicias Bakery

Eliana Parada began her career not as owner and proprietor of the Las Delicias Bakery but as an employee. Her mother opened the family business in 2006, filling a void of traditional Latin American baked goods within her community. They specialize in Bolivian, Guatemalan, and Mexican breads which Eliana learned the recipes for under the guidance and tutelage of her mother. Eliana immersed herself into Las Delicias Bakery, quickly picking up how to operate the business day to day operations.

In 2010, Eliana took over the business from her mother and began enacting her vision to the grow Las Delicias Bakery. She began by garnering more equipment to allow for expanded production, while updating the bakeries technology to expedite process. Soon the bakery located at 964 Atwells Avenue in Providence was able to produce more goods for a larger clientele. To cater to her new customers Eliana has continued to create new and exciting goods that keep her community happy, “the community likes trying new and different things.”

The twenty-eight year old Eliana continues to learn every day and has used resources like the SBA, SCORE, and Center for Women & Enterprise to garner the knowledge to help her business succeed. Eliana is a graduate of the CWE’s business planning course noting that the knowledge, strategic planning, and continuous support from the CWE staff always motivates her to keep moving the business forward, “I don’t know where I would be without their help.” Eliana continues to apply what she has learned at the CWE in her daily handling of the business, “I work on my business plan and I stick to it, I always stick to it.”

Eliana is currently renovating a new location in order to expand her operations further, “We currently operate with three employees and we do see that number growing in the near future.” Eliana is proud of the growth that her business has shown but admits that she wouldn’t be here without a strong support system, “My mom has always been my number one supporter, I couldn’t have done it without her.”

It is this type of family involvement that has made Las Delicias Bakery a staple in Eliana’s community and it is the same sentiment that keeps her customers coming back. The atmosphere and ability to deliver fresh, quality products daily has produced a winning combination for this second generation Bolivian businesswoman.

Eliana offered some advice to any other young entrepreneurs who may be interested in starting their own business, “Do you homework, research, and start off with a business plan. Try to connect and network with people in your business realm.” Valuable advice that Eliana herself practices in her business life.

The U.S. Small Business Administration is pleased to honor Eliana Parada, owner of Las Delicias Bakery in Providence with the 2016 Rhode Island Young Entrepreneur of the Year Award.

2016 Joseph G.E. Knight Award for Entrepreneurial Excellence

DavidDavid Lévesque

Owner, Brewed Awakenings Coffee House

David Lévesque, owner and President, had a vision for a coffeehouse that would serve the best cup of coffee in town and be a gathering place for the locals. The plan was simple: provide great food and beverages to be served by friendly, outgoing employees in a warm and inviting atmosphere. Brewed Awakenings Coffee House opened its doors June of 1996 in the center of Johnston, RI with just two employees, Kay & Joe Levesque (Dave’s mom and dad).

The concept took off, and before long Dave added a second location in South County Commons Plaza in Wakefield in November, 2003. Over several years, Brewed Awakenings expanded its menu to include specialty frozen drinks, lunch and breakfast sandwiches and pastries. The next location was completed in April, 2010 at the Centre of Cherry Hill (this was the first store with drive thru service). Located just one mile from the original coffeehouse, it became another gathering place in the town of Johnston.

In April 2012 another location was opened near Sockanossett Crossroads in Cranston on Pontiac Avenue, which boasts the “tallest” coffee cup in the state of Rhode Island. The fifth and largest coffeehouse in the country at 8,000 square feet opened in 2014 in the heart of Warwick on Bald Hill Road. The new location added some additional items to an expanded lunch and dinner menu, as well as offering a full liquor license.

When asked about his success, Dave says “we are proud of the progress we have made over the years, Brewed Awakenings is a successful business because of our loyal customers and our hardworking employees.” Dave has continued to grow Brewed Awakenings, while still sticking to his original plan to be the best coffeehouse in the state. Brewed Awakenings has over 100 employees today.

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