[Inside Chodong] Why I Welcome Calls Asking, "Why Did Our Company's Ranking Drop?"

Questions About Rankings Are the First Step to Change
Exposed Numbers Turn Neglected Issues Into Executive Challenges
Transparent Data Paves the Way for Gender Equality and Solutions to Low Birth Rate

"Why did our company ranking drop?" After the recent publication of the Asia Gender Equality Index feature article, several companies contacted us with similar questions. This index, marking its 11th year, is based on The Asia Business Daily's annual analysis of key domestic companies' data and on-site reporting, assigning scores and rankings. In the early years, companies typically expressed disappointment over a decline in their rankings. More recently, however, many have begun using these results as actionable points for improvement. One HR staff member from a company, who thoroughly inquired about the reasons for the drop, noted, "We plan to reflect our gender equality weak points in next year's business strategy."

Once the data is released, companies can identify their standing. They examine what they lack compared to other companies and seek ways to improve. Issues that were previously sidelined can become matters requiring explanation to management and the establishment of countermeasures. The Asia Business Daily continues to publish segmented rankings of gender equality and low birthrate-related factors, from 1st to 100th place, despite possible criticism of simply “ranking companies,” because we trust in the power of public disclosure.

This is not unique to The Asia Business Daily index. The government's decision to mandate the disclosure of parental leave and flexible work usage data in annual business reports starting in 2024 as part of measures to address the low birthrate is based on the same rationale. Since disclosure began, companies’ figures have notably improved. Among the top 100 companies and 37 financial institutions evaluated by this newspaper, parental leave usage rates rose by 2.5 percentage points and 6 percentage points, respectively, compared to the previous year. Flexible work adoption rates improved by 2 percentage points and 2.5 percentage points, respectively. Among the top 100 companies, those with a single-digit male parental leave usage rate dropped from 60 in 2024 to 33 last year, nearly halving. Even though the law guarantees it, men previously found it difficult to use parental leave due to social pressure. Now, its use is expanding from select leading companies to major corporations in general.

The recent rebound in the birthrate is not unrelated to these changes in the workplace. In July, the number of births increased by 11.1% year-on-year, marking 25 consecutive months of growth. There are forecasts that the total fertility rate will return to the 0.9 range this year for the first time in seven years. While many factors have contributed to the rise in birthrate, the shift in corporate culture has likely had a significant impact. National statistics show that parents who took parental leave after their first child were more likely to have a second or subsequent child within three years than those who did not. Studies also indicate that even the mere expectation that a husband can take parental leave can influence a decision to have children. Disclosure helps to make that expectation visible in the form of numbers. The Asia Business Daily uses a variety of data—including government certifications, sustainability reports, and national statistics—when calculating the index to encourage companies’ efforts for improvement and to present those outcomes in measurable terms.

The government’s push for an employment equality disclosure system is an opportunity to institutionalize these changes. The system would require public institutions and companies with more than 500 employees to disclose the number of male and female workers by job category and rank, the gender pay gap for both average and median wages by employment type, and the adoption rate of work-life balance policies. Until now, only publicly listed companies have been required to disclose parental leave and flexible work usage rates in their business reports, so expanding both the subjects and the items of disclosure is a promising step. In the long term, the target should be expanded to include medium-sized and small businesses. For companies with large disparities, submitting improvement plans should also be made mandatory, so that disclosure truly leads to change.

I hope more companies will call to ask why their rankings have dropped. Asking about the rankings is the first step toward change. Transparent numbers drive companies to action, and transformed workplaces can become the catalyst for achieving gender equality and overcoming low birthrates.

This content was produced with the assistance of AI translation services.