GPJ_Marja Veening_386952 Sait

Gender Imbalance in Positions of Power within Royal FrieslandCampina This research is presented to highlight the challenges faced by women within Royal FrieslandCampina when advancing in their career, to make fitting recommendations to increase the number of women in senior management positions. Confidential Name student: Marja Veening Student number: 386952 Project company: Royal FrieslandCampina IBS Supervisor: Sait Gürbüz Co-marker: Ulrike Mathies Wordcount: 13,987 words Date: June 2 nd , 2022

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 ii

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 iv Abstract Women are becoming more involved in the workforce, yet the percentage of women in senior management roles remains minimal. Within Royal FrieslandCampina (RFC), this is no exception. According to previous studies, numerous barriers prevent women from entering positions of power. These barriers, found in previous research, can be grouped into three categories: organizational, cultural, and individual. In order to understand which barriers are preventing women from progressing to senior management positions within RFC, 21 semi- structured interviews have been conducted with Dutch female professionals within the company. The results of these interviews indicate that most of the barriers mentioned in previous research are also experienced within RFC. The main issues are the lack of support for maternity leave, discrimination relating to their gender, the old boys' network, and a lack of role models. Because RFC wants to achieve >30% women in senior management positions by 2024, the above-mentioned barriers must be addressed. Therefore, several facilitators were discovered within the primary and secondary research to create appropriate recommendations. These include follow-up research of discrimination inside Dutch plants, implementing a managers' guide to maternity leave, and a role modeling event to connect middle and senior managers. These recommendations will support RFC in increasing gender diversity in senior management positions. Furthermore, this explorative research contributes to the existing literature by providing further insights into what struggles women face within their careers and how they can be overcome. Keywords: Gender Diversity, Female Career Advancement, Senior Management

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 v Executive Summary Diversity and Inclusion is becoming a more important topic for companies in order to attract new employees and, more importantly, retain the current employees. This is likewise true for Royal FrieslandCampina (RFC). To aid in the process, RFC has developed an Inclusion Diversity (ID) strategy. By 2024, one of the goals is to have more than 30% women in senior management roles. The company now employs 26,4% of women in senior management roles, a proportion that has been decreasing in recent years. As a result, this study is being conducted to understand more about what prevents women from progressing to senior management roles within RFC and provide appropriate recommendations for RFC to support these women better. According to previous studies, women confront several barriers in their careers, which can be divided into three categories: organizational, cultural, and individual barriers. Furthermore, recent studies have shown that the barriers may be overcome with appropriate facilitators. 21 semi-structured interviews with Dutch female RFC workers were conducted to determine which barriers are prominent inside RFC for females when advancing in their careers. The inductive research technique was chosen for a level of flexibility needed within this research due to the personal nature of the interviews and the diverse experiences women had. The results of the primary research revealed that most of the barriers found in previous research were also experienced within RFC. However, the frequency of some barriers was surprising. The most frequent barriers are lack of support during maternity leave, discrimination regarding their female gender, the presence of an old boys' network in which white males are mainly found at the top of the company, and the invisibility of role models within RFC. However, the females also mentioned what would help them in the interview, and together with the facilitators found in previous research, three appropriate recommendations were created. The first recommendation is that a follow-up study should be conducted on the discrimination occurring primarily at Dutch RFC plants. The second recommendation is that a managers' guide and checklist should be implemented in order to better help women before, during, and after their maternity leave. The final recommendation is to organize a role modeling event where middle and senior managers can get together to support each other and share their experiences in order to help each other overcome challenges. Overall, these recommendations will aid RFC in developing a more gender-balanced top.

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 vii Contents Abstract ..................................................................................................................................... iv Executive Summary ................................................................................................................... v Acknowledgments ..................................................................................................................... vi List of Tables ............................................................................................................................. x List of Figures ........................................................................................................................... xi 1. Introduction ........................................................................................................................ 1 1.1 Company description .................................................................................................. 1 1.2 Problem statement ....................................................................................................... 2 1.2.1 Focus Area ................................................................................................................ 3 1.3 Statement of objective ................................................................................................. 4 1.4 Research questions ...................................................................................................... 4 1.5 Structure of the report ................................................................................................. 4 2. Literature Review ............................................................................................................... 5 Gender Diversity benefits and cases ...................................................................................... 5 Barriers for female career advancement ................................................................................ 6 Facilitators for female career advancement ......................................................................... 11 The context of the research and conceptual model .............................................................. 12 3. Methodology .................................................................................................................... 14 3.1 Research Approach ................................................................................................... 14 3.2 Sampling and Sampling Technique .......................................................................... 14 3.3 Instrument(s) ............................................................................................................. 17 3.4 Data Collection Procedure ........................................................................................ 18 3.5 Data Analysis ............................................................................................................ 19 3.6 Reliability and Validity ............................................................................................. 20 3.7 Ethical Implications .................................................................................................. 20 4. Findings and Analysis ...................................................................................................... 22 4.1 Organizational Barriers ............................................................................................. 22 4.1.1 Maternity Leave and Performance Ratings ......................................................... 22 4.1.2 Vision on Part-Time work .................................................................................. 24 4.1.3 Lack of Mentoring and Training ......................................................................... 25 4.1.4 Inadequate Facilities at the Office ...................................................................... 25 4.2 Cultural Barriers ........................................................................................................ 27 4.2.1 Old Boys' Network and Mini-Me Syndrome ...................................................... 27 4.2.2 Discrimination and Stereotyping ........................................................................ 28 4.2.3 Male Vision ......................................................................................................... 29 4.2.4 Social expectations of women ............................................................................ 30

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 viii 4.3 Individual Barriers .................................................................................................... 32 4.3.1 Lack of Confidence ............................................................................................. 32 4.3.2 Own Choices ....................................................................................................... 33 4.3.3 Imposter Syndrome ............................................................................................. 34 4.4 Facilitators ................................................................................................................. 35 4.5 Analysis ..................................................................................................................... 37 4.5.1 Department .......................................................................................................... 37 4.5.2 Age ...................................................................................................................... 38 4.5.3 Hay grade ............................................................................................................ 39 4.5.4 Conclusion .......................................................................................................... 39 5. Discussion and Conclusion .............................................................................................. 40 5.1 Summary of findings ................................................................................................. 40 5.2 Implications for Theory ............................................................................................ 41 5.3 Limitations and Future Research .............................................................................. 42 5.4 Conclusion ................................................................................................................ 43 6. Recommendations ............................................................................................................ 44 6.1 Follow-up Research into Discrimination within Dutch Plants ................................. 44 6.2 Better Support Maternity Leave ................................................................................ 45 6.3 Role Model Event ..................................................................................................... 46 References ................................................................................................................................ 48 Appendices ............................................................................................................................... 52 Appendix A – RFC Employee Data in The Netherlands ..................................................... 52 Appendix B – Table with Female vs Male Distribution RFC and The Netherlands ........... 53 Appendix C – Potential Ratings Females RFC .................................................................... 54 Appendix D – Facilitators .................................................................................................... 55 Appendix E – Email Invitation to Possible Interviewees .................................................... 57 Appendix F – Interview Script ............................................................................................. 58 Appendix G – Transcript Interview 1 .................................................................................. 60 Appendix H – Transcript Interview 2 .................................................................................. 68 Appendix I – Transcript Interview 3 .................................................................................... 73 Appendix J – Transcript Interview 4 ................................................................................... 79 Appendix K – Transcript Interview 5 .................................................................................. 85 Appendix L – Transcript Interview 6 ................................................................................... 91 Appendix M – Transcript Interview 7 ................................................................................. 98 Appendix N – Transcript Interview 8 ................................................................................ 107 Appendix O – Transcript Interview 9 ................................................................................ 113 Appendix P – Transcript Interview 10 ............................................................................... 119

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 x List of Tables Table 1, Gender Diversity Data Senior Management RFC 2 Table 2, Sub Research Questions 12 Table 3, Interviewee List 16 Table 4, Interview Questions Aligned with the Sub Research Questions 17 Table 5, Research Question Answer Justification 18 Table 6, Supply Chain and Human Resources NL Gender Distribution 37 Table 7, Action List for Investigation Discrimination against Women within Dutch plants 44 Table 8, Action List Supporting Women better within their Maternity Leave 46 Table 9, Action List Role Model Event 47 Table 10, Amount of Employees in The Netherlands 52 Table 11, Amount of Senior Management Roles within The Netherlands 52 Table 12, Male vs Female Distribution RFC 53 Table 13, Distribution Female vs Male The Netherlands 53 Table 14, Potential Rating Male and Female RFC 54 Table 15, Facilitators Overview 55 Table 16, Manager Checklist 203

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 xi List of Figures Figure 1, Diversity and Inclusion pillars RFC 2 Figure 2, Structure report 4 Figure 3, Model Perceptions of Glass Ceiling (Elaqua et al., 2009) 7 Figure 4, Hofstede Cultural Dimensions the Netherlands (Hofstede Insights, 2021) 10 Figure 5, Conceptual model 12 Figure 6, Organizational Barriers RFC 22 Figure 7, Cultural Barriers RFC 27 Figure 8, Individual Barriers RFC 32 Figure 9, Facilitators RFC 35 Figure 10, Distribution barriers per department 37 Figure 11, Distribution barriers per age 38 Figure 12, Distribution barriers per Hay Grade 39 Figure 13, Potential Ratings RFC 54

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 2 separated into four market-oriented business groups: Food and Beverage, Trading, Ingredients, and Specialized Nutrition (FrieslandCampina, 2022). 1.2 Problem statement The current problem that resides within RFC is one within Inclusive Diversity (ID). RFC has created an ID strategy that provides an inclusive work environment that allows all employees to unlock their full potential and bring their whole and authentic selves to work. Implementation of the ID strategy is critical in building the company culture that underpins sustainable business performance. This strategy has been built around four critical focus areas. The four focus areas are gender parity, honoring different cultures and religions, mental health & physical disability, and LGBTIQ+ (see figure 1). The first pillar, gender parity, will be the focus of this research as there is a gap between the current situation and RFC’s goal . The focus will be on the first target of the Gender parity pillar, which aims to have >30% women in senior management by 2024. Within table 1, the current status versus the ambition of the target is highlighted. Table 1, Gender Diversity Data Senior Management RFC Current Goal Difference Women in senior management 95 women (26,4%) 108 women (30,2%) 13 women (- 3,8%) Figure 1, Diversity and Inclusion pillars RFC

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 3 Looking at the table and the difference, it appears that RFC would be able to fulfill the target by the necessary year 2024, as the difference is only minimal. However, looking at the trend of this number, there seems to be an issue. The percentage of women in senior management jobs declined from 27,4 percent to 26,1 percent in 2021. Meaning that the number is not advancing in the direction wanted or required to achieve the objective. Furthermore, when looking at the company statistics, it can be seen that the percentage of women reduces dramatically from Hay grade 19 (HGRL19) to Hay grade 20 (HGRL20) and from Hay grade 21 (HGRL21) to Hay grade 22 (HGRL22). Hay grades means the employee’s pay grade and level of knowledge, experience, and responsibilities in which HGRL19 is at a middle management position and HGRL20 is at the senior management level. The causes of these declines are unclear, and a root cause analysis forms an essential part of this research in order to determine the correct recommendations. 1.2.1 Focus Area Within RFC, 39% of employees are located in The Netherlands, and holds 58% of the senior management roles (see appendix A). Therefore, it was decided to focus on The Netherlands and the female employees that work in the Dutch offices and plants. Furthermore, when looking more closely at the distribution of females and males in The Netherlands at HGRL18+, the move to a senior management role for females has a bigger gap in The Netherlands than the RFC average (appendix B). The gap between HGRL19 and HGRL20 is 12% in The Netherlands as opposed to the 8% average within RFC. Therefore, The Netherlands can be seen as potentially providing a solid contribution and opportunity to achieve the Gender Parity target. Overall, women appear to be underrepresented and dropping in number, resulting in a gender imbalance in senior management positions. This is interesting as women, on average, receive better potential ratings within the company (see appendix C). This gender imbalance within RFC may also be considered as an opportunity to investigate since driving diversity can give numerous possibilities and advantages, which are highlighted in the literature review. This research is of significance for the company because, in The Netherlands, there is now a legislation in which Dutch multinationals need to reach a specific female quota within their board of directors. The quota by the size of the multinational and is around setting realistic by challenging targets, for the multinationals to start developing initiatives to achieve these targets,

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 5 2. Literature Review This chapter provides an overview of academic studies on gender diversity. The benefits and cases of gender diversity are examined, and the challenges to and potential facilitators of growing gender diversity in the workplace. Lastly, the conceptual model and sub-research questions are highlighted. Gender Diversity benefits and cases Regarding gender diversity in businesses, women are underrepresented in positions of authority and decision-making. In the United States, women receive 77 cents for every dollar made by men in managerial positions. Women's underrepresentation in most economic sectors has a detrimental influence on company structure and culture, with negative implications for women's performance and promotion opportunities, particularly at higher levels of management (Krishna & Orhun, 2021). Even though Krishna & Orhun's (2021) research was focused on the United States, in The Netherlands, the trend of underrepresentation can be seen as well, with only 12% of women on the management boards of publicly traded corporations in 2020. However, when looking at the trend of this percentage, it has risen from 8% in 2019 to 12% in 2020 (CBS, 2021). Although this number is rising, the presence of women is still low because data shows that girls outperform boys in school and that more women pursue higher education, which they complete more effectively and faster than men (CBS, 2021). The number may also be rising due to new Dutch legislation implemented, which includes that large multinational companies must have at least one-third of the seats on the supervisory board filled by women. This creates a big step for companies as they now have to act and take action and develop action plans to support the development of women into senior positions (Ministerie van Justitie en Veiligheid, 2021). Encouraging and growing gender diversity in businesses cannot be overstated. Several studies have found a link between gender diversity and company performance that is both favorable and substantial. Brahma, Nwafor, & Boateng (2020) investigated the profitability of women on boards of directors. They confirm the link and discover the exact favorable and substantial correlation between gender diversity and a company's performance. Another interesting research has been done on group performances, where groups with members with higher IQs did not earn much higher scores; those that had more women did. Each group was assigned

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 6 several complex tasks, and as mentioned, the groups with more women outperformed the groups with fewer women (Woolley & Malone, 2011). As a result, organizations that function efficiently and employ a (gender) diverse workforce have a competitive advantage in their communities and throughout the world. They become more attractive places to work, enhancing their ability to recruit and maintain a gender-varied workforce, improve customer-oriented processes, and increase employee satisfaction. This reputation strengthens the company's capacity to compete in global and emerging markets, as well as helping in the 'war for talent' (Pierog & Seliverstova, 2021). However, the benefits of having more women in higher positions are not just financially and business-related, but it also carries personal and societal benefits for the women themselves. When looking at the statistics of The Netherlands, of the approximately 17,5 million inhabitants, 50,2% are female (Statista, 2022). Making the female population in The Netherlands the majority by a small percentage. Research shows that having a career creates an identity that has social value and status and creates a different social network, which can all be beneficial to women (Hamilton-Volpe & Marcinkus-Murphy, 2011). Furthermore, another article highlights the benefits of women having financial independence and a promising career, which positively impacts women psychologically and their self-confidence (Sethi, 2022). Even though both articles did not focus on The Netherlands specifically, both are very internationally based. The core benefit can be considered the same for the women in The Netherlands. Barriers for female career advancement Despite all of the advantages of having more women in high leadership roles, women continue to remain underrepresented. According to research, women are more hesitant to apply for a job until they are totally qualified. But men would nominate themselves even if they do not match all standards (Ibarra, Ely & Kolb, 2013). Next to this, there are several other factors and barriers mentioned in other research that influence the lack of women at top positions and moreover, promotional differences. This phenomenon of women not being promoted to higher positions is called the glass ceiling effect. It suggests that there is an unseen barrier preventing women from progressing up the corporate ladder (Showkat, 2021). The glass ceiling, according to the article, is caused by

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 8 to connect with high-ranking individuals. Limited access to such network can reduce the chance of promotion. Perry, Mesch, and Paarlberg (2006) also confirm this statement, they continue that the presence of the glass ceiling is mirroring in the women ’ s workforce being given fewer challenging tasks. Employee work performance has been proven to be negatively correlated with firms ’ incapacity to deliver difficult assignments to their employees. Next to the interpersonal issues there are also situational issues mentioned in the model. The first one is the existence of objective criteria for procedures established within the company (hiring and promotion). Research showed that the promotion criteria are more severe and more related to job performance for female hiring managers compared to the males (Babic & Hansez, 2021). The other barrier in the situational issues is time in pipeline, in which one would think that a women manager is a serious candidate for promotion if she already occupies a managerial position and participates in the development activities of the company. However, Elacqua et al., (2009) discuss that this happens much less frequently for women as for men. Creating different treatments and creating the perception of a glass ceiling. Cultural Barriers Several articles discuss the dimensions of the glass ceiling with cultural barriers; Landrine and Klonoff (1998) believe that sexual harassment in the workplace can lead to a decline in women's capacity to do their jobs and therefore limiting the promotional opportunities. Even though this article was written more than two decades ago, sexual harassment of women on the work floor is still very much a recent issue (Brown & Battle, 2019). Hoobler, Wayne, and Lemmon (2009) argue that the glass ceiling was formed by supervisors ’ perceptions of family commitments. According to their findings, supervisors perceive women to have a bigger family-work conflict than males, which explains why women have a harder time getting promoted. Later on, in the article it mentions that there is a notion that leadership performance is linked to male attributes, which creates another obstacle for women (Hoobler et al., 2009). This is supported through the social role theory. The social role theory explains that people ’ s perceptions about social groups in their society are formed by their interactions with group members in their usual social roles. According to this theory, the image of a high-

Gender Imbalance in Positions of Power within Royal FrieslandCampina Marja Veening, 386952 9 functioning manager is frequently associated with so-called masculine characteristics such as authority, independence, competitiveness, and aggression. As a result, women who have been linked with completely opposite attributes, would be less committed to their careers and incapable of managing them (Koenig & Eagly, 2014). These stereotypes about women have an adverse impact on their assessments and judgments. Women ’ s lack of access to boards can also be investigated through a specific aspect of director selection processes: the involvement of present directors ’ and executives ’ networks, popularly known as ‘ old boys network. ’ Individuals with comparable features (including gender) are embedded in networks, which can be characterized as configurations of relationships. In the case of boards, old boys ’ networks are characterized as the normally dominating group in most organizations, wherein men share a common social and academic background, hold high-level hierarchical positions, and purposefully exclude women from casual interactions (Allemand, Bédard, Brullebaut, & Deschênes, 2021). This could eventually lead to the so-called “ mini-me syndrome, ” in which top leaders feel more at ease when key organizational jobs are filled by persons who are identical to the occupant (Frase-Blunt, 2003). Women are therefore, mainly, not part of these networks or positions, according to social role theory and the Elacqua et al. (2009) model Another mentioned, and well-known, barrier is maternity leaves. Several studies have found that childbirth and raising children has a negative impact on female professionals ’ job advancement. Women with children are less likely than men to begin a challenging career (Ahmad, 2016). There is also a correlation between family formation and women being overrepresented in non-tenured occupations. However, there are conflicting findings about the relationship between family-related characteristics and women ’ s tenure and promotions. However, Hideg, Krstic, Trau, and Zarina (2018) suggest that the longer new mothers are away from paid employment, the less likely they are to be promoted, promoted into management, or given a pay boost once their leave is finished. The authors go on to say that there is a stereotype that women (and even men) who take a lengthier maternity leave are less committed to their jobs. Even though this study was performed in Canada and the length of the leaves differs in Canada and The Netherlands, the research’s conclusion that maternity leave has a detrimental impact on one’ s career is widely accepted (Hideg et al., 2018).