Fuelled by unfinished business
Carol Schwartz is not giving up on equity for women in business leadership, writes Leonie Wood.
Carol Schwartz is not giving up on equity for women in business leadership, writes Leonie Wood. CAROL Schwartzs office, perched a few floors above Melbournes chichi Flinders Lane, is a riot of colour. Walls and corridors are filled with artworks, and the picture windows are draped with the most delicious sheer curtains laced with pink swirls and filigrees.All this would make for a pleasant business retreat but for the constant banging from jackhammers and drills on two property developments outside.One will be BHP Billitons future global headquarters, a 20-storey glass and concrete building with an atrium linking Flinders Lane to the historical facades of Collins Street.The other is a site Schwartz and her husband, the entrepreneur and publisher Alan Schwartz, bought two years ago for $13.3 million. The buildings facade has been preserved and a couple of floors are being added. Soon it will house Schwartzs new offices, a dance studio, and spaces for art and jewellery galleries.Here then is big-monied mining and industry slammed up against Melbournes art world. Schwartz loves this sort of stuff, this mix of trade and commerce. Melbourne, she says, is like a little New York.Schwartz, in turn, is a lot like a New Yorker, one with admirable self-confidence. She says simply: I am an indomitable business person who is very curious, who is happy to take risks, and who is married to somebody who understands that culture and very much lives that and breathes that as well.And where does this pluckiness come from? I think family influences is crucial. Indomitable spirits, particularly in a child, can only be crushed by family or school environments, and I was lucky enough to be born into a family where that spirited behaviour was really encouraged and celebrated.Schwartz, it must be said, is one of the more prominent members of the Besen dynasty, which developed major shopping centres in Melbourne and Sydney and founded the Sussan fashion retailing empire (now owned by her sister, Naomi Milgrom). She is a director of the Schwartz familys Qualitas property group and Yarra Capital Partners private equity firm, and she is on the boards of many Besen family-controlled companies.She is also a past president of the Property Council of Australia and has served on the boards of the Industry Superannuation Property Trust, the Docklands Authority in Victoria, the Australian Ballet School, the National Gallery of Australia and the Melbourne International Arts Festival. She is at present a director of the Sydney Institute and St James Ethics Foundation.For all that, Carol Schwartz is perhaps best known as a lateral thinker who has particularly robust views on women in business and leadership. Her quest for decades has been to get women elevated into boardrooms and positions of power because she believes the entrenched gender imbalance leads to narrow approaches in problem-solving and therefore in decision-making.Every time I open a newspaper and I see business leaders being interviewed or a panel of business leaders and theres not a woman, I tear my bloody hair out, she says. It drives me nuts.She cites how a forthcoming conference in Sydney, focusing on Australias position vis-a-vis China, boasts 22 male speakers and just two women. How outrageous is that? she says.Men might not see it as outrageous they look around and see visions of themselves reaffirmed in all areas of leadership. Schwartz argues that to break that mindset there needs to be a more vigorous promotion of womens profiles generally.As a nation, we are really missing out in having more women participating at leadership levels, she says, adding that some of the obstacles result from the costs and structure of childcare and taxation.More female politicians are leading major debates on such policies these days something she welcomes but even with the country led by a female prime minister, the wider gender divide remains.I would really like to see more women in political participation from whatever side of politics, she says. But the rough-house world of politics is not for Schwartz: Never. I wouldnt have the stomach for it. I think Im too sensitive [to criticism] and the exposure of my family.CAROL Schwartz graduated with degrees in law and arts (languages) at Monash University in 1977 but segued out of law after just a few years. Law for her was a mind-expanding exercise.I saw it as an intellectual pursuit. I probably knew from quite early on that I was most likely not going to be a lawyer for too long. She especially disliked the professions tendency to push young female lawyers into litigation or family law instead of encouraging them to tackle tax law or mergers and acquisitions.Schwartz was more intent on running her own show anyway, and on a trip to Los Angeles then the centre of the Lycra universe she spied how the actor Jane Fonda had carved a business empire by conducting exercise workouts and aerobics classes. On her return, she renovated a building in central Melbourne and in 1981 set up an aerobics studio with classes taught by students from the Victorian College of the Arts. Seven years later, she found the task of caring for her first child and managing the studio increasingly onerous. I had to be there at six in the morning and until nine at night, she says. I couldnt afford to have a manager, so basically I was doing everything myself and I found when I had a little baby it was impossible. I was dragging her in a little basket, [putting her] under the table.She returned to Monash University and did an MBA. On completing the MBA, Schwartzs father, Marc Besen, asked her to help manage the familys considerable property portfolio.What riles Schwartz in the wider business world, though, is the lack of women in leadership roles. One method of encouraging women has been the mentoring opportunities offered by the Australian Institute of Company Directors, for example, which pairs aspiring female directors with incumbents.Another one Schwartz considers far too weak is the requirement for companies listed on the Australian stock exchange to state each year what progress they have made in adding women to the boardroom. Its a shaming device, one that forces companies to explain their lack of action.While representation rates are on the rise, the pace is sluggish. Of the 1667 directors inside Australias top 200 listed companies at March, only 204 (13.9 per cent) were women.That compares with a representation rate of 8.3 per cent in 2008. But the rate slides dramatically among the next 100 companies: 60 of them do not have any women on their boards.Schwartz wants a quota system implemented, and says she does not understand why anyone would consider this a form of tokenism.As far as I am concerned, a quota system just creates a larger database of meritorious people. You are going to appoint the right person to do the job, but what you have to do is make sure that you have a full spectrum of potential candidates, which very often doesnt happen.To widen the framework for getting women promoted, Schwartz set up the Womens Leadership Institute Australia about three years ago. It serves as a networking and a promotional base to get more women seen and heard in places of power, such as business forums or in the media. This year it published a book outlining how to nominate women for Australian honours. Its part of an effort to even out the split from present rates of 30 per cent women and 70 per cent men.Schwartz understands what that sort of recognition means: she is a recipient of the Centenary Medal (2001) and a member of the Order of Australia (2006).But she is the first to admit that despite her best intentions and optimism, progress in representation is slow. I feel like a complete failure, she says. Seriously, I do. But she wont give up.
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