While the Melbourne Cup is often hailed as the race that stops the nation, research commissioned by the Victoria Racing Club has found that economically, it may do the opposite. The 4 day Carnival contributed $374.2 million of gross economic benefit to Victoria last year alone, up from $364.5 million in 2013.
And the economic benefits don’t stop at the Victorian border.
Melbourne Cup events are held around the nation, with frocked-up fillies and dapper gents purchasing more than 75,000 hats and fascinators, 60,000 pairs of shoes, 61,000 dresses, 30,000 items of jewellery, 27,000 ties, 21,000 handbags, 18,000 suits, 17,000 shirts, 11,000 pairs of sunglasses and 13,000 pairs of socks and pantihose, providing a $700 million stimulus to the national economy.
According to Louise Asher, Victorian Minister for Tourism and Major Events, “these results underline the Melbourne Cup Carnival’s importance as a significant economic contributor.”
There’s no doubt the Melbourne Cup is the pinnacle of the Australian racing calendar. But this year it was extra special. In a sport dominated by males, Michelle Payne has defied the glass ceiling that exists in horse racing to become the first woman jockey to win the Melbourne Cup.
Despite coming from one of racing’s biggest and best-known families, Payne says she struggled to find acceptance in a male-dominated industry. Payne used her moment in the spotlight after winning the Melbourne Cup to say that female jockeys should be given a better go, and famously telling detractors to “get stuffed”. Hopefully this sentiment flows on to other industries, and especially into the boardroom. .
And hopefully this sentiment flows on to other industries, and especially into the boardroom.
Currently women only make up 21% of the ASX 200 directors and 29 boards in the ASX 200 still do not have anywomen. Yet a recent study on women in senior management has found that companies who have at least one female director have seen an average return on equity of 14.1% since 2005 compared to 11.2% for all male boards.
Similar research undertaken by Catalyst found that companies with three or more women on their board of directors have a stronger-than-average performance. This isn’t due to one gender having greater ability than the other but that a more diverse group makes for better decision making and corporate performance.
Despite a concerted effort to increase the number of women in leadership positions globally over the last decade, women remain in the minority in a male-dominated corporate world. The Chief Executive of the Australian Stock Exchange Funke Kupper commented that “while the momentum for change is there, progress to date has been far from satisfactory.”
Mr Kupper is not calling for quotas, telling the Senate in his submission that he does not think diversity should be “a tick the box exercise” but he is in favour of setting hard targets and having more accountability.
Despite may companies trying to increase the number of female employees with nearly a 50-50 split when hiring graduates; this figure dwindles drastically when it comes to roles with direct influence.
Kate Carnell, the chief executive of the Australian Chamber of Commerce and Industry, believes the key problem is that men of a certain age fill board openings by selecting from their limited and primarily male circle of professional acquaintances.
Hopefully the leadership landscape will change when a younger generation of both male and female business leaders begin to climb their way up the corporate ladder. For now we need to ensure that there is a solid pipeline of candidates and that companies support the development of strong female leaders. Perhaps these companies will gain success, and win their “Melbourne Cup”.
