This week, Credit
Suisse (a leading global financial services company based in Zurich,
Switzerland) released research that continued to validate the “business case” for
including more women in top positions of the corporate world.
“Gender Diversity and
Corporate Performance” provided an array of data answering the question: does
gender diversity within corporate management improve performance? The
basic answer is that, in comparing the performance of 2,360 companies, those
with at least one woman on the board have outperformed stocks with no women on
the board by 26 percent over the course of the last 6 years.
Most importantly, most
of this difference occurred after the economic calamity of 2008, when the
financial environment globally was deteriorating. Companies with female
board members were better at delivering results even in hard times.
Why do women on the
board enhance the corporate performance? The report provides 7 points
that may correlate gender diversity with corporate performance:
1.
It signals a “better company”.
Research suggests that
placing women on a board is a sign that the company is already doing well,
rather than a signal of working to improve.
2. Diversity of the team
results in better performance.
Research from Columbia University has shown that non-diverse
groups improve their own performance by broadening diversity - it leads to
better average outcomes when the work group is more diverse.
3. There is a better mix
of leadership skills.
McKinsey and NASA have conducted studies on leadership skills that have proven women are specifically good at defining responsibilities clearly, supporting mentoring, and coaching employees.
McKinsey and NASA have conducted studies on leadership skills that have proven women are specifically good at defining responsibilities clearly, supporting mentoring, and coaching employees.
4.
There is a wider talent pool.
Since 2000, the proportion of college graduates that are female
has increased from 51% to 54%, which is projected to continue to increase in
the future. This provides a broad pool of talent for any hiring manager.
5.
This reflects that females are the primary consumer
decision-maker.
Because women are responsible for up to 85% of household
purchasing decisions, corporations demonstrate a better understanding of
consumer preference.
6.
Corporate governance is improved.
Academic research concludes that corporations with more women on
the board improve
their performance related to both social and corporate
governance.
7.
There is more aversion to risk.
A report issued in 2003 noted that men – particularly optimistic
men – create investment volatility and cause more significant shifts in
value. For women, there is no difference in investment risk between
different temperaments; women generally remain more risk averse overall.
Although
there are still barriers to women in leadership (dual roles with household
responsibilities, continued stereotypes, and reduced expectations by women),
the numbers prove the case.
Our
work to ensure girls complete an education and develop a career pathway, and to
assist women to step into new and greater responsibilities as leaders,
reinforces that Chrysalis “gets it.” We know that supporting girls and
women is just good business. And good for business.
If
you’d like to read the Credit Suisse report: https://infocus.credit-suisse.com/data/_product_documents/_articles/360157/cs_women_in_leading_positions_FINAL.PDF
