WHY WOMEN ON BOARDS?
research studies point to the value women bring to boards.
Infographic by Orange Marketing. Source: MSCI ESG Research 2016.
Share-price performance
varies by the Number of women on boards
Boards with more than one woman on their boards performed better than all-male boards.
Colorado leaders also recognize the value of women on their boards
“We don’t need to just talk about the importance of women in leadership positions, we need to demonstrate that it’s important. Two of our four C-Suite executives are female, over 40% of our board is female and even at the network level we’re close to 50/50 in terms of agents and franchise ownership.
Leaders should reflect and represent the communities they serve so the more we see various groups represented, the better for us all.”
“Before having women on the board, as part of the team, the conversations were highly focused on results: ‘What have you done for me lately.’
Now the conversatins are not only what have you done for me lately, but ‘How did you get there?’
So suddenly, we have broader and deeper conversations. ... And I think it became a healthier, more rounded and more rich discussion.”
More research on the value of including women on boards
Talent, Innovation and Group Performance, Reputation and Responsibility and Financial Performance
Catalyst’s “Why Diversity and Inclusion Matter: Quick Take” sources many different research studies.
Higher Credit Ratings
Data argues good reasons to include women on corporate boards. Global companies with more than 1 woman on the board have better performance than those with zero women
3.5 percentage points Excess Compound Returns per year
Higher Price/Book valuations
Superior Stock Price performance
Women contribute to board performance.
Including women positively impacts how boards perform their tasks. Read the report.
Better communication
Positive effects on the bottom line
Increased diligence in persuading or problem solving
Women are adept at strategy development, improving corporate social responsibility and monitoring management. They also offer insight into female customers.
Women not only exhibit strong effort norms, but also intensify the board’s effort norms.
Women’s presence on boards contributes to cohesiveness.
Long term benefits of gender parity.
Improved corporate reputation
40% fewer financial restatements when there is at least one woman on a board. Read the report.
Fewer governance-related controversies, such as bribery, corruption, fraud and shareholder battles. Read the report.
Women contribute to creativity and innovation of board discussions. Read the report.
Recruitment and retention of talented women employees who respect companies with women in executive and board leadership.
Equitable distribution of power and resources.
Compiled by CEOs for Women on Boards Advanced by Women’s Leadership Foundation
“Women in Business Leadership Boost ESG Performance: Existing Body of Evidence Makes Compelling Case” reviews research from many different studies by International Finance Corporation Corporate Governance Knowledge Publication
Top 10 reasons why women improve corporate performance
The following ten leadership characteristic peculiar to women provide a compelling reason to identify and nominate qualified professional women for director roles.
1. Women are prone to “speaking truth to power” – in order to make points and add value to decisions, women have developed a characteristic of using logic and facts in addressing positions held by those with dominant opinions
2. Women are team players – team players are those who are inclusive, they invite other thoughts and opinions and they orchestrate discussions that use varying thoughts and opinions in their conclusions.
3. Women are persuasive – women use facts and less observations in their contributions to discussions and, thus, have an edge in creating persuasive arguments in discussions
4. Women seek ways to challenge effectively – women’s interest in inclusivity and presenting factual positions often allow them to create and present challenging and opposing positions
5. Women generally have a positive impact on board tasks, particularly those of a qualitative nature. Multiple studies show that they are adept at fostering strategy development, improving corporate social responsibility related issues and highly effective in monitoring management.
6. Women’s presence on boards can contribute to cohesiveness.
7. Studies show that women spend more time preparing for board meetings, have better attendance records for board meetings than men, and improve the attendance behavior of male board members.
8. Women additionally have a significant positive effect on board development activities such as board instructions and board evaluation.
9. Women may champion difficult or controversial issues and help broaden discussions to better represent the concerns of a variety of stakeholders.
10. Studies have further found that women can contribute to the creativity or innovation of board discussions and of solutions considered in the board meetings.
Jo Lynne Whiting; Chair of the Board of Directors, Boardbound by Women's Leadership Foundation answer| @Riderflex Riderflex is a global Recruiting and Consulting F...