With little anticipation, corporate boards of directors have traditionally been serene of white males. That is shifting, albeit gradually.
According to recent Catalyst figures, women comprise only 11 percent of Fortune 1000 organizations board seats and 25 percent of Fortune 1000 organizations still have no ladies on their boards. Fortune 1000 companies comprise only a fraction of firms in the US; nevertheless, because there is inadequate knowledge about the board composition of non-publicly listed companies, we have to depend on the info we have. This information prompts us to ask why there’re few women on major company boards when actually there is an interest in growing the number.
The Labor Pool Argument
Women are in the office to stay, and many wish careers, not jobs. If firms want to hire and retain skilled employees, future executives and corporate managers they should consider women as a vital part of their labor pool.
The Market Argument
Nowadays, women comprise a major component of most consumer markets, and it is rising as more and more women presume accountability for consumer buying in the home and vehicle markets. Yet, their requirements and preferences are still normally overlooked because their voices are not heard.
The Governance Argument
Possibly the strongest argument for having women on corporate boards is that their occurrence often improves corporate supremacy. Women board associates have said their existence changes the discussion, not only do jokes and sexist language disappear, but the number and kind of substantive problems which are considered is broadened.
The Bottom Line Argument
A research by Roy Adler, a professor in California, tracked 215 Fortune 500 firms, comparing their fiscal performance to industry medians. He came to know that “firms that smash the glass ceiling also enjoy greater profits.” In a latest Harvard Business Review article giving his findings, Adler explained that “the firms with the greatest percentages of female executives gave income far in excess of the median for other big companies in their industries.
