The Study revealed that the highest correlation with increased profits was in companies with women in top management positions, as opposed to companies with a female as the chief executive (showing that female CEOs did not significantly underperform or over-perform when compared with their male counterparts) or those with increased female board membership (showing some, but not a significant increase). In fact, the data suggested that an increase in the amount of women in top management positions from 0 to 30 percent could be associated with as much as a 15 percent rise in overall profitability.
The results of the Study further suggested that more needs to be done to foster a “management pipeline of women” by, for example, the early development of mathematical and other relevant skills in school-aged girls. The more women in business at the entry-level, explains the Director of the Petersen Institute, the increased chance that more will make it to the very top level.
The Study did not find any evidence that “quotas” for women in executive positions (like in certain European countries like Norway, Denmark, and Finland) are having any substantial influence on bottom lines. Ultimately, the Study suggests that instituting supportive policies involving education, childcare (flexible schedules), and against harassment and discrimination would have a greater impact on achieving gender diversity and allow more women to “make it to the very top.”
Keywords: woman advocate, litigation, corporation, gender diversity, corporate leadership