Women represent half the population; so its only logical them to be represented on the boards too! But going just beyond logic and understanding why is it imperative to have women on boards; here are the five reasons why women should be on boards:
Diversity of thought counteracts “groupthink” and encourages board members to consider a broad range of ideas and possibilities. Women tend to be more inclusive and collaborative than men and they ask different types of questions than men.
Different style of leadership
A woman’s leadership style is more like mentoring and coaching, while a man’s style is centered around command and control. Both styles have their advantages and are required at all times.
Top Talent Retention
Companies with women on their boards are better able to attract and retain excellent employees. Women are drawn to companies that already have women on their boards, because they see opportunities to advance. Having women in the boardroom sends a strong message that a company is progressive and recognizes merit.
Better Profits & Positive Branding
Gender balance on the board brings greater stability throughout the market cycle. Research has shown that companies with more women on their boards tend to outperform their competitors on a number of financial measures and also sends the message that the company is accessible, inclusive and open to innovation. They have more effective risk mitigation and crisis management, and a better balance between risk-welcoming and risk aversion behavior. This is very positive in the marketplace.
Ensure “better” boardroom behavior
Women tend to be more comfortable with ambiguity than men, are more holistic in their thinking and tend to be more process oriented than men. This results in positive changes to the boardroom environment and culture, which is more orderly and systematic work. Also, male directors tend to be more careful about what they said or do when women are present.