A study of 353 fortune 500
companies connects corporate performance and gender diversity.
A news release in new york by catalyst demonstrates that
companies with a higher representation of women in senior management positions financially outperform companies with proportionally fewer
women at the top. These findings support the business case for diversity, which asserts companies that recruit, retain, and advance women
will have a competitive advantage in the global marketplace.
In the study The bottom line: Connecting Corporate Performance and
Gender Diversity, sponsored by BMO Financial Group, Catalyst used two measures to examine financial performance: Return on Equity
(ROE) and Total Return to Shareholders (TRS).
After examining the 353 companies that remained on the F500 list for four out of
five years between 1996 and 2000, Catalyst found:
The group of companies with the highest representation of women on their senior
management teams had a 35-percent higher ROE and a 34-percent higher TRS than companies with the lowest women`s representation.
Consumer Discretionary, Consumer Staples, and Financial Services companies with the highest representation of women in senior management
experienced a considerably higher ROE and TRS than companies with the lowest representation of women.
increasingly request hard data to support the link between gender diversity and corporate performance. This study gives business leaders
unquestionable evidence that a link does exist," said Catalyst President Ilene H. Lang. "We controlled for industry and company
differences and the conclusion was still the same. Top-performing companies have a higher representation of women on their leadership
"The Catalyst study confirms my own long-held conviction that it makes the best of business sense to have a diverse
workforce and an equitable, supportive workplace," said Tony Comper, Chairman and CEO of BMO Financial Group, sole sponsor of the
How relevant is this to the Indian Scenario? What is the percentage of women in the workforce today? How many are
middle-level managers? How many have reached the top? Which of our Corporate giants are `women friendly`? Can a woman make her career her
first priority and forge ahead to crack the glass ceiling? Or is she limited by her gender? If she can boost the bottomline, what can the
establishment do to make her life a little easier? Can she achieve a work - life balance? Write in and tell us what you think.