Through the women matter and women in the workplace series, as well as the mckinsey global institute s reports, we have developed a global and regional understanding of the situation, built a clear economic case for change at both the macro and micro levels. Why diversity and inclusion matter a vast body of research documents the relationship between diversity and improved financial performance. This article adds to the international debate, which is often normative, through examining 99 listed companies in the dutch female board index. In western europe, 3 drivers help seize a substantial incremental gdp opportunity. Women matter gender diversity, a corporate performance driver. Achieving gender diversity in corporations, at all levels, is a long and demanding journey, which requires the involvement of the whole company and the strong commitment of top management. Women on boards and corporate performance indicate greater risk aversion the interest in the gender diversity of boards has increased in recent years in part due to some evidence from industry studies demonstrating a positive link between women in leadership positions and corporate performance. Does diversity pay race, gender, and the business case for diversity, cedric herring, american. Conventional wisdom says gender diversity in the corporate boardroom improves company performance. Gender diversity as an on strong relationships and alignment investment opportunity on the other hand, companies and sectors with relatively strong gender diversity records may be better positioned across all drivers of performance. In that study, we found that the 89 listed european companies all with market capitalization of more than 150 million with.
Mckinseys latest study of diversity in the workplace, delivering through diversity, reaffirms the global relevance of the link between diversitydefined as a greater proportion of women and a more mixed ethnic and cultural composition in the leadership of large companiesand company financial outperformance. Gender diversity, a corporate performance driver, women. Studies show that companies with a high level of gender diversity outperform companies with an average level in terms of return on equity 11. Gender diversity, a corporate performance driver, showed a link between a companys performance and the number of women serving in its governing body. When it comes to gender diverse boards of directors, data on increases in profitability vary by region and company healththough firms within the u. For more than ten years, mckinsey has been researching to build the case for greater parity in the economy and in corporations top management, and to understand the levers to make. Integrating gender diversity into investment decisions. Summing up why does having more women in leadership positions make for more successful companies. There is a pressing need to do more, and most organizations realize this. Jan 19, 2012 gender diversity makes organizations more profitable. The business case for diversity is now overwhelming. Jun 18, 2011 mckinsey measure on organisational excellence. Staff roles focus on support functions, for example, hr and legal. The study suggests that the companies where women are most strongly represented at board or topmanagement level are also the companies that perform best.
Regarding the correlation of gender diversity with business performance, mckinsey conducted two types of research on two crosssections of business, namely organisational excellence and financial performance. This study investigates the financial performance of dutch companies both with and without women on their boards. Mckinsey s most recent delivering through diversity report found corporations that embrace gender diversity on their executive teams were more competitive and 21%. Mckinsey research again reports cultural and ethnic diversity. Moving corporate culture, moving boundaries, delves into the mindsets and cultural roadblocks to further progress, seeking to understand how individual core beliefs and corporate culture can influence gender diversity in the top of corporations. Gender diversity makes organizations better workplaces.
We have since expanded the focus of this research to examine diversity more broadly, from gender to race and ethnicity to sexual orientation. Racial and ethnic diversity has a stronger impact on financial performance in the united states than gender diversity, perhaps because earlier efforts to increase womens representation in the top levels of business have already yielded positive results. James hesketts readers offer a variety of theories. Gender diversity, a corporate performance driver download the report mckinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Gender diversity makes organizations more profitable. The coming together of people of different ethnicities with different experiences in cities and societies is a key driver of innovation.
Gender diversity and corporate performance women and. Although the study found a correlation between gender and ethnic diversity, women and minorities remain underrepresented in the corporate pipeline. These are the central conclusions from women matter. Does corporate gender equality lead to outperformance. Mckinsey s research showed that trucking companies with high levels of ethnic and gender diversity were 35 percent more likely to produce better financial performance. Lone christiansen, huidan lin, joana pereira, petia topalova and rima turk authorized for distribution by petya koeva brooks. Five ways to promote gender diversity the economic times. Diversity in the trucking sector is one of the most readymade solutions to eliminating the shortage of drivers.
Gender diversity and corporate performance women and public. Ten years of insights on gender diversity mckinsey. Why gender diversity at the top remains a challenge mckinsey. The analysis extends earlier methods used in research by catalyst the bottom line. An asian perspective harnessing female talent to rasi e corporate performance. Mckinsey s research found that diversity has the most obvious impact on financial performance when it is found in executive teams and roles that are. Gender diversity, a corporate performance driver mckinsey. Women remain underrepresented at every level in corporate america, despite earning more college degrees than men for 30 years and counting. Why diversity gives businesses a competitive advantage. This appendix does not cover the broad range of benefits of workplace diversity and inclusion.
Our latest research suggests that the argument holds as true in latin america as it does elsewhere. Firms financial performance linked to staff diversity. Many commentators suggest that gender diversity in the corporate boardroom improves company performance because of the different points of view and experience it offers. Gender diversity, a corporate per formance driver, available free of charge on mckinsey. Workplace gender equality agency 2014, gender pay gap statistics, australian government. Use this graphic and accompanying tool to raise awareness.
Gender diversity, a corporate performance driver, 1 identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western european countries. This report demonstrated a link between a companys performance and the proportion of women serving in its governing body. Evidence for these claims is presented in women matter 2. Findings of a recent mckinsey global institute study include.
Jan 23, 2012 gender diversity feeds organizational excellence because men and women differ in how they use leadership behaviors. Gender lens investing demands continued focus on progress. Our first women matter study suggests companies perform best when women are strongly represented at senior levels. Positive correlation between performance and share of women in boards16directioncoordination and controlaccount slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Gender diversity, a corporate per formance driver, available free of charge on. Several studies correlate superior performance with gender diversity in company leadership and in todays disruptive business environment, it is more. Sep 06, 2018 finally, the economic argument for gender diversity, backed by a growing literature, suggests that board gender diversity can serve as a driver for better performance and increased financial returns.
The evidence that gender diversity contributes to better corporate. This study highlighted the underrepresentation of women in european companies, particularly in management and decision making positions, and developed a. Three years later, the 2010 women matter report confirmed that women were still underrepresented in boards of corporations. Through the women matter and women in the workplace series.
Our latest genderdiversity researcha survey of 1,421 global executivessuggests that cultural factors continue to play a central role in achieving or missing diversity goals. Women matter mx is a comprehensive study that examines the state of corporate gender diversity in mexico. Gender diversity and corporate leadership the impact of gender diversity on corporate leadership has been widely debated for many years. Gender diversity, a corporate performance driver 2. Siri terjesen and val singh, female presence on corporate boards. Gender diversity and firm performance, is among the new but challenging topics of research in management sciences. The following is a selection of relevant books and journal articles about gender diversity in senior management and boards. Gender diversity, a corporate performance driver download the report mckinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to. Connecting corporate performance and gender diversity.
Gender diversity in companies top management goes with better performance. Research summary 5 both opportunity costs and attrition lead to big losses for it firms. The study suggests that the companies where women are. Please email our library and information services manager if you have a suggestion for a book or journal article to add to this list. Does gender diversity on boards really boost company. We are the trusted advisor to the worlds leading businesses, governments, and institutions.
Mckinsey report reinforces again link between diversity. Women matter 2016 reinventing the workplace to unlock the. Both research results showed that women have a positive impact on the overall performance of company. Many researchers have studied the role of gender diversity in enhancing firms. The it labor force demand is growing, yet womens participation is decreasing. The study suggests that the companies where women are most strongly represented. For the past ten years, mckinsey has been researching to build the case for greater parity in the economy and in corporations top management, and to understand the levers to make change happen. Mckinseys second women matter publication focuses on the relationship between leadership behaviors and organizational excellence. Does gender diversity improve the performance of a company. This paper examines the link between gender diversity in senior corporate positions and.
Why does gender diversity improve financial performance. The women matter research mckinsey published in 2007 identified a positive relationship between corporate performance and gender diversity. How and where diversity drives financial performance. The statistics in favour of diversity on boards continue to mount. What is the impact of gender diversity on technology business performance. Synthesizing a comprehensive framework put forth by morgan stanley research, these. Nov 04, 2015 findings of a recent mckinsey global institute study include. The impact of gender diversity on corporate leadership has been widely debated for many years. Please email our library and information services manager if you have a suggestion for a book or journal article to add to this list acker, j. Diversitys the key to solving the trucking shortage. We studied 345 listed companies in six countries 2 in. Robecosam 4 1 gender issues gain significance corporate gender diversity, i. Over the past eight decades, the firms primary objective has remained constant.
Gender diversity in senior positions and firm performance. That underscores just how long lived and challenging the issues flagged by bennett are. The business case for diversity by the b team issuu. Workplace gender equality agency 2014, australias gender equality scorecard 2014, australian government. The women matter study, published in 2007, aims at assessing the impact of gender diversity on companies performance. Diversity is both an issue of fairness and, some say, a driver of innovation and performance. Gender diversity, a corporate performance driver open interactive popup our first women matter study suggests companies perform best when women are strongly represented at senior levels. Mckinsey has long argued that gender diversity within corporations is not just a social concern, but also a. Gender diversity in senior management and boards equality. A multicountry study of environmental context, journal of business ethics, vol. The diversity matters research looks at the relationship between the level of diversity and company financial performance.
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