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May 4, 2009

The female advantage: it's more profitable

Posted: 01:11 AM ET

By Rebecca Tuhus-Dubrow/Boston Globe

...A growing number of consultants and corporate leaders swear by a new strategy to boost the bottom line, one that departs from the standard bag of tricks: put more women in charge.

Several studies have linked greater gender diversity in senior posts with financial success. European firms with the highest proportion of women in power saw their stock value climb by 64 percent over two years, compared with an average of 47 percent, according to a 2007 study by the consulting firm McKinsey and Company. Measured as a percent of revenues, profits at Fortune 500 firms that most aggressively promoted women were 34 percent higher than industry medians, a 2001 Pepperdine University study showed. And, just recently, a French business professor found that the share prices of companies with more female managers declined less than average on the French stock market in 2008.

This mounting body of evidence represents an important twist in the debate over women in business. For decades, women's advancement has been seen as an issue of fairness and equality. Now some researchers are saying it should also be seen in another way: as a smart way to make money.

Filed under: Economy • Larry King Live


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Dave of Detroit   May 4th, 2009 8:17 am ET

I have no problem with equal pay for equal job perfoormance and responsibility but a shift to prefering women over men is reverse discrimination!


Almasi   May 4th, 2009 9:20 pm ET

The article isn't saying that women should be favored over men. It's saying that a specific set of statistics proves that there is a positive correlation between gender-diversity and profitability.

A meritocratic environment is a fundamental attribute of a successful organization. It breaks down like this:
-Women add diversity to a boardroom.
-Diversity adds perspective to that boardroom.
-Perspective leads to a more informed decision-making process; which, ultimately leads to better decisions coming out of that boardroom.

If I'm an investor in a company, I want to know that the management team is utilizing all of their available resources (brains) to make the best business decisions possible. Those resources (brains) should be identified by their ability, not their gender.


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