Corporates which have employed women at senior levels have shown better women provide better financial returns than those without them. Not because women on board gives your company a pleasant image outside but because they are capable to uphold their post. Not only me as a women saying this but also a TOI-commissioned study on the relation between companies with women on their boards and profitability justifies this.
A study of return on equity (ROE) data of top 100 Indian companies (BSE 100) by Randstad, a leading HR services provider, also speaks that companies with women on their boards have a positive impact on ROE.
According to the analysis a private sector company helped ROE rise by 4.4% in 2014 over the last year only because they are having the board of professional CEO with a fusion of both men and women.
On the other hand, a parallel firm with a men-only board saw its ROE rise by a mere 1.8% in the same period.
Nearly 50% of the Indian population involves women and an even advanced percentage of them are decision makers in purchasing consumer products. Vivek Gambhir, MD of GCPL, who’s current ROE is about 20%, whereas the sector median is around 11% says, “It just makes sound business sense to have adequate levels of representation of both genders. Our board discussions are a lot richer as a result of having a diverse representation on the board.”
“Approximately 50% of the world's population is women. If we have to harness the full power of human imagination, we must reflect that diversity in all aspects of business”, said Vijay Govindarajan, management guru and Coxe Distinguished Professor at Tuck School of Business. He also stated that diversity is the key to maximizing mega business opportunities.
Chanda Kochhar, MD & CEO of ICICI Bank says, “It’s a relatively recent phenomenon. This is the culmination of a social process which saw women starting to take up careers about 30 years ago. It takes time to build a career”. She also stresses the need for gender diversity but feels there are two or three factors due to which there aren't too many women on company boards. “You have only about 20 women for every 100 qualified job applicants. Further, many women drop out of the workforce after a few years”, she added.
Rohini Anand, senior VP & Global Chief Diversity Officer, Sodexo stated that when an organization gets women on its board, there is a trickledown effect with respect to gender balance as it puts pressure on boards to bring more women into the organization.
According to reports, board diversity has improved in almost every country and every sector, rolling from 9.6% in 2010 to closely 12.7% at the end of 2013. This reveals that the 2013 sector-adjusted ROE of companies with minimum one female board member was 12.2% as compared to 10.1% for those with nil representation.
It’s heartening to see corporates favouring a gender balance at all levels of the organisation and doing recruitments based only on capabilities instead of a gender bias.
More such Stories on Litmus News a Gear Bob Initiative
A study of return on equity (ROE) data of top 100 Indian companies (BSE 100) by Randstad, a leading HR services provider, also speaks that companies with women on their boards have a positive impact on ROE.
According to the analysis a private sector company helped ROE rise by 4.4% in 2014 over the last year only because they are having the board of professional CEO with a fusion of both men and women.
On the other hand, a parallel firm with a men-only board saw its ROE rise by a mere 1.8% in the same period.
Nearly 50% of the Indian population involves women and an even advanced percentage of them are decision makers in purchasing consumer products. Vivek Gambhir, MD of GCPL, who’s current ROE is about 20%, whereas the sector median is around 11% says, “It just makes sound business sense to have adequate levels of representation of both genders. Our board discussions are a lot richer as a result of having a diverse representation on the board.”
“Approximately 50% of the world's population is women. If we have to harness the full power of human imagination, we must reflect that diversity in all aspects of business”, said Vijay Govindarajan, management guru and Coxe Distinguished Professor at Tuck School of Business. He also stated that diversity is the key to maximizing mega business opportunities.
Chanda Kochhar, MD & CEO of ICICI Bank says, “It’s a relatively recent phenomenon. This is the culmination of a social process which saw women starting to take up careers about 30 years ago. It takes time to build a career”. She also stresses the need for gender diversity but feels there are two or three factors due to which there aren't too many women on company boards. “You have only about 20 women for every 100 qualified job applicants. Further, many women drop out of the workforce after a few years”, she added.
Rohini Anand, senior VP & Global Chief Diversity Officer, Sodexo stated that when an organization gets women on its board, there is a trickledown effect with respect to gender balance as it puts pressure on boards to bring more women into the organization.
According to reports, board diversity has improved in almost every country and every sector, rolling from 9.6% in 2010 to closely 12.7% at the end of 2013. This reveals that the 2013 sector-adjusted ROE of companies with minimum one female board member was 12.2% as compared to 10.1% for those with nil representation.
It’s heartening to see corporates favouring a gender balance at all levels of the organisation and doing recruitments based only on capabilities instead of a gender bias.
More such Stories on Litmus News a Gear Bob Initiative