NUMEROUS studies around the world have proven that diversity in the workplace leads to better business and financial performance. In 2013, consultants McKinsey & Company reported that companies with top-quartile representation of women on boards had 47 per cent higher return on equity (ROE) on average and 55 per cent higher earnings before interest and tax on average, than those without women on their boards.
Meanwhile, Credit Suisse's Gender Diversity and Corporate Performance report noted that the average ROE of companies with at least one woman on board from 2005-2011 was 16 per cent, or four percentage points higher than the average ROE of companies without any woman on their board.
An EY report called Women. Fast Forward: The time for gender parity is now highlights that better gender representation on boards can lead to better share price and financial performance while more gender-balanced leadership can result in better all-round performance as they increase focus on corporate governance, corporate responsibility, talent dynamics and market acuity.