Women Leaders in Business: The Bottom Line
In the corporate world, it is often believed that women have a severe disadvantage to men. However, a report released by New York analytics firm MSCI suggests that companies with strong show greater returns on equity than those without.
According to the report, strong female leaders held a 2.7% return on equity advantage over those with similar leadership profiles. It was also noted that on boards lacking diversity between genders; there was a noticeable increase in authority issues.
While there is not an established and clear link between women leaders and overall corporate functioning, traits like innovation and good decision-making were associated with gender diversity. In companies with a female CEO, there is an increase in diversity! This is likely due to an increase in social networking, larger cultural diversity, and the breakdown of typical barriers found in most institutions.
This connection between strong female leaders and high returns of equity could have a basis in cultural diversity, greater networking, and breakdown of these “glass ceilings” that women reach in the workforce. Combined, these traits encourage inclusive thinking. With barriers gone, there is more room for board members and employees have a better chance of working to achieve success.
Achieving this diversity and better networking is not an opportunity only available to companies with a female CEO. If companies make conscious efforts to look into the skill of potential employees, there will be a greater likelihood of success. However, companies need someone who is trained in the art of business leadership.
A Creative Business Lawyer is precisely the person for this job. They are fully capable of helping you identify opportunities for achieving leadership diversity. As well as diversity, Creative Business Lawyers can help you put valuable legal and financial protections in place to guard your company and protect it. With this done, you can focus on growth potential, as well as, the reasons why you love doing business.