Leading Ethically: Why Gender Diversity Is Important
Studies prove women on boards lead to better corporate governance, but the reasons behind it may not be what you expect.
Speed Read
- Diverse groups outperform more homogeneous groups due to more careful information processing and anticipation of conflict
- While it’s tempting to infer women bring “different” and “special” qualities like strong interpersonal skills and higher levels of integrity, studies find no differences between the way of thinking or behaving between men and women
- As well as the more visible “surface-level” diversity such as gender, culture and age, it’s important to have “deeper level” diversity of thinking approaches and perspectives
- Including a range of differences on corporate boards reduces the risks of an executive echo-chamber and raises the chances of more ethical decision-making
Women On Boards
Every so often the benefits, or otherwise, of gender diversity on boards is debated in the media. Earlier this year, during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, some conservative commentators seized the opportunity to take a swipe at Australia’s “obsession with diversity”. Referencing the failures of the AMP board and, in particular, former Chair Catherine Brenner, wrote Miranda Devine: “Parachuting more women onto boards, whether via diversity quotas or ‘targets’ has not led, as promised, to a nirvana of more ethical, socially responsible corporations.”
We’re for more diverse and inclusive cultures
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