In a press release dated today, October 1, 2007, Catalyst reports that according to their findings in a new study, Fortune 500 companies with the highest representation of women board directors attained much higher financial performance than companies with the lowest representation of women board directors.
The study found that, on average, companies with higher representation of women board directors:
- Achieved 53 percent higher Return on Equity
- Achieved 42 percent higher Return on Sales
- Achieved 66 percent higher Return on Invested Capital
According to Ilene H. Lang, President of Catalyst, "This Catalyst study again demonstrates the very strong correlation between corporate financial performance and gender diversity. We know that diversity, well managed, produces better results."
Catalyst is not saying that greater female representation causes a direct improvement in business performance...but, the survey findings do show that the most gender-diverse companies really do perform significantly better than their less diverse peers.
My own opinion is that more diversity = more diverse and creative business ideas. What are your thoughts on this hot topic?
You can do it!
Lisa Quast
Career Woman, Inc. - "Your Future, Your Way"
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