Improved Diversity Means Better Results
A world-first study, based on six years of Australian companies’ gender reporting to the federal Workplace Gender Equality Agency, has identified the causal role between greater gender diversity and business success. While other studies have concluded that such a connection is likely, the data provided by the WGEA allowed real case studies and leadership appointments to be tracked over a number of years to establish direct proof of the link.
It established that companies who appointed a female CEO increased their market value by 5 per cent — worth nearly $80 million to an average ASX200 company.
WGEA director Libby Lyons said while the headline data concerned gender, the principle demonstrated was about diversity, and leadership in organisations reflecting the community.
“The strength of this research, the strength of this information that we launch today, shows that if you improve your diversity you get better results,” she said.
“If you’re a member of a board or a CEO or executive and you don’t take notice of what this report is telling you, then you are not meeting your obligation to your shareholders or your owners.”