diversity women in leadership

The Profits of Diversity

14 September, 2020

Leadership groups with people from mixed backgrounds, ethnicity and gender do better because “they challenge more, and they have more discussion and debate and that leads to better decision-making,” says Vanda Murray OBE.

New research has revealed that London-listed companies are more profitable when women make up more than one in three executive roles.

Listed firms where at least one-third of the bosses are women have a profit margin more than 10 times greater than those without, it suggests.

Gender diversity business The Pipeline says London-listed companies with no women on their executive committees have a net profit of 1.5%, whereas those with more than one in three women at that level reach 15.2% net profit margin.

The Pipeline’s Women Count 2020 report “shows the stark difference in net profit margins of companies that have diverse gender leaderships compared to those who do not,” she said.

Of the 350 largest companies listed, just 14 are led by women. 15% of companies in the FTSE 350 have no female executives at all.

The group’s co-founder Lorna Fitzsimons said having more women in the decision-making room means businesses are better able to understand their customers.

Boards and leadership teams need to ensure their planning for the post pandemic future incorporates concrete steps to increase diversity and inclusion, both to reflect the world they operate in and as a matter of good business practice.

BBC News, 27 July 2020. Read the full article here.

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