Lack of Female Leaders Costs US, UK and India $655bn

Published: 05 October 2015

Gender diversity in business remains a critical social and ethical issue for academics and cultural leaders alike.

Companies need to understand that male only boards can hamper performance, investors need to pressure boards to add woman to maximise their return on investment.

The domination of men in executive boards comes with a massive opportunity cost to corporates and society, reveals a new study by Grant Thornton. According to the researchers, $655 billion of profit is flushed down the drain by corporates in just three markets alone, with an extrapolation across companies and markets globally bringing the value into trillions. Their advice is elementary: companies, investors and governments need to consider ways of further increasing the number of women on boards to improve financial performance of businesses across the board.

Gender diversity in business remains a critical social and ethical issue for academics and cultural leaders alike. For business – driven by the profit imperative – gender diversity remains a business issue. Various reports have in recent years backed the business case for diversity, including research from BCG (‘The Diversity Paradox’), the Kellogg School of Management and the Scientific American.

In a new study, titled ‘Women in business: the value of diversity’, Grant Thornton too considers the gender diversity business case with hard numbers. The accounting and consulting giant explores whether there is correlation between business performance – in terms of financial performance – and diversity at board level. 

To read the full article, visit Consultancy here.

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