By Joan Feiereisen, Director of Governance & Board Leadership
We all instinctively know it’s better to have a board that’s gender-diverse. But why? At the recent BoardSource Leadership Forum in Washington, D.C., Dr. Margaret Reid from the University of Arkansas examined research from for-profit companies that showed why having the female perspective is not just politically correct, but also makes good business sense.
- Women directors mean more profits – In a study on corporate performance and women’s representation on boards of directors (Carter and Wagner, Catalyst – 2004-2008), companies with three or more women on their boards outperformed those with zero women by 84%. Another study found that having at least one woman on a board decreases bankruptcy by a full 20% (Wilson and Atlantar, 2009).
- Having women on boards leads to more ethical behavior – Companies with more women on their boards see better corporate governance and ethical behavior (Franke, 1997). It isn’t so much that women are necessarily more honest, but they tend to ask more questions, thus uncovering issues that boards should be addressing.
- It never pays to marginalize half the population – Corporations have realized that not having females represented on their boards leads to losing a critical opinion and voice. If women feel shut out from decision-making, they are less likely to support an organization that doesn’t value a feminine perspective.
How does the business case parallel schools? While businesses may lose perspective on their products and services without women involved at a high level, schools can miss out on important insight on everything from parent involvement to fundraising strategy to marketing ideas. They also may not be hearing all of those hard-hitting questions women are likely to pose.
Unfortunately, businesses aren’t paying enough attention to the research. Recent statistics show that right here in our state, only 15.5% of board seats in Wisconsin’s top 50 companies are held by women. The Greater Milwaukee Committee is joining forces with Milwaukee Women Inc. in their goal to increase that number substantially.
PAVE recognized early on that it was important to have diverse boards governing schools. Our Board Corps is far ahead of the curve when it comes to recruiting women to serve on school boards. 50% of PAVE’s Board Corps members are female and will be productively adding their insight and perspective to our Partner Schools in the coming years. Lessons definitely learned!