In the past, business operations were planned, executed, and analyzed mainly by a male-driven boardroom. They marginalized the voice of female counterparts and left little space for diversity and gender equality. In the current business environment, companies have begun to realize the importance of boardroom diversity and how they can optimize it. Many enterprises are encouraging equal participation of women in leadership and decision-making processes. In addition, they are also striving to adopt and restructure business frameworks to enable gender equality. In her article for Chartered Governance Institute UK and Ireland, Laura Sercombe shares how firms can enhance boardroom diversity.
Why Boardroom Diversity Is Crucial
According to a study by McKinsey in 2015, companies with women holding positions in upper management had improved organizational performance. Additionally, per a survey by NEOMA Business School, women leaders manage business risks more efficiently. In the wake of the pandemic, companies with boardroom diversity were better equipped to handle swift business changes.
How a Diverse Boardroom Enhances Business
Boardroom diversity benefits an organization by:
Representing shareholders equallyReflecting the workforce and consumer base alikeIntroducing an environment of healthy discussions and inclusionExpanding the process of information exchangeOptimizing productivityEnhancing creative process
How to Pursue Boardroom Diversity
Introducing an inclusive boardroom has its own set of challenges. Women working in corporate organizations often do not have enough confidence to lead a team. One of the main reasons is that they are not fully trusted with their decisions. Their capabilities are frequently questioned, hampering their self-confidence. In such a situation, women begin to doubt their caliber and focus on fulfilling stereotyped business roles. Business leaders should help women professionals identify their potential and help them achieve it. Women co-workers and business leaders should introduce an environment where everybody feels valued. It will boost the workforce’s overall confidence and allow women to voice their opinions freely.
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