Diversity isn’t just a catchword anymore – it’s a proven means to earning more revenues in even the most cutthroat business environments.
According to a four-year study by Catalyst, Fortune 500 companies with more women board members performed significantly higher than those with fewer women in these positions-from a 53 percent higher return on equity to a 42 percent higher return on sales to a 66 percent higher return on invested capital.
“You can’t argue with numbers,” says Dr. R. Kay Green, CEO of RKG Marketing Solutions and author of the new book “I’ve Been Called the B Word… Now What Do I Do?” “And these figures are saying it pays – quite literally – to put women in leadership roles in corporate America.”
In addition Professor Ray Adler of Pepperdine University found, over the course of a nineteen-year study of 215 Fortune 500 firms, that the 25 companies with the best records of promoting women to high positions earned 18 to 69 percent more profits than the average firms in their industries.
Women in directorial positions can boost a company’s profits by: Serving as role models, leading to improved performance from other female employees and giving a boost to the company’s image.
-Providing a greater visible representation of women in the workforce, which can appeal to customers or clients and lead to better outcomes for the company.
-Creating an environment that draws other talented female executives, which is crucial for success.
-Be more in tune with the needs and wants of female consumers, who drive 80 percent of purchasing decisions in the US.
-Deal more effectively with risk and better address the concerns of customers, employees, shareholders, and the community.
So why has the percentage of women on boards been hovering between 11 and 12 percent for the last ten years? “Because businesses are afraid to change,” says Dr. Green. “They like to stick with what they already know. However, if they want to keep their success going tomorrow and in the decades to come, they must put more women in high-level, decision-making positions. Having all-male boards simply doesn’t make economic sense anymore.”
About the author: Dr. R. Kay Green is the CEO and president of RKG Marketing Solutions, Inc. and an online professor and course developer for West Virginia University, Embry-Riddle University, University of California-Irvine, Arcadia University, and the Florida Institute of Technology. She holds an associate’s degree in marketing management, a bachelor’s in administration in marketing, an MBA in marketing and management, and a doctorate of business administration in marketing, and has been featured on Great Women Speakers, Black Experts, and Guru.com.
(“I’ve Been Called the B Word… Now What Do I Do?” by Dr. R. Kay Green; ISBN: 098589010X; 208 pages; 5.5″ x 8.5″; hardcover)