Most organizations focus their attention on only reaching gender diversity on their boards. This approach misses the point. A complicated relationship exists between board sex diversity and good governance; such diversity can have a negative, positive, or neutral effect on organizational performance, signaling that organizations may only reap the benefits of sex-different boards under proper conditions. This article analyzes which conditions enable gender-diverse boards to boom and which leads to failure.
Organizations generally increase female representation on boards of directors to reach one of two goals: gender parity or improved government. Each of these targets is affected by different conditions and hence must be approached in a unique manner. Three recommendations are offered herein for organizations trying to achieve each goal. Gender, ethnic, and cultural board diversity all share related challenges and justifications, so organizations that follow the recommendations in this specific article will be nicely placed to profit from all three sources of increased diversity on their boards of directors.
PUBLICATION DATE: November 15, 2012 PRODUCT #: BH499-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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