Global Companies Profit from Women in Leadership

As global public and private sectors alike search for ways to connect the social value of workplace diversity to companies’ economic value, a study by the Washington D.C.–based Peterson Institute for International Economics has found that increased gender diversity in corporate leadership benefits businesses’ bottom line. The analysis involved more than 20,000 firms from 91 countries.

15% increase

Profitability change associated with an increase in share of women in leadership from zero to 30%

40% of board seats / 20% of executive positions

Women’s representation in corporate leadership in Norway, the highest from countries reported

12% of board seats / 16% of executive positions

Women’s representation in corporate leadership in the U.S., near the middle of the pack

Parental leave policies

Stronger paternity (versus maternity) leave policies correlate with more female leadership

Read more:
“Is Gender Diversity Profitable? Evidence from a Global Survey” (Marcus Noland, Tyler Moran, Barbara Kotschwar)
“Women in Company Leadership Tied to Stronger Profits, Study Says” (The New York Times)

Additional reading:
Women and Leadership (Pew Research Center)