Gender diversity

Gender diversity is equitable or fair representation of people of different genders. It most commonly refers to an equitable ratio of men and women, but may also include people of non-binary genders. Gender diversity on corporate boards has been widely discussed, and many ongoing initiatives study and promote gender diversity in fields traditionally dominated by men, including computing, engineering, medicine, and science. Management with greater gender diversity trends to perform better than that dominated by one gender. Achieving gender diversity within organizations brings multiple benefits to companies, including an overall increase in business performance, number of customers, revenues and profits. By promoting gender diversity, companies are also more likely to attract more diverse people, and people who consider gender equality policies when considering different employers. Some studies show that higher diversity in the workforce is expected to bring higher returns. Diversity can now be seen as a sort of “competitive differentiator” that brings about a shift in the market share of a company towards more diverse ones as time passes by. McKinsey's examinations found that companies that allow for gender diversity within the workplace are 15% more likely to experience higher financial returns, as measured by earnings before interest and tax (EBIT), compared to the national industry medians. A study by the University of British Columbia found that women on boards helped companies to conclude better M&A deals, reducing their costs by 15.4%. Gender diversity in companies leads to improved reputation both directly and indirectly. Directly because it's demonstrated that companies with a higher percentage of women board directors are favorably viewed in sectors that operate close to the final customers and are more likely to be on Ethisphere Institute's list of the “World's Most Ethical Companies'. Indirectly, women directors are more likely to notice and less likely to commit fraud. Moreover, gender diversity policies seem also to be correlated with increased CSR, as well as having better overall organizational image. Since men and women have different viewpoints, ideas, and market insights, a gender-diverse workforce enables better problem solving. A study done in 2014 by Gallup finds that hiring a gender-diverse workforce allows the company to serve an increasingly diverse customer base. This happens because a gender-diverse workforce eases the process of accessing resources, such as multiple sources of information or credit, and industry knowledge. Gender diverse organizations were also shown to benefit from increased customer understanding and satisfaction. Gender diversity in boards increases diversity of ideas by introducing different perspectives and problem-solving approaches. This gives teams increased optionality and decision-making advantages.