Fast Company recently featured Can Tech Companies Continue To Innovate With No Women At The Table? In the article, author Allyson Kapin writes that according to a recent Nielsen Report, women dominate social networks and bring in half or more of the income in 55% of U.S. households. “Yet when it comes to the boards of directors of companies like Adobe, Facebook, Zynga, and Pandora, women have been excluded, despite the fact that a significant segment of these companies’ user base is women. While some companies don’t think that diversifying their all white-dude boards will make a difference on fostering innovation, a business case can be made as to why having women at the boardroom table or as executives can significantly increase companies’ profits.”
According to the Catalyst report, The Bottom Line, Corporate Performance and Women’s Representation on boards, Fortune 500 companies that had at least three women on their boards of directors saw on average:
- Return on equity increase by at least 53%.
- Return on sales increase by at least 42%.
- Return on invested capital increase by at least 66%. Diversifying boards also brings different perspectives to companies’ big picture objectives, product development, and problem solving. Companies can’t continue to innovate without diverse leaders at the table.
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