Is Mandating Gender Diversity Good for Business?

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'It’s not only the right thing to do, but it also makes smart business sense.'

Gender equality in the business world is a hot topic, and one that’s continuing to garner attention as movements like #MeToo grow rapidly into forces to be reckoned with. The statistics aren’t great - in the United States, only 22% of corporate board seats are held by women, and that number drops to just 15% when we look at the business world internationally.

The United States has largely been slow to adopt any formal policy towards gender representation, instead leaving these decisions in the hands of private companies to make. Progress has been slow but steady, with the proportion of female directors on boards in the U.S. at 22% in 2018, up from 20.4% in 2017, according to a report by J.P. Morgan. Despite these gains, however, the report also found that women are still struggling to make headway at the executive level.

companies that are incorporated or based in California and are listed on U.S. stock exchanges to have at least one woman on their boards of directors by the end of 2019, and a representative number of women on their boards of directors by the end of 2021. It’s too soon to tell what the outcome will be, and if other states will adopt similar policies, but it’s clear that discussion of gender equality in business isn’t going away anytime soon.

 

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