Gender Diversity on Boards: A Cause for Multilateral Organizations

Good corporate decision-making requires the ability to consider and analyze issues from different perspectives. In the past, corporate governance literature has focused on ensuring that boards can draw on the diversity of their members’ expertise and professional experience. Over the past few years, attention has increasingly shifted to the impact that gender diversity can bring to the decision-making process. There is now evidence to support the idea that gender-balanced boards boost the performance of companies and that companies with greater female representation on their boards are less likely to be affected by governance scandals involving bribery, fraud and other negative factors likely to depress business confidence. In Europe, the discussion about gender diversity on boards is well advanced and a number of countries are aiming for ambitious targets. In the United States (US) the trend seems to have stalled, while in Asia it has not yet taken off, with only a few countries actively promoting gender diversity on boards. This chapter considers the legislation and data on gender diversity on the boards of companies in Europe, the US and Asia. It critically reviews some of the measures introduced by companies, governments and institutional investors to address the gender diversity gap. It concludes by proposing concrete measures that governments, companies and investors may consider adopting to address the gender gap on boards. These measures may be appropriate for international financial institutions to pursue.

Gender Diversity on Boards: A Cause for Multilateral Organizations

Marie-Anne Birken

Gian Piero Cigna