Not Just a Seat at the Table, But A Voice, Too!!

Women are dramatically outnumbered on the boards of directors for the nation’s biggest companies. In 2018, California passed a law (California Senate Bill 826) trying to change that. The law, SB 826, requires at least one woman on boards that have four members or less, two women on boards of five people and three women on boards of six or more.

For many years women being in the boardroom was reduced to being invisible and secretary titles. In fact, they werenon-existent, and the real decisions of a corporation or organization were controlled by the privileged men sitting around the table. The idea of women having a seat at the table in the corporate boardroom or within the environment was an idea not realized.

Well, in recent years, the notion of gender diversity in the boardroom and more generally within organizations, has gained considerable traction and is no longer a debate. Theoretical research, social change movements, and corporate strategy has proven the voice of women carries weight, solves problems, and increases revenue. Formerly considered as a social issue that could be easily talked about without any real action, gender diversity on boards is increasingly perceived as a value-driver in corporate strategy and governance.

“The case for diversity is clear: Boards with more women outperform in terms of profitability, governance and teamwork. It’s hare to imagine any team succeeding if every player brought the same skills to the field. The same is true of Boards. Diversity of thought, experience, background and gender creates the strongest possible leadership model for Newmont — it also helps us recruit the best and brightest from the broadest talent pool to run the business. Diversity and inclusion isn’t just a nice idea — it’s a business imperative.” — Noreen Doyle, Board Chair, Newmont

Board diversity, including race and gender has progressively become part of the investment practice from all sectors of decision making. Not only is fair employment practice and equal pay for women part of the conversation, but so is board diversity a big part of the social investment in all sectors. In many ways, board diversity is required by primary stakeholders, such as investors, partners, customers, or employees. This level of stakeholders’ preferences, objectives, and concerns might be beneficial for firms to improve brand loyalty and employee engagement.

Diverse groups…are proven to arrive at better decisions than single gender groups. A board is, often tasked with making tough decisions. A diverse group will always put more options on the table than any homogeneous group.

In my experience as a CEO with a board of directors, I have found a gender-diverse board can bring a broad spectrum of perspectives, views, and ideations to the boardroom table that might not be considered otherwise. The women are the heart and soul of our mission, and therefore, the heart of soul of our revenue generation. Many studies confirm that companies with high representation of women board members have attained significantly higher financial performance, on average,

Representation matters. Employees like to see in people in power who represent them, and look like them. The power of femininity in the corporate world is magic when used appropriately. Female board members also serve as positive role models, opening the door for their leadership and advancement — including into the boardroom.

Some believe that the ruling in California has opened a door for more states to follow their lead.

I think the push for more women board members will become a trend around the world. The pattern will impact the private sector, the independent sector, and government in a very positive way.

Interested in women have a voice at the table? Consider the following tips:

· Frequently, boards require prior board experience and never give women a chance based on their rules. Having expertise in an area of need is far more critical than previous board experience.

· Consider a larger pool of professional women when filling board seats. Looking at two female candidates and claiming due diligence is disingenuous.

· Be intentional about a leadership development program for women within your organization. This will groom more women for leadership positions, and eventually on board of directors.

· Incorporate corporate responsibility and strong values into the DNA of your organization that will hold everyone accountable to diversity and inclusion and attract high-caliber board members of all genders.

· Finally, take the risk! Do something no one else is doing and watch your results and profits increase.