The Role of Gender Diversity in Corporate Governance

38 Pages Posted: 10 Apr 2019 Last revised: 13 Apr 2019

See all articles by Terry Morehead Dworkin

Terry Morehead Dworkin

Indiana University Bloomington - Office for Women's Affairs

Cindy A. Schipani

University of Michigan, Stephen M. Ross School of Business

Date Written: December 1, 2018

Abstract

A number of studies show that companies with more women involved in leadership positions tend to outperform their sector in terms of return on equity, operating result, and stock price growth. A diverse board may signal independence, creative thought, opportunities for breakout strategies and an open-mindedness on the part of the company -- traits that are increasingly important as external factors such as globalization and heightened competitiveness impact the marketplace. Having women in key positions may add value through women’s distinctive set of skills, and creating cultures of inclusion through a diverse workforce.

This paper begins with a review of studies analyzing gender diversity and firm performance, followed with an analysis of role incongruity and gender inequality in the workplace. The paper continues with examination of the multitude of revelations concerning egregious incidents of sexual harassment, which may go a long way toward explaining the apparent barriers present for women pursuing pathways to positions of organizational leadership. We then offer our proposals for potential solutions involving changing company norms.

Keywords: gender diversity, corporate governance, employment law, employment discrimination, women in leadership, sexual harassment

JEL Classification: K31, M14, J71

Suggested Citation

Dworkin, Terry Morehead and Schipani, Cindy A., The Role of Gender Diversity in Corporate Governance (December 1, 2018). 21 University of Pennsylvania Journal of Business Law 105 (2018); Ross School of Business Paper No. 1391. Available at SSRN: https://ssrn.com/abstract=3369660 or http://dx.doi.org/10.2139/ssrn.3369660

Terry Morehead Dworkin (Contact Author)

Indiana University Bloomington - Office for Women's Affairs ( email )

Bloomington, IN
United States

Cindy A. Schipani

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI 48109
United States
(734) 763-2257 (Phone)
(734) 763-2257 (Fax)

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