—That Gender Gap Is A Gender Grand Canyon! 
 
 
It seems logical to me that if women are responsible for the selection and purchasing of 80% of our consumer goods, then the number of women on corporate boards should be a major consideration. What do you think?
 
In case that 80% figure stunned you, here are a few more:

• Women purchase 60% of cars, and influence 90% of purchases
• Women make 80% of all health care expenditures
• Women select 89% of new bank accounts
  
• And according to Tom Peters, women purchase 80% of all riding lawn mowers

Looking at the boards of the Fortune 500 companies, what percentage of seats do you think you’ll find occupied by women?
 
A Catalyst report for 2007 gives the figures, and they’re not pretty. If you thought 50%, you were too high. If you thought 40%, you were probably thinking about Norway!  Apparently, the government there thought it was important enough to mandate that publicly traded companies have at least 40% women on their boards—and now they do. Don’t even bother guessing 30% for the U.S.—still too high.
 
If you look at who’s sitting in the board seats of the Fortune 500 companies, only 15% are occupied by women. (14.8% to be exact.)
 
Of those 500 huge companies, there are 59 with no (yes, I mean Zero) women on their boards, and there are 186 with only two women. All of us need to take an active role in changing this dismal picture. Look into the 59 companies with all-male boards. You may even list them in the comments section of this blog. Do you buy products from any of these companies? I betcha do. Write a letter addressed to the CEO of the company. Let him know (in this case, you wouldn’t expect to find a her) . . . that you know . . . and that you’re telling your friends!
 
What possible changes can women bring to the table—the board of directors’ table? How about an increase in the bottom line? A recent Harvard Business Review article presents the finding of Professor Roy Adler of Pepperdine University in California. He tracked 215 Fortune 500 companies, comparing their financial performance to industry medians and found that “companies that smash the glass ceiling also enjoy higher profits.” A Catalyst study found similar results for companies with the most gender diversity in upper management—they performed better financially. Nearly everyone is careful to say, “There’s no theory as to why this is the case,” but in business an increase in the bottom line and an increase in return on equity are good reasons for doing business in the first place.
 
A Fortune 1000 study conducted by research scientist Sumru Erkut, Ph.D. “found that a critical mass of three or more women can cause a fundamental change in the boardroom and enhance corporate governance. Women bring a collaborative leadership style that benefits boardroom dynamics by increasing the amount of listening, social support, and win-win problem-solving. Although women are often collaborative leaders, they do not shy away from controversial issues. Many of our interviewees believe that women are more likely than men to ask tough questions in the boardroom and demand direct and detailed answers. Indeed, as one male CEO put it, ‘the men feel a gender obligation to behave as though they understand everything.’ Women also bring new issues and perspectives to the table, broadening the content of boardroom discussions to include the perspectives of multiple stakeholders. Women of color add perspectives that broaden boardroom discussions even further.”
 
After the failures of WorldCom and Enron, I think the public is ready to welcome tough questions women tend to ask, such as, “Why is the CEO’s compensation so high, and who approved and dated the options?”  I know, I know, those pesky questions. Those are the questions the former employees and former stockholders wish someone had asked in the boardroom!
 
 
Tip:
Following my tip this week will do a lot toward making changes for women in business. Cite the facts from the Harvard Business Review and Catalyst. Let other people know this information. Keep track of Fortune 500 companies who still have no women (or less than 3 women) on their boards. Is there one company that surprises you or that interests you? Single it out. Let others know. Let the company know that this does not bode well for their corporate image. Financial incentives along with public image should be enough to bring about corporate change without government decrees.
 
P.S.
Shame on these companies, having No women on their boards:
 
Toys ‘R” Us — Come on women, don’t you shop there, or all the customers men?
 
Apple — I’m now looking at my iPod and my MAC computer with less fondness. Come on Steve Jobs, nab someone like Ann Winblad for your board.
 
News Corp. — #88 out of the Fortune 500 —an important company with television, film and newspapers. A lot of women watch American Idol, one of your shows.
 
Countrywide Financial — Perhaps if you had 1 woman on your board, someone would have asked the pesky question: Why is the CEO getting so much money when we’re about to go under?
 
NVR and Sempra Energy – two of our largest utility companies. Hmmm.  
 
 
 
Further Reading:
 
Blog, Women’s Lunch Talk, by Nancy Clark, How Successful Women Use Power—Hint, It’s Not An End In Itself
 
Podcast (always less than 10 minutes), Working in Heels, by Nancy Clark, Episode 1 – Listen To This First —See Why The Time Is Right For Women In Business
 
Website, WomensMedia, by Judy B. Rosener, Ph.D., Women on Corporate Boards Make Good Business Sense
 
YouTube, Women Directors on Corporate Boards – the Norwegian Case.
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Tags: corporate, boards, gender, gap, working, women, business, career, Norway