Women’s leadership boosts the economy and society

Even as other gender gaps have narrowed, women struggle to close the gap with men on taking roles that lead and shape the world says McKinsey & Company.

The world’s leading management company says that the economic and business case for gender equality is now overwhelming.

Evidence is mounting that having more women in the boardroom and senior management positions is positive for the bottom line and for society.

Consultants Lynn Taliento and Anu Madgavkar say that while there has been progress towards increased educational opportunities and greater participation in the labour force for women, they remain under-represented at the top of companies worldwide.

And it’s not just in business that women are not rising to the top – the same is true in the non-profit sector and in politics, they explain.

In 2012, most Asian countries had fewer than 10% female representatives on executive committees and saw women making up fewer than 5% of CEOs, losing the majority of women in the mid-to-senior management level. In 2015, 45% of entry level jobs in the US were occupied by women, but women held only 17% of middle management jobs.

MckInsey say that globally, there are 22 women in ministerial and parliamentary roles for every 100 men. Even in developed economies and democracies such as the UK and US, there are only 24 and 34 women to every 100 men respectively in top government roles.

Gender diversity has been shown to increase an organisation’s performance as well as improve morale, recruiting and external image. McKinsey’s Women Matter research has found that companies in the top quartile for gender diversity are 15% more likely to have financial returns above the average in their national industry.

The lack of women in positions of political power has a cost for society too, because women have different priorities and can be more effective where it matters.

Lynn Taliento and Anu Madgavkar say that for instance, one cross-country study found that greater representation of women in parliaments led to higher expenditure on education as a share of GDP.

In India, women’s leadership in local politics has been found to reduce corruption, and in the social sector, research has shown than non-profits with women in leadership positions are more successful in realising their mission and reaching their goals.

Source: McKinsey&Company: