Women in charge means bigger profits, evidence suggests

Associated Press

LONDON

When Rohini Anand took over diversity programs at multinational catering company Sodexo in 2002, she had one goal: to prove that it pays for a company to have equal numbers of male and female managers.

Sodexo, which has 419,000 employees in 80 countries, says she’s done just that. A companywide study last year found that units with equal numbers of men and women in management roles delivered more profits more consistently than those dominated by men.

“It has become embedded now. It’s not just me talking about it anymore,” Anand says with “I told you so” satisfaction.

Evidence is growing that gender equity is not just politically correct window-dressing, but good business. Companies are trying to increase the number of women in executive positions, yet many are struggling to do so because of a failure to adapt workplace conditions in a way that ensures qualified women do not drop off the corporate ladder, surveys show.

The case for companies to act is compelling.

In a survey last year of 366 companies, consultancy McKinsey & Co. found that those whose leadership roles were most balanced between men and women were more likely to report financial returns above their national industry median.

Companies with more-balanced leadership do a better job recruiting and retaining talented workers, reducing the costs associated with replacing top executives, McKinsey found. They also have stronger customer relations because management better reflects the diversity of society, and they tend to make better business decisions because a wider array of viewpoints is considered.