Companies with a higher share of women in C-suite positions are more profitable, more socially responsible, and have better safety and customer experience, according to research published in Harvard Business Review.
The study examined how companies changed their strategic approach after adding women to their C-suites, by tracking research and development expenses, merger and acquisitions rates, and letters to shareholders over 13 years to determine how women were improving companies.
Five ways women improve business performance:
- Women are less likely to care about traditional business practices and are more open to change. Communication surrounding openness to change increased by 10 percent after a woman was appointed.
- On the contrary, communication surrounding increased risk-taking in strategies decreased by 14 percent.
- Firms shifted their focus from mergers and acquisitions to research and development.
- The influence of female executives was greater when they were integrated into top management teams.
- Women who make it to executive positions have had to be more careful when weighing the benefits of innovative proposals with the risks of potential failures than their male counterparts.