Atlanta,
Georgia - October 19, 2006 - A critical mass of three or more women serving on a corporate board can cause a fundamental change in the boardroom and enhance corporate governance, according to a report released by a board member of InterOrganization Network (ION), the network of eight executive women’s organizations of which the Board of Directors Network (BDN) is a member. The report was published by the Wellesley Centers for Women (WCW).
Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance is based on interviews with 50 women directors, 12 CEOs and seven corporate secretaries from Fortune 1000 companies. The report finds that corporations with three or more women on their boards tend to benefit most from women’s contributions, including: providing different perspectives; expanding the content of board discussion; raising issues that pertain to multiple stakeholders; raising tough issues; and using their interpersonal skills to positively influence board processes. The findings indicate that having three or more women on a board can create a critical mass or tipping point “where women are no longer seen as outsiders and are able to influence the content and process of board discussions more substantially.”
The report authors – a consultant, a business school professor, and a senior researcher at WCW – conclude that “diversity is an issue of governance and that increasing the representation of women on every board is a good governance issue.”
The study was funded by the TIAA-CREF Institute, several foundations, and a number of individual contributors. It is the first study focused on female influence in the executive boardroom.
The Wellesley Centers for Women is the oldest and most widely quoted women’s research organization in the U.S. The Critical Mass report can be purchased from the WCW publications office by calling 781-283-2510 or through the website at http://www.wcwonline.org/o-main.php.
About BDN
The Board of Directors Network, Inc. (BDN) is a non-profit research and advisory
organization that works to increase the number of women in executive leadership and on corporate boards. In
addition to preparing its annual census of companies’ board profiles, BDN
confidentially collaborates with corporations and other key influencers of the
director selection process to identify women candidates for board of directors’
positions. For information, call BDN at 770/489-6689 or visit the BDN web site,
www.boarddirectorsnetwork.org.
About ION
The InterOrganization Network (ION) consists of eight regional organizations
in the United States that advocate the advancement of women to positions of
power in the business world, especially to boards of directors and executive
suites of public companies. ION’s current members are: Board of Directors
Network in Atlanta, The Boston Club, The Chicago Network, The Forum of Executive
Women in Philadelphia, Inforum in Detroit, Milwaukee Women inc, Women
Executive Leadership in Fort Lauderdale and Forum for Women Entrepreneurs and Executives/UC Davis in California. By combining their energies, the
members of ION seek to leverage their strengths, expand their influence and
substantially increase the number and percentage of women who comprise the
leadership of corporate America.
