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One is a token, two is a presence, three is a voice. Sound familiar? This seems to be the effect of placing women on corporate boards. Although corporate leaders may think otherwise, academic research seems to find this effect again and again. In Australia, women hold 14.2 per cent of board chairs, 23.6 per cent of directorships, and 15.4 percent of CEO roles. In recent months, the Australian Institute of Company Directors (AICD) and the Business Council of Australia (BCA) have called for greater gender diversity in Australian boards. There was an attempt by senator Nick Xenophon to legislate gender diversity in Australian government boards; however, the bill was later rejected by a government-controlled Senate Committee. The AICD has set a target of 30 percent female board members and urged S&P / ASX 200 firms to meet the target by the end of 2018. 9 Reza Monem, Three women is not a crowd on a company board, The Australian Financial Review, Friday 22 April 2016, p.35
Assume you have been employed as a corporate governance consultant by a company listed on the Australian Stock Exchange and ranked within the ASX 200. The Chairman of the company has decided to address the issue of gender diversity on the companys board to ensure the board meets the AICD target by the end of 2018. As an initial step in the process of increasing the gender diversity of the board the Chairman has employed you to prepare a report that critically analyses and assesses the evidence that gender diversity on a company board is associated with improved business performance and also provide recommendations on how the company should initiate a gender diversity policy for the board. Your report will be tabled at the next board meeting for board members to review and evaluate your recommendations.
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