Webcast: Women on Boards ~ Good for Business?

In short, yes, says Michele Parrish SM ’05, founder of Women Leaders in Global Operations (WLGO), an MIT alumnae group.

“In a nutshell, women must be represented on corporate boards in order to influence the direction of our companies and our society,” says Parrish. “Plenty of data supports the conclusion that adding women to a corporate board improves the performance of the company. Quite simply, it’s good for the business.”

Learn more next week during a free WLGO webcast titled Leadership on Boards: Improved Performance through Director Diversity. Find out why women leaders improve organizational performance—and how to become an effective board member yourself. Sign up now for the webcast scheduled for Thursday, May 22, Noon PDT/3:00 p.m. EDT via WebEx.

Betsy Berkhemer-Credaire, author of The Board Game: How Smart Women Become Corporate Directors, will moderate this panel:

• Denise Johnson SM ’97, SM ’97, vice president of Caterpillar’s largest division
• Mark Parrish SM ’95, SM ’95, president and CEO of the Stuart Dean Company
• Stephanie Sonnabend SM ‘79, former CEO and president of Sonesta International Hotels Corporation and co-founder of 2020 Women on Boards

Parrish established the group in 2007 after she left the corporate world to found her own coaching and consulting business. “The idea of starting a women’s group for LGO occurred to me as a way to give back as well as a way to get to know the many amazing alumnae of the program,” she says. “Most of us share the challenge of leading professional careers while staying true to personal priorities, including family.”

As these women advance in their careers, they could benefit themselves and corporations by becoming board members. And too few are now in that role—women comprised only 16.6 percent of corporate directors in Fortune 1000 companies  in 2013, despite holding half of management positions.

Women on boards can influence company leadership, mergers and relocations, executive compensation, and discussions on balancing profits with social responsibility.

And then there is the bottom line. Companies with women board members got a boost in equity, share price performance, and growth, according to a recent Credit Suisse Research Institute survey.

“Large firms with at least one woman on the board performed 26 percent better than those without, according to the survey,” Parrish says. “There’s a 17 percent gulf between small and mid-size companies with female board representation and those without. The study suggests that women leaders may bring a more diverse mix of leadership skills, a deeper understanding of customers, improved corporate governance and a more risk-averse outlook.”