Corporate Governance and the Growing Role of Women in the Boardroom
The presence of women on corporate boards and their impact on board effectiveness is now one of the most contentious issues in corporate governance. This arises from the relatively low, though increasing, number of female directors on boards around the world, despite an increasing number of well-qualified women in the labour force. Although gender discrimination is unlawful, there is a perception that many women still encounter invisible barriers to promotion, in effect facing a ‘glass ceiling’ where they can see, but not reach, high-level corporate positions. Companies that do not appoint women to their boards run the risk of suffering inferior performance as they fail to make use of the intellectual and social capital that women offer.