Gender equality continues to be a key issue in business, with women substantially underrepresented in the corporate pipeline. Its time enterprises consider increased inclusivity in the leadership, for a more balanced C suite.

1. 5/4/22, 1:48 AM How an Inclusive C-Suite Changes Organization Perspective
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How an Inclusive C-Suite Changes Organization
Perspective
Gender equality continues to be a key issue in business, with women substantially
underrepresented in the corporate pipeline. Its time enterprises consider increased inclusivity in
the leadership, for a more balanced C suite.
Despite an abundance of studies demonstrating that businesses are more successful when they have
more women in the leadership team, the majority of organizations continue to have a gender divide.
Diversity and inclusion cannot be achieved in a single campaign; rather, they are perpetual causes
that must be fostered, maintained, and cultivated.
There is a compelling moral case that can be made for enhancing the diversity of top management
teams.
Here are a few distinct trends in how the strategic thinking of organizations
shifts in response to the employment of female executives:
Firms refocus their efforts on R&D rather than M&A
Specifically, as TMTs decide to add female executives, they transition away from a knowledge-buying
strategy which is a more traditionally masculine, proactive approach — and toward a knowledge-
building strategy centered on internal R&D, a more traditionally feminine, collaborative approach. On
the other hand, firms reported an increase in development investments after women were appointed
to senior positions, and firms demonstrated increased levels of openness to change and aversion to
risk.
The impact of female appointments is more significant when women are well-integrated
into the TMT
By Swapnil Miahra - May 3, 2022

2. 5/4/22, 1:48 AM How an Inclusive C-Suite Changes Organization Perspective
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The more effectively female executives integrate into the leadership team, the greater influence they
will have on the company’s decision-making. In cases when the executive team already included at
least one woman, adding female executives to the TMT alters the C-suite thinking in positive ways.
Also Read: Women in Tech: Diversity and Inclusion (D&I) at Workplace
Firms with female CEOs often show better returns
According to S&P Global research, organizations led by female CEOs and CFOs are often more
successful at outperforming the market average in terms of stock price performance. Additionally, in
the 24 months after the appointment of female CEOs, their companies experienced a 20% increase in
stock price momentum.
Women-led businesses frequently provide unique work culture benefits
In a 2019 Harris Poll survey, 50% of respondents stated that they would like to work for a woman-led
business. 46% of individuals who felt this way were male. Women-led businesses are perceived to be
more caring, purpose-driven, and offer more employee amenities. For instance, having childcare
alternatives can help many working parents achieve a better work-life balance and serve as a catalyst
for many women to return to or leave the workforce.
Women executives have an impact on company innovation
According to a Harvard Business Review study released in April 2021, when women are in the C-suite,
businesses become more receptive to change, focusing more on research and development and less
on risk-taking initiatives. The researchers discovered that, on average, the presence of women in
senior positions was sufficient to shift the corporate culture toward knowledge creation rather than
acquisition.
The gender discrepancy at the C-suite level is undoubtedly preventing many enterprises from
attaining their full potential.
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Swapnil Miahra
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