In November 2022, the European Union passed a regulation requiring that firms of EU member states strive towards a new goal: that women constitute 40% of non-executive directors on the boards of publicly traded firms by 2026. The EU’s objectives in passing the regulation were “to ensure that gender balance in corporate boards of large listed EU companies is established across the EU and appointments to board positions are transparent and that candidates to board positions are assessed objectively based on their individual merits, irrespective of gender.”
Research: How Women Improve Decision-Making on Boards
Evidence suggests they enable deeper, more nuanced boardroom discussions.
November 17, 2023
Summary.
This article reports on a study of women and men directors at more than 200 publicly traded companies on the major stock exchanges in the U.S. and Europe. The results provide key insights on how the presence of women influences boards. First, it turns out that women directors come to board meetings well-prepared and concerned with accountability. Second, women are not shy about acknowledging when they don’t know something, are more willing to ask in-depth questions, and seek to get things on the table. As a result, the presence of women improves the quality of discussion.
New!
HBR Learning
Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.
Learn More & See All Courses
New!
HBR Learning
Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.