Gaining in the Boardroom, but Not in Top Management - Building Gender Balanced Business

The US funds company Calvert maintains a category of companies called its Social Index, which as of September 2007 included 636 of what it deems “large, U.S.-based sustainable and responsible companies”. A new survey of the companies revealed:

• 83% of companies had at least one woman or minority on their boards, and 53% had two or more.

• But only 38% had a woman or minority among the five highest paid executives, and only 9% had at least two female or minority top officers.

• 53% of the companies made mention of diversity in their criteria for directors, with 12% meeting the standard of “strong” mention, including specifically mentioning nontraditional race or gender as desirable qualities. Of course, that means 47% made no meaningful mention of diversity in their criteria.

• Only nine companies within the survey showed no public commitment to diversity within their ranks, but only 3% showed exceptional commitment to diversity.

• Only 7% of companies surveyed made public (voluntarily or upon request) the detailed demographic data the government requires of large companies. Such reports allow for significant assessment of diversity commitment and accomplishments. In addition, Calvert noted that an unrelated study had found that ever more large US companies overall avoid public release of the data.

• 37% of companies offered training or development or mentoring programs aimed at greater diversity.

• Technology sector performed the best, while energy companies were laggards.

• Only a bit over half of companies had at least one family-friendly benefit like flexible schedules, adoption benefits or subsidised wellness programs.

• On average, the larger the market capitalization of the company, the better its performance in pursuing diversity.

The full 27-page report