While the study makes a very interesting correlation between gender diversity and either firm value or operating performance, this should not be seen as to diminish the basic business case for diversity on boards:

First, there is a strong case that good governance requires diversity, not just in relation to attendance and level of monitoring (both of which the article states increase with greater gender diversity), but also in relation to a more overarching level of accountability and responsibility to protect shareholder interests. The more uniform a corporate board is, the more likely its members will think and act the same, making them less likely to challenge the status quo.

Second, many institutional investor groups are now including the diversity of the board of directors as a desired “good governance” policy in that there is representation of the interests of all stakeholders (shareholders, customers, employees, suppliers, etc.).

Third, stakeholder groups (including investors, employees, consumers, suppliers, regulators, communities, and consumer advocacy and activist groups) require companies to contribute to broader societal goals as well as deliver bottom-line results. Therefore, if a company’s Board of Directors illustrate a natural inclination towards inclusiveness of new ideas and approaches, it will experience a significant positive impact on the perception of the company as an employer and on the product/service it provides. All of which will ultimately be reflected in a company’s bottom-line.

As noted previously, diversity refers to more than gender alone. But gender is an important indicator and, upon reading the recent Wall Street Journal’s Top 50 Women to Watch Out For, it is difficult to ignore the fact that the number of women serving on boards of directors is decreasing, despite employment gains for some high-powered professional women.

Given the clear business case for diversity on Boards, it is crucial for nominating committees and key stakeholders to encourage diversity and proactively seek a diverse range of potential board candidates.

As an executive search firm that focuses on the recruitment and retention of high-caliber diverse senior executives, Bridge Partners LLC published a discussion of boards and diversity in 2007. This edition and all others are available on our website (http://www.bridgepartnersllc.com).

We also provide a service that aims to help organizations connect with senior diverse professionals who have a desire to sit on boards. Please visit http://www.directorshipinsights.com for more information.

During my studies in Corporate Governance under ICSA (also known as CIS ) i observed this practice.

Thanks.