Diverse boards make profitable companies

More from author

Diverse boards make profitable companies

I recently heard a woman executive declare: “Just because they are women does not mean they are good for...

pacita u juanI recently heard a woman executive declare: “Just because they are women does not mean they are good for the company!” Aray! (Ouch!) Has this woman not heard of diversity? Or is she just unenlightened about diversity?

Diversity, not equality as many activists want to put it, is what business people want in their boards as the new mantra for profitability. Credit Suisse studies have proven that companies with diverse boards are more profitable. Is it a coincidence or a scientific fact?

You can Google Credit Suisse: https://www.credit-suisse.com/ph/en/news-and-expertise/news/economy.article.html/article/pwp/news-and-expertise/2015/06/en/diveristy-on-board.html

Or even just note this excerpt:

Diversity on Board!

Barbara Lejczak,

Editor, Credit Suisse

The report “The CS Gender 3000: Women in Senior Management” demonstrates that companies with more women in the boardroom bring better returns and outperform on the stock market. However, Europe still needs to appoint another 400 women to director positions to meet diversity quotas and targets.

Here in the Philippines, we have just started the Philippine chapter of Women Corporate Directors (www.womencorporatedirectors.com), who meet in global conferences or institutes, such as on happening in Japan—The Asia Institute on September 10 and 11, 2015, at the ANA Hotel.  There is also a New York annual meeting and a European Institute in the first quarter of each year.

But still, in corporate boards of nonprofits, we also need diversity as nonprofits need to be sustainable financially, if not overly profitable. Take the Sharephil, or Shareholders Association of the Philippines (www.sharephil.org) led by Evelyn Singson. The men do not mind having Evelyn as chairman. The Management Association of the Philippines (MAP, www.map.ph) now has two women on board out of nine governor seats. Maybe this is also a reason MAP remains as one of the most sustainable nonprofits.

So, profit-making companies must take note of this study and realization that it is not just adding women, but it is changing a default “all male” or “all female” board to a diverse one.

I know of EON Inc. (www.eon.ph), a board I used to sit in as director for four years, which now has four women and three men on the board . And you can ask its CEO Junie del Mundo how successful EON has become as a stakeholders relations company.

I sit in our own family board where there are three women and four men, two of the men being independent directors. Now, that is diversity. Not equality as I have previously pointed out.

So, if you are looking for a way to make your company profitable, look at your corporate board. In our ECHOsi Foundation, a nonprofit, we have two men and three women. Again, a diverse board. In the Philippine Coffee Board Inc. (www.philcoffeeboard.com), another nonprofit, we have three women and six men on board. Diversity rules and these boards have been sustainable models for many years now.

In all-women organizations and all-men organizations, they find that diversity can be attained by having male (in the case of an all-women board) advisors and, conversely, female advisors for an all-male board. Usually though, these one-gender organizations live on donations and grants and are more difficult to sustain. This is why they have fundraisers ad infinitum.

And what may be the reason your company may be struggling to eke out a profit? Take a second look at your corporate board. Maybe you will find the key to sustainability and profitability. Make it a diverse board.

Simple and doable. Get in touch with www.icd.org to find independent female or male directors for your company or organization.

Pacita “Chit” Juan is a current governor of the Management Association of the Philippines (www.map.ph) and is a vice president of Business and Professional Women (BPW-Makati). She is also the president of Women’s Business Council of the Philippines (www.womenbiz.ph) and the Philippines Coffee Board Inc. (www.philcoffeeboard.com) You can find her on LinkedIn: Pacita Juan; Facebook: Pacita “Chit” Juan; and Twitter: @chitjuan. E-mail her at [email protected]

This article reflects the author’s opinion and is not the official stand of the BPW-Makati.

Women Stepping Up is a rotating column of members of BPW-Makati and comes out twice a month. For more information on BPW-Makati, visit www.womensteppingup.org.


- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

More updates

SMART SOLUTIONS FOR SMARTER BUSINESS | Unleashing the fullest potential of Filipino enterprises

Cortex Enterprise Solutions was built to empower Filipino businesses to be on par with the digital...
- Advertisement -

Enticing the youth to take up farming

IF things don’t change as they are right now, the country may find itself unable to sustain its food security. The threat comes from our aging agricultural producers. In a few years, many Filipino farmers will no longer be able to do the backbreaking work of planting food crops due to old...

Getting back our rivers and creeks

IT happened again...the wrath of nature bringing so much pain and suffering. Typhoon Ulysses brought back the horrors of the massive flooding and devastation caused by Typhoon Ondoy in September 2009 in Metro Manila and nearby provinces. Many experts—and even those...

When planning is not everything

The Father of Modern Management, Peter Drucker, defines planning as the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge their futurity, organizing systematically the efforts needed to carry out these decisions against the expectation through organized systematic feedback. When the volatility, uncertainty, complexity and...

Mergers and the PCC during Covid

Mergers and acquisitions have slowed down in the last eight months since the country went on lockdown to reduce the risk of spreading Covid-19. With the uncertainty of the extent of decrease in demand for goods and services looming large, most businesses not only have had to...
- Advertisement -

More updates

Enticing the youth to take up farming

IF things don’t change as they are right now, the country may find itself unable to sustain...

In case you missed it