Sisterhood Agenda

Female Leadership Leads to Increased Profitability

What is “strong female leadership?”

This a key question for many corporate boards to fully understand the role that gender diversity plays when it comes to the connection between economic empowerment and company success under women’s leadership.

MSCI recently studied global trends in gender diversity on corporate boards.  They define “strong female leadership” as “a company with at least three women on its board, a female CEO and at least one woman on its board, or a percentage of female board members that is higher than its home-country’s average.”

These “female-centric” boards yielded the highest returns. In fact, companies with what the study defines as “strong female leadership” saw a 36.4 percent greater return on equity compared to those that were led by men.

Jessica Alba’s Honest Company is an example of a company with strong female leadership.  According to Forbes, the actress turned entrepreneur is among the 40 richest self-made women with an estimated net worth of over $100 million.

In addition to the traits described by the study’s investigators, strong female leadership should inevitably include a sisterhood component, such as mentoring.


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