Literature Review Women on boards and in TMTS and firm performance 83 of wrong personnel decisions constitute assumed disadvantages of disclosure More than 50 percent of the firms surveyed have not set themselves go als for female representation on corporate boards Roughly a fifth of all companies has set targets for the share of women on supervisory boards but only a marginal share has formulated objectives for women on executive boards The introduction of a gender quota for German su pervisory boards had been foreseeable for quite a while It is therefore surprising that only a third of German companies in my sample had taken or were currently developing preparatory measures at the time of the survey to ensure achievement of the quota from 2016 on The general acceptance of the quota from investor relations is rather low IROs surveyed on average rather disagree with the view that a quota is mandatory to increase the percen tage of women on supervisory boards However I observe significant differences between male and female respondents in the assessment of diversity initiatives On average male IROs rather employ an economic perspective on the topic and they are of the view that firms already pay sufficient attention to diversity They further believe that diversity aspects should be irrelevant when filling vacant posts in top echelons and they strongly oppose the quota In addition they are of the opinion that there are not sufficient adequate female candidates available for filling vacancies on supervisory boards in accordance with the wo men s quota from 2016 on By contrast female IROs on average believe in the need for diversity promotion programs potentially also in the case of a negative cost effectiveness ratio and that di versity aspects should play a role in recruitment for top management positions They are of the opinion that still too little attention is being paid to that topic by companies They do not oppose the quota to the same extent as their male colleagues and they disagree with the assessment that there are not sufficient female candidates available for filling vacant board posts I conclude that contrary to expectation capital markets perception of diversity issues has not materially changed within the past decade The aim for investor relations must be to educate main stream investors and rating agencies on the poten tial economic benefits stemming from workforce diversity in general and gender diversity in ma nagement in particular IR communication strategy should focus on long term prospects and sharehol der value creation potential of diversity policies In depth analysis and performance measurement of a firm s diversity activities are necessary precon ditions to obtain reliable information Robust quan titative figures may constitute strong arguments for increased diversity to convince the mainstream Raising awareness about the potential economic benefits must also take place within the organi zation Employing an economic perspective on diversity issues is long overdue not as a repla cement but as an addition to the still dominant fairness and discrimination paradigm Robust quantitative figures derived from critical evalua tion of existing diversity policies may constitute convincing arguments for increased diversity also in the debate with internal skeptics and help to select measures that promise long term success The fact that regulators rank first among external stakeholders driving diversity promotion is proof of the effectiveness of political interference The majority of companies in my sample does not comply with voluntary commitments of the indus try or corporate governance codes recommen dations which are different in each country but broadly comparable There is significant pent up demand with respect to programs to promote fe Gender diversity on corporate boards and in TMTs in practice

Vorschau DIRK-Forschungsreihe Band 21 Workforce diversity and personal policies Seite 83
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