Study Suggests That Women Make Better Decisions Than Men

Researchers have found that women’s abilities to make fair decisions when competing interests are at stake sometimes make them better corporate leaders. These researchers conducted a survey of over 600 board directors, and it showed that women are more likely to consider the rights of others and take a cooperative approach when making a decision. This approach has translated into better company performances.

Study Suggests That Women Make Better Decisions Than MenThe International Journal of Business Governance and Ethics recently published this study, which was conducted by professor of strategic management at the DeGroote School of Business at McMaster University Christ Bart and McMaster graduate and senior executive associate and dean at A.T. Still University’s School of Osteopathic Medicine in Arizona Gregory McQueen.

“We’ve known for some time that companies that have more women on their boards have better results. Our findings show that having women on the board is no longer just the right thing but also the smart thing to do. Companies with few female directors may actually be shortchanging their investors,” explained Bart.

Bart and McQueen discovered that male directors (75 percent of the survey sample) preferred to make decisions using regulations, rules and traditional business methods.

Female directors, on the other hand, are less constrained by these traditional parameters and are more prepared than men to change things up.

In addition, female corporate directors are also significantly more inclined to take into account the interests of multiple stakeholders in order to arrive at more fair and moral decision. They also tend to use cooperation, collaboration and consensus-building more often and more effectively than men in order to make better decisions.

The study showed that women seem to be more predisposed to being more inquisitive, and women tend to see more possible solutions to problems. At the board level, where directors are more compelled to act in the interest of the corporation while still taking into account the viewpoints of multiple stakeholders, this quality makes women more effective corporate directors, said McQueen.

Worldwide, women make up about 9 percent of corporate board memberships. Arguments, quotas and legislation have done little to increase female representation in the boardroom, despite evidence proving that their presence is linked to increased organizational performance, higher return rates, more effective risk management and even lower bankruptcy rates.

Regardless of your gender or the gender of your employees, if your business is in trouble, contact a business attorney for more help.


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