This study examined the relationship between the proportion of women serving on firms' boards of directors and the extent to which these same firms engaged in charitable giving activities. Using a sample of 185 Fortune 500 firms for the 1991-1994 time period, the results provide strong support for the notion that firms having a higher proportion of women serving on their boards do engage in charitable giving to a greater extent than firms having a lower proportion of women serving on (...) their boards. Further, the results suggest a link between the percentage of women on boards and firm philanthropy in the areas of community service and the arts, but found no link between women boardmembers and firm giving to support education or public policy issues. The implications of the findings and some areas for future research are discussed. (shrink)

Academic debate on the strategic importance of women corporate directors is widely recognized and still open. However, most corporate boards have only one woman director or a small minority of women directors. Therefore they can still be considered as tokens. This article addresses the following question: does an increased number of women corporate boards result in a build up of critical mass that substantially contributes to firm innovation? The aim is to test if ‘at least three women’ could constitute the (...) desired critical mass by identifying different minorities of women directors (one woman, two women and at least three women). Tests are conducted on a sample of 317 Norwegian firms. The results suggest that attaining critical mass – going from one or two women (a few tokens) to at least three women (consistent minority) – makes it possible to enhance the level of firm innovation. Moreover, the results show that the relationship between the critical mass of women directors and the level of firm innovation is mediated by board strategic tasks. Implications for both theory and practice, and future research directions are discussed. (shrink)

A growing body of ethics research investigates gender diversity and governance on corporate boards, at individual and firm levels, in single country studies. In this study, we explore the environmental context of female representation on corporate boards of directors, using data from 43 countries. We suggest that women's representation on corporate boards may be shaped by the larger environment, including the social, political and economic structures of individual countries. We use logit regression to conduct our analysis. Our results indicate that (...) countries with higher representation of women on boards are more likely to have women in senior management and more equal ratios of male to female pay. However, we find that countries with a longer tradition of women's political representation are less likely to have high levels of female board representation. (shrink)

This study examines whether the gender of the directors on fully independent audit committees affects the ability of the committees in constraining earnings management and thus their effectiveness in overseeing the financial reporting process. Using a sample of 525 firm-year observations over the period 2003 to 2005, we are unable to identify an association between the proportion of female directors on audit committees and the extent of earnings management.

This paper investigates how specific notions of gender and ethnicity are integrated into diversity discourses presented on 241 top European company websites. Large European companies increasingly disclose equality and diversity policies in statements on websites. Such statements may be used to promote an ethical image of the company in terms of how well it manages diversity and guards against discrimination. In this paper, we argue that diversity statement discourses are important as they play a key part in socially constructing how (...) diversity should be regarded in the company by minority and majority groups, as well as indicating corporate values to external stakeholders (investors, government, community, press etc.). Sometimes, the notions of gender or ethnic diversity are positioned as a liability in need of protection, whilst in others, as a source of competitive advantage. We find evidence of use of discursive tools such as problematisation, rationalisation, fixation, reframing and naturalisation of the notions of gender and ethnic diversity, reinforced by use of symbols, such as statistics, photographs, membership badges and awards. Few statements directly associate gender and ethnic diversity with enhanced corporate performance. We found that diversity statements sometimes appear to reinforce existing business stereotypes of women and people from ethnic minorities, and in a few discourses, create new ones, particularly evident in photographs illustrating the diversity web pages. (shrink)

This paper investigates how specific notions of gender and ethnicity are integrated into diversity discourses presented on 241 top European company websites. Large European companies increasingly disclose equality and diversity policies in statements on websites. Such statements may be used to promote an ethical image of the company in terms of how well it manages diversity and guards against discrimination. In this paper, we argue that diversity statement discourses are important as they play a key part in socially constructing how (...) diversity should be regarded in the company by minority and majority groups, as well as indicating corporate values to external stakeholders. Sometimes, the notions of gender or ethnic diversity are positioned as a liability in need of protection, whilst in others, as a source of competitive advantage. We find evidence of use of discursive tools such as problematisation, rationalisation, fixation, reframing and naturalisation of the notions of gender and ethnic diversity, reinforced by use of symbols, such as statistics, photographs, membership badges and awards. Few statements directly associate gender and ethnic diversity with enhanced corporate performance. We found that diversity statements sometimes appear to reinforce existing business stereotypes of women and people from ethnic minorities, and in a few discourses, create new ones, particularly evident in photographs illustrating the diversity web pages. (shrink)

Little attention has been paid to the role which impression management (IM) of genuine and substantial talents and commitment plays in the careers of female and male managers seeking promotion. IM studies have largely investigated the supervisor/subordinate relationship, often with samples of business students in laboratory settings. In the Cranfield Centre for Developing Women Business Leaders, we have focused on the use of IM by practising managers. In this paper, we examine previous literature for indications that gender may be important (...) in explaining differences in IM behaviours. We then report findings from a survey and a qualitative study, showing that gender, especially combined with age and job level, is a differentiating factor in managers' inclinations to use particular IM behaviours. Many women (and some men too) seem uncomfortable with using IM. Women do not always want to play "the organizational game" by the male-constructed unwritten rules, but prefer to trust good management and systems fairness for just rewards. Younger and junior level women managers often recognize that IM may be a useful tool but reject its use for themselves. Women seem to prefer to rely on extra high performance and commitment for visibility to their seniors rather than the networking, ingratiation and self-promotion strategies used more by males. An important consequence is that as ambitious young males use job-focused IM in addition to self and manager-focused strategies, this is likely to leave young women at a considerable disadvantage for promotion, if the strategies are successful. (shrink)

As a result of recent corporate scandals, several rules have focused on the role played by Boards of Directors on the planning and monitoring of corporate codes of ethics. In theory, outside directors are in a better position than insiders to protect and further the interests of all stakeholders because of their experience and their sense of moral and legal obligations. Female directors also tend to be more sensitive to ethics according to several past studies which explain this affirmation by (...) early gender socialization, the fact that women are thought to place a greater emphasis on harmonious relations and the fact that men and women use different ethical frameworks in their judgments. The goal of this paper is to determine the influence of these characteristics of the Board in terms of promoting and hindering the creation of a code of ethics. Our findings show that a greater number of female directors does not necessarily lead to more ethical companies. Moreover, within Europe as a continent, board ownership leads to an entrenchment of upper-level management, generating a divergence between the ethical interests of owners and managers. In light of this situation, the presence of independent directors is necessary to reduce such conflicts. (shrink)

This study examines the presence and roles of female directors of U.S. Fortune 500 firms, focusing on committee assignments and director background. Prior work from almost two decades ago concludes that there is a systematic bias against females in assignment to top board committees. Examining a recent data set with a logistic regression model that controls for director and firm characteristics, director resource-dependence roles and interaction between director gender and director characteristics, we find that female directors are less likely than (...) male directors to sit on executive committees and more likely than male directors to sit on public affairs committees. There is little if any evidence of systematic gender bias in director assignment to other board committees. We find some evidence that boards evaluate resource dependence differently for women than men. (shrink)

This study examines the presence and roles of female directors of U.S. Fortune 500 firms, focusing on committee assignments and director background. Prior work from almost two decades ago concludes that there is a systematic bias against females in assignment to top board committees. Examining a recent data set with a logistic regression model that controls for director and firm characteristics, director resource-dependence roles and interaction between director gender and director characteristics, we find that female directors are less likely than (...) male directors to sit on executive committees and more likely than male directors to sit on public affairs committees. There is little if any evidence of systematic gender bias in director assignment to other board committees. We find some evidence that boards evaluate resource dependence differently for women than men. (shrink)

Although the number of women in middle management has grown quite rapidly in the last two decades, the number of female CEOs in large corporations remains extremely low. This article examines many explanations for why women have not risen to the top, including lack of line experience, inadequate career opportunities, gender differences in linguistic styles and socialization, gender-based stereotypes, the old boy network at the top, and tokenism. Alternative explanations are also presented and analyzed, such as differences between female leadership (...) styles and the type of leadership style expected at the top of organizations, feminist explanations for the underrepresentation of women in top management positions, and the possibility that the most talented women in business often avoid corporate life in favor of entrepreneurial careers. (shrink)

Drawing on strategic choice theory, we investigate the influence of CEO leadership styles and personal attributes on the implementation of organizational diversity management practices. Specifically, we examined CEO transformational and transactional leadership in relation to organizational diversity practices and whether CEO social values and age may moderate these relationships. Our results suggest that transformational leadership is most strongly associated with the implementation of diversity practices. Transactional leadership is also related to the implementation of diversity management practices when either CEO social (...) values or age are relatively high. These findings extend previous work examining predictors of diversity management in organizations and highlight the central role that organizational leaders may play in the successful implementation of these practices. (shrink)

This article investigates the gender diversity of the corporate board of European Union banks. Employing a large sample of 612 European banks from 20 European countries, it identifies organizational characteristics that could be predictive of women’s presence on bank boards. We identify three factors that play a particularly important role in defining bank board gender diversity. First, the proportion of women on the board is higher for lower-risk banks. We argue that there may be some statistical discrimination behind this relation, (...) although it could also be explained by a real risk-aversion hypothesis. Second, banks with larger boards have a higher proportion of women on their boards, which could be considered a signal of some kind of preference for homogeneity on small boards. Finally, banks that have a growth orientation are more prone to include women on their board, since they may be seen as providers of diverse external resources that are more valued by firms operating under critical circumstances. (shrink)

The purpose of this study is to examine how workgroup diversity can be managed through specific strategic human resource management systems. Our review shows that ‘affirmative action’ and traditional ‘diversity management’ approaches have failed to simultaneously achieve business and social justice outcomes of diversity. As previous literature has shown, the benefits of diversity cannot be achieved with isolated interventions. To the contrary, a complete organizational culture change is required, in order to promote appreciation of individual differences. The paper contributes to (...) this discussion by exploring the implications of this change for human resource management, and explaining how the systems of practices should be changed when they are directed to diverse groups. The model designed to test this notion includes: (1) demographic and human capital diversity as independent variables, (2) group performance (measured as innovation outcomes) as the dependent variable and, (3) the orientation of the strategic human resource management system as a potential moderator of this relationship. The main conclusion of the empirical analysis developed is that different patterns of human resource management practices can be used, depending on the type of diversity that the organization faces, and the specific effects that it wishes to manage. Concretely, three alternative management systems are identified in this paper, with different moderating effects. This result has interesting implications for human resource management professionals, explained in the last section. The limitations of this study are also discussed, as well as some issues that future research in this field should address. (shrink)

This article proposes and empirically tests a theoretical framework incorporating Reidenbach and Robin’s (J Bus Ethics 10(4):273–284, 1991 ) conceptual model of corporate moral development. The framework is used to examine the relation between governance and business ethics, as proxied by diversity management (DM), and financial reporting quality, as proxied by the magnitude of earnings management (EM). The level of DM and governance quality are measured in accordance with the ratings of Jantzi Research (JR), a leading provider of social and (...) governance research for institutional investors. This DM score is part of an index developed by JR that investment managers use to integrate DM criteria into their investment decisions. As expected, a negative relation between corporate DM development and financial reporting quality is found while controlling for other factors known in the literatures on governance and accounting choices to affect earnings quality. Despite some caveats presented in conclusion, this study contributes to the ethics, governance, and financial reporting literatures by studying the dynamics between governance and ethics in the prevention of EM. (shrink)

For stakeholders, such as investors and lenders, to appropriately assess a company's financial performance, the reported accounting earnings must closely reflect the economic reality of the organization's financial activity throughout the reporting period. The degree to which reported earnings capture economic reality is called earnings quality. Managers have an ethical obligation to report high quality earnings to interested stakeholders in a timely matter. Accounting research has identified conditions within an organization, such as management compensation contracts and pending litigation that can (...) impact earnings quality. We extend this line of research by exploring whether another characteristic of an organization, gender diversity in senior management, influences the quality of reported earnings. Companies with more women in senior management are found to be more profitable and have higher stock returns after initial public offerings than those with fewer women in the management ranks. Our findings suggest that the improved bottom line for companies with more women senior executives is not produced through the management of earnings or lower quality earnings. Instead, earnings quality is positively associated with gender diversity in senior management. (shrink)

The existing literature on gender differences and stereotyping is reviewed in this article. Three theoretical perspectives are discussed: person-centred, organization-centred, and gender context, followed by a review concerning both the findings of the research, a critique of the research methodologies used, and suggestions for future research. The article concludes by suggesting other areas in the field of women in management to which little if any attention has been drawn and recommending some research methodologies which would be applied.

This article examines whether and how the participation of women in the firm’s board of directors and senior management enhances financial performance. We use the Fama and French (1992, 1993) valuation framework to take the level of risk into consideration, when comparing firm performances, whereas previous studies used either raw stock returns or accounting ratios. Our results indicate that firms operating in complex environments do generate positive and significant abnormal returns when they have a high proportion of women officers. Although (...) the participation of women as directors does not seem to make a difference in this regard, firms with a high proportion of women in both their management and governance systems generate enough value to keep up with normal stock-market returns. These findings tend to support the policies currently being discussed or implemented in some countries and organizations to foster the advancement of women in business. (shrink)

Dual-earner families have been treated as if they are a homogenous group of individuals having to cope with similar demands. Yet these families vary in their rationale for both spouses working outside the home (from financial necessity to personal growth) and the responsibilities each spouse assumes in the home. Given the variations in work and home responsibilities it is proposed that members of dual-earner families should be studied on the basis of (a) the rationale each spouse has for working, (b) (...) the responsibility each spouse assumes in the home, and (c) the gender of the spouse. A model delineating the different problems experienced by individuals within these subgroups is developed based on an extensive review of the literature. (shrink)

The monitoring role performed by the board of directors is an important corporate governance control mechanism, especially in countries where external mechanisms are less well developed. The gender composition of the board can affect the quality of this monitoring role and thus the financial performance of the firm. This is part of the “business case” for female participation on boards, though arguments may also be framed in terms of ethical considerations. While the issue of board gender diversity has attracted growing (...) research interest in recent years, most empirical results are based on U.S. data. This article adds to a growing number of non-U.S. studies by investigating the link between the gender diversity of the board and firm financial performance in Spain, a country which historically has had minimal female participation in the workforce, but which has now introduced legislation to improve equality of opportunities. We investigate the topic using panel data analysis and find that gender diversity – as measured by the percentage of women on the board and by the Blau and Shannon indices – has a positive effect on firm value and that the opposite causal relationship is not significant. Our study suggests that investors in Spain do not penalise firms which increase their female board membership and that greater gender diversity may generate economic gains. (shrink)

This research reports the results of a study of women serving on boards of directors of Canadian private and public sector organizations. These women (N = 278) were an impressive and talented group (eduction, professional designations). In addition, they brought a variety of backgrounds and expertise to their director responsibilities. Most were nominated as a result of recommendations from current board members, CEOs, or someone who knew board members or CEOs. Thus personal relationships (the old boy's network) as well as (...) track records and appropriate expertise were important factors in board nominations. Women directors thought they had some influence on women's issues with their boards and board companies. A majority believed that board members should be more diverse, including more women and fewer male CEOs. However they indicated several barriers faced by women in being selected and nominated for board appointments. (shrink)

Appointment as a director of a company board often represents the pinnacle of a management career. Worldwide, it has been noted that very few women are appointed to the boards of directors of companies. Blame for the low numbers of women of company boards can be partly attributed to the widely publicized "glass ceiling". However, the very low representation of women on company boards requires further examination. This article reviews the current state of women's representation on boards of directors and (...) summarizes the reasons as to why women are needed on company boards. Given that more women on boards are desirable, the article then describes how more women could be appointed to boards, and the actions that organizations and women could take to help increase the representation of women. Finally, the characteristics of those women that have succeeded in becoming members of company boards are described from an international perspective. Unfortunately, answers to the vexing question of whether these women have gained board directorships in their own right as extremely competent managers, or whether they are mere token female appointments in a traditional male dominated culture, remains elusive. (shrink)

This paper reviews the literature on the mentoring process in organizations and why mentoring can be critical to the career success of women managers and professionals. It examines some of the reasons why it is more difficult for women to find mentors than it is for men. Particular attention is paid to potential problems in cross-gender mentoring. A feminist perspective is then applied to the general notion of mentorships for women. The paper concludes with an examination of what organizations can (...) do to further mentor relationships and an agenda for further research in this area. (shrink)

This article explores how the diversity of board resources and the number of women on boards affect firms' corporate social responsibility (CSR) ratings, and how, in turn, CSR influences corporate reputation. In addition, this article examines whether CSR ratings mediate the relationships among board resource diversity, gender composition, and corporate reputation. The OLS regression results using lagged data for independent and control variables were statistically significant for the gender composition hypotheses, but not for the resource diversitybased hypotheses. CSR ratings had (...) a positive impact on reputation and mediated the relationship between the number of women on the board and corporate reputation. (shrink)

Has the diversity of corporate boards of directors improved? Should it? What role does diversity play in reducing corporate wrongdoing? Will diversity result in a more focused board of directors or more board autonomy? Examining the state of Tennessee as a case study, the authors collected data on the board composition of publicly traded corporations and compared those data to an original study conducted in 1995. Data indicate only a modest improvement in board diversity. This article discusses reasons for the (...) scarcity of women on boards and concludes that, to enhance strategic decisions, board membership should reflect the corporation''s consumer population. Thus, women are a critical but overlooked resource. Areas for future research are also considered. (shrink)

Since the passage of Title VII of the Civil Rights Act of 1964 and more recent Federal legislation, managers, regulators, and attorneys have been busy in sorting out the legal meaning of fairness in employment. While ethical managers must follow the law in their hiring practices, they cannot be satisfied with legal compliance. In this article, we first briefly summarize what the law requires in terms of fair hiring practices. We subsequently rely on multiple perspectives to explore the ethical meaning (...) of fairness in hiring. Ethical fairness underlies the law and regulations in this area, but goes beyond them as well. We conclude by demonstrating that ethical hiring practices enable managers to make better hiring decisions. (shrink)

s With the unprecedented increase in the number of females holding executive positions in business, there has arisen interest in issues pertaining to the role of women in business organizations, including that of malefemale differences in ethical attitudes/behavior. To add to the research evidence on the issue, this paper examines differences in research ethics judgments between male and female marketing professionals. The results indicate that female marketing professionals evince higher research ethics judgments than their male counterparts.