Three women

1 min read · February 7, 2025
New Power Labs

Representation is not enough. Reaching critical mass is crucial to unlock the full economic benefits of diversity.

Research indicates that to capture the full economic benefits of diversity, boards need at least three women (Torchia et al., 2011). When this critical mass is reached, female directors are more influential in decision-making processes, with their input considered and integrated into key decisions. This allows companies to fully unlock the reward of diversity.

A growing body of evidence confirms that token representation of women on corporate boards fails to deliver meaningful benefits. As global boards now average 25.8% female representation, the next frontier lies in moving beyond counting seats to cultivating environments where critical mass translates to influence.

Narinder

New Power Labs

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