Gender Diversity in the FTSE 100: The Business Case Claim Explored

This article examines the debate within corporate governance about the<br/>appointment of female non-executive directors (NEDs). The first part<br/>tracks the diversity story that corporate governance tells about itself from<br/>the Cadbury Report (1992) to the Davies Report (2011). The second sets<br/>out the evidence used to support the argument that female appointments<br/>enhance profits and corporate profile. The third part presents the<br/>authors' empirical analysis of FTSE 100 companies and female non-<br/>executive board membership, and concludes that there is little evidence<br/>that companies with female board membership display different charac-<br/>teristics from those without. Industry sector emerges as a significant<br/>factor in female appointments. The idea that women should be appointed<br/>to boards to increase corporate profitability and profile is not strongly<br/>supported by this analysis.A social justice argument based upon the right<br/>of woman to equal economic participation opportunities provides a much<br/>superior articulation of the need for boardroom diversity.