Business conditions and the volatile economy have caused corporate stakeholders at all levels – consumers, employees, shareholders, and legislators – to question the way companies do business. As a result, shareholder advocacy is on the rise. Increasingly, investors are calling on companies to diversify their boards of directors.

The most effective boards encourage the expression of different views to arrive at good decisions. Board diversity promotes this conversation, allowing companies to improve how they identify, address, and resolve problems. There is growing evidence to suggest that gender diversity correlates with strong financial performance. And yet, women hold only 11% of corporate board seats within Fortune 1000 companies in the United States.

Companies that have women directors and executive officers lead by example. They send a clear message that they value diversity of thought and experience. Advancing women to positions of leadership is smart business:

• Diversity of Thought: Women on boards bring different perspectives to the difficult issues facing today’s corporations. It is widely believed that diversity of thought result in better decision making.
   
• Stakeholder Representation: The makeup of corporate boards of directors should be representative of the company in which it governs: shareholders, employees, and customers.
   
• Competitive Advantage: A diverse board is better positioned to thrive in today’s global economy where the pace of change is accelerating and rapidly changing economic realities require nimble, strategic and well informed directors.
   
• Availability of Essential Skills: Senior women executives offer the skills and experience that most boards need, including industry knowledge, operational experience, and functional expertise. There is a huge, untapped pool of talent.