Vancouver Sun

Companies cashing in on diversity, report says

- RANDY SHORE

Promoting women to leadership roles in your company will probably change the culture of your workplace — plus there’s a good chance you’ll make more money if you do.

Industry reports by McKinsey and Co. and Catalyst found that businesses with the most female board members and executives outperform their industry peers by 15 per cent and achieve a 53 per cent higher return on equity.

But many of the top firms in British Columbia are squanderin­g their opportunit­y to increase diversity and profitabil­ity, according to the third annual Minerva B.C.’s Face of Leadership Scorecard released today.

“The data show clearly that companies that have women on their board were more successful,” said Tamara Vrooman, CEO of Vancity, Minerva’s funding partner. “That’s just a fact, so why wouldn’t you adapt?”

Minerva surveyed 50 of B.C.’s largest companies across sectors for gender diversity in leadership roles, unearthing examples of success and inclusiven­ess — such as LaFarge, GoldCorp and Providence Health Care — but also a few brick walls.

Nine companies reported having no female board members, while another nine refused to provide the gender compositio­n of their boards, five of which are in the real estate industry.

“According to a 2016 study, a move from zero to 30 per cent female leaders in profitable companies is associated with a 15 per cent increased net revenue margin,” the report says.

But at the current rate of change it will take 75 years before B.C. companies achieve gender parity at the top.

“That means the young women graduating today will be retired before we get there, if they are still alive,” said Vrooman. “We need to remember that as far as we have come, we have a long, long way to go.”

“(The survey) numbers are important because they provide empirical measuremen­ts for long-term comparison and tracking,” writes Minerva chairwoman Kirsten Sutton, though she notes that change is “glacial.”

The viral #MeToo campaign that has swept social media this week is a reminder that even women who are rich and perceived to be powerful in their industry still endure indignitie­s in the workplace.

The phenomenon was kickstarte­d by actor Alyssa Milano, picking up on the “Me Too” movement of a decade ago started by black feminist Tarana Burke. On Sunday, Milano invited women to demonstrat­e how widespread sexual harassment was by asking them to simply write #MeToo on their Facebook or Twitter accounts if they have been sexually harassed. More than 12 million women responded.

“It’s amazing how widespread this is with women of different ages and experience­s reporting harassment,” said Vrooman. “Those of us in leadership positions have the obligation and the opportunit­y to creates safe spaces for people to talk about these issues and both men and women need to be role models, making it clear that this is not acceptable.”

It’s important to communicat­e to employees about the culture you want to create in the workplace “and then ensure that it’s true.

“People think these issues are history and that we are making progress much faster than we really are,” said Vrooman.

The leadership scorecard supplies real data on women’s participat­ion in top roles and it’s not terribly impressive.

Almost 30 per cent of the companies surveyed had no women at all on their senior management team. Only seven of the 249 Canadian firms listed on the TSX Main Index have female CEOs.

Are the holdouts shooting themselves in the foot?

Well, it’s difficult to imagine the notorious Wodka billboard touting “Escort quality, Hooker pricing” getting past a 50 per cent female board of directors. Such advertisin­g fails are both costly and embarrassi­ng.

“When you have more perspectiv­es and more diverse experience­s in the room when decisions are being made means you are better able to contemplat­e the risks and opportunit­ies,” said Vrooman. “A blatantly sexist ad is a great example of that.”

The backlash through social media can be immediate and damaging when companies get it wrong, she said.

In addition to measuring diversity, the Minerva Foundation also offers a road map for change.

Companies that have policies in place to mentor young women or that have pledged to promote female representa­tion on the board do tend to see more women as senior executives, about 20 per cent compared with the Canadian benchmark of 14 per cent.

“The survey provides us with a snapshot, but also with transparen­cy about how we are doing and a path forward, a template for other organizati­ons to follow,” said Vrooman.

To date, 20 companies have signed Minerva B.C.’s Diversity FOR RELATED COVERAGE, SEE C4

Pledge to create opportunit­ies for women to advance and to lead at the highest levels of the business world.

The foundation also holds inclusive leadership forums.

“We need to shine a light on that progress so that companies (that have been unresponsi­ve) can see what their peers are doing,” she said.

The report notes a number of compelling reasons to promote diversity at the highest levels.

Women drive 70 to 80 per cent of all consumer purchasing, so understand­ing their thought processes and habits is essential.

Millennial consumers — whose buying power is just coming of age — have very different expectatio­ns than older consumers about how companies conduct themselves and tend to choose brands that reflect their values.

“At Vancity, we know that (young people) who come to us as members and as staff are attracted to competitiv­e rates and services, but they have an expectatio­n that we will not conduct our business at the expense of people or the planet.”

 ??  ?? Tamara Vrooman says data from the Face of Leadership Scorecard “clearly” shows that companies with women on their boards are more successful.
Tamara Vrooman says data from the Face of Leadership Scorecard “clearly” shows that companies with women on their boards are more successful.

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