IFC Report Demonstrates Value of Gender Diversity on Boards to Company Performance
Accra, Ghana, June 14, 2018 – IFC, a member of the World Bank Group, and the State Secretariat of Economic Affairs of Switzerland (SECO), today released a study that demonstrates that better performing companies in Ghana tend to have more gender-balanced boards. The study reviews gender diversity on Ghanaian boards, across various sectors, to provide empirical evidence that guides the development of organizational and national policies intended to promote sustainable company performance and economic growth.
High-performing firms, based on return on assets (ROA) and sales growth, were associated with higher gender diversity than low-performing firms. The study also revealed that a high number of organizations surveyed did not have a policy on gender representation to guide selection of top management and board positions. Women were found to be generally under-represented in board positions in most companies in Ghana.
The study titled ‘Gender Diversity in Ghanaian Boardrooms,’ was carried out by the University of Ghana Business School. The objectives were to examine; the nature of gender diversity in public and private sector boards in Ghana, the factors that determine board diversity in Ghanaian organizations, and the relationship between gender diversity and organizational performance in Ghana.
“As an investor, IFC encourages increasing opportunities for and participation of women on corporate boards and in other decision-making positions. Women in these roles add value socially and economically and have the ability to play a significant role in institutional capacity building and private sector development” said Ronke-Amoni Ogunsulire, IFC Country Manager for Ghana.
The Africa Corporate Governance Program, funded by SECO, is an initiative to promote corporate
Governance best practices and standards in Africa. Through the program IFC works to improve firm performance and increase the ability of markets and companies in the Sub-Saharan Africa region to attract and retain investment.