More women at the top means 'more profit'

THERE is a growing realisation in the business world that women have a special quality and a role to play in the boardroom, noted Singapore's Ambassador to the United States Chan Heng Chee yesterday.
The economic crisis has given women fresh opportunities, and there is compelling evidence that may benefit them in the long run, said Professor Chan in her keynote address at the Apec Women Leaders Network meeting.
'The explanation given was that women did not seem to take unnecessary risks. They do well over time; they do not make big money but neither do they lose big money.'
She cited a Washington Post article which reported that accounting firm Ernst & Young released findings recently that companies with more women in senior management roles make more money.
She also mentioned a Pepperdine University study which revealed that Fortune 500 firms with the best records of putting women at the top were 18 per cent to 69 per cent more profitable than the average companies in their industries.
'Economists at Davos this year speculated that the presence of more women on Wall Street might have averted the downturn,' she added.
Other speakers yesterday also highlighted the growing significance of women in business. 'Companies with a stronger mix of women and men in their management tend to have a 48 per cent higher average earnings before tax than the industry norm,' said Ms Kirsten Sayers, Australia's senior trade and investment commissioner to Singapore.
One oft-mentioned topic was the challenges women faced in the corporate world and how these could be resolved.
One issue is employers questioning women's commitment to their careers because of the assumption that they will be getting married and starting families.
Prof Chan said this mindset has to change due to a manpower shortage and women proving the conventional belief wrong.
'Employers should not see women taking time off to get married and have children as a deviation from the norm,' she said.
Women in the Apec community have played a key role in the region's economic success, said Minister of State for Community Development, Youth and Sports Yu-Foo Yee Shoon.
She noted studies that show as much as 40 per cent to 45 per cent of the total female population in some Apec economies such as Peru and Thailand are business owners.