Business Case for Diversity
Improved Financial Performance
"Companies with more women in their executive committees have better financial performance". Source: Desvaux, Devillard and Sancier-Sultan, McKinsey & Company, "Women at the Top of Corporations: Making it Happen?" 2010.

"Companies with the highest share of women on their executive committees outperform companies with no women. In terms of return on equality, the top-quartile group exceeds by 41% the group with no women and in terms of operating results, the more gender-diverse companies exceeds by 56% the group with no women". Source: Desvaux, Devillard and Sancier-Sultan, McKinsey & Company, "Women at the Top of Corporations: Making it Happen?", 2010.

"In a study of 353 companies, those companies with the highest representation of women in the top management team experience a 35% higher return on equity and a 34% higher total return to shareholders". Source: Calvert Investment Management, "The Calvert Women's Principles Initiative", 2008.

"Companies will the highest representation of women on their top management teams experience better financial performance, 35% higher ROE, than companies than companies with the lowest". Source: Catalyst, "The Bottom Line: Connecting Gender Diversity and Corporate Performance", 2004.

"Critical mass of three or more women can cause a fundamental change in boardroom and enhance corporate governance". Source: Kramer, Konrad, and Erkut, Wellesley Center for Women, "Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance", 2006.

"There is a positive correlation between the representation of women on boards of directors and corporate performance. At Fortune 500 companies, those with the greatest number of women board directors see an outperformance of 26% Return on Invested Capital (ROIC) between the top-quartile companies and the bottom-quartile". Source: Catalyst, "Corporate Performance and Women's Representation on Boards", 2011.

“Companies which have three or more women board directors have a Return on Equity of 16.7%, as opposed to the average of 11.5%”. Source: Catalyst, "The Bottom Line: Corporate Performance and Women's Representation on Boards", Oct 2007.

“The 100 companies rated lowest in diversity averaged 7.9% annualized stock return; compared to 18.3% for the 100 companies that rated highest”. Source: Covenant Investment Management, Standard & Poors' 500 Performance Rating on a series of factors relating to the hiring and advancement of women and nonwhites, 1998.
The research on this topic is abundant and from a wide variety of sources. More women on executive teams and boards of directors equates to better financial performance.
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