LONDON, 27 July. - (ANA) - Companies with greater numbers of female executive committee members bring in 10 times greater profits, a study has revealed.

 

The research found that committees composed of more than a third of women have a net profit margin of 15.2 per cent, while those with none make just 1.5.

 

The ‘Women Count 2020’ report claims that this performance gap is costing the UK economy a potential £47 billion of pre-tax profit.

 

Lorna Fitzsimons, co-founder of The Pipeline, which commissioned the report, said the difference is driven by the fact that companies that are more representative have a "better understanding of clients and customer need”.

 

“Women spend £400 million a week more than men, they make 80 per cent of the purchasing decisions,” she said.

 

“You cannot understand clients and customer needs if you don't have women in the room.”

 

Diverse teams tended to be better at “problem solving and have a better collective intelligence,” the former Labour MP for Rochdale added.

 

The report claims that a refusal by businesses to change the gender dynamic at the top of their organisations has created an “almost hostile” environment for female leaders.   - (ANA) -

 

AB/ANA/27 July 2020 - - -