Ann Arbor Times

Since the early 1970s, there has been a global commitment to support women in achieving positions of authority in U.S. corporations. However, this promise remains largely unfulfilled. Cindy Schipani, professor of business law at the University of Michigan’s Ross School of Business, examines some limiting factors and opportunities for improvement in her recent research.

In “Women in Power: Clearing Pathways for Women to Rise to Positions of Organizational Leadership,” Schipani and her co-authors explore numerous benefits of including women in leadership roles in business and government. Despite extensive literature highlighting the positives of inclusionary practices for women in leadership roles, as of 2021, fewer than five countries have achieved significant gender inclusion in executive leadership roles.

Schipani discusses some key findings from her study on how businesses, policymakers, and industry leaders can address this lack of representation.

"The legislative initiatives are the most effective. When companies have a legal requirement, they comply," Schipani states. She points to Europe, where various countries have mandated a certain percentage of women on boards. In the United States, there has been some movement toward regulation. For example, a legislative initiative in California required one woman on each board of California companies and was highly effective until it was challenged and found unconstitutional by a court. The case is currently on appeal.

Business organizations can also be proactive by seeking to increase gender diversity on boards through broader searches for qualified candidates rather than relying solely on traditional networks historically composed mostly of white males.

Individual initiatives promoted by prominent women give exposure to these issues and often include training and mentoring programs that are very helpful.

"I was surprised with how successful the California legislative initiative was," Schipani notes regarding its efficacy while it was enforced. "Companies without women on their boards added women."

The study highlights several impactful benefits of women's participation in business leadership, such as bringing diverse viewpoints to decision-making processes which improve overall company performance. Research suggests that having women in leadership signals open-mindedness within the company, potentially explaining correlated financial benefits.

Mentoring emerged as a critical factor across corporate success stories supporting women's rise to leadership positions. Companies with mentoring programs effectively train women for leadership roles and open doors to new career opportunities.

Schipani advises companies starting their journey towards inclusivity to first assess their current status regarding inclusivity metrics. Setting goals and providing incentives to managers can help achieve these targets. Mentoring is emphasized as an essential tool towards reaching these goals.

Future research opportunities include exploring ways to achieve gender parity at leadership levels and addressing pay equity issues. More studies are needed on unconscious bias's root causes and potential solutions like mentoring junior men by senior women.

"Unfortunately, the glass ceiling is still alive and well," concludes Schipani.

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