How Do Women vs. Men CEOs Perform?
It is widely acknowledged in the literature that increased presence of women executives and directors leads firms to make greater philanthropic contributions. Marquis and Lee concluded that women executives and directors seek to strengthen external relationship of the firm through corporate philanthropy. Recent research also indicates that firms need to be much more proactive in public relations efforts announcing a new female CEO, due to a “guilt by association” effect. Specifically, female CEOs, unlike their male counterparts, are subject to criticism simply by being among a small group for such top executive women. Thus, a firm should actively take steps to bring legitimacy to a female CEO by highlighting her qualifications and accomplishments, while minimizing gender-related stereotypes. Investors react more negatively to the appointment of female CEOs than to male counterparts, partly because of media reports, rather than any legitimate performance differences. Recent research also reveals that women (and people of color) are more likely than white men to be promoted CEO of weakly performing firms.
This paragraph does not have a lot of information but there is a lot of information available outside in the business world. Find out resources and the issues behind this issue and explain as to what are the relevant things to know here, what impact does the person running the organization may have for the future of the company and what are the real solutions or steps a company can take to address the underlying problems.
1. Why is it a relevant discussion in strategic planning for a company?
2. How should the future companies understand this issue? What are the demographics pointing towards in the next 10-20 years?
3. What strategies should companies put into place today to continue to have the best of CEOs, middle managers and next in line CEOs for the future challenges of the business?