Hire or promote a woman to join your board of directors now to reap better results. According to a research, even one woman on the board of directors in a firm can lead to stronger corporate governance practices than those with no women.
Moreover, companies with at least three women in board of directors rank even higher, depending on specific industry sectors, the study said.
"The findings suggest the presence of women on a board encourages a greater focus on board practices and behaviours related to good governance, even when they are a lone voice," said business professor Judith Zaichkowsky from Simon Fraser University in Canada.
The study found significant improvement in scores with one women, especially in traditionally male-dominated industries such as energy and mining.
"To call for quotas of three or more women to be on board of directors of these industries, for which the total number of board seats averages about nine, is perhaps asking too much," Zaichkowsky was quoted as saying in a Globe and Mail report.
At this point in time, one woman on these boards may be all it takes to provide a better governed and maybe an even more stable company, she added.
The presence of women on the board could be a signal that a company cares more about good corporate governance, said the report published in the International Journal of Business Governance and Ethics.