Women’s representation on corporate boards, value creation, and strategic priorities

Abstract

Both in science and practice, increasing attention is being paid to discussions of women’s participation on boards and the value of this inclusion. The scientific literature discusses the possibilities and benefits of increasing women’s participation in board activities, including sustainability, transparency of remuneration systems, and social responsibility. Women on boards bring unique and valuable knowledge, skills, and experience. They are perceived as more independent, leading to more effective decision-making and a more flexible combination of management and shareholder interests. However, this effect is significant only when the share of women on the board reaches a threshold level. Statistics show that the inclusion of women on boards is increasing but remains insufficient, especially in the new EU countries. To achieve gender equality and balance on corporate boards, quotas for the inclusion of women are established. However, by changing attitudes and drawing on women’s contributions, voluntarily formed gender-balanced boards could be achieved. The literature analysis revealed that Lithuania lacks research on the value that women on boards create, based on structured interviews with target groups. In light of this, this paper aims to analyse trends in female board participation and assess the value they create for the company by contributing to shaping business strategies that respond to contemporary trends. The financial and energy sectors were selected for the analysis. After surveying board members, the study revealed that women on boards in these sectors create value in the following key strategic directions: developing employee competencies and skills, growing business value, data-based decision-making, and comprehensive ESG risk management, especially in the energy sector.