Board member addresses equality at Secchia breakfast event

Grand Valley Board of Trustees member and publisher of Crain's Detroit Business Mary Kramer addressed the issue of diversity and equality on corporate boards on March 29 as part of the Peter F. Secchia Breakfast Lecture series, hosted by the Seidman College of Business.

In her half-hour presentation, Kramer highlighted several West Michigan firms that already have above-average numbers of women serving in director or higher positions on corporate boards, including Wolverine Worldwide, where women hold more than a quarter of the seats on the board.

"Companies with female directors were more profitable than those who had none," Kramer said, citing outside research. "Three women on a board is the magic number, they say, and it helps women get into a comfort level."

Kramer said companies with diverse board members perform better in several different key business metrics, including return on capital investments and return on equity.

"Adding more diversity would help boards avoid groupthink," Kramer said. "Maybe that's why companies with more women tend to perform better."

Kramer suggested that establishing a Michigan Women's Directory, a database that would list women who are well-qualified to serve in board positions, could help diversify points of view on corporate boards in the state.

"One trend we are seeing and need to see continue if we want to see increased numbers of women on these boards is that companies are starting to actively look for diversity because they know their customers are looking for it," Kramer said. "When companies keep consumers in mind, they recruit directors who are like their consumers, many of whom are female."