The Power of One or Power in Numbers?

Alison Cook · Christy Glass

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Gender Diversity and Inequality Corporate Finance and Governance Social and Intergroup Psychology

Abstract

This study analyzes the impact of racial/ethnic minority leaders on equity and diversity policies. Previous research finds that minority leaders are associated with reduced inequality, yet the ways in which these leaders impact organizational policies are understudied. Our analysis relies on a unique dataset of corporate practices, CEO race/ethnicity, and board member race/ethnicity in Fortune 500 firms from 2001 to 2010. The authors find that while minority CEOs have minimal impact on equity policies, diverse boards are significantly associated with equitable practices. They conclude that board diversity is critical for shaping corporate practice related to equity and diversity.

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References

1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1978Men and Women of the Corporation 2003Transformational, transactional, and laissez-faire leadership styles: A meta-analysis comparing women and men.2001Cultural Diversity at Work: The Effects of Diversity Perspectives on Work Group Processes and Outcomes 2001A Social Identity Theory of Leadership 2006Best Practices or Best Guesses? Assessing the Efficacy of Corporate Affirmative Action and Diversity Policies 1996What Do Interlocks Do? An Analysis, Critique, and Assessment of Research on Interlocking Directorates

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2020Relationship between online corporate governance and transparency disclosures and board composition: evidence from JSE listed companies 2017Changes in the gender structure: Inequality at the individual, interactional, and macro dimensions 2018HR on board! The implications of human resource expertise on boards of directors for diversity management 2018Social capital as a new board diversity rationale for enhanced corporate governance

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