Does Gender Diversity in Management Contribute to Profitability, Productivity, and the AA system in China and Korea?

Author Name ISHIZUKA Hiromi  (Sanno University)
Creation Date/NO. May 2014 14-J-029
Research Project Impact of Diversity and Work-life Balance
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The purpose of this paper is to identify the statistical relationship between the utilization of women and profitability as well as productivity. The paper targets Chinese and Korean companies, which have commonalities in the utilization of women, and aims to use the information gained to recommend policies for the economic development of Japan. The effects of gender diversity in management (GDM), work-life balance (WLB), diversity in management (DM), and others were adopted explicitly during estimation and considered. Furthermore, the characteristics of companies that conform to Korean affirmative action (AA) system standards will be confirmed.

The differences in corporate culture and the environment of general companies in Japan, China, and Korea already have been assumed. However, we derived that there are commonalities between companies with high corporate profits and productivity. The following are the implications for Japanese companies and policy. 1) A high ratio of women in managerial positions. 2) A continued trend of employment of women can be confirmed. 3) Although a correlation between the ease of taking maternity leaves and profitability could not be determined, there is a positive correlation with productivity. 4) Companies with a Corporate Social Responsibility (CSR) Department have high profitability depending on the industry and the scale of the company. 5) Companies that are trying to increase their recruiting of women have high profits. 6) Companies in Japan that have at least one female executive have high profits. However, in China and Korea, companies that have a low ratio of female executives have higher profits and productivity. When these outcomes are considered along with globalization in Japan, whose population continues to decrease, we believe that they will contribute to corporate profits and productivity. Companies which have achieved GDM not only can utilize both women and men, but also will achieve "diversity," whereby young people can also be utilized.

The AA system in Korea serves as a hint for this. Although the numbers of female employees and executives have increased slightly since the founding of the system, it was confirmed that there will be continued increases in this ratio even if the target companies expand in the future.