Gender Diversity in the Boardroom and It's Impacts: Is the Example of Norway a Way Forward?

Abstract

Norway is one of the most egalitarian countries in the world, with a high level of gender equality and a high percentage of women at work. Nevertheless, mandatory rules appeared necessary to bring about changes in the composition of corporate boards. This article describes the coup that made Norway the first country in the world to mandate gender diversity on corporate boards and outlines Norway’s innovative legislative approach to this issue. The significance of gender diversity to corporate governance is discussed, drawing on empirical studies of the effect of diversity on the performance of companies. The article also discusses the potentially broader impact of gender diversity in the boardroom, including the pressing question of whether gender diversity in the boardroom can help companies create sustainable value within the planetary boundaries.