In an environment fueled by economic uncertainty, workers and wages are the most pressing issues among the American public.
A Benefit of Board Diversity Could Be Reduced Volatility
The Importance of Workers and Wages
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Sources: Bloomberg Intelligence, BakerAvenue
Rising costs and recessionary fears are impacting the mood at a national level. The economic inequality gap threatens to widen further in a sharper slowdown, given the understanding that low-wage workers are often the first to lose job stability.
The public concesus is that America’s largest companies should prioritize workers through just business practices and by paying their workers a fair and living wage.
Sources: JUST Capital, BakerAvenue
A back test of women serving on boards points to varying risk, return and fundamentals across regions, with the strategy reducing volatility more so than aiding returns where benefits were limited to a few regions.
Read more on what's important in the current economic environment.
Despite increasing media coverage and political rhetoric that the country is more polarized than ever, when it comes to just business behavior, we are a united front. It is recognized broadly across all demographic and political segments that workers should be corporate America’s number one priority.
"A just company operates in a way that serves its workers, customers, shareholders, the environment, and the communities it affects, even if it comes at a cost."
Market Checklist: Women on Boards and Returns
Note: Q1 represents companies with the highest share of women on boards and Q5 the worst, on a sector-neutralized basis. Backtest from 2013 -Dec 20 2022