UPSA blogs 2025

Women in Governance: Why diverse boards make better decisions

Written by Admin | Feb 5, 2026 6:38:59 AM

The conversation around leadership is changing. In boardrooms across Ghana and around the world, there is a growing consensus that diversity is not just a metric to be met, but a vital component of sustainable success. As organisations navigate complex global challenges, the inclusion of women in governance and senior leadership has moved from a topic of social justice to one of decisive competitive advantage.

This shift is at the heart of the new online Corporate Governance MBA programme at the University of Professional Studies, Accra (UPSA), which is designed to equip the next generation of leaders with the insights to build and lead more effective, inclusive and resilient organisations.

The Undeniable Case for Diversity

The evidence is no longer anecdotal; it is quantitative. Studies consistently show that companies with gender-diverse leadership teams outperform their less-diverse peers.

  • Higher profitability: Companies with the most diverse leadership teams have been shown to enjoy a 53% higher return on equity than those with the least. Another study found that firms with women in top leadership roles generate an average annual return on equity of 10.1%, compared to 7.4% for those without.
  • Market growth: Diverse leadership teams are 70% more likely to capture a new market and 45% more likely to improve their market share.
  • Better decision-making: Gender-diverse boards benefit from a wider range of viewpoints and experiences, often described as cognitive diversity. This leads to more thorough risk assessment, enhanced innovation and more comprehensive deliberation before making key decisions.
  • Improved culture and responsibility: Diverse boards are also linked to reduced instances of fraud and a greater focus on proactive social and environmental policies, which is increasingly important to investors and consumers.

Building the Modern Leader: The UPSA MBA advantage

Understanding why diverse boards are more effective is a core component of modern business education. The UPSA online MBA programme addresses this directly through modules that dissect the mechanics of successful governance and group dynamics.

The Organisational Behaviour & Management module, for example, provides a comprehensive analysis of individual and group behaviour within organisations, exploring how to promote effective performance. This forms the academic basis for understanding how diverse teams collaborate to solve complex problems.

This is then applied in specialised governance modules:

  • The Corporate Governance Theories and Issues module provides students with advanced knowledge of best practices, preparing them to advise boards on effective structure.
  • Boardroom Dynamics is an elective that directly tackles the knowledge and skills needed for the "effective management of boardroom dynamics" and identifies the "factors that contribute to an effective board".
  • Business Leadership and Ethics grounds this in practice, equipping students to confront ethical issues in contemporary governance and apply inclusive leadership principles.

This curriculum is designed not just to teach theory, but to build leaders who can actively foster an environment where diverse perspectives are heard and valued.

Global and African Trailblazers

The impact of women in governance is visible worldwide. In the United States, leaders like Karen Lynch, President and CEO of CVS Health, helm some of the world's largest corporations. In East Asia, a study of ASEAN companies found that boards with over 30% female representation were associated with higher returns on assets.

Africa, in particular, has become a focal point for this transformative change.

On the global stage, African women hold immense influence. Nigeria's Ngozi Okonjo-Iweala serves as the Director-General of the World Trade Organisation, following a distinguished career that included board seats at Twitter and Standard Chartered PLC. Ibukun Awosika, the former chairman of First Bank of Nigeria, now serves on the Binance Global Advisory Board.

In politics, Rwanda leads the entire world in gender parity in parliament, with women holding over 61% of legislative seats.

In Ghana, the momentum is undeniable. The nation's corporate sector has seen board gender diversity climb from 18% in 2015 to 30% in 2021. This progress is supported by landmark changes to policy, including the 2024 passage of the Affirmative Action Act, which targets a minimum of 30% female representation in all public decision-making bodies by 2026. This, coupled with the historic inauguration of Ghana's first female Vice President in 2025, signals a clear direction for the future of leadership in the nation.

Leading the Future

While challenges remain - such as increasing female representation in Ghana's parliament - the path forward is clear. Inclusive governance is the new standard for excellence.

The new online MBA at UPSA is more than a degree; it is an investment in the future of Ghanaian and African leadership. By integrating critical principles of organisational behaviour with advanced governance practices, the programme is preparing a new cohort of leaders ready to build the diverse, ethical, and high-performing boards that will define the next era of success.

FAQs 

1. What is the "business case" for diversity?

The "business case" is the evidence-backed argument that diversity is not just an ethical imperative but a key driver of financial performance and strategic advantage. It moves the conversation from diversity as a "nice to have" to a "must-have" for competitive success. It shows that companies with more diverse teams consistently outperform their less-diverse peers in measurable ways.

2. What specific financial metrics are linked to diverse leadership?

Key studies in the business world have directly linked diverse leadership to superior financial performance. Commonly cited metrics include:

  • Significantly higher Return on Equity (ROE)
  • Improved long-term profit margins
  • Stronger average annual returns for firms with gender-diverse leadership

For example, landmark research has shown that companies in the top quartile for executive diversity can see over 50% higher returns on equity than those in the bottom quartile.

3. How does a diverse workforce lead to innovation and market growth?

Diverse teams bring a wider range of backgrounds, experiences, and perspectives to the table. This variety helps companies avoid "groupthink" and approach problems more creatively. As a result, diverse companies are often better at:

  • Understanding the needs of a wider, more global customer base
  • Spotting new opportunities and product gaps
  • Making more robust decisions

Research has shown that diverse teams are significantly more likely to capture new markets and report year-over-year market share growth.

4. Is diversity more important at the leadership level or throughout the company?

Both are critical, but they serve different functions.

Company-wide diversity is essential for a healthy culture, wider talent attraction, and employee retention.

Diverse leadership (on executive teams and boards) is where strategic decisions are made. Having diversity at this top level is what is most directly correlated with the significant financial outperformance and innovation metrics that build the modern "business case".

5. Is the "business case" for diversity just a theory, or is it backed by data?

The modern business case for diversity is overwhelmingly data-driven. It is built on decades of quantitative research from major global consulting firms, financial institutions, and academic bodies. These studies consistently find a strong positive correlation between diversity in leadership and key financial metrics, turning the concept from a theory into a proven business strategy.