23 Feb Conscious Leadership, Inclusion and Company Performance
Conscious Leadership Is A Mainstay Attribute Of High-Performing Companies That Participate In FourthWave
We evaluated female-led focused accelerators and incubators around the country. One in particular had forged a strong performance track record, and a large part of that success was due to their conscious leadership model. We thank MergeLane and their team for their advice and encouragement. (You can explore their inspiring values here).
FourthWave’s conscious leadership model:
- Shifts start-up development away from traditional models that lack diversity and conscious leadership which enables poorer performance, less accountability, and less effective communication; all of which leads to persistently higher failure rates.
- Increases optimized ROI for investors where founders and leadership teams possess consciousness-based leadership as a value system.
- Creates more satisfied stakeholders, creates happier suppliers, and employees are more engaged, productive, and likely to stay.
- Contributes more powerfully to local economies.
- Creates more satisfied and loyal customers.
(Harvard Business Review. 2013.) “Conscious Capitalism”, Raj Sisodia and John Mackey authors of study (28 publicly traded companies between 1996 and 2011, 2) “Conscious Leadership is the New Management Imperative”, Business Integral.
The Research is Compelling:
Conscious Capitalism is not a new trend or idea. Co-founder and Co-CEO of Whole Foods Market, John Mackey, co-author of “Conscious Capitalism” found that conscious leadership “shifts start-up development away from traditional models that persistently lead to higher failure rates, increases optimized ROI for investors, creates more satisfied stakeholders, and contributes more powerfully to local economies.” (Forbes.com)
“Companies with strong female leadership generated an average return on equity of 10.1 percent per year, compared to an average of 7.4 percent for those without top women leaders.” (4,200 study (12/2009 20 8/2015); 9/2014 report from Credit Suisse that found a link between companies with more female executives and higher returns on equity—as well as higher valuations, stronger stock performance and higher payouts of dividends. Based on a database that tracks the gender mix of about 28,000 executives at 3,000 companies in 40 countries.) SHRM, MSCI
“Boston-based Quantopian looked at how well Fortune 1000 companies led by women performed compared to the S&P 500 over a 12-year period. Quantopian, a Boston-based trading platform based on crowd-sourced algorithms, pitted the performance of Fortune 1000 companies that had women CEOs between 2002 and 2014 against the S&P 500’s performance during that same period. The comparison showed that the 80 women CEOs during those 12-years produced equity returns 226% better than the S&P 500. (Global nonprofit women’s issues researcher Catalyst compiled the list of women CEOs used in the simulation.)” Credit Suisse, Fortune.com
Additional studies in the last five years support a strong argument for the need for FourthWave:
- Women-run private tech companies are more capital-efficient, earn a 35 percent higher return on investment, and bring in a 12 percent higher revenue than tech companies owned by males. (Women in Technology: Evolving Ready to Save the World, The Kauffman Foundation. NextWeb.com)
- Venture capital firms that invest in businesses run by women outperform male-led businesses (SBA Office of Advocacy. NextWeb.com)
- State Street Global Advisors introduced the SHE Diversity Index Fund: a $3 Billion-dollar index empowering investors to encourage more gender diverse leadership and support better long-term social and economic outcomes in support of gender diversity. (Businesswire)
Stay tuned as we begin to collect data on companies we help grow.