The number of women directors appointed to corporate boards in the United States has increased dramatically, but the ratio of female to male directors remains low. Although pressure to recruit women directors, unlike that to employ women in the general work force, does not derive from legislation, it is nevertheless real.
Although small companies were the first to have women directors, large corporations currently have a higher percentage of women on their boards. When the chairs of these large corporations began recruiting women to serve on boards, they initially sought women who were chief executive officers (CEO’s) of large corporations. However, such women CEO’s are still rare. In addition, the ideal of six CEO’s (female or male) serving on the board of each of the largest corporations is realizable only if every CEO serves on six boards. This raises the specter of director over-commitment and the resultant dilution of contribution. Consequently, the chairs next sought women in business who had the equivalent of CEO experience. However, since it is only recently that large numbers of women have begun to rise in management, the chairs began to recruit women of high achievement outside the business world. Many such women are well known for their contributions in government, education, and the nonprofit sector. The fact that the women from these sectors who were appointed were often acquaintances of the boards’ chairs seems quite reasonable: chairs have always considered it important for directors to interact comfortably in the boardroom.
Although many successful women from outside the business world are unknown to corporate leaders, these women are particularly qualified to serve on boards because of the changing nature of corporations. Today a company’s ability to be responsive to the concerns of the community and the environment can influence that company’s growth and survival. Women are uniquely positioned to be responsive to some of these concerns. Although conditions have changed, it should be remembered that most directors of both sexes are over fifty years old. Women of that generation were often encouraged to direct their attention toward efforts to improve the community. This fact is reflected in the career development of most of the outstandingly successful women of the generation now in their fifties, who currently serve on corporate boards: 25 percent are in education and 22 percent are in government, law, and the nonprofit sector.
One organization of women directors is helping business become more responsive to the changing needs of society by raising the level of corporate awareness about social issues, such as problems with the economy, government regulation, the aging population, and the environment. This organization also serves as a resource center of information on accomplished women who are potential candidates for corporate boards.
1. According to the passage, which of the following is true about women outside the business world who are currently serving on corporate boards?
(A) Most do not serve on more than one board.
(B) A large percentage will eventually work on the staff of corporations.
(C) Most were already known to the chairs of the board to which they were appointed.
(D) A larger percentage are from government and law than are from the nonprofit sector.
(E) Most are less than fifty years old.
2. It can be inferred from the passage that factors making women uniquely valuable members of modern corporate boards would include which of the following?
I. The nature of modern corporations
II. The increased number of women CEO’s
III. The careers pursued by women currently available to serve on corporate boards
(A) I only
(B) II only
(C) III only
(D) I and III only
(E) I, II, and III
I am not in agreement with the asnwers of 1,2
1. It Clearly states in the passageAlthough many successful women from outside the business world are unknown to corporate leaders
2. The nature of modern organizations , where is it mentioned that this factor make women uniquely valuable.
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