How Gender Discrimination Impacts a Company's Credit and Social Performance

How Gender Discrimination Impacts a Company's Credit and Social Performance
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How Gender Discrimination Impacts a Company's Credit and Social Performance
Gender discrimination entails a situation where individuals are treated differently based on whether they are males or females rather than their capabilities and skills. For example, some companies prefer to have male leaders in specific leadership positions instead of females. A firm's credit refers to the likelihood that an enterprise will fulfill its financial obligations, particularly settling its debts. A company's social performance involves the practices, outcomes, and principles of a firm's relationships with societies, institutions, organizations, communities, and people (Wood, 2016). Therefore, gender discrimination significantly impacts a company's credit and social performance.
The access and availability of finances are crucial in creating, expanding, growing, surviving, and developing a company (Andres et al., 2020). Gender discrimination affects the productivity and profitability of an organization. For instance, female employees feel oppressed when mistreated or mishandled not because of their performances but because of their gender. In that light, they become demotivated, unsatisfied with their jobs and are likely to search for other employment opportunities where they feel respected. A firm with poor performance encounters difficulties in accessing credit since lenders are more interested in a company's financial position before giving out loans. Gender discrimination is an aspect that can limit a firm's credit, and if the problem is not addressed within a short period, an enterprise might close its operations due to a lack of adequate funds.
Gender discrimination affects a company's social performance. A firm's success is determined by the management team and employees' policies, principles, culture, beliefs, norms, and behaviors. In particular, social performance emphasizes how a business relates to its environment, community, society, people, institutions, and other organizations. Gender discrimination makes it challenging for a company to preserve its surroundings, remain profitable, and interact with people well (Dani et al., 2019). In other words, a firm does not engage in activities that improve environmen...