Corporate Board Diversity
As the demand for investors and other market participants for more diversity in the boardroom, boards should have a clear strategy to meet these expectations. These efforts should not only comprise the demographic elements of gender and ethnicity, but also broad categories like the nationality of the board, religious and cultural background, as well as those with disabilities.
It is important to recognize however that there have been some positive developments in the current state of boardroom diversification. We believe that boards should share their views, make public their diversity composition, and go beyond the traditional candidate pool in their search for candidates who are diverse.
In the boardroom, the diversity of perspectives on issues that affect the business is crucial to effective governance. However, many boards are confronted by the fact that their diversity is limited by their membership. This is due to the fact that directors in their current positions typically seek new members from their networks that could comprise of people who are very like themselves, limiting the potential for a wide and diverse pool. The goal is to break this cycle, to ensure that the board makes diverse appointments because they will be beneficial to the company and not just to fulfill the quota. We’ve put together a list of the best methods to increase diversity at the boardroom.
