Corporate Board Diversity

As demand increases from investors and other market participants for greater diversity in the boardroom, boards should be able to establish a clear strategy to meet those expectations. These efforts should not only include the demographic components of gender and ethnicity but also broad categories like nationality, religious and cultural background, as well as those with disabilities.

The current state of boardroom diversity remains a significant issue, but it is important to remember that there are a lot of areas where improvements have been made. We believe that boards should share their opinions, reveal their diversity composition, and look beyond the traditional candidate pool in their search for candidates that are diverse.

In the boardroom, the diversity of perspectives on the issues that affect the business are essential to effective governance. Many boards struggle with the fact that their own membership limits their range of perspectives. This is because serving directors typically seek new members from their network that could comprise of individuals who are similar to 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 so that they have a positive effect on the company and not just to fulfill the minimum quota. We’ve compiled an overview of the top methods to increase diversity at the boardroom.