Corporate Board Diversity Best Practices
Corporate Board Diversity
As the demand from investors and other market participants for greater diversity in the boardroom, boards need to have a clear plan to meet the expectations. These efforts should not only comprise the demographic elements of gender and ethnicity, but also broad categories such as the country of origin, religion and cultural background, as well as people with disabilities.
The current state of diversity in boardrooms remains a significant issue, but it is important to realize that there are a lot of areas where progress has been made. We believe that boards should share their perspectives, disclose their diversity composition, and search beyond the traditional pool of candidates in their search for candidates who are diverse.
The boardroom is a place where the diversity of viewpoints on issues that impact the business are crucial for effective governance. However, many boards are faced with the fact that their diversity is limited by their own membership. This is usually because directors who are serving typically seek new members from their networks that may include people who are similar to themselves, which limits the potential for a broad and diverse pool. The challenge is to find ways to break this cycle so that the board can make diverse appointments not just to meet a quota, but because the appointments will have a positive impact on the company. We’ve compiled an overview of the top ways to increase diversity on the board.