Corporate Board Diversity
As companies are faced with new challenges, it is more important to have a board of directors that can identify and address complexities and opportunities by tapping into a wide range of insights. In addition to racial and gender diversity, boards should include people who have been working across a range of industry sectors and who have different skills, backgrounds, expertise and perspectives.
Despite the huge gains made in the diversity of boardrooms however, it is evident that there is still a lot of work to be done. According to Spencer Stuart, women and directors from underrepresented racial or ethnic groups make up less than a quarter of board seats at Fortune 500 companies. In the same way, women and people who are of color are not as well represented in leadership positions at the highest levels.
Consumers and investors are increasingly demanding more diversity in executive suites and boards and corporate governance is an issue of great interest. They are increasingly demanding thorough information on these metrics and many are putting their money to push companies to boost diversity on their boards.
Some states have introduced laws that encourage or require Corporate Board Diversity diversity on boards. But quotas are controversial, and can result in the perception that women and non-white directors are selected as «token» selections, rather than for their merits. They can also make it more difficult to find qualified candidates if they are based on the achievement of a certain number. In many instances the focus on diversity alone can create boards that are unproductive and not focused.