Corporate Board Diversity Best Practices

Corporate Board Diversity

As the demand grows from investors and other market participants for more diversity in the boardroom, boards should have a clear strategy to meet the expectations. The strategy paperless board meetings should consider not only the demographic components of gender and ethnicity, but also broader categories such as national origin, the cultural and religious background of the person; and people with disabilities.

The current state of boardroom diversity remains a significant issue however it is important to realize that there are a variety of areas where progress has been made. We believe that boards should publish their views, make public their diversity composition, and search beyond the traditional candidate pool in their search for candidates who are diverse.

The boardroom is a place where the variety of perspectives on issues that impact the business are essential to effective governance. However, many boards struggle with the reality that their diversity is limited by their own membership. It is because a lot of serving directors look for new members in their networks. These networks may comprise people very similar to them, which restricts the number of candidates. The challenge is to find ways to break the cycle so that the board can make diverse appointments, not just to meet quotas, but because those appointments will positively impact the company. To aid in this effort we’ve put together an array of the best practices for increasing boardroom diversity.

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