Corporate Board Diversity
Boards should have a strategy to meet the growing demand from investors and other players in the market for more diversity within their boardroom. The strategy should consider not only the demographic aspects of race and gender but also broader categories like national origin, religious and cultural background 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 improvements have been made. As a starting point, we believe it is essential for boards to publish their views on the issue, reveal the diversity of their boards, and consider looking beyond the traditional pool of candidates in their search for diverse candidates.
In the boardroom, the variety of perspectives on issues that affect the company is vital to ensuring that the company has a sound governance. However, many boards struggle with the reality that their diversity is restricted by their membership. It is because a lot of www.board.international/how-to-transition-to-paperless-board-meetings/ serving directors seek out new members to join their networks. These networks could consist of people who are similar to them, which restricts the pool of diverse candidates. The challenge is breaking this cycle, so that the board makes diverse appointments based on the fact that they will positively impact the business, not just to achieve the quota. To help in this effort we’ve compiled a list of best practices to increase diversity at the boardroom.
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