Corporate Board Diversity Best Practices

Corporate Board Diversity

Boards should have a strategy to meet the increasing demand from investors and other participants in the market for more diversity in their boardroom. This strategy should not just be limited to the demographic aspects of gender and ethnicity but also broad categories like the country of origin, religion and cultural background, as well as those with disabilities.

It is important to remember however, that there have been some positive developments in the current situation of boardroom diversification. For a start we believe it’s crucial for boards to publicly share their views regarding the issue, provide the diversity of their boards, and think beyond the traditional pool of candidates in their search for diverse candidates.

In the boardroom, the variety of perspectives on issues that affect the business is vital to ensuring that the company has a sound governance. Many boards struggle to deal with the reality that their own membership limits their diversity. This is due to the fact that directors in the process of resigning typically seek out new members from their network that could comprise of people who are very similar to themselves, which limits the possibilities of having a broad and diverse pool. The challenge is to break this cycle to ensure that the board has diverse appointments because they will benefit the company and not only to fulfill the required quota. To help with this effort we’ve compiled the top methods to increase diversity in the boardroom.