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 must have a clear plan of action to meet these expectations. These efforts should not only encompass the demographic components of gender and ethnicity but also broad categories such as the country of origin, religion and cultural background, and people who have disabilities.

It is important to point out, however, that there have been positive developments in the current state of boardroom diversification. As a start we believe it’s critical for boards to publish their opinions regarding the issue, provide the diversity composition of their boards, and think beyond the traditional pool of candidates in their search for diverse candidates.

The boardroom is a space where the diversity of viewpoints on issues that affect the business are essential to effective governance. However, many boards struggle with the reality that their diversity is limited by their membership. It is because many serving directors look for new members in their networks. These networks could comprise people very similar to them, limiting the pool of diverse candidates. The issue is finding the way to stop this cycle to allow the board to make diverse appointments not just to meet a certain number of quotas but to ensure that the appointments have a positive impact on the company. To help in this effort, we have compiled an array of the best methods to increase diversity in the boardroom.

https://board.international/how-to-encouraging-an-effective-advisory-board/

Syed Reyhan

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