The impact of diversity on boards
Despite the increasing emphasis on diversity on corporate boards, there is still only a few non-white and female directors on the top public company boards. However the situation is changing and directors from minority groups are now finding their way onto corporate boards.
A diverse board is more innovative
A diverse and diverse group of directors is a powerful force for innovation in the boardroom. It can encourage all members to be more imaginative, open-minded, and result in improved employee satisfaction and performance.
Boards with a greater diversity also have access to a larger network of business and industry connections which will help them to identify new opportunities. They are able to better understand their prospects and customers, which can help them solve more strategic problems.
They are also more likely to appreciate the benefit of investing in minority shareholders.
Directors with a greater diversity tend to be more sensitive to workplace issues and sexual harassment.
This could have a positive effect on the reputation of the company and its culture and make it more welcoming to employees.
They are also more likely to be able incorporate their professional knowledge into the company’s strategy or operation.
This means they can assist a business to be more relevant and make a difference in the world. This can lead to an increase of the company’s share price.