Despite increasing the importance of diversity on corporate boards, there’s a small number of female and non-white directors on top public company boards. However, this is changing and directors from minority groups are now making their way onto company boards.
A diverse board is more innovative
A diverse group of directors can be a potent catalyst for innovation in the boardroom. It can encourage all members to be more innovative and open-minded, resulting in higher employee satisfaction and improved performance.
Boards that are more diverse also have access to a larger network of industry and business connections which will help them to identify new opportunities. They can better understand their potential customers and customers, which could assist them in solving more strategic problems.
They are also more likely to recognize the benefit of investing in minority shareholders.
Directors with more diversity tend to be more sensitive to workplace issues and sexual harassment.
This could be beneficial to the company’s culture and reputation which makes it more welcoming for employees.
They are also more likely to be able to integrate their professional expertise into the company’s strategy or operation.
They can help companies become more relevant and have an impact on the world. These results could lead to an increase in the value of the company’s shares.