The impact of Board Diversity
Despite the growing emphasis on diversity on corporate boards, there’s only a handful of non-white and female directors on the top public company boards. But this is changing, and more and directors from groups that are underrepresented are making their way onto company boards.
A diverse board can be more creative.
A diverse board of directors can be a potent catalyst for innovation in the boardroom. It can encourage all members to be more innovative and open-minded, which results in increased employee satisfaction and improved performance.
A board with more diversity can also have access to an array of connections to business and industry that can help them find new opportunities. They can better understand their prospects and customers, which could aid them in solving more strategic problems.
They are also more likely to appreciate the value of investing in minority shareholders.
Directors with more diversity tend to be more sensitive to issues in the workplace and sexual harassment.
This can have a positive effect on the reputation and culture of the company, making it more welcoming for employees.
Additionally they are more likely to be able to integrate their knowledge from their professional careers into the business’s strategy and operations.
This means they are able to impact of board diversity assist a business to become more relevant and make a positive impact on the world. These results can ultimately lead to an increase in the value of a company’s shares.