The impact of diversity on boards
Despite the growing the importance of diversity on corporate boards, there’s only a handful of female and non-white directors on the top public company boards. However the situation is changing and directors from underrepresented groups are finding their way onto company boards.
Diverse boards are more innovative
A diverse and diverse group of directors can be a powerful catalyst for innovation in the boardroom. It can spur all members to be more creative, open-minded, and will result in better satisfaction of employees and improved performance.
Boards with a greater diversity also benefit from a wider network of business and industry connections, which can assist them in identifying new opportunities. They can better understand their potential customers and customers, which can assist them in solving more strategic issues.
Additionally they are more likely to see the value of investing in minority shareholders.
Directors with a greater diversity tend to be more sensitive to workplace issues and sexual harassment.
This could positively impact the overall culture of the company and its image and create an environment that is more welcoming for employees.
They are also more likely to be able integrate their professional knowledge into the company’s strategy or operation.
In the end, they are able to aid a company to be more relevant and make a difference in the world. This can lead to an increase of the share price of the company.