Why Is Board Diversity So Important?

It has been well reported that a good mix of age, experience, and background is required for boards to have constructive debate and decision-making.

Progressive boards are reaping the rewards of having an optimal composition that reflects both the strategic priorities of the business and the diversity of its stakeholders.

“In short, diverse boards make better decisions and result in better outcomes and profits for big companies.” - Corporate Governance Institute, Board diversity leads to better profits by Stephen Conmy

Sounds simple, but how do you balance your business objectives, with your board members skills, their cognitive and representative diversity?

A great place to start is having clear metrics on your boards demographics with standardised options that represent the society we live in. Being inclusive with the options that represent society provides board members with greater opportunity to select the demographics that best represent them.

This is a great article on the Corporate Governance Institute website that looks at the benefits of board diversity on business profits, we think it is great place to start if you want to understand how impactful these changes can be to your business.

https://www.thecorporategovernanceinstitute.com/insights/news-analysis/board-diversity-leads-to-better-profits/