In Board Diversity, directors bring different expertise and experience to the table. The combination of those differences creates a forum for discussion and debate that produces a range of solutions to problems. This type of conflict that is productive improves the effectiveness of the board and increases the performance of the company. This is beneficial for shareholders as well as all other stakeholders.
Diversity in boards also allows for insight into the lifestyle and preferences of diverse social groups, which can help companies better serve them as customers. This allows for a better understanding of the market and may increase growth and profit.
In the end, diversity is no longer just an issue of aesthetics. It has a real impact on the bottom line, and any company seeking to gain an edge in a highly competitive marketplace should put diversity on the top of their list.
A diverse board can create an environment that is inclusive that draws and keeps talent. This leads to increased productivity and an edge in competitiveness. In fact an earlier Deloitte survey found that 80% of employees believe that diversity in the workplace is essential to them.
To ensure that their boards are representative, they should identify new board members that could be mentored so that they can prepare for a position on the board. In addition, they should look beyond their existing business contacts to identify candidates with a variety of backgrounds and experience. By investing the time to achieve this will help build a more robust and resilient company, and also ensure that the voices of all stakeholders are heard in the boardroom.