Impact of Board Diversity
Despite the increasing emphasis on diversity in the workplace, the number of nonwhite and female directors on the boards of leading public companies is still small. However it is changing, and directors from underrepresented groups are now making their way onto company boards.
Diverse boards are more innovative
A diverse board of directors can be a powerful stimulant for innovation in the boardroom. It can inspire all members to be more imaginative, open-minded, and increase satisfaction of employees and improved performance.
Boards with a greater diversity also have access to a wider network of business and industry connections which can help them identify new opportunities. They also can better understand the needs of their customers and prospects, which can lead to more strategic problem-solving.
Additionally they are more likely to see the benefits in 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 company’s overall culture and its image and create an atmosphere that is more welcoming to employees.
Furthermore, they are more likely to be able to integrate their knowledge from their professional lives into the business’s strategy and operations.
As a result, they can help a company grow and make a positive impact on the world. This can lead to an increase in the value of a company’s shares.