Impact of Board Diversity
Despite the growing focus on corporate diversity, the number of nonwhite and female directors on the boards of top public companies is still very low. However, this is changing and directors from underrepresented groups are now making their way onto boards of companies.
Diverse boards are more creative
A diverse board of directors can be an effective driver of innovation in the boardroom. It can force everyone to be more innovative and open-minded, which results in increased employee satisfaction and improved performance.
Boards that are more diverse also have access to a larger network of industry and business connections which will help them to identify new opportunities. They also have a better understanding of the needs of their customers and potential customers, which could help them to solve more strategic problems.
Additionally, they are more likely to recognize 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 be beneficial to the company’s overall culture and its image creating an atmosphere that is more welcoming to employees.
They are also more likely to to integrate their professional expertise into the company’s strategy or operation.
As a result, they are able to assist a business to grow and make a positive impact on the world. These results can ultimately lead to an increase in the value of a company’s shares.
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