Board Diversity brings different skills and experience to the table. The combination of these skills permits discussion and debate that leads to a variety of solutions to problems. This type of conflict that is productive increases board effectiveness and boosts company performance. This is beneficial to shareholders as well as all other stakeholders.
Diversity in boards also allow for a deeper understanding of the culture and preferences of different social groups which will help companies better serve their customers. This helps to gain an improved understanding of the market and may help to increase productivity and growth.
Diversity is not just a matter for optics. It has a real impact on the bottom line, and the commitment to diversity should be a major factor for any business that wants to compete in this highly competitive market.
A diverse board can also lead to an inclusive workplace which attracts and retains talent, which results in increased productivity and a competitive advantage. In fact an earlier Deloitte survey found that 80% of workers say that workplace diversity is important to them.
To ensure their boards are representative of the communities they serve, companies should identify potential new board members and guide them to help them prepare for the demands of a post on the board. They should also go beyond their existing business contacts to find candidates with various backgrounds and expertise. This will help build a stronger, more resilient business and ensure that all stakeholders have a voice in the boardroom.