Proposal - Increasing diversity on Boards
Increasing diversity on Boards will be achieved through increasing awareness of the value added when a Board is appropriately configured to reflect the global economy in which we all now operate.
The current business environment in the United States, coupled with increased regulatory requirements, have heightened the demand for accountability and transparency with respect to diversity, and women in particular, in the board room. Many countries have moved in the direction of quotas and mandates for women. Mandates and quotas may drive compliance, but will they drive genuine commitment? I would offer that increasing awareness of the issue, coupled with better preparation of board candidates via training and sponsorship, coupled with accountability to chart progress, will provide the optimal path forward.
Awareness of the diversity issue has markedly increased over the last decade; it is the topic of discussion in many venues and organizations. Diversity is the subject of corporate activity focused on training, retention and promotion of a balanced work force. Among the factors that I believe will impact success are transparency, sponsorship, particularly by strong male leaders, and access to registries of board-ready women candidates.
No woman wishes to occupy a board seat because a quota demands it. Rather they should be appointed because of their specific expertise and experience which can expand board room deliberations. The primary responsibility of a board is to increase shareholder value; if one focuses on that objective and simultaneously fulfill an agreed upon objective of building a diverse board, the status quo will be challenged and new names will surface for consideration of a board appointment.