Board Diversity has become more of a topic due to significant changes in society and worldwide activism. Many companies have responded by increasing the proportion of women and minorities directors. Some companies go beyond race and gender diversity to ensure cognitive diversity.
A diverse board is more efficient than one that is homogeneous. Boards with a variety of backgrounds and abilities can solve difficult problems in a new way and be free of the groupthink that impedes thinking.
This is why many activists and investors want to see more diverse and intelligent boards. A board with diverse perspectives, experiences, and perspectives can help them respond to major changes in society quicker and better – for example, the rapid expansion of environmental governance, social and (ESG) issues.
Diverse boards tend to be more cognitively diverse. This means that they can identify the issues within their organization quickly and efficiently. When employees are able confront each other, they can better address these issues.
A diverse board isn’t an all-purpose solution. Boards must be able to collaborate despite their differences. This requires a chair that knows how to facilitate productive discussions and teamwork among people with a wide range of opinions and worldviews. If they don’t, it could result in a lack of productivity.