What is board diversity in corporate governance?
“Too often, we limit our understanding of diversity to identity-based differences. When we do this, we overlook diversity’s true force: the unique and varied expertise and experiences that, when integrated, drive problem-solving, improve decision-making, and expand our creative potential. Nasdaq’s call for boards to increase the representation of directors of varied social identities may lead some boards to take a reductive and potentially tokenistic approach.”
When the U.S. Securities and Exchange Commission approved Nasdaq’s request for a new diversity initiative, they failed to consider the complexities of diversity that are needed to truly forward DEI agendas. Besides adding members to check off a box, companies need to critically assess their practices, from establishing a sense of belonging among all workers to ensuring that benefits are distributed equitably, at every level. This initiative enables companies to display their new diversity hires for the public eye and seem as though they are making progress, while continuing to have discriminatory practices behind the scenes.
Companies must go beyond meeting DEI requirements; they must implement holistic and flexible DEI strategies that are practiced across the company. ideascape assists member organizations develop such strategies to bring cross functional integration of DEI. Contact Jonathan Dyke and Deon Gaines to learn more.
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