The benefits of diversity and how to get there
The survey suggests that a significant majority of governance professionals see benefits in increased board diversity and that most companies are looking to address the issue. Almost nine in 10 (86 percent) of respondents say board diversity helps create better board performance.
That figure is broadly consistent among respondents from different regions and at different size companies. Eighty percent of those at mid-cap companies believe board diversity helps create better board performance, compared with 85 percent of those at small caps, 90 percent of those at mega-cap companies and 95 percent of those at large caps.
Respondents were asked why they believe diversity on company boards helps lead to better board performance. Their answers primarily relate to the benefits of having diversity of thought as a result of a diversity of experience and background among directors.
Comments include:
‘Provides broader experience and perspective to inform strategy and risk evaluation’
More than three quarters (77 percent) of respondents say they believe board diversity helps lead to better corporate performance. That figure is broadly similar across respondents from different regions. In terms of company size, respondents at large caps (82 percent) and mega-cap companies (83 percent) are more likely to say board diversity helps improve corporate performance than those at small-cap and mid-cap companies (77 percent and 70 percent, respectively).
Respondents were asked why they believe diversity on company boards helps lead to better corporate performance. Similar to their comments on how board diversity affects board performance, their answers here largely refer to the benefits of having diversity of thought as a result of a diversity of experiences and backgrounds on the board.
Globally, almost three quarters of respondents say their company is taking action to increase diversity on its board. That figure is broadly similar between regions, with 75 percent of respondents in North America, 69 percent of those in Europe and 77 percent of those in Asia saying their company is taking this action.
Respondents at large caps (93 percent) and mega-cap companies (84 percent) are more likely to say their companies are taking action on board diversity than those at small caps or mid-cap companies (63 percent and 68 percent, respectively).
Asked what action is being taken at their company to increase board diversity, most respondents mention looking at diverse candidates when recruiting directors.
