Board Diversity Beyond Gender and Racial Diversity

https://affordableboard.com/10-questions-boards-need-to-ask-about-cybersecurity/

Board Diversity has become a more prominent issue because of significant changes in society and worldwide activism. Many companies have responded by increasing the number of minority and female directors. However, some companies are going beyond gender and racial diversity, making sure they have cognitive diversity (the variety of skills and perspectives, experiences and issues that could improve decision-making).

A diverse board is more effective than one that is homogeneous. Boards with a variety skills and backgrounds can tackle complicated issues in new ways and break free of the rigid thinking that causes groupthink.

This is the reason that many activists and investors want to see more diverse and intelligent boards. A board with diverse perspectives, experiences and opinions can help companies respond quicker to major changes in society, like the rapid expansion of ESG issues.

Diverse boards tend to be more diverse in their cognitive abilities. This helps them identify issues faster and more efficiently. If employees are able confront each other, they will be able better tackle the issues.

A diverse board is not a panacea. Boards must be able to work together despite their differences, and this requires a chair who knows how to lead productive discussions and foster collaboration among people with different worldviews and attitudes. Otherwise, it could lead to internal conflict and a decline in productivity.