Perfect Board Equity and Diversity will be achieved in 2060
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
??Diverse boards can have positive impact on board effectiveness and organizational leadership. Researchers predicted that women are expected to control 75% of consumer spending by 2028 and without racial pay inequities buying power would be 63.9% higher.
It would take the boards of Fortune 500 companies more than two decades for board representation to match the current level of representation of individuals from underrepresented racial and ethnic groups in the population, according to a new 7th edition of an interesting research published by 德勤 and the Alliance for Board Diversity (ABD) Diversity called "Missing Pieces Report" using data from 92 companies of the Fortune 100 companies and 477 companies for the Fortune 500 companies.
??? Women and underrepresented racial and ethnic groups (UR&EG) hold 46.5% of Fortune 100c and 44.7% of Fortune 500 board seats. However, women from underrepresented racial and ethnic groups hold only 7.8% of board seats across Fortune 500 companies.
?Date to parity by gender?and underrepresented racial and ethnic groups (UR&EG)
Based on their findings, researchers believed that there is no period where the total proportion of board seats held in the Fortune 500 by individuals from underrepresented racial and ethnic groups reaches population parity through 2060.
?Some progress made in Fortune 100 & 500 diversity
Researchers found some notable advancement in the representation of Boards Fortune 100 with the combined representation of women and individuals from underrepresented racial and ethnic groups reaching a high of 46.5% on the boards. The boards of these companies remain marginally more diverse than those of the Fortune 500
Fortune 500 board seats held by individuals from underrepresented racial and ethnic groups increased to 22.2% in 2022, an improvement from 17.5% in 2020.?
??More than half of the Fortune 500 now have boards where more than 40.0% of seats are held by women and individuals from underrepresented racial and ethnic groups and 53 companies have greater than 60% diversity.
At present only four companies have boards where fewer than 10.0% of directors are White women and individuals from underrepresented racial and ethnic groups
Researchers noticed that the Fortune 100 companies remain, slightly more diverse than the Fortune 500 as 44.7% of the board seats in the Fortune 500 are filled by White women and individuals from underrepresented racial and ethnic groups.?
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?Both women and underrepresented racial and ethnic groups (UR&EG) are important to economic prosperity.
Researchers suggest companies think about diversity using the 3 below ways :
? Diversity as symbolic action/compliance, which is a process where organizations choose strategies that are the path of least institutional resistance to meet standards set by external pressure.
? Diversity as change agent, an admittedly rarer phenomena where a fundamental systematic change causes the entity to move toward embracing the inherent value of diversity.
? Diversity as identity, where institutions that have always seen the value of having diverse lived experiences maintain that culture.
??Finally researchers found that board effectiveness and performance is complex to determine and measure.
Some research suggests two primary reasons for why companies with diverse boards tend to be more effective:
?? The economic and social benefits of diversity are inextricably tied to the idea that every individual experiences the world through a different lens.
Research has shown that diverse boards are better able to empathize, understand, and appreciate how their actions will affect the many lenses through which stakeholders will interact with the company.
??Bringing an individual with a different lived experience to the boardroom can mean exposure to a new skill set and new ideas, both of which can give companies a distinct competitive advantage.
Thank you ?? 德勤 ??and the Alliance for Board Diversity (ABD) ?researchers team for these insightful findings:? Carey Oven Caroline Schoenecker Kori A. Green David Levin Jamie McCall and all cited persons in this report: Linda Akutagawa Aileen Alexander Lorraine Hariton Michael Hyter Cid Wilson
?HR Strategist ?Employee Experience & Engagement Consultant ? Interim HR Manager ? Mentor ? Trainer ?Blogger
1 年no way :(
Founder & CEO @ Lever Talent | Host of The Lever Show | Helping leaders develop talent strategies that leverage a tech-empowered future.
1 年While, on the one hand, it's great that there's research like this to show the painstakingly slow progress in this space, on the other hand, I find it sad that anyone would need further research to support the fact that heterogeneous teams outperform homogeneous ones. Diversity wins...every time. ?? ?? ??
Apply Business Intelligence | Creation of Order | Servant Leadership to Innovation & Transformation Management. Change Organization by Cross-Functional Teams' Leadership. OKR Coach & ICAgile ICP-ATF, ICP-PDV certified.
1 年Interesting ?? Looking for parity of any kind: representative stratas should not become the goal per se. Also, who said that a population breakdown should be sought in like to like manner within the board? Of course the diversity is important. So, let's look at particular cases with data backups. I mean that leading or managing, scaling business up or firefighting crisis may require completely different setup of skills and diversity of the board. If you are running a locomotive pooling 75 cars. What kind of diversity will you look for? Changing tracks? Switching the grid off? Serving more champagne to the VIPs? The nature of the business context will be matched by the swot of the company, and represented 'in-situ' by the board layout, I guess.
Chief Legal Officer & Global Managing Director, Diversified Search Group, CEO, Board & Corporate Governance Leader. Independent Corporate Director.
1 年THIS…is why we do the work, building slates that tap into a broad mix of talent- lived experiences, and competencies. These insights inform decision making at the highest levels. So proud that our firm Diversified Search Group partnered with Deloitte and our fellow members of the @allianceforboarddiversity #aesc #diversifiedsearch #elc #catalyst #leap #hcr