Why this leader says it's time to end the 'woke' debate: Just do what you think is right

Think twice about joining the boards of companies led by founders or powerful chief executives, and be wary of boards with factions, ineffective chairmen, or big egos.

These were the words of warning that Qantas chairman John Mullen offered company directors in an interview with The Australian Financial Review this week. You might think the offer to join a board is a prestigious opportunity, Mullen reflected, but a fractious board comes with risks to both your wellbeing and to your professional reputation.

His caution comes just weeks after the resignation of four independent directors at logistics software company WiseTech Global over the continuing role of scandal-plagued founder Richard White.

Mullen, a transport industry veteran and serial chairman, succeeded Richard Goyder at Qantas last September, was speaking ahead of his keynote address at the annual Australian Institute of Company Directors Governance Summit. He used that address to criticise the increasing compliance burden imposed on boards and warned companies against introducing policies such as diversity and inclusion programs unless they believed in their merits and not just because they were in vogue.

“Ask yourself what is good for your company and don’t follow the latest trend. Don’t be radically woke, but don’t be radically anti-woke either,” Mullen said.

“Do what you think is right and stick to it. Always, as a director, be prepared to make a decision that differs from your personal conviction if it is the best thing for the company.”

In The AFR View, Mullen is right: The last thing corporate Australia needs to promote greater board diversity is more red tape and performative box-ticking, our leader writers argued. The focus should be on getting the right mix of skills, life experiences and viewpoints on boards, which is shown to improve performance and deliver better results for shareholders.

Get Mullen's full take on the DEI debate in his own opinion piece here. Then find out what experienced directors Yasmin Allen AM , Alison Watkins , Diane Smith-Gander AO and Ann Sherry AO make of the founder-led company debate in this follow-up piece.

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