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Resource TypeArticleGDI Matrix

Increasing Gender Diversity on Boards: Current Index of Formal Approaches

August 18, 2020
25

Around the globe and across all avenues for change—from legislated quotas to an explosion of advocacy groups championing voluntary measures—efforts calling for actions to increase board diversity are approaching a tipping point. The demand for greater gender equality in the boardroom is higher than ever before, and most directors recognize the value of board diversity.1

In several countries, companies are appointing more first-time directors to public company boards, and globally, women are joining corporate boards at greater rates than at any time in recent memory.2  Each of these indicators suggests that the expectation for businesses to diversify their boards is the new norm, and reinforces the importance of women in business.3  More and more, it appears that what may have worked in the past—relying predominantly on “who you know” to fill vacant board seats—will no longer be a viable solution for companies.4

Governments and businesses continue to engage in discussions about the best approach to increase women’s representation on boards. Thus far, efforts affect a variety of companies and have fallen into three distinct areas: legislative, regulatory, and voluntary methods.5  While the advantages and disadvantages of each approach are open to debate, the general consensus is that including more women on boards is good for business.6

Regardless of whether a specific country mandates a quota for women on boards, it is clear that the global movement foreshadows a race for top talent to fill board vacancies. Companies that aren’t addressing the gender diversity of their boards run the risk of being left behind.7

Read the remainder of the article through this link.

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Previous articleWomen and the Future of Work
Next articleReport: Corporate Landscape in Mexico: Understanding Approaches to Talent Management and Women’s Inclusion

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