Why Board of Directors Diversity Is Good For Business

Sept. 7, 2011 - PRLog -- According to Carl J. Taylor, President of executive search firm Carl J. Taylor & Co., the most progressive and innovative companies and organizations are pushing for a more diverse workforce to perform executive-level positions and to sit on their boards of directors. The idea has gone from being a practice that is simply the right thing to do or that is required toward a more pragmatic realization that it makes real business sense.

Taylor cites a variety of studies and surveys are beginning to document that those companies which add diversity candidates to their boards are convinced that the company benefits quantitatively and qualitatively.  McKinsey conducted a study of business leaders who indicated that those companies with female directors saw financial improvement in their organizations.  The Big Four public accounting firms and a number of other large public companies have invested millions of dollars in their diversity programs because they realize “diversity is good for business”.  Similarly, smaller and privately held companies and their boards have recognized a number of additional benefits, including:

Positive Perception of the Company

Management and employees realize that the company is committed to diversity, and they get reassurance that their career opportunities are genuine.  Employee turnover is reduced.

Diverse job candidates recognize the commitment to diversity and often select the company with the diverse board versus another opportunity.

Customers appreciate the policies and programs geared to a diverse clientele, and they become more loyal, and possibly larger, customers.

The board’s cultural awareness translates into a positive impact on the company’s brand recognition in the communities it serves.

Connections to New Customers and Communities

Diversity board candidates are aggressively sought by nonprofit and community boards; thus, these people have extensive ties to their communities which will benefit the company.

Diversity board members bring new customers that may have never been considered before.

Competitive Advantage

Every company seeks to distinguish itself in the marketplace, and board diversity recruitment can provide that advantage.

Low Cost Positive

During difficult economic times, a company is hesitant to add new employees or to invest heavily in a new program.  The addition of a new board member with fresh ideas and a different perspective on the market can be a relatively inexpensive spark to help the company move forward.  

Taylor warns that, adding diversity to a company’s board will not work if it is done “because we have to”.  However, if a board makes a thorough evaluation of its business and the talents of its existing board members, it may determine that the ability to more appropriately serve its various constituencies can be greatly enhanced by adding a director with the required skills and experiences who also possesses a different market perspective.  It is this assessment that is leading top companies to make a genuine effort to add diversity to their boards.

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Carl J. Taylor is president of Carl J. Taylor & Co. an diversity executive search firm which has a lot of experience with board diversity recruitment. For an in-depth look at the firm’s diversity recruitment services, please visit http://www.DiversityExecutiveRecruiting.com. You may also call Carl J. Taylor’s office at (972) 490-7697.