By Melissa J. Anderson (New York City)
Released last week, the 2010 Alliance for Board Diversity Census revealed some discouraging news. Despite the efforts of many organizations to highlight the importance of board diversity, despite the overwhelming business case for diversity of thought in the boardroom, and despite the high-level push for shareholder education on the value of diverse boards, today we have less diverse boards than we did six years ago.
Many people anticipated that the effects of the global recession would illuminate the fact that business as usual isn’t working. But, according to the ABD Census, boards have gotten whiter and more male.
As Janell Ross wrote in the Huffington Post last week, “The pattern raises questions about corporate America’s commitment to diversifying corporate boards and the efficacy of decades-long efforts by advocacy groups to reshape them.”
Despite the best efforts of outspoken organizations, companies continue to keep women and minorities out of the boardroom. And while ABD does highlight those companies that have achieved relatively high levels of diversity (although only a handful of Fortune 500 company managed a diversity level of 50% or more), it also published a list of 37 “stale, male, and pale” Fortune 500 companies that are failing the diversity imperative abysmally – with zero female or ethnically diverse board directors.
Most board diversity advocacy efforts have been focused on the carrot – explaining what companies can gain by improving leadership diversity (studies show that board diversity improves business). But what the report seems to show is that it’s time for the stick – naming and shaming those companies that stubbornly refuse to elect anyone but white men to the board.