(from Financial Executives) Last month, the Alliance for Board Diversity and Deloitte released the "Missing Pieces Report," a multiyear study that reviews diversity on Fortune 100 and Fortune 500 boards. Numerous data sources show the positive impact diverse boards have on a company’s market and financial performance. Companies with more diverse boards will be better equipped to grow, innovate, and take and manage risk. Homogeneity on boards is risky because, it can lead to a uniform approach to problem solving, resulting in blind spots for new ideas. Non-diverse boards are also risking increased pressure from investors, customers, even policymakers and other stakeholders.
The report shows that the number of Fortune 500 boards with over 40 percent diversity has nearly tripled from 54 in 2010 to 145 in 2018. This is due, in part, to the growing demand from stakeholders that company boards be composed of directors that reflect
the diversity of the country’s population.
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