Corporate Board Diversity is a term used to describe a wide array of demographic traits that are ables and attributes in a boardroom. This can include gender, age, educational background, professional expertise and experiences, philosophies and identity, race, sexual orientation, and religion. This diversity could help develop a useful assortment of perspectives and capabilities to meet the business and future demands of the business.

A well-performing board is essential for a successful business and that is why the composition of a board has to be designed to achieve this goal. Diversity is one way the board can attain this goal by encouraging different leadership, thinking and emotional styles that promote a greater awareness of the risk.

Investors are now increasingly demanding that boards of directors be diverse. In fact, some large institutional investment management firms are beginning to actively vote against board members of companies that do not meet their requirements for gender or racial diversity. For example, in August 2017, CalPERS, a pension fund for state employees, wrote letters to 504 companies on the Russell 3000 index and demanded that they create an action plan and policy to ensure diversity.

Additionally, certain states are implementing laws that require companies to implement measures for achieving board diversity. For instance the state of California requires that public companies with their headquarters in the state have a certain amount of female https://board.international/ and underrepresented minority directors on their boards by 2021. Additionally, companies are also required to report on the racial and ethnic diversity of their boards.