Essential to the effective functioning of any board is dialogue which is both constructive
and challenging. The problems arising from “groupthink” have been exposed in particular
as a result of the financial crisis. One of the ways in which constructive debate can be
encouraged is through having sufficient diversity on the board. This includes, but is not
limited to, gender and race. Diverse board composition in these respects is not on its
own a guarantee. Diversity is as much about differences of approach and experience,
and it is very important in ensuring effective engagement with key stakeholders and in
order to deliver the business strategy