Board diversity
Boards are most effective when they have access to knowledge and
experience of a wide range of business backgrounds that are relevant to
the company, be it, inter alia, through its long-term strategic direction,
its suppliers, its employees, its customers or its geographic footprint.
In addition, a wide variety of viewpoints and perspectives will make for
better debate and challenge. Boards that have too much commonality
of backgrounds run the risk of groupthink and even hubris, both clear
signs of governance failure. We believe that boards should take account
of diversity in its broadest sense when considering possible candidates
for the board and other senior positions.