Women, minorities make up small fraction of boardrooms
August 18 , 2013
Women and minorities make only a small fraction of the members in America's board. This has remained unchanged since the past eight years and could hurt the companies as the country's ethnic makeup changes.
A recent study revealed that white men hold over two-thirds of the seats in both Fortune 100 and Fortune 500 company boards. On the other hand, women hold only 20 percent of Fortune 100 board seats with minorities holding as many as 16 percent.
CEO Ron Parker said the companies today understand the importance of diversification but fail to diversify when it comes to their own governance. "Different perspectives bring the opportunities for innovation."
Manager of diversity, Eric C. Peterson has similar views. He said diversity leads to more ideas and better decisions.
Frank Dobbin of Harvard University said "inertia also is to blame for the under-representation of women and minorities on corporate boards." He mentioned that the companies hesitate to change the status-quo in a poor economy.
Failure to diversify America's board does not only hurt the companies but it hurts the under-represented business people as well.