Report finds that diverse boards are better for business

Monday 13 October 2014

With the European Parliament proposing to enforce a 40% quota for female non-executive directors on the boards of large listed companies by 2020, EY has published a report on the advantages for business of a diverse board.

Titled “Time for diversity: accelerating performance in corporate boardrooms”, it includes interviews with board directors and chairmen from across Europe, India and Africa.

EY found that the greater the diversity among board members, then it is likely to better motivate the workforce and executive team, as well as relating to a broad customer base. The report also found a strong link between diversity and good risk management, highlighting that those from different backgrounds are attuned to different kinds of risks and can challenge the executive team to manage these risks effectively.

Wendy Martin, EY’s Channel Islands tax executive director said: “Whether the proposed EU legislation on female board representation is enforced or not, this is undoubtedly a positive step towards global boardroom diversity.

“This is a great opportunity for Channel Island companies to review their own boards and diversity policies; increased diversity is essential for streamlining performance in an era of globalisation.

“At EY, having a diverse and inclusive workforce is a priority. The latest report helps emphasise how all businesses should look at accelerating diversity at board level.”