Diverse Boards Are Only Valuable if They Are Also Inclusive

Despite the recent backlash against diversity, equity, and inclusion (DEI) in the corporate world, large companies already committed to diversity initiatives are likely to stay the course, according to the Wall Street Journal. Because Legal Ops has been integrally involved in executing DEI programs, they will want to keep an eye on the direction their boards take and how they set the tone for a diverse and inclusive culture.

A survey by the National Association of Corporate Directors (NACD) reports that diverse boards contribute broadened perspectives, expertise, improved performance, enriched stakeholder relationships, and enhanced oversight of strategy and risk.

A diverse board is only valuable, however, if the directors commit to promoting a culture of inclusion. According to the survey, some boards struggle with inclusion. Nearly 42 percent of respondents cite limited time to discuss inclusion, with little attention paid to those with different backgrounds or perspectives.

A board inclusion framework can provide a structure for the board to assess their level of inclusion and ways they can promote an inclusive culture. Such a framework can offer insights to board members for improvement of their inclusion governance practices.

Key actions to drive inclusion include formalizing a shared definition, assigning oversight responsibilities, integrating inclusion into the onboarding processes, and establishing accountability measures.

Ultimately, the board sets the tone for an organization’s inclusive culture. Encouraging active listening and creating space for diverse voices will contribute to a shift towards more inclusion, which can cascade and positively impact the entire enterprise.