This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

International Director Network Releases Landmark Paper On Board Diversity

TORONTO, Feb. 6, 2013 /CNW/ - The Global Network of Director Institutes (GNDI) has today released their joint policy perspective, setting out the significant and positive impact a diverse board can have on business outcomes and arguing that mandatory quotas is not the most effective way to improve board diversity.

At the release of the GNDI policy paper, Chair of GNDI and CEO of the Australian Institute of Company Directors, John Colvin, said that the paper highlights that improvements to board diversity should be driven by recognition of the benefits of diversity.

"Board diversity is an important governance issue but is a means to an end, not an end in itself," said John Colvin.

"If all individual directors on a board view issues in a similar way, there is a risk that the board will approach issues too narrowly, suffer from "group think" or fail to adequately consider and evaluate alternative ideas or options in relation to the organisation."

The paper emphasises that diversity encompasses, but is not limited to, gender, ethnicity/race, nationality, religious beliefs, cultural or socio-economic background, and age.

It reflects a clear view from the director institutes of the GNDI that because systems of organisational governance vary significantly around the world, the approach that each organisation takes to diversity will vary; all organisations are different and there is no "one size fits all" formula.

Initiatives and practices which may be employed by organisations to increase the diversity of their boards could include establishing diversity policies and objectives, improving transparency in board selection and appointment processes, and implementing board evaluation processes that assess the board's performance and the potential contribution of diversity to board effectiveness.

"The GNDI Policy Paper echoes what our membership has been telling us for several years that diversity is an important governance and organisational issue. It needs to be adopted and implemented from the board-level down to be truly effective," said Stan Magidson, Deputy Chairman of GNDI and President and CEO of the Institute of Corporate Directors.

In December 2011, the Institute of Corporate Directors (ICD) issued a position paper on Diversity in the Boardroom which called for boards to adopt formal diversity policies. The position paper was issued following a year-long consultative process with its membership.

"In speaking with our membership across the country an overwhelming majority are strongly opposed to government-imposed quotas. Only 4 per cent favoured such measures," Mr. Magidson said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs