Ethics Newsline®

From the Alliance For Board Diversity:

“Uniting under the common goal of increasing representation of women and minorities on corporate boards, three leadership organizations — Catalyst, The Executive Leadership Council, and Hispanic Association on Corporate Responsibility (HACR) — today announced their collaboration as the Alliance for Board Diversity and released the results of their first joint research, ‘Women and Minorities on Fortune 100 Boards,’ which assesses diversity in the boardrooms of the Fortune 100 companies….

“Key findings include the following:

• “There is a severe under-representation of women on boards. Just 16.7 percent of board seats in the Fortune 100 are held by women.
• “Racial and ethnic minorities are similarly under-represented. Only 14.9 percent of board seats are held by a minority individual. Minority women fare worst of all, holding just 3 percent of board seats in the Fortune 100.
• “Particularly low is representation of Hispanics, who hold 3.9 percent of board seats, and Asian-Americans, who hold just 1 percent of board seats.
• “There is a recycling of the same minority individuals — especially African-American men — on multiple boards….

“‘Good governance acknowledges the interests of all stakeholders, including shareholders, employees, customers, suppliers, and communities that businesses and organizations serve,’ said Alfonso E. Martinez, president and CEO of the Hispanic Association on Corporate Responsibility. ‘Having a diverse board sends a clear message to each of these groups.’…

“‘To remain competitive globally, the United States must recognize and embrace the power of inclusive leadership. We want to help companies make the case that diversity is as essential in the boardroom as it is in the executive suite,’ said Carl Brooks, president of The Executive Leadership Council, an organization representing the most senior African-American corporate executives in Fortune 500 companies….

“The Alliance for Board Diversity plans to track trends in boardroom diversity by conducting research to measure changes in the demographic makeup within Fortune 100 boards…. The National Association of Corporate Directors (NACD) is a key partner helping to advance the Alliance’s mission. The Alliance will continue to ally with and support like-minded organizations or individuals who are highlighting the issue of boardroom diversity as a vital shareholder concern….”