Chapter 8 - Diversity in the Boardroom Flashcards
(13 cards)
Why is diversity considered a governance issue?
It enhances decision quality, stakeholder trust, and reflects ethical and legal responsibilities.
What does the FRC (2018) say about diversity?
“Diversity in the boardroom can have a positive effect on the quality of decision-making by reducing the risk of group think.”
What are the five main types of diversity (S-K-V-P-O)?
S – Social category (e.g. race, gender, age)
K – Knowledge/skills (e.g. education, experience)
V – Values and beliefs (e.g. culture, ideology)
P – Personality differences (e.g. style, motivation)
O – Organisational status (e.g. tenure, work/community ties)
What is the business case for diversity (R-R-C-I-P-F)?
R – Reduces cost of integrating new workers
R – Reputation boost for recruitment
C – Customer strategy alignment
I – Innovation via diverse perspectives
P – Problem-solving power
F – Flexibility and resilience
What does McKinsey (2020) say about gender and ethnic diversity?
Gender-diverse boards are 25% more likely to outperform; ethnically diverse boards outperform by 36%.
What is deep diversity and why is it important?
Includes less visible traits like values, thinking style and personality — key for creativity, challenge, and innovation.
What is Belbin’s theory of team roles?
9 roles including:
Plant – Creative thinker
Coordinator – Chair-type leader
Shaper – Driven, may offend
Monitor-Evaluator – Strategic but uninspiring
Teamworker – Diplomatic, but indecisive
[Plus: Implementer, Completer-Finisher, Resource Investigator, Specialist]
What is unconscious bias?
Greenwald & Banaji (1995): Social behaviour is influenced by automatic, unconscious associations.
What are microaggressions?
Sue et al. (2007): Subtle slights that may be verbal, behavioural, or environmental — intentional or not.
What generational cohorts are used in Boardroom diversity?
Maturists (pre-1945), Baby Boomers (1945–60), Gen X (1961–80), Gen Y (1981–95), Gen Z (post-1995)
What is a diversity mindset?
Valuing, including, and leveraging differences — not just representation.
How can a board promote diversity?
• Chairs model inclusion
• Agendas encourage all voices
• Quotas can accelerate change if tied to culture
• Review airtime and practice with a diversity lens
What is the ‘M-F-K-L-A-N-R’ memory aid for promoting diversity?
M – Measure bias
F – Feedback on bias behaviour
K – Know directors personally
L – Lead diversity efforts
A – Avoid biased jokes
N – Notice airtime
R – Review board practice
