The Global Network of Director Institutes (GNDI) has released a study into the positive outcomes of having a diverse board in place, and argues that using a mandatory quota is the best way of achieving the related positive outcomes.

At the release of the policy paper, Chair of GNDI and CEO of the Australian Institute of Company Directors, John Colvin FAICD 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 Mr 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,” he said. 

“Boards that are composed of directors with different perspectives, experience, backgrounds and views in relation to issues affecting the organisation, may contribute to better problem solving and decision-making, foster greater innovation, and enhance board effectiveness and performance,” said Mr Colvin. 

The paper can be found here