THIS WEEK’S TOPIC: Is diversity of directors or their independence the bigger issue in corporate boardrooms?
The overarching principle should not be judged solely on whether boards are purely diverse or independent. There needs to be a holistic approach to this question which ultimately brings about the strongest levels of corporate governance.
In a June 2020 report titled More Than Just A Buzz Phrase, PwC highlighted the importance of diversity and inclusion. They got it right when they said: “We need to continuously bring more creative, diverse ideas to the table. One of the ways to do this is to build and nurture a culture that supports gender equality. When men and women work together, the workplace is more productive, and more innovative decisions can be made.”
The above is even more important in the boardroom. At its core, board directors must guide the firm’s strategic advancement, establish robust policies and execute their fiduciary duties without fear or favour. They can only do this when they possess solid character traits backed by personal integrity. In my view, both diversity and independence are needed to achieve the strongest levels of corporate governance.
Mario Singh
Chief Executive Officer
Fullerton Markets
