Can a Company Be Required to Have a Diverse Board of Directors?

Wednesday, January 12, 2022

Kathy Jaffari discusses the expectation for companies to have a diverse board of directors in SHRM. The focus improving workplace gender and racial equity by lawmakers has prompted legislation that encourages or requires diversity representation on corporate boards. However, the question is now being asked – can a state's effort to promote diversity infringe on constitutional rights? Based on several lawsuits in California, it seems so.

According to Kathy, companies striving to achieve diversity on their boards must realize that “the key is not only the number of diverse individuals around the table but also whether they have a voice. Boards have to decide whether they are committed to inclusion.”

Boards may consider providing their members with unconscious bias training, anti-harassment training, and relationship training. “At the end of the day, it's about how people relate to each other,” Kathy stated.

To read the full article, click here.


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