Diversity leads to an effective board, which is the bedrock of a company

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Companies are slowly opting for the board of directors being more representative, which results in better strategic decisions for the benefit of all stakeholders

A board of directors plays a fundamental role in instilling and maintaining a culture of good corporate governance, which ensures that a company acts ethically and within the parameters of the law in its business dealings. The foundation for establishing an effective board of directors begins by gathering a diverse group of members with relevant qualifications, technical competence, skill and experience, who all have a firm understanding of their duties and obligations to the company.

The starting point is to ensure a board comprises ethical, competent, and appropriately qualified people. An effective board is one that consists of a diverse group of members with different qualifications , skills, and experience. Effective boards are also those that are open to taking specific professional advice where required, often from lawyers, auditors and accountants. However, they remain accountable to the stakeholders for the decisions taken that are based on such advice.

 

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Good corporate governance and meaningful transformation may be ignited by great company policies and diverse individuals with relevant qualifications and skills. But as long as conduct fails policy, 'leadership' n anything related to it is relegated to the 'Fallacy Department'.

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