Do Black Lives Matter in the boardroom?
Why companies aren’t healthy until they embrace diverse perspectives.
2020 has been a year of change. We learned how to adjust our lives to new normals and were invited to reimagine how we engage with each other and the world around us. Recently, the Black Lives Matter movement has challenged many to turn a critical eye to how companies and organizations are led, and whose voices matter at the top. This begs the question: do Black lives matter in the boardroom? And if not, how do we ensure they do?
While the demand for diverse leadership increases, research shows industries across the board are far behind. In the past 10 years, there has only been a 0.4% increase of Black representation on corporate boards. A 2020 study published by the Mckinsey Global Institute found that only 1.3% of leadership roles in Silicon Valley’s top tech companies are held by Black leaders. We know the numbers for diverse leadership are staggeringly low, but what does this mean for business?
Lack of diversity on boards has searing ramifications on profits and company culture. It leads to a smaller scope of ideas, a smaller network, and limited capabilities. In fact, boards with both gender and ethnic diversity consistently outperform other companies in their industry by +31%. Dismantling systemic racism in business starts with policy, and policy change starts with the board. Representation matters. It matters who guides the CEO. It matters who oversees the budget. It matters whose voices are in the room. The decisions made at the top have a direct impact on the bottom line.
The current myth in business is that Black top-tier talent is hard to find, and it is limited to a small pool of people that are already too busy to take on a new board. This isn’t true. As a member of The Boulé, an extraordinary network of high-achieving Black leaders with influence all around the world, I am connected to thousands of Black leaders that are highly qualified to help create better business. As chair of The Boulé’s Blacks on Corporate Boards Committee, I help build bridges between corporations and top talent, connecting the gap that has been present for far too long. Diverse leadership with extraordinary talent is not only possible, it is vital.
Do Black lives matter in the boardroom? Yes. Is that widely represented in board governance? Not yet. There is a long road ahead before there is prevalent diversity of leadership at top boards and companies, but the ingredients are all there. We must prioritize elevating Black leaders and creating diverse board governance across every major industry. We must encourage perspectives that are still largely unique in boardrooms. We must intentionally increase the pipeline of Black leaders that are considered for corporate board seats. In doing so, we create better companies, better relationships, and a better world.
It is time for a new governance that includes Black voices.
To learn more about the Blacks on Corporate Boards Committee and diverse leadership, contact Tracy R. Porter here.
