Corporate Board Diversity is the variety of individuals that make up a board. A diverse board will provide a wide range of perspectives and knowledge, enabling it to make better decisions. It can also improve the capacity of a business to adapt to change and also its reputation as an employer.

A diverse board can be more effective than a homogeneous board according to research. It helps prevent groupthink as diverse members can challenge ideas and provide fresh perspectives that may not have previously been considered. This can lead to a more thorough discussion and debate which will lead to better outcomes and more effective decisions for the organisation.

Board diversity can help strengthen the social contract that exists between the stakeholders of a company and the company itself. It helps by encouraging discussion and debate. By reflecting the diversity of society the company can show its investors and customers that they are aware of them and that it is trustworthy.

A diverse board may also have a better understanding about its customers and their needs and needs, which could result in more innovative services and products. This is especially important in industries that have a direct relationship with customers such as banking and retail.

A diverse board can also bring new expertise and skills which is particularly beneficial for technology companies. For instance having someone how to encouraging an advisory board with expertise in cyber security or sustainability is beneficial. A diverse board can be more receptive to cultural changes and social changes, for instance an increased concern for environmental and social issues.