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Many studies reflect the positive impact of diversity on board performance. A diverse group of individuals has different experiences, perspectives and perspectives to tackle problems, which can provide solutions that would otherwise be overlooked by a more homogenous board. This is particularly applicable to boards that have people from groups that are underrepresented. They will have insights into the preferences and culture of these groups, which could help them better serve those groups as clients.

The presence of diverse backgrounds and experiences on a board may boost morale and create trust. If board members feel that their voice and experience are being heard and they feel more committed to the overall success of the company. This is why it is vital to keep track of the progress of your board in promoting diversity and identifying any issues that must be addressed.

Another area where diversity could be beneficial is in reducing risk. A recent study by Berger et al. found that the greater diversity of gender and age on the board can lead to more effective risk management at the operational level and a reduced risk of market risk. It is important to remember however, that the same study indicates that a high degree of diversity on the board could result in issues with cohesion and communication.

Furthermore, boards with a diverse mix of members are more aware of and sensitive to the unique challenges faced by communities that are underrepresented. This can motivate them to take steps to promote social responsibility in their businesses. This is why it’s vital to continue to find and recruit talented women or people of color and LGBTQ candidates for board positions.