Signifying a trend that “is not just good PR but also good business,” contributing writer Suzanne McGee cites the changing face of the workforce and the steady rise in minority-owned businesses as factors contributing to this evolution. Deciphering and pursuing these trends, she writes, is most effectively accomplished “by having someone who understands this right at the boardroom table.”

This process is also being spurred by an expanding pool of minority and female candidates who have accrued the necessary senior-level business experience that qualifies them for corporate board positions.

These elements, combined with idealism and civil rights, “have given way to capitalist practicalities and shareholder responsibility,” the column further explains.  “Recruiters, directors and CEOs agree that building boardroom diversity is becoming a natural outcome of looking for the best possible candidate to fill a particular slot.”  As a result, some board recruiting committees are now mandating that each search for a new director include—even be restricted to—minority and women candidates.

To meet this demand, professional recruiters are facing new challenges, abandoning traditional networking in favor of creative methods to identify qualified candidates.  In addition to tapping into conventional resources such as academia and community organizations, recruiters are looking to special interest organizations such as the Hispanic Association on Corporate Responsibility, the Executive Leadership Council (African-American), the Committee of 100 (Chinese-American), the Directors Council (Hispanic) and Catalyst (women).

Further complicating matters are newly implemented regulations such as Sarbanes-Oxley and New York Stock Exchange rules mandating that board members be independent, with no business ties to the companies on whose boards they sit.  As a result, individuals are holding fewer board seats, thereby limiting the access to multiple corporations by qualified minorities and women.

Nevertheless, diversity is an essential element in a board’s accountability to its shareholders, according to Ms. McGee, who explains that businesses that are resistant to this trend will be in the minority in the 21st century. “Companies are beginning to realize that as long as they insist on filling their board seats with white males, they not only risk the ire of special interest groups, but also place in jeopardy their firms’ future success,” she concludes.

Worth magazine
With its acclaimed re-launch in December 2003, Worth set itself apart as the magazine that looks after all the best interests of readers with substantial personal wealth. Combining the financial acumen of Worth with the luxury lifestyle expertise of 29-year-old Robb Report, Worth covers the philanthropic, personal finance, business and lifestyle issues faced by individuals whose focus has shifted from obtaining wealth to the challenges of managing it. Worth also addresses the sociological and psychological issues that are unique to truly wealthy families, emphasizing the impact that these critical decisions have on future generations.

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