THE ETHICAL AND BUSINESS CASE FOR BOARD DIVERSITY.
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1 THE ETHICAL AND BUSINESS CASE FOR BOARD DIVERSITY. December 10, Cathy Gallagher-Louisy. Director, Knowledge Services. Canadian Institute of Diversity #CDNdiversity
2 Agenda for Today s Session. Welcome & Introduction. Business Case for Diversity and Inclusion. The Disconnect: Board Directors Perceptions. Diversity on FP500 Boards. The Way Forward. Q&A.
3 Agenda for Today s Session. Welcome & Introduction. Business Case for Diversity and Inclusion. The Disconnect: Board Directors Perceptions. Diversity on FP500 Boards. The Way Forward. Q&A.
4 About the CIDI. The Canadian Institute of Diversity and Inclusion is a national non-profit organization that provides: networking & learning events in 8 cities, webinars (at least 2 per month), cutting edge new research, practical strategies and toolkits for community and business leaders, HR and D&I professionals across Canada. Our mission is to help improve the overall inclusivity of the Canadian workforce, and to develop the inclusive leaders of tomorrow.
5 The Founding 25 Employer Partners.
6 CIDI Employer Partners. Toronto Police Service
7 Canadian Centre for Diversity. Mission: To inform and educate Canadian society about the value of diversity, difference and inclusion. Vision: A society without prejudice and discrimination a society that celebrates diversity, difference, and inclusion. centrefordiversity.ca Mandate: Promote diversity and inclusion by providing educational programs in Canadian schools.
8 BUSINESS CASE FOR DIVERSITY AND INCLUSION.
9 Impending Talent Shortage. Source: Miner 2012.
10 Canada s Imperative. Source: Miner 2012.
11 Financial Influence. The Business Case Customers -
12 Quiz. In what school year did women start to account for more than 50% of undergraduate degrees in Canada?
13 Women in Canadian Business. Catalyst. Pyramid: Canadian Women in Business. New York: Catalyst, March 3, 2014.
14 Women in Canadian Business.
15 Bottom Line Impacts. Increase revenues. Embracing diversity and inclusion can help increase revenues by: Attracting new customers. Building customer loyalty; retaining existing business. Improving cross-cultural customer service. Improving accessible customer service.
16 Bottom Line Impacts. Reduce costs. Fostering a diverse and inclusive environment will help your company reduce costs by: Reducing differential turnover across demographic groups. Minimizing litigation costs.
17 Bottom Line Impacts. Increase Productivity. Cultivating a diverse and inclusive work environment ensures that you get the most from your employees by: Recruiting and retaining the top talent. Maximizing productivity through flexibility. Maximizing employee engagement.* *Engaged employees are more productive, provide better customer service, go above and beyond, and experience less absenteeism.
18 THE DISCONNECT: BOARD DIRECTORS PERCEPTIONS.
19 Is Board Diversity Important? Responses from FP500 Board Members. Source: Canadian Board Diversity Council. 2014
20 Is Your Board Diverse? Responses from FP500 Board Members. Source: Canadian Board Diversity Council. 2014
21 Written Diversity Policy? Responses from FP500 Board Members. Does your board have a written diversity policy? Source: Canadian Board Diversity Council. 2014
22 Considerable Resistance. Responses from FP500 Board Members. Do you feel that this board should develop and adopt a formal diversity policy? (among those who do not have a diversity policy) Source: Canadian Board Diversity Council. 2014
23 THE DISCONNECT: FP500 BOARD DIVERSITY.
24 Women on FP500 Boards. Source: Canadian Board Diversity Council. 2014
25 Women on Canadian Boards. Source: Canadian Board Diversity Council. 2014
26 Visible Minorities on FP 500 Boards. Visible minorities = 19.1% of Canada s population. Source: Canadian Board Diversity Council. 2014
27 Aboriginal People on FP 500 Boards. Aboriginal Peoples = 4.3% of Canada s population. Source: Canadian Board Diversity Council. 2014
28 People with Disabilities on FP 500 Boards. People with Disabilities = 13.7% of Canada s population. Source: Canadian Board Diversity Council. 2014
29 BUSINESS CASE FOR BOARD DIVERSITY.
30 Six Benefits of Board Diversity. 1. Strong financial performance. 2. Ability to attract and retain top talent. 3. Heightened innovation. 4. Enhanced client insight. 5. Strong performance on non-financial indicators. 6. Improved board effectiveness. Source: Conference Board of Canada. 2013
31 Improved Board Effectiveness. Source: Conference Board of Canada. 2013
32 THE WAY FORWARD.
33 8 Strategies for Increasing Diversity on Boards. 1. Leadership Commitment. 2. Adopt Formal Board Policies. 3. Recruit Outside the C-Suite. 4. Recruit Beyond Traditional Networks. 5. Increase Diversity in the Leadership Pipeline. 6. Sponsor High-Potential Women and Minorities. 7. Focus on Competencies. 8. Ensure Nominating Committee Impartiality. Source: Conference Board of Canada. 2013
34 Demand, not Supply. DiverseCity Onboard Canadian Board Diversity Council, Diversity Catalyst Corporate Board Services.
35 New Reporting Requirements. Director term limits and other mechanisms of board renewal. Policies regarding the representation of women on the board. Consideration of the representation of women in the director identification and selection process. Consideration of the representation of women in executive officer appointments. Targets regarding the representation of women on the board and in executive officer positions. The current number of women on the board and in executive officer positions.
36
37 WANISHI
38 THANK YOU. Cathy Gallagher-Louisy. Director, ca.linkedin.com/in/cathygl
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