When it comes to investments, diversification is important. Mutual fund boards recognize this same principle and are taking diversity and inclusion seriously when it comes to board composition.
The Independent Directors Council (IDC) is the latest organization to join the Diligent Director Network to support a more diverse and inclusive fund director community. This partnership provides the IDC community access to a broad spectrum of diverse board candidates through a dedicated portal. Additionally, funds in search of diverse board candidates now have access to a broader pool of potential candidates through the Diligent Director Network.
“Attracting candidates with different backgrounds and points of view is vital,” says Cynthia Plouché, vice chair of the IDC’s Governing Council and independent director of Northern Trust Funds.
Diversity Can Increase a Board’s Effectiveness
Though organizations may be feeling the pressure from regulatory bodies, laws and shareholders, diversity is much more than a box to check. In today’s ever-changing business landscape, boards must keep up with a wide range of issues, from globalization to digitization. Boards can have more robust dialogue and make more informed decisions when they draw from a variety of perspectives and experiences.
This includes racial diversity, gender diversity, socioeconomic diversity and more, as well as representation of a wide range of industries and soft skills. By diversifying, boards can break through groupthink and broaden the ways in which shareholders are served.
Funds Have New Ways to Connect With Diverse Candidates
Technology can facilitate the journey to increase diversity on fund boards. With the right tools, boards can become more insightful and challenge the status quo within their ranks.
Funds have everything to gain by recruiting a more diverse board. Recruitment starts with considering a broader candidate pool. Diligent’s Director Network supports this focus by showcasing board candidates and senior executives who seek opportunities and connections with boards around the country.
Members of the fund director community can raise their profiles as board candidates or use the tool’s robust search capabilities and board opportunity posting tools to source diverse talent outside of their existing networks. The Diligent Director Network makes it easier for candidates to network themselves and for boards to look beyond their own direct connections, creating a clearer pathway to a more diverse boardroom.
More diversity in the boardroom means more agility in the face of complex challenges.
As fund boards strive for more diversity in the boardroom, they are paving their way to robust dialogue and effective decision-making. Tools like the Diligent Director Network can also help fund boards tap into a pool of diverse talent with whom they may not have otherwise engaged.