Matters related to corporate social responsibility, such as environmental, social and governance (ESG) risks, no longer reside on the peripheries of boardroom debates. In fact, the non-financial sectors of an organisation’s operation have become key issues, with public scrutiny sharpening on how organisations respond to these changes.
Board members can’t simply react to these changes. In fact, to effectively navigate complex expectations both now and in the future, boardrooms need to be rethought and reworked along the lines of these evolving expectations. The focus of this blog is to highlight what the future board must embody in terms of values, demographics, and expertise.
Strategy and leadership management also encompasses values and insight, which in return not only lead the organisation through crises but also attract talent which aligns with the overall vision of the board. Another important aspect that is covered off in good leadership is emotional intelligence. This quality is imperative in responding to issues that garner great social concern as well as making sure that the boardroom culture allows for diversity and avoids polarisation.
Interestingly, the report ranks specific sector and industry experience fourth in importance. What is instead emphasised is that board members require specific technical skills and experience that go beyond those associated with the sector in which the organisation operates. The value of technical skills in digital literacy, health and sustainability have been highlighted during the COVID-19 pandemic.
Gender diversity persists as being an important aspect to consider in board composition. As ‘The Future of the Board’ report points out, Australia has achieved the 30 per cent, women, on boards benchmark, making it one in only three countries to have done so. This sets an example for future board members, on the basis of which better ethnic and racial diversity can be pushed for.
However, the boardroom diversity debate is now moving beyond gender and ethnicity.
According to these figures, skills and experience are ranked the highest, pointing to the fact that this is what should be considered when composing future boards. Currently, only five per cent of ASX 300 company directors are under 50 years old, pointing to an underrepresentation of youth in boardrooms.
An innovative approach is needed to make sure that boards become more inclusive. This begins from thinking differently on how to recruit board members. ‘The Ethics of Diversity’ report notes ‘the role that executive search firms play is critical in progressing diversity at the upper echelons of companies’. Organisations must make sure that they push for an executive search which aligns with the future considerations of what their boardroom needs to represent.
Board members can’t simply react to these changes. In fact, to effectively navigate complex expectations both now and in the future, boardrooms need to be rethought and reworked along the lines of these evolving expectations. The focus of this blog is to highlight what the future board must embody in terms of values, demographics, and expertise.
Strategy and Values:
Being in tune with the social issues and values of today and responding in an appropriate manner is integral to retaining the social license needed to operate. According to Diligent research, the most important skill for this is strategy.Strategy and leadership management also encompasses values and insight, which in return not only lead the organisation through crises but also attract talent which aligns with the overall vision of the board. Another important aspect that is covered off in good leadership is emotional intelligence. This quality is imperative in responding to issues that garner great social concern as well as making sure that the boardroom culture allows for diversity and avoids polarisation.
Interestingly, the report ranks specific sector and industry experience fourth in importance. What is instead emphasised is that board members require specific technical skills and experience that go beyond those associated with the sector in which the organisation operates. The value of technical skills in digital literacy, health and sustainability have been highlighted during the COVID-19 pandemic.
Diversity and inclusion:
To meaningfully engage with the non-financial expectations from an organisation, the board needs to embody the social diversity of its community. This means that board composition needs to be reflective of the different segments of society. This will not only encourage a multiplicity of views and lived experiences, but it will also make sure that there will be a deeper understanding of social issues and better navigation of them. When boards are not aligned with the public, they run the risk of damaging their contract of trust with the community.Gender diversity persists as being an important aspect to consider in board composition. As ‘The Future of the Board’ report points out, Australia has achieved the 30 per cent, women, on boards benchmark, making it one in only three countries to have done so. This sets an example for future board members, on the basis of which better ethnic and racial diversity can be pushed for.
However, the boardroom diversity debate is now moving beyond gender and ethnicity.
According to these figures, skills and experience are ranked the highest, pointing to the fact that this is what should be considered when composing future boards. Currently, only five per cent of ASX 300 company directors are under 50 years old, pointing to an underrepresentation of youth in boardrooms.
An innovative approach is needed to make sure that boards become more inclusive. This begins from thinking differently on how to recruit board members. ‘The Ethics of Diversity’ report notes ‘the role that executive search firms play is critical in progressing diversity at the upper echelons of companies’. Organisations must make sure that they push for an executive search which aligns with the future considerations of what their boardroom needs to represent.
Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.
