Achieving adequate and effective board diversity

A LOT of ink has been spilled on the topic of board diversity. Much of the focus, however, has been on gender diversity, which is just one aspect of board diversity.

A different approach is required to cast a wider net over the subject.

While Guideline 2.6 of the Code of Corporate Governance requires that "the board should comprise of directors who as a group provide an appropriate balance and diversity of skills, experience, gender and knowledge of the company", it may not have gone far enough to recognise the complexity of the subject.

Board diversity should not be about being politically correct, nor should it even be about equal opportunity, uplifting minorities or eliminating discrimination. It should also not be seen as an instrument of social policy. It is partly because the nominating committee and other directors owe a fiduciary duty to always act in the best interest of the company that, in the context of corporate governance, board diver…