Sense and sensibility in board diversity

RECENT upheavals in the financial and corporate realms have underlined the degree of close scrutiny on how boards - and directors - behave in good times and in crises, especially under the relentless glare of today's 24/7 media platforms. There has never been a better time for companies to review the diversity of their boards seriously, to reflect the new reality of accountability faced by all business entities.

Ideally, boards should be made up of highly competent, experienced, high-calibre individuals. As a group, the members of a board need to have a mix of skills, experience and relevant backgrounds.

In Singapore, we are rightly proud of being a meritocracy. It makes sense that board appointments must always be made on merit, with the best, most suitable people being appointed for the greatest benefit of the board. Traditionally, board appointments have been made by chairmen tapping into their own networks and that of their peers. This approach, however, tends to result in a board of rather homogenous individuals - they get on well together and a comfortable status quo prevails.