But what is diversity? The concept targets a number of characteristics such as gender, age, proportion of nationals and non-nationals - of high importance in global companies -, diverse academic and professional experience, and board size. But why is this concept so topical?
The increasing importance of diversity - including gender diversity - on boards of directors is a criterion for measuring performance and reputation as well as impacting on public perception, and is an expression of the competence with which they conduct their business in a sustainable way. Governance models - the framework within which the activities of an organization are conducted and controlled - and the preparation of non-executive and executive directors are also ways of controlling crisis sources, reputational risk and protecting stakeholders, as well as providing effective, efficient, transparent and ethical boards of directors in the sustainability of the economy and employment. In a society that is also naturally diverse, it is important that companies mirror their target audience!
However, it is surprising that high-potential candidates for boards are not preparing to qualify as fit-and-proper, with technical and integrity skills, for management positions - executive and non-executive - in companies or NGOs.
Several countries, not only Portugal, have opted for the introduction of the quota system, in line with principles that are apparently 'shocking', but which have existed for decades with high impact, namely in the United States. However, companies and NGOs are faced with insufficient women fit-and-proper to meet the goal. Portugal has introduced demanding quotas for female members on each corporate body (20% and 33% in 2018 and 2020, respectively). This opportunity for career advancement, and contribution to the performance of companies and NGOs should be considered by women - but above all prepared. For the more attentive ones, the first step is to qualify within the fit-and-proper criteria.
Women, get ready! "Diversity" is at the top of the Good Governance criteria agenda!
