Top 5 considerations to driving a culture of inclusion at the Board level

October 11, 2024

Inclusion and diversity are not just buzzwords - they are essential to sound corporate governance, a robust culture of compliance and the foundation to a robust risk mitigation approach. As guardians and stewards of organizational values and culture, the General Counsel wields significant influence in the realms of ethics, values and culture including inclusion and diversity.

At the Board level, the GC not only plays a pivotal role in ensuring compliance with legal and regulatory requirements and mitigating risk, but they are also the catalyst for change. By being a champion for greater inclusion of diverse perspectives in the Boardroom conversation, the GC can unlock the Board's potential to reach new heights of performance and effectiveness, through enhanced decision-making, problem-solving capacity, and drive for innovation.

Here are five considerations to keep in mind when driving a culture of inclusion at the Board level as General Counsel.

1. Diversity and inclusion are the right thing to do and drive economic performance. More diverse and inclusive organizations exhibit enhanced decision-making, are more productive and perform better. Teams with greater diversity can spend half the amount of time in meetings and make decisions twice as quickly. They are also more likely to make better decisions and realize improved performance outcomes.¹ Performance is also linked to scale of representation and those teams that are more diverse outperform others.² As a leader in the organization, the General Counsel can champion initiatives that promote greater diversity and an inclusive culture and can ensure they are embedded in the organization's strategic goals. The GC can also role model inclusion by advocating for and delivering on inclusion, diversity, and equity priorities in their legal team, and in their relationships with their suppliers and law firm providers.
2. Diverse and inclusive Boards are more likely to deliver better results. As GC, you are focused on ensuring that your Board is meeting its Board diversity legal and regulatory obligations, but there are other elements to consider which can contribute to a high-performing and more effective Board. Research shows that more diverse and inclusive Boards are better at managing risk, more effective in adhering to and focusing on governance and oversight matters and can reduce the risk of 'groupthink'³. A diversity of perspectives creates an opportunity for more robust discussions with different viewpoints brought to the table, but inclusion plays an essential role. An inclusive culture in the Boardroom means that a variety of perspectives are invited to participate in the conversation. Absent inclusion, the value of those diverse perspectives is lost.
3. Become comfortable with conflict. While we want to avoid conflict that descends into the realm of disrespect, conflict can be advantageous. Encouraging individuals to ask questions, evaluate the quality of decisions and test conclusions is important. Your goal is to generate dialogue and encourage people to contribute their viewpoints by fostering an inclusive culture and environment that values these behaviors. Talk to your Board Chair about how they are running the meeting. Encourage them not only to actively ask individuals to contribute to the conversation, but also to proactively ask individuals to raise contradictory or opposing views. Think of prompting questions like: "What might we be missing?"; "Are there any areas that we have not considered that might create challenges for us?"; "Are there any additional perspectives that we should seek out before we proceed?"
4. Consider policymaking opportunities to help realize the benefits that greater inclusion and diversity can bring. This includes drafting and reviewing policies related to Board composition and Board recruitment practices as well as hiring, talent management and development practices, more generally. Do you have the policies that you need to make sure you are getting the benefit of more inclusive teams across your organization?
5. This is an area of expertise like any other. Mistakes will be made as we are all on a learning journey, but there is a vast body of work around inclusion and diversity to be understood and drawn upon. Even with the best intentions, mistakes that are stemming from a failure to educate and self-educate, are avoidable. The General Counsel can help drive education and awareness at the Board level. Speak with your law firms about what they may be able to offer to support you in these efforts, which may cut across legal, inclusion, diversity, and equity disciplines.

1. (n.d.). Hacking Diversity with Inclusive Decision-Making. Cloverpop. Retrieved October 4, 2024, from cloverpop.com
2. (2020, May 19). Diversity wins: How inclusion matters. McKinsey & Company. Retrieved October 4, 2024, from mckinsey.com
3. (2020, June 24). Why is DEI Important in the Workplace? (Quick Take). Catalyst. Retrieved October 4, 2024, from catalyst.org