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Corporate boards serve the best interest of any company- profit. Sitting on a board doesn't necessarily mean one works in the company- but the best boards will usually have a mix of both insiders and outsiders. By selecting the most intelligent, experienced, and social savvy directors, a corporation can see in an increase in both revenue and in company image. With such diverse companies, expanding globally, and adapting to different cultures, why don't we see more minorities on corporate boards?

It basically comes down to the founder/s of any corporation. Typically they are rich, white middle aged men who will hire a reflection of themselves. Its choosing the man who looks as if he holds the same values and traditions as himself. Most minorities get passed over for the white candidate because of those old stereotypes. With the token African American or Asian American working with a lower title, many companies feel like they exude fair hiring practices, when in reality they are shutting minorities out of advancing up the corporate ladder.

Why should there be more minorities on boards? Besides the ethical point of hiring based on merit and abilities versus looks, there are more business orientated reasons. What these corporate executives are losing out on is niche markets that are rarely targeted for their buying potential. By having Hispanic, Asian, or African Americans on these boards may mean more contacts, investors, or buyers from these communities because most people feel they identify best with their own race. With firsthand feedback, it will also mean that a corporation can better adapt their marketing mix towards a particular culture. Global expansion is a long term goal of any company, but entering certain regions can be a difficult endeavor. A diverse staff can demonstrate how aware the corporation is or how willing it is to adapt to different cultures. It can also make for a smoother transition when launching products/services.

There are also gender minorities to consider as well. Though we are beginning to see more women on boards, they are still outnumbered by men. Women now have purchasing power that was once solely placed with men. They are earning salaries, owning business, and serving higher roles within many industries. By putting women in these top positions, it can generate interest and earn support from different women's groups.

Hiring minorities can cause a backlash from those who feel its solely about reputation and not about what is right. It can seem like the company is trying to exploit them instead of promote them. As long as those minorities on the board were hired for their expertise and are passionate about their job it will show in the work they accomplish.

In an ever globalized business world, corporations need to put minorities on board. In doing so, they are establishing fair practices, but it also means future consumers and millions in possible profit, as well as a positive image of the corporation.

Learn more about this author, Dacia Dumdai.
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