It’s time to make board diversity an expectation, not just a priority

It’s no secret that if you look at the senior ranks of many corporations, including the C-suite and the board of directors, there are more white men than there are women or people of color.

The numbers bear this out. A 2019 study by Deloitte found that Fortune 500 companies have 22.5% women and 34% women and minorities on their boards. We believe in taking consistent action with a long-term and intentional view to advance meaningful and systemic change for diversity, equity, and inclusion in the workplace.

Five years ago, Hershey was hovering around the 35% mark for board diversity, in line with most of corporate America. Today, our 12-member board is 58% diverse, with five women directors and two male directors of color. The rich discussion and broadened perspectives generated by our diverse board has helped to improve talent development opportunities for women and people of color, increase partnerships with diverse suppliers, and discover more relevant ways to market to diverse audiences. 

One of the most important things companies can do to diversify their boards is to make inclusion an expectation rather than just a priority. Having lived in the business world for quite some time, I know there’s a crucial distinction between the two.

When there’s a sense of responsibility at the very top of the organization, and the CEO and chairman of the board insist board diversity is something that must happen, you get very different results than simply saying it’s a priority.

This requires real conviction on the part of leadership, but it has the effect of flowing throughout the organization and changing business as usual, including how vacant board seats get filled.

For example, companies regularly use search firms to fill board vacancies. A very important step in achieving greater board diversity is using firms that are owned and operated by women or people of color. Leaders need to set clear expectations about the level of diversity they want to see in candidate slates and the importance of building a diverse talent pipeline. In addition, it is essential to leverage internal leaders, board members, and business resource groups to discover executives with unique and diverse backgrounds. 

As part of their search, companies can also broaden their scope for the type of candidate they’d like to bring onto the board. It’s too easy to start and end your criteria with “must be a current or former CEO of a publicly traded company.”

Amazing talent can be found in a variety of other roles. To thrive in today’s market, CEOs need a board with a mix of philosophical and operational leaders. That means including current and former CIOs, CFOs, COOs, and general counsels, among other high-level positions. The pool should include academics and standouts from the nonprofit world too.

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