Board diversity
Board diversity concerns the range of relevant backgrounds, experiences, skills and perspectives represented among directors. It can improve challenge, understanding and consideration of alternatives when supported by inclusive working practices. Selection should address the board’s needs and applicable requirements without reducing candidates to a single characteristic. Diversity of membership does not automatically prevent groupthink or guarantee effective decisions.
Worked example
A board reviewing succession considers technical expertise, industry knowledge, international experience and different personal backgrounds. It also examines whether all members can contribute and whether dominant voices discourage challenge.
Common mistake
Do not confuse diversity with a quota alone or assume a varied board is automatically inclusive. Evaluate how appointments and board behaviour improve decision-making.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |