Corporate Diversity Case Study

When President Barack Obama signed Executive Order 13583 (2011), establishing a government-wide initiative to promote diversity and inclusion in the federal workforce, he set the standard for all corporations in America to recruit, hire, and retain a competitive and diverse workforce (para. 1). While diversity in business has been proven advantageous, as it brings a wide selection of backgrounds, talents, and perspectives to the table, we have yet to see that advantage fully translate to the boardroom, the pinnacle of power in the corporate world. The problem is that many of the white male members who sit on the boards of the biggest companies in the U.S. do not view diversity as relevant at the organization’s decision-making level. In fact, most believe that it may lead to trouble. However, a study sampling the Fortune 500 companies finds a positive relationship between racial and gender diversity and a firm’s performance and innovative style (Miller & Triana, 2009). Therefore, diversity in the corporate leadership of …show more content…
99). The study concluded that diversity in senior management teams achieved results correlated to superior corporate performance and better financial returns (Ramirez, 2000). There are a variety of studies with empirical research that prove diversity is advantageous for organizations and firms who utilize group-think methods for problem-solving. Yet even with these studies, there remains a persistent lack of diversity in corporate boardrooms across this country; women and minorities remain underrepresented. SEC Commissioner Luis Aguilar (2010) notes that, 71.5% of the boards of directors of Fortune 100 companies were white men, and only 28.5% of the board seats were held by women and minorities (para.