The Dangers of Ignoring Diversity and Inclusion on Your Board

Dr. Nika White • July 14, 2018

The traditional picture of a board of directors is a group of like-minded persons who will support the plans of the CEO and ensure an organization remains viable to important stakeholders.

Yet, as the workforce has become more diverse, and as the challenges facing companies have become more complex, CEOs are beginning to see the wisdom in having a board that can govern in a shifting environment, rather than one that complies with the status quo. Directors and board selection committees are beginning to realize that it is the breadth of perspective accompanying the inclusion of diverse traits that truly benefits an organization.

However, diversity for its own sake is not enough. Just “checking the boxes” and having a more diverse spectrum of board members because it’s expected of them, or even because it’s “the right thing to do,” is not a reliably compelling reason to make it happen.

When the question shifts from What should my organization do to advance diversity and inclusion? to What can diversity and inclusion do to advance the organization? you suddenly create opportunity instead of obligation.

Board diversity creates opportunity.

In conversations with directors of Fortune 250 companies about the benefits and challenges of boardroom diversity, global search and leadership advisory firm Russel Reynolds Associates found some recurring themes:

  • A wide range of perspectives allows a board to anticipate concerns and meet changing demands from constituents more effectively. Wider representation allows effective programming and service delivery.
  • Differing views, offered respectfully and constructively, are the lifeblood that keeps an organization from stagnating. It helps people remember that there is rarely one right answer to a question.

What’s more, a study by two Utah State University researchers uncovered the telling fact that a minority CEO alone was less successful in pursuing breakthroughs in governance and product development than one who had a high level of racial diversity on their board.

Board diversity drives profits.

In its 2018 report “ Delivering Through Diversity , ” global management consulting firm McKinsey & Company showed in detail the solid connection between diversity and profitability.

The findings showed companies in the top 25 percent for gender diversity on their executive teams were 15 percent more likely to experience above-average profits.

In addition, companies with more ethnically and culturally diverse boards of directors were 43 percent more likely to see above-average profits.

Lack of diversity limits resources.

Another finding of the Utah State study was that, when boards remain homogeneous, the networks and funding sources available to them also shrink.

It became clear that when ethnically diverse directors were able to call on an extensive and varied network of business contacts, firms with white male CEOs saw a more noticeable rise in the innovation and efficiency.

Access to capital is another resource now being stunted by lack of board diversity. Michelle Edkins, managing director of investment stewardship at BlackRock Investments, points out that board diversity is a concern for potential investors. She believes that investors need a board consisting of people who will challenge the status quo and bring their own ideas to the table

What’s more, it appears that a diverse board is actually more capable of assessing risk and protecting shareholder assets. A Wake Forest University study showed that firms with diverse boards are more risk-averse and more likely to pay dividends to stockholders.

The talent pool can also be impacted. The competition for talent is fierce today, and valuable employees will not see a long-term career for themselves at a company where they do not see themselves reflected at the top.

Board diversity is a responsibility.

We all like to stay within our comfort zones, and boards are no exception. It’s easier to run a meeting where everyone seems to agree. By nature, we prefer being around like-minded people, which presents a challenge in the development of a more diverse board. However, “groupthink” leads to a lack of information gathering and analysis, resulting in poor decisions.

One way to begin to break through groupthink is to view board work through an equity lens. You can begin by checking out my previous blog post , or my in-depth white paper on mastering the subject to move your organization forward.

Regardless of your first step, board diversity clearly has moved from being just a “nice thing to do” to being of primary importance to an organization’s survival and competitiveness. In the new and diverse marketplace, meeting client and customer expectations, retaining talent, and being seen as an innovator in their field will only happen by including a range of backgrounds and outlooks among those who have the highest level of responsibility for their organizations.

Read more from The Human Shift on Substack, where I share long-form essays on leadership, culture, and how we work and live.

Share this Content:

By Nika White August 4, 2026
Many people end the day feeling exhausted. Their calendar was full. Their inbox was active. Their attention was constantly moving. Yet when asked what mattered most about the day, they hesitate. Activity and engagement are not the same thing. One creates motion. The other creates meaning. Earlier in The Human Shift, The Subtle Drift Into Disconnection, we explored how disconnection often develops through small moments. One of those moments occurs when activity becomes so constant that reflection disappears. A Reframe Being busy answers the question, "What did I do?" Being engaged answers the question, "What mattered?" One Simple Practice At the end of the day, ask yourself: "What was the most meaningful moment today?" Write down the answer. What This Looks Like In Practice A leader begins ending each workday with a short reflection. After a few weeks, she notices that the moments she remembers most are rarely the busiest ones. They're the conversations. The insights. The moments of connection. Question to Consider If someone asked what mattered most about your day yesterday, what would you say? In the shift, Dr. Nika White P.S. What is one meaningful moment from this week that you don't want to forget?
By Nika White July 27, 2026
Many leaders pride themselves on being available. Their door is open. Their inbox is monitored. Their phone is always nearby. The intention is usually good. But constant availability can create unintended consequences. People begin relying on immediate access instead of developing judgment. Leaders become increasingly interrupted. Everyone feels busy. Few people feel clear. Earlier in The Human Shift, When Responsibility Becomes Identity we explored how constant availability often grows from the belief that leadership means being accessible at all times. A Reframe Being available is not the same thing as being supportive. One Simple Practice Choose one part of your day where you are intentionally unavailable. Protect it. Use that time for thinking, reflection, or focused work. What This Looks Like In Practice A leader blocks ninety minutes each morning for uninterrupted work. Initially, people push back. Within a few weeks, team members begin solving more problems independently and bringing better questions when they do connect. Question to Consider What might your team learn if you were slightly less available? In the shift, Dr. Nika White P.S. What is one boundary you've been reluctant to establish?
By Nika White July 20, 2026
Trust rarely disappears overnight. Most of the time, it fades gradually. A missed follow-up. A rushed response. A concern that never gets revisited. A promise that seemed small at the time. People often think trust is built through big moments. In reality, it is shaped through consistency. Earlier in The Human Shift, The Weight of Unspoken Expectations, we explored leadership aftermath and what people carry after interactions. Trust is often built or weakened in those moments long after the conversation ends. A Reframe Trust is less about grand gestures and more about repeated experiences. One Simple Practice Think about one commitment you've made recently. Follow up on it today. Even if the update is simply: "I haven't forgotten." What This Looks Like In Practice A leader tells a team member she'll revisit a concern. Weeks pass. The concern itself becomes less important than the silence. When she circles back, even without a complete answer, trust begins to repair. Question to Consider What commitment have you made that someone may still be waiting on? In the shift, Dr. Nika White P.S. When someone earns your trust, what do they consistently do?
By Nika White July 13, 2026
Most leaders want to be understood. That's normal. The challenge comes when the need to be understood starts driving the conversation. You explain again. You provide more context. You clarify your intentions. You revisit the decision. And yet somehow, you still leave feeling misunderstood. Earlier in The Human Shift, The Stories We Tell Under Pressure, we explored how pressure shapes the stories we tell ourselves. One of the most common stories leaders carry is: "If people understood me better, this would be easier." Sometimes that's true. Sometimes the real issue is that understanding and agreement are not the same thing. A Reframe Being understood is valuable. Needing everyone to understand you can become exhausting. One Simple Practice The next time you feel the urge to explain yourself again, pause and ask: "Am I seeking clarity, or am I seeking validation?" Answer honestly. What This Looks Like In Practice A leader shares a decision with her team. A few people disagree. Her first instinct is to keep explaining the reasoning. Instead, she allows the disagreement to exist without trying to resolve everyone's discomfort. The conversation becomes more productive because she is no longer trying to manage every reaction. Question to Consider Where are you spending energy trying to be understood by people who have already heard you? In the shift, Dr. Nika White P.S. What's something you've been explaining repeatedly that may not need another explanation?
By Nika White July 6, 2026
One of the first signs that capacity is stretched isn't exhaustion. It's compression. Everything starts feeling equally important. Every email. Every request. Every conversation. Every decision. There is no hierarchy. Just urgency. Earlier in The Human Shift, The Cost of Constant Readiness , we explored how constant readiness changes perception. When the nervous system stays activated for too long, discernment becomes harder to access. The result is that everything begins competing for the same attention. A Reframe When everything feels urgent, the problem is often not workload. It's a lack of space. One Simple Practice At the beginning of your day, identify one thing that truly matters. Not three. Not five. One. Let that become your anchor. What This Looks Like In Practice A leader begins every morning reviewing a long list of tasks. By lunchtime, she feels behind. When she shifts her focus to identifying the most important outcome for the day, her decision-making improves and her stress decreases. The work doesn't disappear. The relationship to the work changes. Question to Consider What would happen if not everything deserved equal access to your attention? In the shift, Dr. Nika White P.S. What is taking up attention right now that may not actually deserve it?
By Nika White June 29, 2026
Many people think they're listening... What they're actually doing is waiting. Waiting to respond. Waiting to explain. Waiting to clarify. Waiting to prove they understand. We've all done it. The challenge is that people can feel the difference. When someone feels truly heard, their nervous system settles. When they feel managed, redirected, or rushed, something else happens. Earlier in The Human Shift, When Teams Stop Telling You Things, we explored how silence often becomes a cultural signal. Many people stop sharing because they've learned they are being heard only enough to move the conversation forward. A Reframe Listening is not gathering information. Listening is creating enough space for understanding to emerge. One Simple Practice In your next conversation, wait three seconds after someone finishes speaking before responding. Just three seconds. Notice what happens. What This Looks Like In Practice A leader receives feedback from a team member. Instead of immediately explaining her perspective, she pauses. The employee continues talking. What emerged in those few extra seconds was the actual concern. Not the polished version. The real one. Question to Consider How often are you listening to understand versus listening to respond? In the shift, Dr. Nika White P.S. When was the last time someone made you feel completely heard?
By Nika White June 22, 2026
Most leaders pay attention to what they're going to say. The agenda. The feedback. The decision. The update. What often gets overlooked is what people experience before any of those things happen. They notice your pace. Your energy. Your level of tension. Whether you seem rushed or grounded. Whether you're fully there or already thinking about the next meeting. Earlier in The Human Shift, Culture is What People Carry Home, we explored how culture is shaped by what people carry after interactions. Before people carry anything away, they're already responding to what they experience in your presence. A Reframe Presence isn't something you add to leadership. It is leadership. One Simple Practice Before your next meeting, pause for ten seconds before speaking. Take one slow breath. Notice your feet on the floor. Then begin. What This Looks Like In Practice A leader enters a meeting feeling rushed after back-to-back conversations. Instead of immediately jumping into the agenda, she takes a moment to settle herself. The meeting itself doesn't change dramatically. The experience does. People become less reactive. The conversation slows just enough to become more thoughtful. Question to Consider What do people experience when they enter a room with you? In the shift, Dr. Nika White P.S. Think about your last meeting. What do you think people felt from you before you even started speaking?
By Nika White June 15, 2026
Leaders often focus on effort. Working harder. Doing more. Giving more. But effort is not the only variable. Energy matters. The tone you bring into a meeting. The pace of your communication. The steadiness of your presence. Earlier in The Human Shift, The Body Knows Before The Mind Does, we explored how the body communicates before words. Energy is often what people remember most. A Reframe Leadership is not only what you do. It is what people experience in your presence. One Simple Practice Before your next interaction, ask: “What energy am I bringing into this?” Then adjust—slightly. Question to Consider What do people consistently feel after interacting with you? What This Looks Like In Practice In leadership and culture work, energy is one of the most overlooked drivers of performance and trust. It shapes how work feels—and how people engage. In the shift, Dr. Nika White P.S. If your team described your leadership in one word based on how it feels, what would they say?
By Nika White June 8, 2026
A Strong leaders anticipate. They think ahead. They plan. They prepare. But anticipation can quietly become overextension. Living in the next moment instead of the current one. Earlier in The Human Shift, The Cost of Constant Readiness, we discussed readiness. Anticipation, when constant, keeps leaders slightly ahead of the present—which can disconnect them from what’s actually happening. A Reframe Preparation supports leadership. Over-anticipation distances it. One Simple Practice Bring your attention back to one present interaction today. Ask: "What is actually happening right now?” Not what could happen. Not what might happen. Just what is. Question To Consider How often are you leading from the present versus the future? What This Looks Like In Practice Leaders who reduce over-anticipation often report clearer communication and stronger relationships because they are responding to reality, not projection. In the shift, Dr. Nika White P.S. Where are you currently living ahead of the moment instead of in it?
By Nika White June 1, 2026
Disconnection rarely happens all at once. It builds slowly. A conversation you rush through. A moment you don’t fully listen. A tension you move past instead of addressing. Over time, these moments accumulate. Earlier in The Human Shift, Inclusion Isn’t Exhausting – Disconnection Is , we explored inclusion as lived experience. Disconnection is often not intentional—it is the result of repeated missed moments of connection. A Reframe Disconnection is not a single event. It is a pattern of small moments. One Simple Practice Today, in one conversation, slow down enough to fully listen—without preparing your response. Just notice. Question To Consider Where have small moments of disconnection quietly added up? What This Looks Like In Practice In culture work, repairing disconnection rarely requires large interventions. It requires consistent attention to everyday interactions. In the shift, Dr. Nika White P.S. When was the last time you felt fully present in a conversation?