US boardrooms fail to reflect country’s demographics

12 June 2020 - By Mamta Badkar and Andrew Edgecliffe-Johnson

Originally published on the Financial Times

"More than two decades after Fannie Mae’s Franklin Raines became the first African American to run a Fortune 500 company, just four companies on that list have black chief executives.

In a country where 13.4 per cent of the population is black, black directors last year accounted for just 4.1 per cent of all board seats in the broader Russell 3000 index, according to Institutional Shareholder Services (ISS) — just 0.5 per cent more than in 2008."

US corporate reports place low emphasis on workforce diversity. Graph realized by the Financial Times using Datamatan data

“Transparency, or lack thereof, on important issues like diversity and inclusion reflects a company’s corporate governance approach, culture and risk mindset,”said Marjella Lecourt-Alma, chief executive of Datamaran, a software provider."

How Materiality Impacts Reputation

Several global companies have been shocked by scandals and crises in recent years. 

These crises raise questions about why various governance, environmental and safety risks hadn’t been foreseen.

The analysis shows that Boeing, Nissan and Volkswagen had failed to report material information in the years leading up to the scandals. Failing to identify key material issues can also lead to adverse publicity, the withdrawal of investors and a drop in share prices.

To read the full "How materiality impacts reputation" report, please fill in the form on the right.


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