Diversity also can increase a company s access to new markets and help in understanding the needs of these markets. From a domestic, consumer standpoint, minorities and women are more aware than ever of the gender and racial makeup of the companies from which they buy. The information is easily accessed. The study found African Americans on 39 percent of large company boards, up from 37 percent in 1998. Latinos served on 12 percent of corporate boards, the same as last year, and Asians on 9 percent, up from 6 percent.
Women sit on almost three-quarters of U.S. boards, and they aren t just token members.
The study found that 25 percent of companies now report two women on their boards, compared with 22 percent last year and just 18 percent two years ago. As for concrete data on the benefits of diversity, Hillman s study finds that companies with diverse boards are less risky for stock market investors. Companies that are diverse in the highest ranks are probably making better decisions about diversity and workforce management in general, she says, because they are successfully channeling diverse people to the top of the organization. In a separate study, Hillman finds that companies with greater diversity also make better business partners and merge more smoothly with other companies. A jarring clash of cultures can undermine these increasingly popular business deals.