--- title: "Business Roundtable Governance Guidelines Add Diversity Focus" id: "35468" type: "post" slug: "business-roundtable-governance-guidelines-add-diversity-focus" published_at: "2016-10-15T01:47:54+00:00" modified_at: "2026-11-09T16:46:45+00:00" url: "https://associationsnow.com/2016/10/15/business-roundtable-governance-guidelines-add-diversity-focus/" markdown_url: "https://associationsnow.com/2016/10/15/business-roundtable-governance-guidelines-add-diversity-focus.md" excerpt: "This year’s edition of a key governance document for many boards recommends, for the first time, that boards make room for diversity in relation to perspectives and backgrounds." taxonomy_category: - "Governance" taxonomy_post_tag: - "AssociationsNow" - "board diversity" - "C-suite" - "film diversity" - "Governance" - "Leadership" taxonomy_content_format: - "Article" taxonomy_role: - "Director" - "Executive Team" - "VP" taxonomy_persona: - "Executive Leadership" --- [Home](https://associationsnow.com/) » [Articles](https://associationsnow.com/format/article/) » Business Roundtable Governance Guidelines Add Diversity Focus The latest edition of the Business Roundtable’s [Principles of Corporate Governance (opens in a new tab)](https://businessroundtable.org/sites/default/files/Principles-of-Corporate-Governance-2016.pdf) makes one particular principle much more fundamental than it was in the previous edition of the guide. That principle is diversity, a hot topic in the association world. In a key section of the report, the Roundtable emphasizes that a board should encompass in its members a variety of diverse backgrounds and experiences. “The composition of a board should reflect a diversity of thought, backgrounds, skills, experiences, and expertise and a range of tenures that are appropriate given the company’s current and anticipated circumstances and that, collectively, enable the board to perform its oversight function effectively,” the report stated. John Hayes, head of Ball Corporation and chair of the Business Roundtable’s corporate governance committee, [in a post on Medium (opens in a new tab)](https://medium.com/business-roundtable/driving-diversity-in-the-boardroom-19b371e42d0a#.jw0cq0eyd) , tied increasing diversity to better business results. “The diversity of thought and perspective within our society accounts for much of its resilience and strength — and it adds to the abundance of good decision-making,” Hayes wrote. “Differing perspectives and maintaining respect for the individual enable Americans, as well as American corporations, to prosper.” Although research shows that organizations have made progress diversifying their boards, board demographics generally still lag behind the makeup of the overall population. Earlier this year, research from the executive firm [Heidrick & Struggles](http://associationsnow.com/2016/05/study-diversity-experience-odds-fortune-500-boards/) found that Hispanics made up just 4 percent of all new board directors added to Fortune 500 companies last year, while that group constitutes 17 percent of the population. Women, meanwhile, made up less than 30 percent of all new board members. Michael W. Peregine, a partner at the law firm McDermott Will & Emery, [praised the Business Roundtable’s expanded emphasis (opens in a new tab)](http://www.nytimes.com/2016/10/14/business/dealbook/corporate-board-diversity-gets-push-from-business-leaders.html) in an op-ed for the *New York Times*‘ Dealbook blog: > By correlating diverse boards with greater board effectiveness and the promotion of long-term value creation, the association’s recommendation transcends public policy debates and moral imperatives. It is the most prominent acknowledgment of diversity as a governance principle, and a standard that nominating committees are advised to adopt. It does not retreat from principles of competency-based governance as much as it recasts concepts of competency in a more inclusive manner—one that attributes new value to skills, experience, and expertise that is reflective of the broader range of society. And its merits are as applicable to private companies and large nonprofit organizations as they are to public companies. The full *Principles of Corporate Governance* report [is available on the Business Roundtable website (opens in a new tab)](https://businessroundtable.org/sites/default/files/Principles-of-Corporate-Governance-2016.pdf) . (iStock/Thinkstock) [Ernie Smith](https://associationsnow.com/author/ernie-smith/) Ernie Smith is a former senior editor for Associations Now. [More articles by this author](https://associationsnow.com/author/ernie-smith/) Tags: [#board diversity](https://associationsnow.com/tag/board-diversity/) [#C-suite](https://associationsnow.com/tag/c-suite/) [#film diversity](https://associationsnow.com/tag/film-diversity/) [#Governance](https://associationsnow.com/tag/governance/) [#Leadership](https://associationsnow.com/tag/leadership/) **Stay Informed** [Subscribe to our free newsletter](https://associationsnow.com/newsletter/) , *Associations Now Daily News*, to find out what’s happening in the association world every business day. ## You Might Like - [PodcastAssociations NOW Presents: Leading Together-Strengthening the Board-CSO PartnershipDecember 18, 2025](https://associationsnow.com/2025/12/18/associations-now-presents-leading-together-strengthening-the-board-cso-partnership/) - [VideoAssociation Governance Institute: Your Governance HeadquartersMarch 18, 2025](https://associationsnow.com/2025/03/18/association-governance-institute-your-governance-headquarters/) - [VideoStrengthening the CEO & Board Partnership with Governance TechnologyMarch 17, 2025](https://associationsnow.com/2025/03/17/strengthening-the-ceo-board-partnership-with-governance-technology/) - [VideoSmarter Board Management for Associations: An OnBoard ShowcaseJuly 24, 2026](https://associationsnow.com/2026/07/24/smarter-board-management-for-associations-an-onboard-showcase/) ## Comments **Comments are for ASAE members.** [Learn more about comments on this site.](https://associationsnow.com/comments/) [Log in](https://associationsnow.com/login?redirect_to=https%3A%2F%2Fassociationsnow.com%2F2016%2F10%2F15%2Fbusiness-roundtable-governance-guidelines-add-diversity-focus%2F%23comments) to your member account or [join ASAE](https://my.asaecenter.org/select-a-membership-type/) !