CONTINUED INACTION MAY CHANGE THE CONVERSATIONS FOCUSED ON VOLUNTARY DIVERSITY TO ONES CONCENTRATED INSTEAD AROUND MANDATORY DIVERSITY.

can do better in diversifying its leadership so neither is an optimal outcome.

So what can businesses do today to progress the inclusion of women in Canadian corporate leadership positions?

Understand how diversity can improve your business and governance outcomes

There is a misconception that when we talk about gender diversity, we’re only talking about “putting women in leadership roles because it’s the right thing to do.” Actually, good boards and management teams are not hesitant to promote women when they are the best for the job and contribute to their organization’s growth and success: They see the correlation between diversity and better business. file a higher number of patents. Diverse boards also mitigate against groupthink and can bring nuances to governance that help to create, model and oversee more inclusive corporate cultures. Given this, it is no surprise that institutional investors and proxy advisory firms are valuing diversity as a key to better corporate governance. Be better at renewal As corporate boards contend with a broadening set of issues to oversee, including corporate culture, automation, cyber resilience, sustainability reporting and reputation management, diversifying the skill-set required to effectively govern is critical. Developing a board renewal process that encompasses extensive analysis of needed or desired skills, experience and behavioural competencies will force more nominating committees to look beyond the usual names and will expose boards to a more diverse set of professionals, including more women.

Developing leadership talent should also be a priority for senior management. To continue strengthening their talent pipeline, more companies should think of formalizing leadership programs wherein high-potential women are mentored and developed and offered stretch roles to gain exposure.

This is a competitiveness issue: In a globalized world with startups around every corner, companies that want to attract and retain the best human capital need to offer talented and promising women real avenues for growth and career satisfaction. Have a plan Like every aspect of business, progress is measured against a plan. This means developing and disclosing to investors a diversity policy for the board and for senior management that reflects the realities of your business and your industry.

Last November, the Business Council of Canada and the ICD joined with other partner organizations to found the Canadian Gender and Good Governance Alliance and develop a playbook to help senior leaders build their diversity strategies. This is a step-by-step guide to initiate or speed-up organizational diversity. As with every initiative in business, what gets measured gets done.

On International Women’s Day, it is particularly important for Canadian businesses to focus on the steps they can take today to improve the participation and inclusion of women in leadership positions. Yes it’s about diversity but it’s also about competitiveness.