Business Roundtable Governance Guidelines add Diversity Focus

25 Oct 2016 3:40 PM | Deleted user

This year’s edition of a key governance document for corporate boards recommends, for the first time, that diversity be made a priority to bring new perspectives and backgrounds to the boardroom.


The latest edition of the Business Roundtable’s Principles of Corporate Governance 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, 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 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 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.


This article was originally sourced from Association Now and written by Ernie Smith. 


Strengthening Trans-Tasman Connections: AuSAE and Tourism New Zealand Business Events Renew Partnership

Association professionals across Australia and New Zealand have even more reason to explore trans-Tasman opportunities. AuSAE is proud to announce the renewal of its longstanding partnership with Tourism New Zealand Business Events, celebrating 11 years of collaboration.

For over a decade, this partnership has strengthened connections between the two countries, helping associations expand networks, share knowledge, and deliver world-class events.

Toni Brearley, CAE, Chief Executive Officer at AuSAE, said:

“Our partnership with Tourism New Zealand Business Events has opened doors for association leaders to plan unforgettable events and connect with peers across the Tasman. Together, we’ve created opportunities, shared knowledge, and elevated the experiences of our members and their delegates. This partnership reinforces our commitment to fostering strong trans-Tasman collaborations, helping associations innovate, grow, and deliver outstanding value to their members.”

Helen Bambry, Business Events Manager at Tourism New Zealand, added:

“Partnering with AuSAE means we can directly support association professionals in bringing their next international business event to New Zealand – offering assistance, funding, and support to ensure exceptional experiences for both organisers and delegates.”

Watch the Tourism New Zealand Business Events video

What this partnership means for you

For Australian associations:

  • Receive expert guidance and support to bring conferences or member events to New Zealand.
  • Access funding assistance through Tourism New Zealand Business Events.
  • Expand your network and build partnerships with New Zealand peers and industry leaders.
  • Deliver international experiences for members and delegates just across the Tasman.

For New Zealand associations:

  • Strengthen professional connections with Australian association leaders through AuSAE’s network.
  • Share expertise and collaborate on professional development, governance, and member engagement initiatives, and more.
  • Gain visibility within the broader association community in Australia and New Zealand.
  • Access opportunities to host international association events and delegates in New Zealand, boosting local engagement and knowledge exchange.

About AuSAE:

The home for association professionals, the Australasian Society of Association Executives (AuSAE) is the leading - and only not-for-profit, member-based - organisation supporting association professionals in Australia and New Zealand. For 70 years, AuSAE has been a trusted partner for those working in associations, providing professional development, support, and networking to help association leaders achieve organisational goals, advance their careers, and strengthen the wider sector.

About Tourism New Zealand Business Events:

Tourism New Zealand Business Events provides expert guidance, funding, and support to attract conferences, incentives and corporate events to New Zealand.

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For more information about AuSAE, please contact Toni Brearley, CAE:
Toni Brearley, CAE
Chief Executive Officer, AuSAE
E: toni@ausae.org.au
T: + 61 458 000 155

To apply for funding and support to host a conference in New Zealand contact Helen Bambry:
Helen Bambry
Business Events Manager, Tourism New Zealand
E: Helen.Bambry@tnz.govt.nz
T: +61 415 933 325


The Australasian Society of Association Executives

Contact us:

Email: info@ausae.org.au
Phone: 1300 764 576 (within Australia)
Phone: +61 7 3268 7955 (outside Australia)
Address: Unit 6, 26 Navigator Place, Hendra QLD 4011, Australia