The Crucial Role Of Boards In Advancing Organizational Equity

Just a few years ago management consulting firms ranging from Accenture to Korn Ferry, released study after study on the importance of board involvement in organizational equity efforts. In many instances, board diversity was linked to greater profitability; a study by the Boston Consulting Group reported that companies with above-average diversity at the management level generate 19% higher innovation revenues than companies with below-average diversity.

Similarly, a 2020 study by BoardSource highlighted that nonprofit organizations with diverse boards were more likely to engage effectively with the communities they serve, leading to enhanced organizational performance.

Given these links to highly desirable outcomes, we have seen organizations across all sectors seek to diversify their boards and engage consultants to provide training on diversity, equity, and inclusion (DEI), antiracism and more.

Now, in the face of a legislative environment increasingly skeptical or even hostile towards DEI or “equity” initiatives, boards are being put to the test. While its clear board members' engagement with equity and inclusion is not just a moral imperative but a strategic one, work remains in ensuring that organizations not only advocate for inclusivity and equity but also leverage these values as drivers for success and resilience against regressive trends.

This article, compiled in collaboration with Kirk Mead, a seasoned strategist, explores the complexities and responsibilities boards face in integrating DEI meaningfully into corporate governance and strategy.

His insights reveal a landscape where well-intentioned efforts often run up against misconceptions, resource constraints, and a lack of genuine commitment to justice work. As Kirk frames it, “If enterprise-level equity or justice is possible, real even, particularly where they are not already baked into the institutional DNA, then they must be seen as also accessible through the existing organizational architecture and not just or even primarily through reconstituting it.”

Understanding Equity Beyond Buzzwords

Mead notes a concerning trend: seemingly invested organizations prematurely stepping away from the language of DEI, driven by a misunderstanding of its functional, intrinsic value, and broad applicability. He argues against reducing DEI to mere business cases, highlighting that such an approach also undermines the very rational, justice-oriented nature of equity initiatives.

In corporate environments, where justice-seeking may not be a foundational or even aspiration principle, this disconnect can lead to superficial engagements with DEI, missing the deeper enterprise and individually transforming potential it holds.

The priorities set by boards should reflect a genuine shift in the perspectives of leaders to foster a culture that sees diversity and inclusion, and their effective integration, as core business and professional competencies, not just aspirational values.

Similarly, AJ Crabill, author of Great On Their Behalf: Why School Boards Fail, How Yours Can Become Effective, speaks to this dynamic in our education system, “...education leaders must be prepared to engage in whatever adult behavior change is necessary to improve student outcomes, even if it’s difficult or unpopular. My stance that “student outcomes don’t change until adult behaviors change” suggests that adult behavior change is a powerful lever for improving student outcomes.”

That is, boards have to shift both what they do and how they do it.

Mead emphasizes that for DEI efforts to have a tangible impact, boards need to connect these efforts to core organizational outcomes - both financial and human. Leaders need to clarify their

own values regarding equity and remain curious about translating these values into often very technical requirements of running any organization. He points out that practical outcomes, such as productivity, employee retention, and process improvements, must be a central consideration even during the initial organizational grounding in theory.

The Challenge of Circular Conversations

Even the most engaged executives often find themselves trapped in circular discussions on DEI, and at the high cost of their time and a desire for tangible outcomes.

Rozella Kennedy, a senior leader at Camber Collective, notes: “In my experience and observation, when it comes to establishing or advocating for “DEI+,” would-be allies and diversity champions squander so much time, energy, resources — and ultimately, goodwill and trust — by focusing on externalities, check-boxes, business cases, anemic sensitivity training, and manipulable metrics.”

In order for equity efforts to move beyond repetitive dialogues and towards actionable, organization-specific outcomes, equity efforts need to be tailored to the unique needs of each organization.

Manal Al-ansi Omar, Chief of Staff at St. Louis Public Schools has seen the benefit of this way of working, "having a multi-faceted analysis and in calling for alignment across key stakeholders and organizational leaders is noteworthy. We’ve gone from circular conversations into coordinated collaborations for material community impact, moving others to do the same."

Meads suggests developing DEI benchmarks to the unique context of each organization and its various verticals rather than relying on generic, one-size-fits-all solutions; “As clearly, particularly, and early as possible, define what a consensus win at the intersection of business-alignment and equity-informed looks like. Understand the constraints and conditions under which it will be expected to emerge. Explicitly name it, assign it, track it for progress, and attach it to the same sorts of performance incentives used to drive other non-negotiable organizational outcomes.”

Working in this way is easier said than done, and yet, those serving on boards are inherently capable of making this shift. Kennedy notes we already do this in other arenas of our life, “just like personal hygiene, fitness, mindfulness, or any other ongoing practice, the work has to be motivated from within… and you have to stick with it even when the going gets rough—or boring, or feels less-than-urgent.”

Board Development and Governance

The most resonant DEI principles are those that align with or help realign pre-existing board and organizational values. This requires boards to not only understand the implications of their language and decisions on stakeholders but also to confront and mitigate any potential organization threats these may pose especially to the professional and personal lives of change leaders at the intersections of multiple identities.

Verity Credit Union’s Board Chair and client, Nancy Woodland sees the value of this perspective, “​​Inherent board power dynamics play a big role in governance where, by nature, there is an oversight relationship. The people, staff, and board are the primary factors in mission achievement, and deciding to make a DEI shift in governance is only a baby step. The impact of a tailored approach means everyone can be met where they are and challenges along the way can be addressed. It makes the culture change within sight because it moves at a speed of trust less likely through a one-size-fits-all approach."

The clearer boards are on values language, the clearer they can see and mitigate latent liabilities and risks it exposes. Former nonprofit executive, David Marzahl notes, "DEI commitments should be part of every board meeting agenda and connected to governance tools and metrics such as KPIs or an organizational dashboard, aligning DEI goals and intentions within the practical work of the board."

Beyond Compliance: A Learning and Working Board

Weighing in on the crucial role of boards in advancing equity, Dr. Tonita Webb, President and CEO of Verity Credit Union, says, "Board Governance is vital to the success of any organization. As boards are bringing more women, BIPOC, and LGBTQ+ individuals into the C-suite, the first objective must be to understand the systemic practices in their organization. Boards must have a plan to dismantle systemic policies and practices to create a space where leadership, positivity, and creativity can flourish. It is not enough to have representation; CEOs having the freedom to show up authentically helps provide the space to create and define organizational equity."

Mead challenges boards to take a learning and development stance when it comes to DEI and see equity as another critical, core director competency and attribute. One that can aid CEOs do their best work. He highlights the importance of understanding the broader implications of DEI, not just within domestic contexts but also in how organizations relate to global markets, product development, and even research.

So, how do philosophically aligned boards take action? Mead outlines key evidence-based actions boards can undertake to advance DEI:

1. An Enlightened Fiduciary: Boards must broaden their sense of what fiduciary responsibility and harm might look like through an equity-informed lens and then consider what it means to direct material investments toward mitigation and prevention.
2. Pre-Initiative Preparation: Before engaging DEI practitioners, boards should be frank about their tolerance levels for disruptive discourses or design, the expected and desired organizational outcomes, and their readiness to face challenges to individual or organizational values and vision.
3. Close the Perspective Gap: Authentically pursue connection to and understanding of the experiences of those closest to the disparate impact of inequitable enterprise practices, policies, and processes.
4. Environmental Awareness: Understand that DEI or equity is not an amorphous end-state but a dynamic set of measurable climate conditions that must be monitored, cultivated, and consistently (re-)calibrated.
5. Competency Connections: Boards are comprised of highly capable leaders who already possess invaluable skills, experience, and a demonstrated capacity for the learning and growth particular to DEI work. What's required is the ability and willingness to see how these apply to and enhance prospective equity efforts.

These insights underscore the profound role boards play in steering organizations toward meaningful DEI integration. It's clear that advancing DEI requires more than token gestures or compliance-driven initiatives; it demands a deep, sustained commitment to equity, a willingness to confront uncomfortable truths, and a proactive approach to reshaping organizational cultures and policies. As the demographic landscape of stakeholders continues to evolve, boards that embrace these challenges will not only foster more inclusive and equitable environments but also secure their organizations' relevance and success in an increasingly diverse world.