Promoting Board Diversity

ISCA CEO, Mr Lee Fook Chiew, was quoted in The Business Times on the question of "How might Singapore reach the target of 20% female directors by 2020?" This is what he has to share:

Promoting board diversity requires continuous education and perseverance. Corporate leaders need to be convinced that board gender diversity brings benefits to their businesses for them to place it high on their agenda. Only then can the current gap in board gender diversity be effectively and meaningfully closed.

Adopting a carrot and stick approach to enforce the diversity is unlikely to produce desired results. Instead, it may bring about the unintended consequences of companies merely complying with the requirements or guidelines in form rather than in substance. The board of directors have a significant governance role, and appointments should be based on those being appointed forming the best team for the job, and gender diversity should be a key consideration.

- Lee Fook Chiew, Chief Executive Officer, Institute of Singapore Chartered Accountants (ISCA)

This article was first published in "Views From the Top" in The Business Times on 23 September 2019.