Diversity, board dynamics and board tasks: an introduction to the theory of proportions

Sara De Masi and Agnieszka Slomka-Golebiowska

Chapter 14 in Research Handbook on Diversity and Corporate Governance, 2023, pp 179-189 from Edward Elgar Publishing

Abstract: This chapter is about proportions of diversity. Proportions are important when exploring the benefits of diversity. The purpose of the chapter is to attempt to develop the theory of proportions. Starting from the seminal work of Kanter (1977) and using the board context, we argue that each set of board tasks requires different dynamics. Specific states of board dynamics are trigged by specific proportions between a minority and a majority subgroup. We also suggest that the numerical proportions between a majority and a minority subgroup can be seen as a source of perceived power. The minority gains trust and legitimization when their numerical representation increases. This power and legitimation of the minority is not vested in a single person, but it is vested in the minority as a group. The theory of proportions applied to studies of boards helps to understand how a proportion of various types of diversity triggers board dynamics and thus enhances board tasks. Our argument suggests that we need to step back from the idea of one size fits all. Understanding the proportions required for each set of board tasks helps the board to increase their effectiveness and exploit the benefits of diversity

Keywords: Business and Management; Economics and Finance; Environment (search for similar items in EconPapers)
Date: 2023
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