Despite two decades of regulatory attempts to improve corporate diversity, including JSE Listing Requirement 3.84 which requires listed companies to develop policies to advance race and gender diversity at board level, the boards of listed companies in South Africa continue to be dominated by white men.
Employment equity is a human rights imperative, and it is critical for the achievement of sustainable development, economic growth and equality. With increasing calls for business to play a greater role in creating a more inclusive economy, boards must address the inequalities that persist in their organisations.
Economic benefits of diversity and transformation
Research shows that that there is a positive correlation between gender diversity in top management and organisational excellence, return on equity, operating results and share appreciation, and that leadership diversity strongly influences organisational performance and effectiveness.