Fewer African-Americans in Fortune 500?
July 17, 2009 by Stephen Kersey
Filed under Business
Fewer African-Americans are on boards of directors of Fortune 500 companies according to a new study that was commissioned by The Executive Leadership Council. The study finds that board seats held has declined since 2004.
In 2004, the percentage was 8.1%. in 2008, this study found that the number had dipped to 7.4%.
Dr. Ancella B. Livers, The Executive Leadership Council’s Institute for Leadership Development & Research’s executive director, believes that the current economic downturn should allow for companies to take another look at their board of directors.
Said Livers: “African Americans lost ground in the boardrooms of corporate America between 2004 and 2008. The total number of board seats during the period declined as well, but not nearly as much as the number of seats held by African Americans. In light of current economic conditions and board reviews, there is an opportunity for companies to increase board diversity and reverse the downward trend.”
The The Executive Leadership Council commissioned study found some proof that having a diverse board of directors is good for business. According to the study, the higher a corporation is on the Fortune 500, the more likely that company is to have a board of directors that features at least one African-American.
Carl Brooks, the CEO of The Executive Leadership Council, believes that the above statistic is no accident.
Said Brooks: “It’s been proven again and again that companies with board members who reflect gender & ethnic diversity also tend to have better returns on equity and sales. Businesses understand the economic benefits of diversity. They talk about it, but not all of them have a plan for achieving it. We expect this report to spur meaningful progress in this important area of management and governance.”
Fortune 500 (Image: Flickr)
That’s really unfortunate. I guess it’s the same old policy. “Last Hired First Fired” If these companies don’t want the benefit of African American knowledge. African Americans need to form more of there own companies and have thier knowledge benefit themselves.