Before the law, about 30% of boards were entirely male.
That percentage dropped down to 3% in 2020.
And, perhaps, legislation isn’t the silver bullet some might think.
Why put women on boards?
Boards play a major role in a company’s trajectory.
They set strategic priorities and can hold executives accountable – they’re a place of power.
The Harvard Business Review has written about how diverse teams yield moreinnovative decision making.
Tech companies have also acknowledged benefits to building diverse teams.
“We remain committed to diversity on our board.
Gender is only one component.
Or that women of color won’t remain disadvantaged and overlooked compared with white women.
It’s also potentially tokenizing.
“Sometimes those people will work towards that common good, and sometimes they won’t.”
That’s not to say Hutchinson didn’t support the legislation.
She did, calling it an important and powerful statement on the governor’s part.
Legislation just can’t be the only answer.
CBS Newsreportedthat less than half of the 650 companies that should’ve complied with the law actually did.
Washington state passed similar legislation, and states like Hawaii, New Jersey and Massachusetts proposed bills.
It remains to be seen what legal challenges may lie ahead.
Diversity advocates see the situation as a disappointment.
The rule is supposed to go into effect in August 2023.
“Companies will have to speak to why their boards are not diverse.
And not for nothing, those 670-plus women still have their seats.
