The relationship of board member diversity to organizational performance

Journal of Business Ethics 15 (12):1313 - 1320 (1996)
Abstract
Wider diversity in board member characteristics has been advocated as a means of improving organizational performance by providing boards with new insights and perspectives. With data from 240 YMCA organizations, a board diversity index was constructed and compared to multiple measures of board member diversity. Results revealed higher levels of social performance and fundraising results when board members had greater occupational diversity. Gender diversity compared favorably to the organization's level of social performance but a negative association surfaced for level of funds raised. The diversity in board member age groupings was linked to higher levels of donations.
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