Battling the fear of quotas: Canada has an ambitious education program underway.

• Author: Jeffery, Pamela
• Position: Canadian Board Diversity Council

IN CANADA, the Canadian Board Diversity Council has been created though a unique partnership between the Government of Canada and Corporate Canada to 1) understand and 2) address the important issue of board diversity in the public and private sectors.

The question of quotas is one that should be examined in a global context. The introduction of quotas may potentially work in some countries that have adopted this approach. We will certainly look at the results, paying particular attention to the impact on governance and organizational performance.

We know from our preliminary research that Corporate Canada has a fear of quotas. Corporate Canada has a fear of the unknown--namely, what would happen if boards began to recruit significant numbers of directors who do not "fit the traditional mold." Would this reduce the effectiveness of the board? How would the performance of the organization and shareholder value be affected?

At the root of the fear is the simple question of merit: will the individual be a competent and effective director?

The Canadian Board Diversity Council is tackling board diversity by starting with the facts. We are undertaking research which we will release this fall in a first-ever Annual Report Card. This Annual Report Card will be the baseline and will contain data on representation of women, visible minority groups, Aboriginal and First Nations people, and people with disabilities on the boards of Financial Post 500 organizations. It will address best practices as well as the challenges and opportunities faced by boards and prospective new directors in light of Canada's changing demography. We are also examining whether written diversity guidelines are in place and, if so, how they are being put into practice. Second, we are studying board diversity best practices to understand how organizations that have been successful in putting together diverse boards have accomplished this task. We hope that when the council shares best practices with other organizations that have been less than successful, this will help those organizations move along the continuum to improved board diversity.

Obviously we believe new voices at the boardroom table will lead to better discussion, insight, and improved decision making. The council wants corporations to take action, but...