California Invites More Corporate Board Diversity

As the nation's largest public pension fund, with over $224 billion in assets, the California Public Employees' Retirement System (CalPERS) recognized two years ago the need for more diversity on corporate boards.  Today, CalPERS announced that it was taking the next step in the inclusion journey by inviting applicants to submit their information to the Diverse Director DataSource .

Ostensibly, the registry will be a resource for institutional investors, public companies and others who want to tap into the reservoir of diverse talent for corporate directors.  According to one key observer, "investors looking for ways to increase corporate value will find such voices in the corporate boardroom indispensable to boosting the bottom line."

As a director, lawyer, and longtime observer of board practices, I hope more jurisdictions follow the California lead. A broader set of experiences and perspectives, typically brought by diverse directors, should allow corporations to become more sensitive to consumer concerns in a down economy, while not sacrificing the duty to improve shareholder value.

Ikea's $62 M Pledge for African Relief is Leadership In Deed

When Ikea announced its foundation would send $62 million to help the victims of the Kenyan famine, the world's largest furniture chain reached another milestone. Ikea's pledge is the largest private donation to go to a UN relief agency in the agency's 60-year history.  At a time when national governments and transnational corporations seem impervious to the suffering in that region, Ikea's business leadership speaks volumes through its deeds. Critics have taken on the Swedish company over labor and supplier matters. But if Ikea's commitment to salve the human condition is any indication of its character as a company, the other issues should be easily solved.