General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCalifornia outlawed the all-white-male boardroom. That move is reshaping corporate America
The states requirements that publicly traded corporations diversify their boardrooms were ridiculed as quixotic by conservative columnists and some corporate chieftains. The courts are still threatening to erase the quotas, the first of which were signed into law in 2018.
But California is having the last laugh. Even as the mandates on women and people of color have become a flashpoint in the culture wars, companies across the country are embracing Californias boardroom diversity directives. Women now control more than a quarter of corporate board seats nationwide 50% more than they did before the 2018 California law requiring women on boards was passed. Companies are also scrambling to recruit people of color as other diversity mandates begin to take effect.
The states crusade is reshaping the corporate boardroom, an institution that for decades refused to evolve and which guides the direction, culture and financial stewardship of public companies. Even as the courts signal the new rules could collapse legally, the requirements that every public company headquartered in the state have women and members of traditionally underrepresented groups on its board are driving hundreds of companies to make room at the top and inspiring other states and federal regulators to join Californias push.
The ripple effect has gone across the nation, said Betsy Berkhemer-Credaire, chief executive of the Los Angeles-based advocacy group 50/50 Women on Boards. She predicts that within a decade, it will be quite an anachronism to remember when corporations had all-white-male boards.
https://www.latimes.com/politics/story/2021-09-29/california-outlawed-boardrooms-with-no-women-the-impact-on-corporate-america-was-profound
Johnny2X2X
(19,059 posts)Women now make up a majority of college graduates, it's about time they start shaping corporate America more. Board seats are the ultimate cronyism handouts, about time we ensure some diversity in the boardroom to strengthen our corporations.
Farmer-Rick
(10,163 posts)Can make a big impact for a better world.
Just imagine what a peaceful world we could have if huge amounts of taxes and strict regulatory control on corporations were implemented.
Ilsa
(61,694 posts)Those dimes and quarters we paid as dues** really paid off!
**--Ted Baxter, Mary Tyler Moore Show, voicing his conspiracy theory about women going to the bathroom together.
BumRushDaShow
(128,895 posts)(I remember when this song came out but didn't even know there was a video for it )
IronLionZion
(45,433 posts)lagomorph777
(30,613 posts)There'll be more women and minorities in charge, and they'll be making the decisions on hiring, going forward.
Also, I expect that the early adopters will find they have a competitive advantage resulting from a more creative and diverse group mind.
Tommymac
(7,263 posts)Not the corrupt unqualified handmaiden who occupies her seat now.
It's going to happen whether the Movement Conservative like it or not.
Mark my words.
paleotn
(17,911 posts)like German corporations.
Tommymac
(7,263 posts)orwell
(7,771 posts)...that's what happens when Democrats are fully in charge.
rkleinberger
(155 posts)Tommymac
(7,263 posts)Have faith, it is happening as I write this.
geardaddy
(24,926 posts)they should also look to Germany's law, which requires half of the board of directors contain seats for the labor representatives.
DFW
(54,365 posts)Here in Germany, sitting members of parliament are allowed to sit in on the boards of corporations. Why this hasn't been dumped is beyond me, but it is still the law here. How would we like it in the States if Lauren Boebert was allowed to be a member of Congress and on the board of Remington Firearms at the same time?
geardaddy
(24,926 posts)Thanks for the correction.
But what about worker representation on the boards?
DFW
(54,365 posts)It still doesn't mean they get their way. It only means they can get heard. The laws that protect workers from egregious exploitation are already on the books, so their representation is not of the sort of clout it would be if they were the last line of defense.
geardaddy
(24,926 posts)DFW
(54,365 posts)Only 50 years later.........
lame54
(35,287 posts)DFW
(54,365 posts)My roomies got me to see it in my freshman year of college (1970-71). I had never heard of it, of course, but I'm white and they were black, so they always knew about stuff like that (same with Sweetback) and kept me in the loop. One thing that none of us ever knew was that Downey Sr. had dubbed in the voice of Swope!
Truth and Soul, Inc.!