Minority membership on boards of directors: The case for requiring pictures of boards in annual reports
Document Type
Article
Publication Title
Critical Perspectives on Accounting
Publication Date
11-1-2005
Abstract
Affirmative action and diversity continue to be contentious issues in the United States. Financial markets are still reeling from the effects of Enron, WorldCom and other corporate exemplars of corruption and malfeasance. The role of the board of directors in these scandals is the subject of serious and ongoing concern. Weak and/or ineffectual boards are often the consequences of "old-boy networks" and a lack of diversity in membership. This research study argues for an increased presence of gender and race diversity on boards of directors. Empirical evidence is presented that shows a significant increase in the presence of ethnic minorities and females when pictures of board members are included in annual reports. We suggest that requiring pictures of board members in annual reports and regulatory filings would result in a larger presence for gender and race diversity on boards of directors. This requirement is not a significant burden and merely represents compliance with the spirit and intent of the "full disclosure" principle. © 2004 Elsevier Ltd. All rights reserved.
Volume
16
Issue
8
First Page
1019
Last Page
1033
DOI
10.1016/j.cpa.2004.02.009
Recommended Citation
Bernardi, R., Bean, D., & Weippert, K. (2005). Minority membership on boards of directors: The case for requiring pictures of boards in annual reports. Critical Perspectives on Accounting, 16 (8), 1019-1033. https://doi.org/10.1016/j.cpa.2004.02.009
ISSN
10452354
