HONG KONG, April 22, 2013 /PRNewswire/ -- Community Business, a leading non-profit focusing on corporate responsibility today released 'Improving Governance through Board Diversity: A Guide for Companies listed in Hong Kong'.
Download the image of the Guide's front cover:
http://www.communitybusiness.org/DOB/DOB English Cover.JPG
In December 2012, Hong Kong Exchanges and Clearing Ltd (HKEx) introduced a new Code Provision to its Corporate Governance Code requiring companies listed in Hong Kong, on a 'comply or explain' basis, to have, and report on, a policy on board diversity. This will come into effect on 1 September 2013. HKEx has not issued any specific definitions or guidelines around diversity and what companies should implement and report on, because it recognises that companies may follow different models to suit their specific needs.
The Guide offers practical advice to help companies formulate a relevant board diversity policy and to create the right environment and mechanisms for impactful and sustainable implementation that delivers tangible business benefits. It is based on Community Business' considerable knowledge and experience of diversity that is derived from many years of working with companies who are leading the way in diversity and inclusion. The Guide includes a four-step process and a series of open questions, easy-to-use templates and samples that enable any company from any sector that wishes adopt and/or strengthen its approach to diversity, to do so in a way that is relevant for its business model and operating environment.
"We operate from the stance of meritocracy and believe that a diverse and inclusive workplace is essential for companies to attract, develop and retain the best talent and to remain competitive in the marketplace. We believe the same philosophy is equally relevant for board composition," said Fern Ngai, CEO, Community Business. "Having campaigned for more diversity on the boards of companies listed in Hong Kong for over four years, we are now seeking to play an active role in helping and supporting the introduction of the new Code Provision."
In Hong Kong and in Asia, as in the rest of the world, diversity in the boardroom is increasingly recognised by governments, stock exchanges, companies, shareholders, customers and investors as an essential component of good corporate governance that ultimately leads to better business success and sustainability. There is a growing body of research that makes the link between diversity (at all levels of an organisation) and enhanced creativity, greater innovation and increased employee and customer satisfaction and loyalty. Board diversity is also in line with increasing regulation and/or codes of practice for businesses in general around transparency, accountability and reporting.
Chief Regulatory Officer and Head of Listing Division at HKEx, David Graham, has previously stated that research indicates that board diversity prevents groupthink, utilises talent and improves corporate reputation and that the HKEx is optimistic that the new measures will lead to changes to corporate behaviour.
Community Business Founder and Board Director, Shalini Mahtani MBE, agrees, "This is not about compliance for the sake of compliance or diversity for the sake of diversity. It is about getting the right people for the job and harnessing their unique and individual skills and experiences in a way that collectively benefits the organisation and the business. This approach may take time and effort, but companies that make this investment will experience the benefits a diverse board can yield."
Later this year, Community Business will be undertaking new research that explores boardroom diversity in Hong Kong in more depth, painting a picture of current and future intentions to make diversity integral to good business and showcasing the companies who will be leading the way.
The Guide has been published in English and Chinese and is available for download on the Community Business website at http://www.communitybusiness.org/DOB.
About Community Business
Community Business is a non-profit organisation whose mission is to lead, inspire and support businesses to improve their positive impact on people and communities. As a thought leader in corporate responsibility in Asia, Community Business conducts research, facilitates events and networks, leads campaigns and provides consultancy and advice. Its major areas of focus include: Corporate Responsibility Strategy, Diversity & Inclusion, Work-Life Balance and Community Investment. Founded in 2003 and based in Hong Kong, Community Business works with leading organisations across the Asia region. For more information, visit www.communitybusiness.org.
For more information:
Joy Tsang
Communications Manager, Community Business
+852-2201-1818
joy.tsang@communitybusiness.org
