Minority Membership on Boards of Directors: A Case for Requiring Pictures of Boards in Annual Reports

Critical Perspectives on Accounting, Vol. 16, No. 8, pp. 1019-1033, 2005

Posted: 19 Feb 2008  

Richard A. Bernardi

Roger Williams University - Gabelli School of Business; Roger Williams University

David F. Bean

Independent

Kristen M. Weippert

Roger Williams University - Gabelli School of Business

Abstract

Affirmative action and diversity continue to be contentious issues in the United States. Financial 14 markets are still reeling from the effects of Enron, WorldCom and other corporate exemplars of 15 corruption and malfeasance. The role of the board of directors in these scandals is the subject of 16 serious and ongoing concern.Weak and/or ineffectual boards are often the consequences of "old-boy 17 networks" and a lack of diversity in membership. This research study argues for an increased presence 18 of gender and race diversity on boards of directors. Empirical evidence is presented that shows a 19 significant increase in the presence of ethnic minorities and females when pictures of board members 20 are included in annual reports.We suggest that requiring pictures of board members in annual reports 21 and regulatory filings would result in a larger presence for gender and race diversity on boards of 22 directors. This requirement is not a significant burden and merely represents compliance with the 23 spirit and intent of the "full disclosure" principle.

Suggested Citation

Bernardi, Richard A. and Bean, David F. and Weippert, Kristen M., Minority Membership on Boards of Directors: A Case for Requiring Pictures of Boards in Annual Reports. Available at SSRN: https://ssrn.com/abstract=1095108

Richard A. Bernardi (Contact Author)

Roger Williams University - Gabelli School of Business ( email )

Bristol, RI 02809
United States

Roger Williams University ( email )

Bristol, RI 02809
United States

David F. Bean

Independent ( email )

No Address Available

Kristen M. Weippert

Roger Williams University - Gabelli School of Business ( email )

Bristol, RI 02809
United States

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