Working groups of senior corporate executives from Pitney Bowes, ABB, PepsiCo, Texaco, FMC Corp., Bank of America, Chevron, Safeway, Sara Lee Corporation, Motorola, Inc., Sundstrand Corporation, Tenneco Packaging, Tribune Company, Chronicle Broadcasting Company, and Newport News Shipbuilding, among others, participated with investors such as TIAA-CREF and LENS Inc. in this study and found:

• Board diversity should be considered in the context of improving shareholder value.
• Shareholder value is strengthened when intangibles such as diversity, workplace practices, and customer satisfaction permeate a company.
• Diversity is a key part of good governance–boards should professionalize themselves to achieve the company’s strategic goals.
• Boards, as fiduciaries, represent all shareholders—a diversity focus does not change that, but rather helps a board fulfill its duties and mission.
• Diversity should not be limited to gender and race—as companies internationalize, cultural diversity becomes increasingly important.

(40 pages)