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The need for greater diversity among organizational leaders and directors remains a challenge for organizations within the third sector, and beyond. This study examines diversity through a critical mass lens; that is, we examine an alternative approach to understanding the relationship between the ethno-racial composition of boards of directors and their perceived ability to engage stakeholders, improve organizational responsiveness, and effectively manage fiduciary responsibilities. Our study, drawing on a survey of 247 boards, clarifies the need for a critical mass approach to leadership diversity by highlighting the uneven impact of diversity on performance demonstrated by periods of accelerating and decelerating effect. We find that boards achieving a critical mass of ethno-racial diversity improved board performance among three governance activities—fiduciary performance, stakeholder engagement, and organizational responsiveness—with our critical mass approach illustrating the uneven impact of diversity on performance for each governance activity.
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This article explores the dynamics of diversity and inclusion in the context of boards of directors in the nonprofit sector. Our multimethod study builds on current diversity research by exploring social microprocesses of inclusion in diverse governing groups. We consider functional and social approaches to inclusion within boards, and address the potential for more transformative inclusion. Our findings suggest significant opportunities for meaningful change by shifting focus from diversity to inclusive practices within diverse groups.
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Using data from a survey of large nonprofits across Canada, this study focuses on the determinants of the range of diversity (defined as the number of different ethnocultural and visible minority groups represented) on boards across the country. The determinants of diversity that the article examines include community, organizational, and general board characteristics as well as board diversity practices. We examine the extent to which these factors are related to an increased range of diversity on the boards. It appears that the diversity of the community that nonprofits operate in and efforts to institutionalize formal diversity-related policies are particularly significant determinants of diversity, although board size and reliance on interorganizational alliances in recruitment of board members also have a small relationship. The implications for theory and practice are examined.
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Abstract This article examines the important role of social resources in enhancing the effectiveness of nonprofit boards of directors, paying particular attention to the positive implications of social capital. Using data collected from a survey of 234 organizations operating in the Canadian nonprofit sector, we model the relationship between a three‐factor model of social capital and a multidimensional measure of governance effectiveness. Our results demonstrate the positive contribution that social capital makes to the capacity to govern effectively. Findings of our study support the need for renewed attention to social and relational considerations inside the boardroom.
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