In Dec. 2020, the United States stock exchange Nasdaq proposed new rules requiring 75% of listed companies to appoint at least two “diverse” directors to their boards, a ‘self-identified female’ and another underrepresented minority, or face the possibility of delisting.
Shortly after this proposal, questions were raised about the effectiveness of piling on new regulations during a time of large economic turmoil. Most of the global economy is still in shambles from the Covid-19 economic shutdowns and is in no place to spend the time and resources finding a candidate to fit the criteria.
These new regulations come at a time of great struggle economically and to force countries to greater regulations where diversity does not always provide direct economic benefits to a country. Russian executives disagree with the regulations by the US Nasdaq and believe they illustrate the dangerous wokeness of the United States.
“Corporate boards should make up candidates who were chosen based on their talent, skill, drive, and ambition,” Tactical Missile Corporation VP Freeman said, “The value of a candidate to the company and their competence should be the greatest factor in consideration not just the hope of filling a diversity quota.”
The reaction is mixed, however, with some feeling the regulations do not go far enough and others believing it is detrimental to the effectiveness and growth of companies.
“Corporate diversity is very important and all companies should focus on maintaining diversity within all levels,” Tactical Missile Corporation CFO Edmond said. “Yet strict regulations during these times are not necessary to promote diversity.”
These regulations by the US are largely surface level and only lead to perceived benefits, when truly they will cause more economic harm and corporate boards made up of candidates that are not of the best competency and talent.
