Study: Nonprofit board service a pathway to shareholder value

Written on Nov 08, 2017

A new study is providing an inflection point for businesses that encourage and support their employees to serve on nonprofit boards.

Better World Leaders: The Nonprofit Board Leadership Study demonstrates the value of nonprofit board service.

Findings include:

  • Advancing workplace diversity and inclusion: Business people who serve on boards gain an appreciation and understanding of people from backgrounds that are different from their own. This benefits companies since studies indicate that diversity and inclusion increase profitability. Additionally, companies have a significant reservoir of people from diverse backgrounds who would like to serve on boards, thus providing opportunities for leadership development.
  • Developing human capital for innovation: Business people who serve on boards confront challenges that stimulate their leadership, creativity, and innovation. Additionally, they improve skills that enhance their performance at work, including strategic planning, decision-making, listening, collaborating, and partnerships. This experience and expertise will help their companies grow value. Furthermore, nonprofit board service is an effective way for companies to attract and retain Millennials and people from diverse perspectives and backgrounds.
  • Fostering economic development and achieving the U.N. SDGs: Business people who serve on boards strengthen communities where their company’s employees and customers live and work. Board engagement also helps to advance the U.N. SDGs, including quality education, reduced inequalities, and sustainable cities and communities.

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