NASDAQ has proposed a new rule that would force companies listed on their stock exchange to have at least two “diverse” members on their boards. The standard for diversity depends on the region in which the company is located.
For companies based in the United States, one board member would need to be a woman while the other must be an ethnic minority or a member of the LGBTQ+ community. When the company is based abroad, the diversity requirement is simplified to just two women.
So what does “diverse” mean? The standards differ depending on where you live in the world. In the case of the NASDAQ requirements, one role must filled by someone who fits the diversity requirements.
But is this proposal even feasible? Would businesses be able to meet these requirements from the jump once this proposal is in effect? Total compliance is questionable. Also, what about legal implications for racial discrimination? If we can’t have laws that specifically helps white people, then how can we also have laws that specifically help another ethnic group or demographic over other groups?