SECTION 3: NOMINATION AND APPOINTMENT PROCESS

46 | Nominating Committee Guide • Increased social acceptability . In a diverse society, a diversified Board helps strengthen the debate from multiple perspectives, and the ensuing company’s support of social norms will ensure that it conducts itself appropriately.. 3.5.4 Diversity of professional skill competencies is invariably the principal focus of NCs. It ensures that one or more directors have accounting, legal, risk management and, perhaps, finance and investment, marketing, and human resources competencies. Less emphasis is placed on the diversity of industries as many Boards focus on ensuring relevant backgrounds in their own industries. However, experts in creativity and innovation point out that companies in one industry can learn from companies in another. As the business environment changes, companies and Boards must also adapt the competencies they bring to bear in the new environment. For example, it is now increasingly accepted that Boards need a director with information technology (IT) knowledge – someone who understands the transformative impact that IT can bring to their operations. Further details on skills diversity are provided in Appendix 3F. 3.5.5 In recent years, much attention has been devoted to gender diversity on Boards. Around the world – and in Singapore, in particular – female representation on Boards is significantly lower than their representation in the workforce in general and in senior management ranks. Research shows that having women on Boards can bring positive influences to the boardroom and on decisions. Boards should do much more to ensure gender diversity by being sensitive to the gender imbalance. Practically, this involves widening the search, perhaps with the help of third party organisations, to include more female candidates. 3F 3A-5 3A-4