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Racial Diversity in Publicly Traded Companies

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  • Jeffrey Kurt Orlando Thompson

    (Northcentral University, USA)

  • Richard C. Thompson

    (Northcentral University, USA)

Abstract

This article shares some of the results of a thesis investigating the relationship between the racial diversity of the board of directors in Canadian companies that traded on the Toronto Stock Exchange (TSX). The central question addressed was how organizational factors affect the racial diversity of board membership. The thesis expanded on a prior study that modelled gender diversity on boards of directors by focusing on the recommended area of racial diversity in the Canadian environment. Though many companies do not share their diversity details, using multiple regression analysis, the results showed that there was more racial diversity on larger boards. From a population of about 3,000 companies, the researchers identified a sample of 148 companies, with all the required parameters. This sample contained 1,246 board members, where 9.4% (117 board members) were visible minorities. The ANOVA analysis of the model demonstrated that it was a suitable tool to conduct the investigation. However, the variables did not show any strong significance.

Suggested Citation

  • Jeffrey Kurt Orlando Thompson & Richard C. Thompson, 2020. "Racial Diversity in Publicly Traded Companies," International Journal of Sustainable Entrepreneurship and Corporate Social Responsibility (IJSECSR), IGI Global, vol. 5(2), pages 66-85, July.
    • Handle: RePEc:igg:jsecsr:v:5:y:2020:i:2:p:66-85
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