In recent years, data supporting increased business outcomes from increased diversity, the California law that compelled corporate board diversity and increasing public pressure caused some companies to add more female and non-white directors to their board. 

The recent calls for racial justice have further intensified scrutiny on corporate diversity at every level. And rightly so. Institutional Shareholder Services (ISS) data shows that Black directors accounted for just 4.1% of all board seats in the broader Russell 3000 index last year, falling far short of alignment with US demographics. Additionally, across S&P 500 corporate boards, only 26% of directors are women. And the companies featured in these reports are high profile public companies — less scrutinized boards post even smaller numbers. For example, only 10% of joint venture board directors are women.

However, Ariel Investments co-CEO and president Mellody Hobson makes it clear that change is not only possible, but it also makes good business sense. She calls on corporations to play an active role in increasing diversity across their companies and supply chains. Watch her conversation with Stephanie Ruhle on how corporations should set targets and incentivize concrete outcomes.