Considering these two viewpoints, from the perspective of sustainable development, the

composition of a company board should reflect the stakeholders of the company because ethnic
diversity provides a pool of experience and knowledge that individuals from different groups
bring to a board. People from diverse cultural and ethnic backgrounds bring a variety of life
experiences to board meetings (Ramasubramanian, 2017). A company board is more likely to be
attuned to the interests of the broader society in which it operates. Company board is a pool of
diversity of life and business experience. The inclusion of a diversity of life and business
experience is important to advance the benefits of diversity to the sustainability movement and to
the wealth of the company. Companies that have diverse board members from different life and
business experiences, together with the understanding that diversity has benefits for innovation,
corporate responsibility and mission-critical decision-making, have been shown to be more
innovative (Ramasubramanian, 2017). Also, diversity within a company's board encourages
members to exchange their knowledge and experience with each other, and thereby allows them
to challenge each other's assumptions and keep the board focused on the long term. Diversity
also enables the board to draw on insights that can be drawn from various participants in the
company, be they customers, stakeholders, employees, or a combination of these. The "long
term" refers here to the commitment the company has to maintaining its values and to its role in
contributing to society and the economy (Tkachenko, Pervukhina and Zlygostev, 2020).

Recent research has shown that ethnic diversity on company boards improves the
corporate governance performance of the company and may contribute to a number of desirable
corporate social objectives, including higher financial returns, greater employee satisfaction, and
greater perceived ethical behavior by companies (Olszewska and Piwoni-Krzeszowska, 2014).
Companies with boards that reflect the diversity of society are more likely to have financial
returns that are better than those of companies with boards that are more homogeneous, and a
more diverse board will produce a board with a wider range of experiences, knowledge, skills,
and competencies. Research also shows that companies with more women on their boards are
more likely to achieve higher profitability and that companies with a greater proportion of
women directors may have greater resilience (Jones, Marshall, Mitchell and Ramsay, 2007).

References
Jones, M., Marshall, S., Mitchell, R. and Ramsay, I., 2007. Company Directors' Views
Regarding Stakeholders. SSRN Electronic Journal,.

Olszewska, B. and Piwoni-Krzeszowska, E., 2014. Factors Influencing Company Relations with
Market Stakeholders, in the Face of Crises in Company Development. Management and
Production Engineering Review, 5(2), pp.45-53.

Ramasubramanian, G., 2017. Independent Directors, Corporate Governance and Company

Performance - India. SSRN Electronic Journal,.

Tkachenko, I., Pervukhina, I. and Zlygostev, A., 2020. Modeling the contribution and benefits of
company stakeholders. Upravlenets, 11(2), pp.2-15.