Negocios Now

"I t is economically important, morally right and politically, well it is just smart" www.negociosnow.com 14 Octubre 2019 NegociosNow NegociosNow Hispanic News Agency (HINA) C hicago — Gov. JB Pritzker signed legislation that works to increase diver- se voices on corporate boards across the state. House Bill 3394 took effect immediately. "As a result of this legislation, in the coming years, both the legislature and the public can review the gender, racial and ethnic makeup of the governan- ce of large businesses that call Illinois home," Pritzker said. "Better diversity among lea- dership leads to reduced tur- nover, increased growth and improved market share. That's good business, and it advances my vision of an Illinois where both businesses and working families thrive." The new law directs publicly- More Diversity on Corporate Boards "It is economically important, morally right and politically, well it is just smart". This was the reaction of Arabel Alva Rosales, an entrepreneur and member of the boards of different organizations in Illinois, about HB 3394, signed by Gov. Pritzker, that prioritizes diversity in corporate leadership. traded companies headquar- tered in Illinois to submit an annual report to the Secretary of State's Office on the represen- tation of female and minority board members in the company and their practices for identi- fying and appointing diverse leadership to their board. The University of Illinois sys- tems will then study the demo- graphic makeup of boards across the state and establish a rating system for those busines- ses in an effort to increase diver- sity in corporate leadership. Beginning in 2021, reports from corporations will report to the Secretary of State's Office by January 1 each year, and the U of I will publish its analysis by March 1 of each year. According to Arabel Alva Rosales, president and CEO of AAR & Assocs., LTD and vice chairman of Chicago Transit Authority Board, HB 3394 will create the incentive neces- sary for Illinois corporations to diversify their boards to reflect their workforce, consumer base, and opportunities for everyone to prosper regardless of race or gender. "It is economically important, morally right and politically, well it is just smart", she said. Latinos represented in corpo- rate boards is pretty low. "We Latinos are 15% of the Illinois population and generate over $22 billion in revenue for the state, and over $14 billion in purchasing power over 10,000 business owners, according to the Latino Corporate Director Association BUT we are only 6 percent of corporate boards,'' said Rosales. "The Latinx community's buying power and workforce numbers continue to increase. It just makes good business sen- se to have more Latinos on cor- porate boards, so that they can increase their market share. " Rosales stated that a study by McKinsey & Company, found that companies which excel in racial and ethnic diversity are 35% more likely to have financial returns above their peers. Those excelling in gender diversity are 15% more likely. A survey from Deloitte also showed that board members agree overwhelmingly that their boards need to seek more diverse candidates. "The implementation of HB3394 will allow our state to gather the data necessary to truly shine a light on this issue and intentionally work with cor- porations and businesses that are struggling in diversifying." Rep. Chris Welch (D-Hillside), who introduced this bill, said that he feels passionately about this issue because there's not a day that goes by that I don't think about creating a brighter future for my children," "I am committed to fostering a business environment that offers the same opportunities for my son, daughter, and all women and people of color that are afforded to their peers,'' he said. Senator Christopher Belt (D-Centreville), another sup- porter of this bill, said: "Illi- nois is a very diverse state, and boards should reflect the diver- sity of its employees, consumers and community". (HinaOnline.com) Photo Courtesy Illinois Gov. J.B. Pritzker signs HB 3394 to promote diversity on corporate boards.

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