Published on 21, Feb 2023

Simone Grimes: Boards Can Be Agents of Much Needed Social Change

The United States stands at a pivotal moment in history; public awareness of the inequalities still faced by marginalized people in America, including people of color, women and the LGBTQIA+ community, is growing, and as a country, we are grappling with how to affect change. As we debate around dinner tables, at work, and in social settings how best to strengthen our society and leave bias and prejudice behind us all, one area could be key: the boardroom. Simone Grimes, who sits on the board of directors for Green Growth Group Inc., Junior Achievement, Big Brother Big Sister and Whistle Blower Aid, believes that boards of directors for publicly traded, privately held and non-profit organizations play a critical role in creating a truly inclusive society that respects all genders, ethnicities, and viewpoints.

“First, the involvement of board members is incredibly important for the health of any organization,” Simone Grimes says. “As fiduciaries, we are responsible for ensuring that our organizations stay on the road to a sustainable future. We are a key part of the governance structure of companies and nonprofits that provide jobs, contribute to the economy, and create needed social change. Every board member must commit themselves to making ethical decisions so that the organization and key stakeholders can thrive.”

Simone Grimes believes, however, that these are just the basic duties of a board. “They are essential, of course, but what I have seen through my own board service is that there is a larger picture that boards must keep in mind: the impact that they have both on the employees or volunteers within the organization and on the community itself.”

Diversity on the board, Simone Grimes continues, has been lacking for decades. “A 2021 study found that between 2016 and 2020, of directors who were new to Fortune 100 boards, 79.9% of board seats were filled by non-minority directors,” she says. “No doubt these people were talented and qualified to do their jobs. However, what would happen to the board, its organization, the community, and our society if a more diverse slate of directors was asked to serve? What kind of ripple effect might that create in America over time?”

The benefits of a board that embraces DEI (diversity, equity and inclusion), Simone Grimes explains, are multifaceted. “When you foster a board that represents the demographics of America, i.e. your customer base, you make better informed decisions and deliver better outcomes to shareholders and stakeholders. On a purely corporate level, this gives you better insights into why certain demographics make purchasing decisions, which can help steer the company in a more profitable direction.”

Studies have demonstrated that a diversified board results in more innovations, broader insights and strong quality  earnings. Simone Grimes says that while any board, regardless of its composition, can think creatively, when women and minorities are recruited, they bring unique experiences and viewpoints that can increase a board’s productivity. “Diversity can invigorate the boardroom and make it into the center of originality and vision that it is meant to be.”

“Let’s be clear: I am not suggesting that a board that is composed solely of one gender or ethnicity cannot lead effectively,” Simone Grimes says. “What I am saying, however, is that the board will be limited by the perspectives of its board members.” The most poignant recent example of a lack of diversity in key decision points was the 2019 Georgia Tech report that found that of the eight autonomous car models it tested, all eight did not recognize pedestrians with dark pigmented skin or pedestrians with varying disabilities.”  Many people found this study to be shocking. Simone states “It's just indicative of what happens when you eliminate the perspectives of the fuller population from being represented in key decisions.” 

DEI on boards will have a ripple effect which will continue in the community.  “When the board is diverse, they become more aware of what is happening in their community, which can lead to better relations between the company and the public. This can allow the organization to be proactive in affecting social change.”

Creating a board that reflects the rich diversity of the United States takes time, of course. “Nothing changes overnight,” Simone Grimes concedes. “Remember, though, that every time you recruit a female or minority board member, you are strengthening your organization and helping to close the book on America’s difficult past. That is heroic, and I hope that more boards will take up the challenge.”

Simone Grimes is an independent board member, audit committee financial expert, Chief Financial officer (CFO), and entrepreneur who has a BSC in Accounting, MS in Finance, and MBA from Cornell University. She has held financial leadership roles across various industries, including financial services, big-four (PwC) public accounting, tech, and consumer products. Simone Grimes serves on the audit committee of for-profit and nonprofit boards.