Exploring the ethical implications of Nasdaq's board diversity rule / Sydnee Manley, Patrick Kelly, Abby Corrington.

Format:

Book

Author/Creator:

Manley, Sydnee, author.

Kelly, Patrick, active 2026, author.

Corrington, Abby, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Diversity in the workplace--Case studies.

Diversity in the workplace.

Business ethics--Case studies.

Business ethics.

Physical Description:

1 online resource.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2026.

Summary:

In December 2020, Nasdaq proposed new rules requiring most listed companies to appoint at least one board member who identifies as female and another who identifies as an underrepresented minority or LGBTQ+. For smaller boards (five or fewer members), the rule mandated at least one "diverse" member or an explanation for non-compliance. The new rules aimed to enhance board diversity, improve corporate governance, and align companies with broader social justice objectives. However, the rule sparked significant debate, with both critics and proponents citing ethical, economic, and governance-related implications. Although the Nasdaq proposal was approved by the Securities and Exchange Commission (SEC) in August 2021, the New Orleans-based Fifth U.S. Circuit Court of Appeals ruled in December 2024 that the SEC had erred in its initial approval. The Fifth Circuit ruled that the SEC exceeded its authority, as the diversity rule was not directly related to the Securities Exchange Act's objectives of investor protection and market efficiency.This case allows students to examine ethical implications of the approved measure and its subsequent reversal, while also considering the potential impacts of fostering a more inclusive business environment compared to one that does not foster inclusion.

Notes:

Description based on XML content.

ISBN:

979-83-488-5238-2

OCLC:

1569208747

Publisher Number:

T301064