Should We Drop Our Board Diversity Goals? (HBR Case Study and Commentary)

When Helena Morrison joined the board of Equinox Markets, an Atlanta-based supermarket chain, all of her new colleagues were white men. After she ascended to chair, the directors all agreed to hire a recruiting firm to diversify their group, asking that only female and non-white candidates be brought to their attention. Three years later 40% of directors come from underrepresented demographics, but now an activist shareholder has accused the board of discrimination and is threatening to call for a shareholder vote on its diversity mandate. Did Helena and her colleagues err in so aggressively pursuing diversity goals? Should they go ahead with the appointment of Amanda Bryant, a tech company CFO and Black woman, to the board, despite the activist's protests? Should the board admit a mistake or stand firm-and how should Helena respond to the activist's call that she step down? This HBR Case Study includes both the case and the commentary. For teaching purposes, this reprint is also available in two other versions: case study-only, reprint R2503X, and commentary-only, R2503Z.