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

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? For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is reprint R2503Z. The complete case study and commentary is reprint R2503P.