Board diversity threshold
Assesses whether the board meets specific, measurable targets for diversity in key areas such as gender and age, ensuring a breadth of perspectives and representation in the highest level of governance. Within Islamic governance, embracing diversity reflects the principle of Ta'aruf (mutual understanding) and enriches the process of Shura (mutual consultation). By incorporating varied life experiences, the board upholds Adl (justice) and prevents insular decision-making, ultimately fostering a more equitable, comprehensive, and resilient approach to corporate stewardship.
| Metric | Board diversity threshold |
|---|---|
| Target | ≥30% women and ≥1 youth (<30) |
| Frequency | Annual |
| Method | Compliance is by headcount: women_count / total_trustees ≥ 0.30. Minimum women trustees required = ceil(0.30 * total_trustees). Report both headcount and percentage (percentage rounded to 1 decimal for reporting only). |
| Unit | % and count |
Level 1: Initial/Ad-hoc
No formal policy or targets for board diversity exist. Board composition is homogenous or based on informal networks with little to no conscious consideration for diversity.
Level 2: Developing
The importance of board diversity is acknowledged in discussions. However, there is no formal policy or measurable targets. Any diversity on the board is incidental or the result of ad-hoc efforts.
Level 3: Established
A formal, board‑approved diversity policy defines specific, measurable, time‑bound targets (12–18 months) for at least gender and age, supported by succession mechanisms (e.g., term limits) and a named accountable owner.
Level 4: Advanced
Targets integrated into nominations terms and succession plan (reviewed annually with forward-looking forecast); progress reported annually in the trustees’ report; responsible owner reviews quarterly.
Level 5: Optimizing
Board commissions periodic independent evaluation including an inclusion index; tracks at least one additional diversity dimension (e.g., ethnicity) with anonymisation safeguards; demonstrates links between diversity and shūrā/decision quality.
Organisation Types
By Organisation Size
| Size | Applicability | Notes |
|---|---|---|
| Micro | exempt | Strict quotas, formal monitoring forms, and nomination committees are disproportionate for very small, volunteer-run boards. |
| Small | optional | Diversity is encouraged, but formal thresholds and data collection forms are a nice-to-have rather than a strict requirement at this scale. |
| Medium | partial | Should have a diversity policy and actively aim for diverse representation, but strict quotas may be treated as targets rather than mandatory thresholds. |
| Large | full | Fully applicable; expected to have formal nomination committees, monitoring processes, and meet specific diversity thresholds. |
| Major | full | Fully applicable; standard expectation for major charities to lead on board diversity and formal governance practices. |
Applicable When
- Organization is legally constituted
Not Applicable When
- The organization's governing body is legally constituted as a single individual (e.g., a sole trustee or director).
- The composition of the governing board is entirely determined by external statute or a binding founding charter (e.g., all members are ex-officio), leaving no discretion in the selection of members.
- The organization is a single-gender entity by charter and for religious reasons, with a governing board composed exclusively of that gender to serve its specific beneficiary group (e.g., a women's seminary). This exception should be justified under Equality Act 2010 s.193 (charity exceptions) and explained in the diversity policy and trustees’ report.
Related Criteria
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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