The Nasdaq stock exchange has announced that it is changing its policies to require existing and new member companies to meet standards of gender and ethnic diversity.
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The first stage calls for companies to diversify their boards of directors, followed by their senior management staff and workforce.
Many Israeli companies have already begun trading on Nasdaq, and dozens more are on their way – but the Israeli high-tech scene will have to make it over the diversity hurdle on its way to the American dream, as most tech companies in Israel are founded and led by men, and men are the leading investors. This is precisely what Nasdaq is seeking to change.
To help with the process, 46 funds that invest in Israeli high-tech have joined forces to form Power in Diversity, an initiative designed to strengthen Israeli startups through diversification and inclusion. Thus far, 140 Israeli tech companies have joined and committed to the process of diversifying their workforces, a move that is also expected to help solve the major staffing shortage in the high-tech sector.
A number of philanthropic organizations have undertaken to fund the processes needed to speed up diversification in the tech sector, including analysis of a company's needs; building flexible work structures, creating a work environment appropriate for people of different genders and backgrounds, "smart" recruitment processes, and training.
Sivan Shamri Dahan, chairwoman of Power in Diversity and a managing partner at Qumra Capital, says, "I see the Nasdaq decision as a super-positive, important step. There's no doubt that diverse companies are companies with a higher potential for success.
"I hope that this important initiative won't stay at the level of company directors, which is, of course, the head, but will lead deeper thinking about changes to build more diverse leadership and then [more diverse] organizations. There's no doubt that if public companies take the lead, private companies will also try to bring in additional sectors, as well as increase the number of women in key roles. We're working toward that and helping startups understand and implement a strategy of change to successfully implement diversity and inclusion," Shamri Dahan added.
According to Alan Feld, founder of Power in Diversity and a founding partner at the Vintage Investment Partners, "The initiative was designed to allow high-tech become an inclusive place and an environment in which we can all work and build big companies in this country together. Members of the venture capital industry in Israel are committed to promoting equality of opportunities for women and minorities, who are underrepresented in the business and entrepreneurship communities, and fostering inclusive and diverse environments that offer both long and short-term solutions.
"Studies show that more diverse companies develop better products, and we're here to promote that," Feld said.
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