E.L.F. Beauty says built-in boardroom diversity delivers business benefits
Key takeaways
- E.L.F. Beauty’s Change the Board Game initiative aims to accelerate the appointment of women and people of color to public company boards.
- The company argues that diverse leadership improves governance, financial performance, decision-making, and risk management.
- Since launching in 2024, the initiative has expanded fourfold, with 58% of graduates securing board positions.
E.L.F. Beauty has announced its third National Association of Corporate Directors (NACD) cohort as part of its inclusive corporate-director initiative, Change the Board Game. The move comes as US companies navigate the increasingly precarious diversity, equity, and inclusion (DEI) space, underlining the merits of maintaining accessibility in leadership, irrespective of macro-politics.
The initiative is part of the cosmetics company’s long-standing commitment to diversifying boardrooms and aims to help double the rate at which women and people of color are added to public company boards by 2027.
Personal Care Insights speaks to E.L.F. about the benefits of inclusivity and representation in business, how the company maintains its approach, and why inclusivity and diversity are “inseparable” from its company ethos.
“We believe diverse perspectives at the highest levels of leadership drive stronger governance, better decision-making, and long-term business success,” says a company spokesperson.
“To any brand reconsidering its commitments: the facts haven’t changed, diverse teams produce better results, diverse boards make better decisions, and your consumers are watching.”
Inclusivity in best interest
The company’s diversity-dialed business perspective permeates its operations, as it boasts a portfolio of various gender and race-based inclusivity initiatives, which are said to provide the company with a strategic upper hand.
According to E.L.F., a typical publicly traded US boardroom is 77% white and 72% male. However, it says diverse leadership results in higher revenues, better returns, and fewer lawsuits.
E.L.F. Beauty is helping diverse leaders prepare for board positions through its Change the Board Game initiative.
(Image Credits: E.L.F. Beauty)
The company cites its Not-So-White Paper research, a report underlining the positive financial and operational impact of diversity on corporate boards. According to the report, diversity in the boardroom improves outcomes and reduces risk.
E.L.F. explains that Standard & Poor’s 500 companies with above-average gender diversity on their boards delivered 15% higher return on equity and a 50% reduction in earnings risk compared to less diverse counterparts.
The company boasts that its board is 60% women and 40% diverse, and states that it has reported 29 consecutive quarters of net sales growth.
“Our team is 71% women, 78% Gen Z and millennial, and 43% diverse — they are our community, and when your team reflects the community you serve, that competitive advantage is reflected in your results,” says the spokesperson.
Additionally, the cosmetics company states that DEI is “not a zero-sum game,” and that brands can build diverse boards through board expansion. This allows companies to retain their existing expertise while creating space for new perspectives.
Intrinsic inclusivity
E.L.F tells us that it considers inclusivity as an intrinsic asset to its operations, rather than a quota.
E.L.F. views inclusive leadership as a competitive advantage.
(Image Credits: E.L.F. Beauty)
The company has never had a formal DEI program. The spokesperson says that its inclusivity initiatives have been fuelled by a business motto of accessibility that is interwoven into the layers of the business structure.
“What we have is a mission to make the best of beauty accessible to every eye, lip, and face, and inclusivity is inseparable from that. Our diversity is a key competitive advantage, and 29 consecutive quarters of growth is our proof point,” explains the spokesperson.
Change the Board Game
Since its launch in 2024, the Change the Board Game initiative has seen four times the growth, with 58% of graduates now serving on boards. The company says that these numbers indicate that people are eager to enter leadership roles and they’re looking to E.L.F. for the way in.
“The [large] board placement rate proves that when you open the doors to access, talented leaders can thrive. Boardrooms have the best chance of diversifying when they can commit to looking beyond their existing networks and when aspiring directors have the preparation and visibility to be seen,” says the company spokesperson.
They add that the Change the Board Game coalition now features over 450 companies and nonprofits, demonstrating “encouraging” momentum.
