Board Diversity in Light of Pope Leo XIV’s Magnifica Humanitas

Kenneth Vicarl M. Lagera, AICD

Associate member

Institute of Corporate Directors

Pope Leo XIV recently released the first encyclical letter of his pontificate on 25 May 2026 at the Vatican. Entitled Magnifica Humanitas (2026), meaning “magnificent humanity,” the document calls for the safeguarding of the human person in the age of artificial intelligence (AI). It listed the res novae (“new things or issues”) confronting society today, including artificial intelligence, digitalization, and rapidly advancing technological capabilities. Alongside these developments arise serious concerns such as the concentration of power (often in private hands), automated decision-making, and the gradual erosion of human control. In response to these emerging challenges, the Supreme Pontiff underscores the importance of diversity as “the space in which humanity rediscovers its solid foundations and its final end.”

Rebuilding Jerusalem's walls as a model of diversity

Pope Leo XIV used two powerful images to prompt reflections on the value of diversity: the Tower of Babel (cf. Gen 11:1-9) and the rebuilding of the walls of Jerusalem (cf. Neh 2–6). The former serves as a warning against “a uniformity that eliminated diversity and that chose homogenization over communion.” Such a mindset can give rise to undesirable corporate governance practices that prioritize profit over people, reduce individuals to mere data and performance metrics, deepen inequalities, and erode human dignity.

By contrast, the rebuilding of Jerusalem’s walls illustrates how “diverse sensibilities…are a source of richness” for communities. It reflects humanity’s shared calling to build together through dialogue, listening, inclusion, and shared responsibility. Viewed through this framework, stronger and more effective boards are those that embrace diversity and inclusion, uphold the interests of stakeholders, foster meaningful dialogue, and cultivate a culture of collective responsibility not only for the corporate entity that they serve, but also for the nation and the global community as a whole.

Pope Leo’s critique of concentrated power: What it can teach about homogenous boards

Echoing the social teachings of Pope Pius XI in Quadragesima Anno (1931) and Pope Leo XIII in Rerum Novarum (1891), Pope Leo XIV “denounces the concentration of economic power in the hands of a few.”

In Magnifica Humanitas, he warns that such concentration makes power “opaque” and resistant to public accountability. Development becomes distorted, leading to new forms of exclusions and inequalities, instead of being directed towards the common good.

The pope’s critique has profound implications for corporate governance. Concentrated power can also manifest within the boardroom itself. A homogenous board where directors have the same gender, professional experiences, educational background, or ideological perspectives can unintentionally reinforce groupthink, weaken accountability, and narrow ethical reflections necessary for good and responsible corporate governance. When board decisions are confined to a limited circle of voices, boards risk prioritizing efficiency, profitability, and shareholder returns at the expense of human dignity, stakeholder welfare, and long-term societal impact.

The principles of the “inalienable dignity of the human person, the common good, the universal destination of goods, subsidiarity, solidarity, and social justice” compel boards to examine whether digital infrastructures and algorithms genuinely promote participation and accountability, safeguard the vulnerable, provide equitable access to opportunities, and remain oriented toward the good of all.

True diversity in the boardroom is not only a matter of representation or a checkbox for compliance. Genuine diversity is a moral and governance imperative that safeguards shareholders against the “opaque” concentration of corporate power. It is a reflection of what Pope Leo calls the "magnificence" of human variety.

Diversity of race, gender, culture, age, expertise, and lived experience introduces broader perspectives into board deliberations and disrupts the opacity that often accompanies concentrated power. Inclusive boards are better positioned to identify blind spots, challenge assumptions, anticipate ethical, legal, and regulatory risks, and ensure that corporate strategy recognizes the irreducible and unquantifiable dignity of every human person rather than reducing individuals to data points, scorecard metrics, or algorithmic outputs.

Ultimately, Pope Leo XIV’s critique of concentrated power challenges boards to rethink the very purpose of governance. Strong boards are not those that merely optimize performance metrics, but those that exercise stewardship with wisdom, accountability, and moral courage. By embracing diversity, encouraging dialogue, and grounding technological decisions in ethical principles, boards can resist the dangers of concentration and help ensure that innovation remains genuinely human-centered.