Could Nasdaq’s proposed diversity mandates be the key to changing corporate America?

Corporate America has long been criticized for its lack of gender and racial diversity, with underrepresented racial groups making up just 12.5% of board seats at the 3,000 largest publicly traded companies, and women making up just 21%.

To fix this issue, several companies, and even a few states, have implemented diversity mandates. Earlier this year, Goldman Sachs said it would not take a company public unless it had at least one diverse board candidate, with CEO David Solomon saying they will place a special “focus on women.” In 2018,...