Women on Corporate Board of Director

Topics: Board of directors, Corporate governance, Corporation Pages: 37 (14869 words) Published: September 19, 2013
1.0Introduction
In this decade, we have seen an increase in women's participation in the board of director. Previously, we can see around the world, every board of director of a single company led by men only. But, over the time, women are slowly absorbed into the board of director and they play a great role as well as a good impact in the improvement of the company. A new study suggested that, putting women on boards of directors is a good way to make companies more profitable and better governed. It is because a woman is more likely to take a collaborative approach to decision-making and reach a broader consensus with buy in from all players.

Men, on the other hand, are more likely to use rules, regulations and traditional ways of doing business or getting along. “It’s the ‘Mom effect.’ Men are less prone to lose their temper or be alpha males when a lady joins the board,” say McMaster business school Professor Chris Bart. And having one or more women on a board translates into higher sales, better returns for shareholders and fewer corporate bankruptcies.

Most countries put the quota at least at a certain minimum level of participation of women in the board of directors. There are also countries that do not put a quota of men and women's involvement in the board of directors. Countries like the United States and Singapore do not put any gender quota for women on boards or in senior management positions. On the other hand, countries like Malaysia put a minimum quota for representation of women on boards. Prime Minister Datuk Seri Najib Tun Razak announced that the Malaysian Cabinet approved legislation where corporate companies must achieve at least 30 percent representation of women in decision-making positions in the private sector, to promote gender equality. Some countries like Norway have even introduced formal laws requiring female representation on corporate boards.

2.0Board of Directors
In every organization, board of directors plays a significant roles and responsibilities to ensure the company is achieving their strategy and goals. Directors' duty in any tasks is very critical such as solve the problem, make a decision, plan a strategy and potential project. Their contribution to the company can help he company to achieve the highest value in any aspects. Therefore, this part will briefly explain about director and board structure, role and responsibility of directors, and the legal requirement in company’s board’s directory (Amendment Act 2007). 2.1Director and Board Structure

The board of directors leads and controls a company and hence an effective board is fundamental to the success of the company. The board is the link between managers and investors, and is essential to good corporate governance and investor relations. The duty of the board is responsible to determine the company’s aims and the strategies, plans, and policies to achieve those aims. The high performance board must achieve three core objectives. The core objectives are providing superior strategic guidance to ensure the company’s growth and prosperity, ensure accountability of the company to its stakeholder, including shareholders, employees, customers, suppliers, regulators and the community, then, ensure that highly qualified executive team is managing the company. Actually, for more understanding about the women and board of directors, we would like to explain the definition of board of directors. According to financial dictionary, board of directors means:- “A board of directors is a team of people elected by a corporation's shareholders to represent the shareholders' interests and ensure that the company's management acts on their behalf. The head of the board of directors is the chairman or chairperson of the board” So, a woman on the board of directors is involving the women in managing the company through the position on board. The situation that women occupied the board also known as gender diversity on the board. The...

References: Adams, B.R. & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance, Journal of Financial Economics, pp. 292.
Balan S. (2011)Reform of The Law Relating to Director’s Duties in Malaysia, Vol. 4 pp. 4
Balan S
Balan S. (2011)Reform of The Law Relating to Director’s Duties in Malaysia, Vol. 4 pp. 8
Bilimoria, D
Boland M., Hofsman D. (2013). Iowa State University. The Role of the Board of Directors. Retrieved June 16, 2013, from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-71.html
Bradshaw, P
Branson, D.M. (2012). Initiatives to Place Women on Corporate Boards of Directors - A Global Snapshot, Why Women? The Journal of Corporation Law, Vol. 37:4, pp. 795.
Brown, D., and Anastasopoulos, V. (2002) Women on Boards: Not just the Right Thing . . . But the “Bright” Thing, Report,. 341-02: The Conference Board of Canada, Ottawa.
Burgess, Z. & Tharenou, P. (2002). Women Board Directors: Characteristics of a Few, How an organization can help with the appointment of more women directors? Journal of Business Ethics,Vol. 37, pp. 42.
Burke, R. (2000) Company size, board size, and the numbers of women corporate directors.
Catalyst, (2004). The Bottom Line; Connecting Corporate Performance and Gender Diversity, Catalyst, New York.
Davies, L. et al. (2011). Women on Boards, pp. 8
De Anca, C
Deloitte, (2011). Women in the Boardroom: A Global Perspective, Malaysia Country Profile.
Eagly, A. H. & Johannesen-Schmidt, M. C. (2001). The leadership styles of women and men. Journal of Social Issues, 57: 781–797.
Eagly, A. H. & Johnson, B. T. (1990). Gender and leadership style: A meta-analysis. Psychological Bulletin, 108: 233–256.
Eagly, A. H., Johannesen-Schmidt, M. C., & van Engen, M. L. (2003). Transformational, transactional, and laissez-faire leadership styles: A meta-analysis comparing women and men.
Eagly, A. H., Karau, S. J., & Makhijani, M. G. (1995). Gender and the effectiveness of leaders: A meta-analysis. Psychological Bulletin, 117: 125–145.
EduCause
Erkut, S., Kramer, V. W. and Konrad, A. M. (2008), Critical mass: Does the number of women on a corporate board make a difference?
Fondas, N
Gerald & Kathleen Hill, (2004). Board of Director, Legal Dictionary,
http://legal-dictionary.thefreedictionary.com/board+of+directors
Gist, M. E., Locke, E. A., & Taylor, M. S. (1987). Organizational Behavior: Group structure, process, and effectiveness. Journal of Management, 13: 237–257.
Groysberg, B
Hoel, M. (2008) The quota story: Five years of change in Norway.
Huse, M. (1998). How Women Directors Challenge Existing Theories of Boards of Directors. Paper presented at the Academy of Management Conference, San Diego, CA. Ibarra, H:1993, Personal Network.
Izraeli, D. (2000) Women directors in Israel. In: Burke, R. and Mattis, M. (eds.) Women on Corporate Boards of Directors: International Challenges and Opportunities, 75–96. Kluwer Academic Publishers, Dordrecht, The Netherlands. Huse, M.
Julia, T. (2013) Women make better decisions than men: How do people make decisions? http://www.degroote.mcmaster.ca/articles/women-make-better-decisions-than-men.
Klausner, Michael, Bernard S. Black, and Brian R. Cheffins. (2005) “Outside Directors Liability: Have WorldCom and Enron Changed the Rules?,” Stanford Lawyer, Winter, (71), 36–39.
Kramer, V.W., Konrad, A.N., & Erkut, S. (2006). Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance, Women Director in Corporate Governance, pp. 2.
Malin C. A. (2009). Corporate Governance: Directors and Board Structure, pp. 164.
Marshall, J
Mattis, M.C. (2000). Women Corporate Directors in United States, Women on Corporate Board of Directors (Kluwer Academic Publishers, The Netherlands). In Burgess, Z. & Tharenou, P. (2002)
McQueen, G
Nguyen, L. (2013). Women on Corporate Boards Better Decision-Makers than Male Directors: Study, Executive women, Canadian Press,
http://business.financialpost.com/2013/03/25/women-on-corporate-boards-better-decision-makers-than-male-directors-study/
Sealy, R. and Singh, V. (2006) Role models, work identity, and senior women 's career progression – Why are role models important? Best Papers Proceedings of Academy of Management Annual Meeting, Atlanta, GA.
Sheridan, A. and Milgate, G. (2005) Accessing board positions: A comparison of female and male board members ' views, Corporate Governance: An International Review, 13(6): 847–55.
Singh, V. (2008) Transforming Boardroom Cultures, Report for UK Resource Centre for Women in Science, Engineering and Technology, Bradford.
Smolkin, S. (2013) Personal Finance: Why woman top men on boards of directors,
http://www.thestar.com/business/personal_finance/2013/05/22/why_woman_top_men_on_boards_of_directors.html
Tacheva, S. & Huse, M. (2006). Women Directors and Board Task Performance: Mediating and Moderating Effects of Board Working Style, pp. 3.
TCAM, (2009). Diversity and Gender Balance in Britain, a study by TCAM in conjunction with The Observer and as part of the Good Companies Guide, London, UK: TCAM.
TD Economic, (2013). Get on Board Corporate Canada, Greater Transparency needed for gender diversity on Canadian Board, Factor behind Canada performance, pp.3.
Terjesen, S., Sealy, R. & Singh, V. (2009) Women Directors on Corporate Board: A Review and Research Agenda, On Board Skills, Knowledge and Experience, An International Review, Vol. 17, No. 3, pp. 329
The Somali Family Care Network
The Star. Personal Finance: Why Woman Top Men on Boards of Directors. Retrieved June 12, 2013, from http://www.thestar.com/business/personal_finance/2013/05/22/why_woman_top_men_on_boards_of_directors.html
Torchia, M., Calabro, A., & Huse, M
Yukl, G. 2002. Leadership in Organizations. Upper Saddle River, NJ: Prentice Hall.
Zelechowski, D. and Bilimoria, D. (2004) Characteristics of women and men corporate inside directors in the US, Corporate Governance: An International Review, 12(3): 337–42
--------------------------------------------
[ 3 ]. Malin, C. A. (2009). Corporate Governance: Directors and Board Structure, pp. 164.
[ 4 ]. Epstein, M.J. & Roy, M.J. (2006), ‘Measuring the Effectiveness of Corporate Boads and Directors’, in M. J. Epstein and K. O. Hanson (eds.), The Accoutable Corporation, Praeger Publishers, Wetport, US.
[ 5 ]. Gerald H. & Kathleen H., (2004). Board of Director, Legal Dictionary,
http://legal-dictionary.thefreedictionary.com/board+of+directors.
[ 6 ]. Sealy, R. & Doherty, N. (2012). Women in Finance: A Springboard to Corporate Board Positions? pp.10.
[ 7 ]. Klausner, Michael, Bernard S. Black, and Brian R. Cheffins. (2005) “Outside Directors Liability: Have WorldCom and Enron Changed the Rules?,” Stanford Lawyer, Winter, (71), 36–39.
[ 12 ]. Balan, S. (2011). Reform of The Law Relating to Director’s Duties in Malaysia, Vol. 4 pp. 3
[ 13 ]
[ 15 ]. Balan S. (2011)Reform of The Law Relating to Director’s Duties in Malaysia, Vol. 4 pp. 5
[ 16 ]
[ 17 ]. Bilimoria, D. (2000). Building the business case for women corporate directors.
[ 18 ]. Bradshaw, P. & Wicks, D. (2000). The experience of white women on corporate boards in Canada: Compliance and non-compliance to hegemonic masculinity.
[ 19 ]. Gist, M. E., Locke, E. A., & Taylor, M. S. (1987). Organizational Behavior: Group structure, process, and effectiveness. Journal of Management, 13: 237–257.
[ 20 ]. Eagly, A. H., Karau, S. J., & Makhijani, M. G. (1995). Gender and the effectiveness of leaders: A meta-analysis. Psychological Bulletin, 117: 125–145.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Corporate Governance
  • The Board of Directors Essay
  • women representation on the boards of directors Essay
  • Board of Directors Essay
  • Board of Directors Essay
  • Corporate Governance and Board of Directors Essay
  • Essay on Board of Directors Staples
  • Board of Directors Introduction Essay

Become a StudyMode Member

Sign Up - It's Free
Dawson's Creek | *Terms and conditions Apply* | Capítulos