Board Diversity Essay

2004 Words5 Pages

“The financial crisis and various corporate scandals have caused widespread concern over the way corporations are governed and their responsibilities to stakeholders.” Regulators and academics have emphasised the importance of board diversity in improving the strategic and monitoring role of the board, and preventing further business failures. The discussion has recently concentrated on the poor representation of female members at board level, which seems to be a common problem in most countries, including the United Kingdom. It has been suggested that women can provide boards with “unique qualities and resources that can improve board dynamics, strategic decision-making and firm performance. Using reputable Academics, country specific comparisons and relevant business theories, this essay will analyse why women, “due to their different values and moral orientation, are crucial to boards as they have a high chance of influencing companies’ performance in both financial and non-financial areas.” Gender diversity is undoubtedly important for companies, especially from an ethical and economic perspective. Firstly, it is unethical to exclude women from board positions based on gender. Secondly, women arguably add different qualities to the decision-making process that men do not, which could definitely benefit the company economically in the long term. However critics have also questioned the need for corporate responsibility as a whole and have taken the Friedmanist approach that argues, “The only responsibility of companies is to maximise profits and add shareholder value.” Some also follow that CR activities arguably “conflict with companies’ economic goals and shareholders’ interest and they are rarely given the opportunity ... ... middle of paper ... ...tors.” Burberry definitely combatted the gender discrimination barrier with Angela Ahrendts as their previous CEO who “developed a global reputation for excellence not just in the ‘financial markets’, where its stock price has surged by more than 250 per cent since her arrival in July 2006, but in ‘Silicon Valley’ as well, where the company is held up as a shining example by companies like Facebook and Twitter for its forward-thinking, savvy approach to digital marketing, commerce and community-building.” Ahrendts is also a good pioneer for Billing’s theory that ‘Women can contribute something special,’ which mainly draws attention to the dissimilarities between the sexes but in a positive light, “celebrating and exonerating female difference, instead of the perspective that women imitate male agenic features with an androgynous sprinkling of communal qualities.”

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