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Gender Diversity in Corporate Governance PDF

   

Added on  2020-05-11

10 Pages2192 Words45 Views
Running head: CORPORATE GOVERNANCECorporate GovernanceName of the Student Name of the University Author note

1CORPORATE GOVERNANCEAnswer to question 1: Gender diversity is a fair or unbiased representation of the genders. It mostly refers tothe equal ration of women and men. The gender diversity of the corporate offices have beendiscussed widely. There have also been regular initiatives that promote the concept of genderdiversity in various conventional fields that are dominated by men including the heavyindustry, science and medicine (Armstrong et al. 2015). As stated by Cornelius (2005)achieving gender diversity within the organization has various benefits for the business thatmay also lead to long term profits. Having a diverse situation in respect to genders can alsoimprove the reputation of the firm as well. There are several companies which have failed toincorporate gender diversity in their organizational culture, such as Enron, HIH, Worldcom,and Sunbeam. These companies do not have many female members in their board ofdirectors; rather they have more male directors. The female directors of these companies aremostly non-executive directors who cannot take independent decisions. However, on theother hand Medibank Private Limited has successfully shaped their organizational culture byincorporating a successful diversity and inclusion policy. The organization believes thateveryone is different; therefore it values the difference and considers it as the strength of thecompany. Furthermore, recommendations for the company on the Australian Stock Exchangeare listed below: The organization should find the gap between having gender diversity in theorganization and the existing situation; therefore it will help the management tonarrow down its area of working. The organization should also look for a specific skill set amongst the employees andthey should not discriminate on the basis of gender once they find those specific skillsets in any employee.

2CORPORATE GOVERNANCEFor the next three to five years the company should fix the criteria of being a boardmember and should adhere to the criteria. For the application and selection procedure, the company should decide on certaincriteria and should not bias based on gender. Answer to question 2: As stated by Love and Rachinsky (2015) the basic principle of corporate governanceis facilitating the entrepreneurial, effective and wise management which is competent ofdelivering a long-standing success for the company. The corporate governance practicesinclude a definite framework including the legal codes, legislation and the voluntarypractices. The major reason of incorporating corporate governance into the organizationalpractices is to protect the interest of the shareholders who are not staying close with themanagement. Along with that this practice also considers the interests of the customers,employees, suppliers and the other ones who are having a direct interest with the company.The Stakeholders theory of corporate governance states that the business ethics andorganizational management should address the principles and morals in managing theorganization (McCahery, Sautner and Starks 2016). This theory states that the managementshould also consider the interest of all the involved stakeholders, not only the interests of themanagement or the directors. However, it has also been viewed that adhering to the corporategovernance sometimes tend to slow down the decision making process and also createshindrances for the creativity and innovation in the business practices. The innovative andcreative practices of the business deals with different products and service, therefore it is alsoassociated with the stability of the company (Peni and Vähämaa 2012). Therefore theorganization may have hindrances in its goals and milestones if they have to stick to thecorporate governance policies. The recommendations for such situation are:

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