Governance in Globalisation World

Running head: GOVERNANCE IN GLOBALISATION WORLD
Governance in globalisation world
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1GOVERNANCE IN GLOBALISATION WORLD
Introduction
Corporate governance shapes and guides the organisation into working and
functioning systematically. The board of directors constructs the framework of regulations
and practices by which the organisation functions. Now, it is obvious that these practices
differ from one another according the government policies and the objectives of the
organisations. In the following discussion a thorough analysis of various issues that arise in
corporate governance world is enunciated.
Response to question 1 (a)
The incorporation of gender diversity in the world of corporate governance have
gained a lot of attention in recent time. However, the actions taken towards this inclusion in
organisations have been at a slow pace. The issues in the article by Patten (2018) is that there
is an increased proportion of women working on the boards of Australia’s largest companies
that continues to rise with a score of 28.3% from 25.4% reported a year before. The increase
in this context show that there are huge number of women who are designated at the senior
most position of leadership ASX200 or corporate governance companies. Therefore, it is
evident that the gender diversity are gaining the lot of attention as found out in the article and
the corporate governance principles are need to be introduced for the gender equality.
According to such principle, the board need to ensure the strategic management of the
company, the proper monitoring of the management and need to act responsibly towards both
the society and the shareholders. This looks after the scope of equal opportunities among men
and women have been a rising issue over the period in distinctive fields (Patten, 2018). The
inclusion of female board members in leading organisations of Australia have gained
momentum in recent scenario. The recent figures have shown an increase of 3.1% of women
on Australia’s boards compared to previous year’s outcome (Patten, 2018).

2GOVERNANCE IN GLOBALISATION WORLD
On the contrary, in the second article by Starbuck, (2014), the author highlights the
issue by arguing over the issue of corporate governance and recommends a possible way to
engage the stakeholders in the functions of governance. However, the article ushers four
major issues, firstly it has been argued that various kinds of organisation needs to have
different types of government procedures. Secondly, humanity needs to set up priorities for
their objectives, thirdly ideas about the governance needs to be concerned with the
technological and social changes that are operating within the organisation. Finally, the board
of directors usually exercise a weak form of governance in relation with the governance by
the management hierarchy. Therefore, based on the issues, the article outlines a necessity to
enhance the nature of managerial governance as well as the behaviour of the stakeholders.
The benefits of diversity among the board of directors have been realised by majority and
because of which this is a raising topic in the world of corporate governance around the globe
(Starbuck, 2014). The Board of Directors of any organisation plays a major role in decision-
making and as a result of which have a strong influence over the organisation for a long run.
In addition to this, the increasing pressure from the shareholders for incorporating greater
diversity in organisations have paved the way for including gender diversity in the world of
corporate governance (Patten, 2018).
In context of this, it can be said that in today’s world, the appointment of board
members in large companies are heavily influenced by social connections (Smith, 2018).
Therefore, discarding the aspect of fair play and justice in the selection procedure of
members in board members as well as in choosing the staff members. It has been observed
that huge companies tend to appoint the members of the board not from any outside source
instead from the social connections established with the existing or former member of the
board (Kramarz & Thesmar, 2013).