(Doc) Governance in a Globalized World

GOVERNANCE IN GLOBALIZING WORLD 1
Governance in Globalizing World
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GOVERNANCE IN GLOBALIZING WORLD 2
Governance in Globalizing World
Introduction
Corporate governance determines performance, productivity and efficiency of
organizations. The organizations with experienced and competent corporate leaders have a
higher chance of gaining a competitive advantage in both domestic and international markets.
Against the backdrop of diversity and female leadership, there has been significant attempt to
incorporate women into senior leadership of corporate organizations. It is believed that
organizations with diverse board structure are managed properly, and can achieve exemplary
performance. This paper, therefore, looks into corporate leadership, by summarizing two articles
and analyzing five articles. In addition, the paper will use organizational and institutional
theories to analyze issues raised in the two summarized articles.
Question 1 a)
ASX200 boards near 30pc gender target: AICD by Sally Patten
In summary, this article reports the dynamics of female corporate leadership in 200 best
companies in Australia. The women are joining the boards of companies in Australia, amid
concerns about the number of women in top corporate leadership. Statistically, the article
intimates that in 2017, only 25.4 per cent of women were on boards of 200 biggest companies in
Australia, but in 2018 the percentage shot to 28.5 percent. This was a three percent improvement,
which in all probability was a great improvement. This rise is an improvement the author
describes a sharp increase in the number of women in senior leadership.
Although, small companies according to the author are not making significant improvement at
the board level. However, this is a tremendous success in the senior leadership of women in
Australia’s biggest corporates. From this article it is becoming apparent that ASX200 companies
are trying their best to incorporate women into corporate leadership. It is a good gesture and
something to pride about especially at this time when people across the world are supporting
women empowerment and their inclusion in corporate leadership. Besides, this article is relevant
in the practice of corporate governance in organisations, because it underscores the fact that
women can also lead. It is also relevant owing to the fact that it addresses diversity in the

GOVERNANCE IN GLOBALIZING WORLD 3
corporate governance. Women are viewed as capable as men, and therefore this article is
pertinent because it draws people recognizing the contribution of women in corporate
governance.
Company boards are stacked with friends of friends so how can we expect change? By
Sherene Smith
The article discloses that the appointment to the board of directors or top leadership in the
organizations require social connections. The individuals who have networks with senior people
are likely to be appointed to senior leadership positions in corporates. Two-thirds of board
appointments in the largest 200 public companies in Australia were associated with social
connections. The author cites that the person to replace the ex-AMP chairwoman Catherine
Brenner would be got from possible a small group of people.
Brenner was working at Financial Services Royal Commission and resigned following
accusations of misleading legislators and other multiple scandals. The author reports more
resignations were expected at commonwealth bank following that of Brenner after learning that
the board of directors was made up of people in the same social circles. Further, the article
agrees that board diversity is improving. But, raises a concern that some genuine and qualified
people especially women are excluded due to lack of social connections.
This article is also relevant to the practice of corporate governance in organization, because it is
stresses challenges faced in achieving diversity. The corporate governance diversity within
organization it is supposed to be given to women who are qualified. However, citing the case of
Brenner, it appears that she must have been promoted to the chairwomanship of the Financial
Service Royal commission due to her social connections. Thus, the article seeks to address
challenges that come with diversifying corporate governance in organizations.
Question 1 b)
ASX200 boards near 30pc gender target: AICD by Sally Patten
Stakeholder Theory