Analysing Corporate Governance, Ethics and Board Diversity

This report provides an overview of corporate governance, focusing on the significance of board diversity and ethical practices within organizations. It summarizes a relevant journal article, explains the key concepts of board governance, and analyzes how diversity within the board contributes to more effective corporate decision-making and overall performance. The report emphasizes the importance of fairness, transparency, and accountability in corporate governance, highlighting how a diverse board can enhance cognitive diversity, improve risk management, and foster a better understanding of consumers. Ultimately, the report concludes that good corporate governance, driven by ethical practices and a diverse board, is essential for achieving sustainable growth and success.

CORPORATE
GOVERNANCE AND
ETHICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Article summary..........................................................................................................................3
Concept of key board governance...............................................................................................3
Board governance diversity makes effective for corporate.........................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Corporate governance refers as the system through which the organisations are directed and
instructed. Board of committee members are responsible for governing the company (Bhagat &
Bolton(2019). It helps the company to follow the ethics and other code of conduct in order to
develop efficient values. Following report will cover the summarise of the article and description
of key board governance concept. It also carries out the board governance diversity makes the
corporate effective.
MAIN BODY
Article summary
In the article it shows that irrespective of the corporation are based on certain code of conducts
and civil code, their sustainability and better business performance are completely depending on
the better corporate governance. This article discuss as how gender diversity consideration in
corporate governing is important. As it is analysed that the Australian companies have poor
record for initiating the diversity, but the USA and European have the better approach to
encourage the diversity in the corporate governance.
Concept of key board governance
Board governance simply refer as the broad scope for the board member’s responsibility. In
which the people are selected to form a team who shares the joint responsibilities and manage the
functions of the organisation. Corporate governance usually accounts the corporate social
responsibility, ethical behaviour and the business strategy areas. The main principles of the
corporate governance are fairness, transparency, accountability. It is important for the board
members to treat all stakeholder with equity and to make sure there should be transparency and
fairness in their words. It is also found that board members required to disclose the data in a
accurate or specific time frame (Aguilera, Maran & Haxhi (2019)). They also ensure to involves
the ethical issues in order to making decision which can provide the benefit to the organisation.
Great board are those who knows how relevant information can be used in order to make the
decisions at the right time. They also ensures that the corporation management team must create
the robust reporting approach and to present the data in accurate and understandable form.
3

Board governance diversity makes effective for corporate
It is found that diverse board governance are able to make better and efficient business decision.
It helps in reducing the group thinks and to increase the focus on managing and maintaining the
risks. It also helps in developing the better understanding towards the consumers of the
organisation. It is also analysed that the enhancement of the cognitive diversity in the board
team of the company can give the potential or meaningful improvement, whether in controlling
or in decision making process. Diversity helps in creating the chances for the new information
generation and also to develop the better environment which ensures the better coverage of
discussions and knowledge exchange. Thus diversity in the board will enable the corporate to
enhance their potential board members, thus with this organisation will be able to find the
member who have good skills and knowledge that will help in making effectual decision for
company’s growth and market share.
It is found that good corporate governance makes the organisation more efficient and to
follow all ethical and other civil law to smoothly runs their business. It is important for the
business to identify the suitable board members who have the skills and knowledge to make
decision in any situation (Bae and et.al (2018). To ensure that the board team required to be a
balance conformance as to compliance all the laws and codes of conduct with their performance
expectations, as to improvise the performance of the corporate by better formulation of the
strategy and idea that will be implemented by the business in order to develop business values.
Thus it is also important that every member of the board team are responsible for driving better
values as to develop the better strategies, it is important that all have shows their equal
participation. Measuring and managing the organisational performance is also a duty of the board
members as to ensure that the corporate must follow the legal compliance in order to prevent
from any legal activities. Thus having a good board governance will make the corporate to
achieve their sustainable growth.
CONCLUSION
From the above report it is illustrated that the corporate governance helps the organisation in
making effectual decision and to provide the better values to their business. Above report have
discussed the summary of the article it also describes the concept of the key board governance.

Report also discussed the board governance diversity that makes the corporate effective, it also
discuss as the way which makes the corporate effective for the good corporate governance.
5

REFERENCES
Books and journals
Aguilera, R. V., Marano, V., & Haxhi, I. (2019). International corporate governance: A review
and opportunities for future research. Journal of International Business Studies. 50(4).
457-498.
Bae, S. M. and et.al (2018). A cross-country investigation of corporate governance and corporate
sustainability disclosure: A signaling theory perspective. Sustainability. 10(8). 2611.
Bhagat, S., & Bolton, B. (2019). Corporate governance and firm performance: The
sequel. Journal of Corporate Finance. 58. 142-168.