Topic > Board Diversity in Corporate Governance - 1433

IntroductionThe debate whether diversity is beneficial to corporate governance or not has continued over the years. In this context, the concept of diversity refers to the composition of the board of directors and the broad range of characteristics, skills, and attributes provided by individual board members (Grosvold, Brammer, & Rayton, 2007, p. 344). Furthermore, diversity on corporate boards can take a variety of forms, including individual demographics such as nationality, race, ethnicity, and gender (Singh, Terjesen, & Vinnicombe, 2008, p.48). Diversity on the boards of directors of listed companies is dictated by a number of different factors, including profitability, size of the company, as well as board size (the number of non-executive and executive directors) (Grosvold, Brammer and Rayton , 2007, p. 346). In listed companies, the board of directors usually plays at least four significant roles, namely supervising and monitoring managers, providing advice and information to managers, ensuring compliance with relevant laws and regulations, as well as connecting the company to the external business environment (Carter et al. 2010, p.398). The evolving social, political and cultural perception of corporate board membership is somewhat sparking interest in the diversity of corporate directors. Furthermore, the growing worldwide desire for better corporate governance is also a reason (Carter et al. 2010, p.396) and (Grosvold, Brammer, & Rayton, 2007, p.347). For example, in the UK, new corporate governance laws following the Cadbury Report and Higgs Review have highlighted the value of diversity on boards, including gender diversity, and the need to choose directors from a broader pool . of paper......more content customers. Furthermore, companies with diverse board members were significantly more profitable than those with homogeneous board members. Furthermore, Mallin (2013, p.186) proposes that three or more women on the board of directors can improve corporate governance and cause essential changes in the board of directors. Conclusion The case has been made for gender diversity improving board effectiveness and performance in listed companies. The evidence contained here is also very convincing. However, if gender diversity is to strengthen corporate governance in listed companies; therefore women appointed to management positions will be required to have appropriate training, development and experience. Furthermore, tokenism alone will not enable listed companies to realize the tangible and intangible benefits of diversity, including gender diversity, in corporate governance..