Women on Corporate Board of Director
1.0 Introduction
In this decade, we have seen an increase in women 's participation in the board of director. Previously, we can see around the world, every board of director of a single company led by men only. But, over the time, women are slowly absorbed into the board of director and they play a great role as well as a good impact in the improvement of the company. A new study suggested that, putting women on boards of directors is a good way to make companies more profitable and better governed. It is because a woman is more likely to take a collaborative approach to decision-making and reach a broader consensus with buy in from all players. Men, on the other hand, are more likely to use rules, regulations and traditional ways of doing business or getting along. “It’s the ‘Mom effect.’ Men are less prone to lose their temper or be alpha males when a lady joins the board,” say McMaster business school Professor Chris Bart. And having one or more women on a board translates into higher sales, better returns for shareholders and fewer corporate bankruptcies. Most countries put the quota at least at a certain minimum level of participation of women in the board of directors. There are also countries that do not put a quota of men and women 's involvement in the board of directors. Countries like the United States and Singapore do not put any gender quota for women on boards or in senior management positions. On the other hand, countries like Malaysia put a minimum quota for representation of women on boards. Prime Minister Datuk Seri Najib Tun Razak announced that the Malaysian Cabinet approved legislation where corporate companies must achieve at least 30 percent representation of women in decision-making positions in the private sector, to promote gender equality. Some countries like Norway have even introduced formal laws requiring female representation on corporate boards.
2.0 Board of Directors In every organization, board of directors plays a
In this decade, we have seen an increase in women 's participation in the board of director. Previously, we can see around the world, every board of director of a single company led by men only. But, over the time, women are slowly absorbed into the board of director and they play a great role as well as a good impact in the improvement of the company. A new study suggested that, putting women on boards of directors is a good way to make companies more profitable and better governed. It is because a woman is more likely to take a collaborative approach to decision-making and reach a broader consensus with buy in from all players. Men, on the other hand, are more likely to use rules, regulations and traditional ways of doing business or getting along. “It’s the ‘Mom effect.’ Men are less prone to lose their temper or be alpha males when a lady joins the board,” say McMaster business school Professor Chris Bart. And having one or more women on a board translates into higher sales, better returns for shareholders and fewer corporate bankruptcies. Most countries put the quota at least at a certain minimum level of participation of women in the board of directors. There are also countries that do not put a quota of men and women 's involvement in the board of directors. Countries like the United States and Singapore do not put any gender quota for women on boards or in senior management positions. On the other hand, countries like Malaysia put a minimum quota for representation of women on boards. Prime Minister Datuk Seri Najib Tun Razak announced that the Malaysian Cabinet approved legislation where corporate companies must achieve at least 30 percent representation of women in decision-making positions in the private sector, to promote gender equality. Some countries like Norway have even introduced formal laws requiring female representation on corporate boards.
2.0 Board of Directors In every organization, board of directors plays a
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