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Essay / Board Diversity Essay - 2004
“The financial crisis and various corporate scandals have sparked widespread concern about the way companies are governed and their responsibilities to stakeholders. » Regulators and academics have highlighted the importance of board diversity to improve the strategic and oversight role of the board and prevent further corporate failures. Debate has recently focused on the low representation of women on corporate boards, which appears to be a common problem in most countries, including the UK. It has been suggested that women can bring to boards "unique qualities and resources that can improve board dynamics, strategic decision-making and corporate performance." Using leading scholars, country-specific comparisons, and relevant business theories, this essay will analyze why women, "because of their different values and moral orientations, are essential to corporate boards because they are likely to influence business performance in both financial and non-financial areas. » Gender diversity is undoubtedly important for businesses, especially from an ethical and economic perspective. First, it is unethical to exclude women from board positions based on their gender. Second, women arguably add different qualities to the decision-making process that men do not have, which could certainly benefit the company economically in the long run. However, critics have also questioned the need for corporate responsibility as a whole and have adopted the Friedmanite approach that "the sole responsibility of business is to maximize profits and add value for shareholders”. Some also believe that corporate responsibility activities "conflict with the economic objectives of companies and the interests of shareholders and are rarely given the opportunity... middle of paper...". Burberry has definitely fought the barrier of gender discrimination with Angela Ahrendts as its previous CEO who "developed a global reputation for excellence not only in the 'financial markets,' where its share price has surged more than 250 percent since its arrival in July 2006, but also in "Silicon Valley", where the company is cited as a shining example by companies like Facebook and Twitter for its avant-garde and savvy approach to digital marketing, commerce and development of the community. Ahrendts is also a good pioneer of Billing's theory that "women can bring something special", which mainly draws attention to the dissimilarities between the sexes, but in a positive light, "celebrating and exonerating female difference , instead of the perspective that women imitate male agenicity.” characteristics with an androgynous pinch of common qualities.”