...FACULTY OF ACCOUNTACY, FINANCE AND BUSINESS BACHELOR OF ORPORATE ADMINISTRATION (HONOURS) BBBD 3014 CORPORATE GOVERNANCE COURSEWORK ONE ACADEMIC YEAR 2015/2016 KUA YUN XIN 13WBR09901 3RCA10 (SEMESTER 3) WORD COUNT: 4200 WORDS TITLE: GENDER DIVERSITY OF BOARD COMPOSITION IN MALAYSIAN BANKING INDUSTRY PLAGIARISM STATEMENT & MARK SHEET Bachelor of Business (Honours) in Corporate Administration YEAR 3 ACADEMIC YEAR 2015/2016 BBBD3014 CORPORATE GOVERNANCE Coursework I PLAGIARISM STATEMENT I, Name: Kua Yun Xin Registration Number : 13WBR09901 Signature: confirm that the submitted work is my own and is in my own words. 3RCA Tutorial Group10 Semester 3 Date: 15 July 2015 MARKING SCHEME | % | | | | Maximum | | Evaluation of frameworks, values and governance practices of listed company or companies in the Malaysian context | 30 | 30 | | Application of knowledge and analytical skills relating to legal compliance, best practices and guidelines for achieving business and governance goals | 10 | 10 | | Synthesis, implementation and development of strategies in achieving world-class governance | 20 | 20 | | Total | 60% | 60 | | Tutor’s Comments: ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...
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...number or amount of people or things in particular. However, Scott (2014)[9] defines quota in HRM as affirmative action guidelines which require covered employers to meet certain goals and timetables for hiring and/or promoting women and minorities. In human resource management quotas are associated with changing demographic composition and diversity of workforce across one or more distributive categories such as gender, ethnicity, age, sexual orientation, disability and education backgrounds. As per our case-study, (Stone 2013, pp. 243-244) [1] highlights that despite women had been in workforce for decades, there is gender bias in recruiting board executives. Organisations have utilised multiple strategies to overcome this phenomenon of which quota has been an integral part. Implementation of quota has affected organisations bilaterally entangling ethical dilemmas which led to generalised perception of the aforesaid topic. Galbraith (2012) [7] states that a balanced boardroom has both positive and negative effects. However, extensive research has shown general acceptance of quotas in the international framework. Erika Watson (2012) [10] published in a research article stating Norway as the first country in world to enforce quota law of 40% women on their board. Similar approaches were further accepted by other European countries including Belgium, France, Italy, the Netherlands and Spain. While the topic of quota still remains highly controversial, countries are rather...
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...Helping Women Climb the Ladder: How Corporations can Profit from Gender Diversity The need to make a commitment to encouraging diversity is paramount in today's business world. Executive women leadership can help corporations at the board level with success, find creative ways for face challenges, and spot talent within and outside the corporation while making the boardroom more innovative. Unfortunately, business women do not possess equal access to leadership. They face complexities not encountered by business men because of continuing uncertainties about their ability to lead. Requiring a diverse boardroom is a smart and practical way of bringing a different perspective and most assuredly value to the workplace. If every corporate board had at least one female board director, imagine the creativity and respect that would transpire. Women are working longer hours and the days of the "typical" stay at home mom are now becoming the stay at home dad. Business women have their sights on achieving an executive leadership position at the top of any corporation. Businesses must realize that there is something missing with boards being presided, managed and directed by all white males. In today's society, the word is inclusion, not exclusion, and it is robbing companies and society of talent and perspective that would benefit any firm by having the other half of the working population in the room. An integrated and diverse network of employees is a smart and practical way...
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...Business Journal of Ethics, are examined. They are “Boardroom Diversity and its Effect on Social Performance: Conceptualization and Empirical Evidence,” “The Corporate Ethical Virtues Scale: Factorial Invariance Across Organizational Samples,” and “When Organizations Don’t Walk Their Talk: A Cross-Level Examination of How Decoupling Formal Ethics Programs Affects Organizational Members.” Boardroom Diversity and its Effect on Social Performance: Conceptualization and Empirical Evidence” This article, written by Hafsi and Turgut, is a study of the relationship between boardroom diversity and corporate social performance. They compare diversity in boards (encompassing director’s gender, ethnicity, age, experience and tenure) and diversity of boards (consisting of board size, director independence, director stock ownership, and board leadership duality) and incorporate that into the effects of corporate social performance (CSP). They state that boardroom diversity affects organizational performance created the need for Sarbanes-Oxley act of 2002 (Hafsi et al, 2013). They collected 2005 data of 95 companies in the S & P 500 index, with 52% being in the service industries and 48 % being in manufacturing industries (Hafsi et al, 2013). Below is a picture of the correlation hypothesis between Diversity of Boards and Diversity in Boards and its effects on Corporate Social Performance. Fig. 1 Conceptual model: Boardroom diversity and social...
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...Assignment II: Individual ‘Successfully managing diversity can lead to better performing employees and potentially better financial performance for an organisation’. Introduction The composition of today’s workforce is changing as companies expand across boundaries and increased globalisation facilitates the movement of labour from one country to another. Modern companies comprise employees of varying ethnicity, languages, cultural background, sexual orientation and even age as there are even older persons opting to remain in the workforce. Despite this cosmopolitan mix companies have to ensure performance is optimal and business profitable. Managing organisational diversity levels has now become essential as the pressures of globalised markets and international competition are increasing the amount of diversity organizations must manage, both internally and externally. Diversity specialists (Soutar, 2004; Yang, 2005) have suggested in that in order for businesses and organizations interested in prospering and surviving in the twenty-first century embracing the competitive advantage afforded by a diverse workplace is needed This report looks at the impact of managing diversity in the workplace and the performance and financial benefits which can be gained from successful management. Novartis Pharmaceuticals is one such company which has placed emphasis on embracing and managing diversity and using this to the company’s advantage. The Company Novartis is a...
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...• Better utilisation of the talent pool. • Enhancement of corporate reputation and investor relations by establishing the company as a responsible corporate citizen Op. cit 2015 further states that Board diversity can be promoted by a number of methods. Measures currently adopted by different regulatory bodies are generally classified into the following approaches: (i) through imposing quotas on the board; and (ii) enhancing disclosures using the 'comply or explain' approach. Imposing quotas refers to mandatory requirement in appointing a minimum number of directors with different attributes on the board. This legislation enactment mainly deals with gender diversity to tackle the relative underrepresentation of women in the boardroom. For example, since 2008, each listed company in Norway has had to ensure that women fill at least 40% of directorship positions. Spain and France are implementing similar mandatory requirements for gender diversity. This approach increases the number of women on the board at a faster rate and forces companies to follow the legislation. b. Establish formal processes for evaluation of the board’s...
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...Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity Dalilawati ZAINAL1 Norhayah ZULKIFLI2 Zakiah SALEH3 Faculty of Business and Accountancy, University of Malaya, 50603, Kuala Lumpur, Malaysia 1 2 Email: dalilawati@um.edu.my/dee_dalila@yahoo.com , Email: norhayah@um.edu.my 3 Email: zakiahs@um.edu.my Abstract This study examines the trend of gender and nationality diversity of corporate board in top 300 Malaysian public listed firms over a five-year period from year 2005 to 2009. It also identifies any significant difference in characteristics of firms with women and foreign directors and those without women and foreign directors. Based on the secondary data derived from firms’ annual report, a longitudinal descriptive analysis on the trend of board diversity is presented. Mann-Whitney U test is conducted to identify several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors. This study found little change in the presence of women directors and foreign directors over the five-year period, which reflects a slow progress in board diversity in Malaysia. Other than that, several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors were highlighted. Overall, this study indicates the need for more efforts to encourage board diversity in Malaysia. It shed some light on board diversity issue from...
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...Diversity Defined Diversity is generally defined as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status (Esty, et al., 1995). The CIPD (2011) argues that managing diversity involves recognizing the differences in people and valuing, respecting and using these differences to support business performance. The world’s increasing globalization requires more interaction among people from diverse cultures, beliefs, and backgrounds than ever before. People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, profit and non-profit organizations need diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today. About DTTL’s commitment to diversity and inclusion DTTL was a founding signatory to UN Women's Empowerment Principles (WEP), launched by the United Nations Women and the United Nations Global Compact. DTTL is also a member of the IM WEP Leadership Group, which was created to help further promote the principles. DTTL and its member firms also contribute to the ongoing diversity and inclusion dialogue via thought leadership. This year, the DTTL Center for Corporate Governance issued...
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...Women in economic decision-making in the EU: Progress report A Europe 2020 initiative Justice Neither the European Commission nor any person acting on behalf of the Commission may be held responsible for the use that may be made of the information contained in this publication. Pictures copyrights: fotolia Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. More information on the European Union is available on the Internet (http://europa.eu). Cataloguing data can be found at the end of this publication. Luxembourg: Publications Office of the European Union, 2012 ISBN-13: 978-92-79-23283-1 doi: 10.2838/65541 © European Union, 2012 Reproduction is authorised provided the source is acknowledged. Printed in Luxembourg Women in economic decision-making in the EU: Progress report A Europe 2020 initiative Table of content Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 1 The economic importance of gender diversity in corporate boards . . . . . . . . . . . . . . . . . . . . . . . .7 2 The gender imbalance on corporate boards: facts and figures . . . . . ...
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...DIVERSITY AUDIT SECTION 1 Managing Global Diversity Describe the organization The Organization I have chosen to Audit will be SunTrust Bank, Inc. SunTrust Banks, Inc., with total assets of $170.8 billion on March 31, 2011, is one of the nation’s largest financial services holding companies. Through its flagship subsidiary, SunTrust Bank, the company provides deposit, credit, trust, and investment services to a broad range of retail, business, and institutional clients. Other subsidiaries provide mortgage banking, brokerage, investment management, equipment leasing, and investment banking services. Atlanta-based SunTrust enjoys leading positions in some of the most attractive markets in the United States and also serves clients in selected markets nationally. The Company’s mission is to help people and institutions prosper by providing financial services that meet the needs, exceed the expectations, and enhance the lives of our clients, communities, colleagues, and ultimately our shareholders. SunTrust’s 1,665 retail branches and 2,924 ATMs are located primarily in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, 24-hour customer services...
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...This memo provides an insight on why a board’s composition plays a crucial role to perform and function effectively and why board diversity has become increasingly necessary in order to add more value to the firm. The board’s composition is likely to impact how the board functions, how it makes its investment and financial decisions and how authority and influence are allocated and manifested within the board.[1] Each organisation has its own regulations and guidelines for the formation, roles and compensation of the management board as there is “no one size fits all” rule, they are largely governed by governmental regulations and other international regulatory bodies such as the Organization for Economic Co-operation and Development (OECD) and the International Finance Corporation (IFC). Some positive relationships have been explored between the number of women, director ages, nationalities and other minorities on the board and the overall value of the firm. Being a household products and pharmaceutical company it is imperative for HouseDreams to incorporate measures to include more women on its board of directors thereby making it more diverse. This is because of the fact that women are the prime household decision makers and have a better understanding on the company’s target consumer. Boards with no or limited female membership may be weak in terms of understanding and connecting with the customer and workforce and offer limited encouragement to female employees. Based on...
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...predominantly large private sector organizations to help women to address the board application process from application to accepting the right position. They also assist them in preparing for a position on a public board through a one-to-one training for up to a year. The training includes workshops on corporate governance, risk management, roles of a non-executive director and assistance in capturing types of board aligned for their interest and strengths (Sealy, Doldor, & Vinnicombe, 2009). The Female FTSE Report in 2008 has named 1,800+ women at committee level across a variety of industries and these names were compiled as a very real response to the ‘lack of pipeline’ argument. However, these are just a list of names envisioned to be on the radar of search consultancies. Initiatives in database management in the UK therefore saw a major executive search consultancy announced a compilation of a database of senior female executives in the FTSE 250 companies aimed to increase the percentage of female board members on the organizations (Sealy, Doldor, & Vinnicombe, 2009). In addition, the Appointment Commission and UKRC for women in SET have been actively managing their database of potential female candidates. These organizations will match opportunities and those women on their databases. In 2004, a FTSE 100 cross-company set up a mentoring scheme aimed to provide mentoring at senior level for senior women in the FTSE 100 companies who were deemed to be potential...
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...EXAMINING THE CRACKS IN THE CEILING: A Survey of Corporate Diversity Practices of the S&P 100 March 2013 Table of Contents FOREWORD ....................................................................................................... 1 EXECUTIVE SUMMARY ................................................................................. 2 EXAMINING THE 10 KEY INDICATORS .................................................... 7 1. Equal Employment Opportunity (EEO) Policy ........................... 8 2. Internal Diversity Initiatives ...........................................................10 3. External Diversity Initiatives ..........................................................12 4. Scope of Diversity Initiatives...........................................................13 5. Family-Friendly Benefits....................................................................14 6. EEO-1 Disclosure ..................................................................................15 7. Highest-Paid Executives ...................................................................16 8. Board Representation .......................................................................18 9. Director Selection Criteria ...............................................................20 10. Corporate Commitment ................................................................21 DIVERSITY SCORES BY SECTOR ................................................................22 CONCLUSIONS AND NEXT STEPS...
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...DIVERSITY IN THE WORKPLACE What is a diverse work place? Well, a diverse workplace could be a place that has mixture of gender, age, ethnicity, disability and other dimensions of diversity. I didn’t know that diversity included disability or even other dimensions of diversity. Well according to our HR book other dimension is a person’s sexual orientation. (DENISI/GRIFFIN, 2011) Sexual orientation means a person's sexual identity in relation to the gender to which they are attracted; the fact of being heterosexual, homosexual, or bisexual. Benefits of Diversity in the Workplace. A diverse workforce drives economic growth which is beneficial to all the valuable markets. We have in the United States a big growth in more women, racial and ethnic minorities, and gay and transgender going into the workforce. A diverse workforce can have a better share of consumer market. By bringing in a diverse group of employees it brings together different experiences that can be more marketable to consumers. Recruiting from a diverse pool of candidates means a more qualified workforce. A diverse and inclusive workforce helps businesses avoid employee turnover costs. Diversity fosters a more creative and innovative workforce. Businesses need to adapt to our changing nation to be competitive in the economic market. Diversity is a key aspect of entrepreneurialism. Diversity in business ownership, particularly among women of color, is way to moving our economy forward. Diversity...
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...Women comprise more than half of the population in the United States and have overwhelmingly surpassed men in the attainment of Bachelor’s and Master’s degrees. In 2011, women only comprised 16.1 percent of board seats in Fortune 500 companies in the United States (Soares, 2011). This large gender disparity is hurting our boards immensely, as it is not showing enough of a large percentage of the population. In other countries the inclusion of other races and genders has been documented to show that it can help a company immensely in regards to profitability. In this report, we are going to talk about gender disparity, what it is, how it affects our Boards, what is being done, and ultimately what we can do even more to help bridge the gap in our gender disparity. We will also discuss the pros and cons of gender quotas when it comes to firms and women and also what is being done outside the United States to combat gender disparity internationally, either voluntarily or through law. Gender disparity, simply put, is inequality. In regards to this report we focus on the disparity of power when it comes to serving on Boards of Directors. According to Rachel Soares, who graphical depicts her information, shows that about 83% of all boards are composed of men overwhelmingly. (2011) That means women only make up about 17% of the member of a Board of Directors, and we consider that a problem. In figure 1 below, we show the disparity of women who hold positions on boards. (Soares, 2011)...
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