CORPORATE GOVERNANCE
Instructor: Dr. Kalsoom Sumra
Assignment No.3
GROUP MEMBERS: -
Sana Zulfiqar (FA22-BAT-004)
Hamid Nawaz (FA22-BAT-008)
Huzaifa Aullan (SP21-BAF-022)
Khusham Khan (SP21-BAF-027)
Ali Hassan (SP20-BAF-109)
5th May 2024
Institutional Elements Driving Orientation Portions for Board of Directors: <x>
Fragments of the wisdom of the study of Kang et al.
Introduction:
In the article "Institutional Variables Driving Orientation Shares for Board of Directors" authored
by Kang et al., the writers investigate the factors behind the recent increase in quota standards
for board affiliation repartition in various countries, mainly in the EU and the US. Talking about
the contribution of industrial factors in moving forward such quotas as laws, regulations,
guidelines, and institutional shareholder activism.
Citations:
The item mentions various assessments and studies, too, for instance, catharsis but Kang, K.,
Yang, Y., and Fountoura, A. (2015), as well. The Orientation Portion Puzzle: Legal, Legitimate
Aspects and Their Persuasive Reactions. The Journal of Financial Regulation and Workplace in the
USA, 2(1), 189-211... Yang Y, Mallick S. (2010). Trade Superior, Self-Choice and Learning-by-
Sending out: In the light of Chinese Matched Firms Evidence. Discuss: What’s the essence of the
sentence? Paraphrase: What’s the main idea of the sentence? The World Economy, 33(10): 1218
- 1238, 33(10): 1218.
The idea of Orientation Portions in Board Representation : The thesis
statement of the paper defines the current standards of orientation in the position of
board representation. As the authors clarify, these goals are and should stay, to be
directly discussed by gender ratio representation on the board of corporations. These
tactics aim for more diversity in management and decision-making and boost company
leadership through representation. Each of these measures is geared toward finding a
new demographic and ensuring that the necessary perspectives will be on decision-
making boards.
Institutional Drivers of Orientation Amounts in the EU and the Assembled
States: The authors give the EU and the US examples of political institution that shapes
citizen's orientation shares. These elements include:
1. Laws and guidelines:
• European Association (EU) Regulation: A variety of EU states have undertaken regulations
and guidelines depicting a certain statistical gender representation in corporate boards. For
instance, Germany's Investors' Act passes the Investors' Freedoms Act. Organizations should
have one female board member at least if they have more than 200 representatives, and they
aim at improving gender diversity and inclusiveness in corporate governance.
• Joined Realm (UK) Administrative System: The UK has outlined the Venture and
Administrating Change Act 2013, which focuses on systems of diversity that should place
enough women on boards. This Liberal measure helps to be seen as a supportive provision
for the democratic nature and the divergent views in the top leadership of an organization.
2. Shareholder activism:
• EU and US Corporate Responses: Company representatives in the European Union and
the United States have found new investors' growing interest in diversification to pursue
proactive steps like introducing orientation program sections into their corporate
setups. Being active relates to the conditions of the exact size of representatives of
women on the boards, aligned with investor expectations for improved diversity and
representation.
3. Professional Standards and Values:
• Impact on Orientation Quotas: The focal point of training is not only on technical
matters but also examines the roles of professional ethics and values in promoting gender
equity. These standards and values are the essence that individuals believe when deciding
a course of action or behavior in any given situation which leads to decisions on what is
good governance and how the corporate world behaves. The developers of the
documentary reckoned that the emphasis on corporate social responsibility and diversity
in the workplace has contributed to the development of the parallel professions.
4. Gender balance and financial turn of events:
• Benefits of Orientation Variety: The report argues the lengthier quantity of the first and
second positions is propelled by a higher aggravation degree and equality of chances in
responsibilities among the organization officials. Jacobs believes how different worlds
collide in sheets will bring about better leadership and alkalis how companies are run.
This can be explained by the fact that ladies are chairs of important resources, who bring
different women's perspectives, information, and abilities. They do improve the nature
of governance and create a better outcome for the organization in the future.
Conclusion:
To sum up, the article by Kang, et al provides the important factors responsible for the
decomposition of gender presentation in the composition business. The authors suggest that
these elements are multifaceted and consist of such stuff as legal premises, investor activism,
technical norms and values, and even their expectations for equal gender representation and
diversity in the world. Identification of the factors mentioned is essential if organizations,
regulatory institutions, and others aim at the improvement of orientation diversity and the
provision of comprehensive business management.
