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Relationship Between Board Diversity and Firm Value

Autor:   •  October 5, 2017  •  3,859 Words (16 Pages)  •  280 Views

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All companies are doing well to disclosure their companies information of the board of directors. Disclosure information and apply the diversity are differently.

GENDER DIVERSITY PRATICE LESS

Gender diversity is when a company is represented by a more equal proportion of men and women. More companies are realizing the value of having a diverse workforce. Gender Diversity means to consider and to promote different skills, different resources and potentials of women and men in their diversity as equivalent. (Study.com)

From Table Among 10 of the companies that study only have 7 companies have female in the board director. Nevertheless Prime Minister had announcement on the Government’s Policy approved by the Cabinet said that women must comprise at least 30% of thosde in decision makng position in the corporate sector within 5 years.

With this new Government’s Policy none of the company fullfill this new policy. Although none of the company is doing well. Gamuda Bhd (Prpoerty division) and YTL is moving forward this way. Companies that have women in the Board that have important role and make the board balance too. Why do I said so ?

Because according Fast Company & Inc take a study from one of the university, found that women tend to be better corporate leaders because of their decision-making abilities. The men opted to make decision based on tradition, rules and regulation, while the women tended to shirk tradition, consider the interest of all stakeholders, coorporate and be more inquisitive. Likewise, women’s higher quality decision-making ability makes them more effective than their male counterparts gives boards a method to deal with the multifaceted social issue and concerns currently confronting corporations. Other than that, womens can yield superior result in other area of business as well.

The benefits of gender diversity in the team of performs they have many, men and women have different viewpoints, idea and market insight, which enables better problem solving, leading to superior performance at the business unit level. Gender diversity provides easier access to resources, such as various sources of credit, multiple sources of information and wider industry knowledge too. (Gallup) In Mah Sing Group the only one female directors, Ms Leong Yuet Mei, Non-Independent Non-Executive Directors said that “Diversity breeds great ideas, and great ideas lead to great achievements”.

Moreover, gender diversity helps companies attract and retain talented women. This will affect more women join to the labour force in companies. Although Sunway Bhd didn’t applied well in board of diversity in gender, they doing well for the workplace diversity by gender. In overall Sunway Berhad truly believes diversity and inclusion in the workplace enables the employees to better understand, realate and respond to the customers and communities whom they serve at the multiple location and religions. Its will help the company growth as a diversified conglomerate with a multitude of businesses. Sunway inspire people to grow and realise their full potential by providing fair and equal career opportunities.

To promote workplace diversity by gender, Sunway Group Human Resources (“GHR”) had presented a host of new initiatives to better attract, retain and develop women in the workplace. Such as, mother’s room, flexible working arrangement, extended maternity leave, and childcare. This is the right example company that doing well in retaining female in workplace.

In the Sunway Bhd annual report 2014 years show that the percentage of the workforce diversity by gender.

[pic 1][pic 2]

Chart 1: Show the percentage of the employees in Sunway Berhad

Chart 2: Show the percentage of the management staff in Sunway Berhad

(Resource: Sunway Berhad Annual Report 2014 year)

Company

No. Women in Board

Total No. Of Board

- Sunway Bhd

1

8

- Sime Darby Property Bhd

0

7

- SP Setia

2

13

- UEM Sunrise Bhd

1

9

- Gamuda Bhd (Property division)

2

13

- Tropicana Corp Bhd

1

12

- Mah Sing Group Bhd

1

7

- IOI properties Bhd

0

7

- YTL Land & Dev. Bhd

1

10

- Eco World Development Group Bhd

0

10

Table 5: Show the female in the Board

For Eco World Development Group Bhd, there is no female in Board of directors. They have ten of the directors all is male directors. This might show that the company does not practice well in gender diversity in board. In annual report 2014 year under criteria for recruitment and assessment, mentioned the Nomination Committee assesses the suitability of candidates for appointment as Directors before recommending them to Board. In evaluating the suitability of candidates, the Nomination Committee considers, inter-alia, the competency, experience, commitment, contribution and integrity of the candidates and additionally in the case of candidates proposed for appointment as Independent Non-Executive Directors, the candidates’ independence.

Currently the Boards do not have any gender diversity policy or target. But, the company is an equal opportunity employer and all appointments

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