A Comparative Analysis on Two Main Approaches to Promote Gender Diversity in the Boardroom Worldwide

Abstract

In recent decades, the position of females in the boardroom has received increasing attention worldwide. It is argued that improving gender diversity in the boardroom as female directors can benefit corporate management in many ways. On the one hand, they have distinct characteristics which could make up for the shortcomings of male directors. On the other hand, females show different governance behaviours, and they can bring new ideas to corporate boards. In order to respond to social concern about gender equality in the boardroom and to encourage more females to contribute to corporate management, countries across the world have taken measures to improve the proportion of female directors on corporate boards in recent years. Worldwide, two main approaches can be seen. Some countries impose quota laws to promote gender diversity in the boardroom, while others adopt a voluntary approach. This essay will discuss development of both the quota approach and the voluntary approach and will then analyse their advantages and disadvantages, in order to illustrate their influence on improving gender diversity in the boardroom and to come up with some solutions for addressing the shortcomings of these approaches. Female directors are expected to have more opportunities to contribute professionally and meaningfully to corporate governance.