Corporate Governance and Gender Diversity in Boardrooms

Abstract

Despite the significant interest in gender diversity in the boardroom from academics, government officials, and corporate strategists, and that women are qualified to positively influence a company's strategic direction and contribute to its growth, they are underrepresented in senior management and board positions. This chapter explored the relationship between corporate governance and gender diversity. It discussed board diversity in general and gender diversity on corporate boards in several countries, highlighting the benefits of gender diversity on corporate boards. It concludes that several measures can help increase the number of women on corporate boards, including mandatory quotas, political will and support, commitments by companies, codes of corporate governance, and government incentives such as tax breaks and recognition for companies promoting gender diversity, noting that a gender-diversified corporate boardroom is a balanced board essential for good and ethical business sense.