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Corporate Governance
Defining The Board
In an era where women are slowly ascending in the business world, women are still overlooked as reputable pieces to the board. There is not enough diversification in the Board of Directors because of how corporate structure was originally built on a hierarchy system of men. There is an issue that arises of not enough variation in the boards that leads to stale solutions to problems in corporate world. Also, separation needs to be defined by who actually makes decision and who helps to offer solutions to the decisions that need to be made. How can women play a vital role in helping to broaden the boards ideas and input and how can management separate decision makers from those who help offer solutions? In 2005, Peninah Thomson and Jacey Graham wrote the book, “A Woman’s Place in the Boardroom.” Peninah Thomson is a consultant for Praesta Partners, which is an executive coaching firm and Jacey Graham co-founded Brook Graham LLP, which specializes in corporate diversity management. In the book, “A Woman’s Place in the Boardroom,” Thomson and Graham take a look at how men created a hierarchy system in the corporate world and how the board is made up of men. Thomson and Graham both point out that men compete by being aggressive and exhibit competition, while women do not want to seem too ambitious because it may come off shrewd. In the book, it also suggests that women are making the majority of the purchasing decisions in the workplace and at home. Over half of working women influence purchasing decisions, as well as, handle household finances. There is no difference in the workplace, American women hold over 50 percent of manager purchasing positions making the decisions of what to procure in the workplace. Since women are making most of the purchasing decisions in the workplace, Thomson and Graham propose that it wouldn’t be a huge leap for women to take place on the boards. The book plays to the tune of my question because men do believe that women could add to the board, however men say that they can exemplify the same traits that men do. Women do not want to participate in “office politics” as men do. Women will not easily be persuaded to relocate, as men will because men are more likely to be willing to relocate rather then men. Thomson and Graham also point out that women lack the eligibility to be on the board, not being qualified enough to participate. The relevance here is that contemplating women being on the board, regardless of there being conditions that need serious consideration, if a woman is as qualified or more qualified than a man to be on the board, that woman should not be overlooked just because of gender. In 2005, Ram Charan wrote the book, “Boards That Deliver.” Ram Charan is an advisor for corporate directors and CEOs. Ram is also the best-selling author or co-author of many business books including: “Know How,” “Boards at Work,” “What the CEO Wants You to Know” and many other business titles. In the book, “Boards That Deliver,” Ram focuses on shifts in the style of the boards and how corporate boards are now overseeing decisions made by CEOs. Style in boards has changed from a ceremonial style, which allowed the CEO to follow his own agenda to a Progressive style. The Progressive style allows there to be a corporate board that helps oversee the success of the company beyond the CEO and allows the board to hire and fire the company’s CEO. Ram points out three ways to adopt a more progressive board. Group Dynamics allows the board to collaborate with management, Information Architecture allows that board to have access to data that they need and Focus on issues at hand meaning, actively participate as part of the company, come up with yearly agendas and seeking value throughout the company. This corporate board will allow for the stresses of holding the CEO accountable to be diminished because now a team is collaborating to help the company...
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