Author(s): Beebagar Riaz
This research paper aims to critically evaluate the role of a diversified boardroom in a corporation. Research has found significant information about both pros and cons of diversity. It is found that Board diversity extends more comprehensive representation in boards that reduce the chances for single groups to look after their vested interest. Further, the research denotes that if an undiversified board of directors manages a company, then the directors have been found to use company resources to extend their business operation in the company's name. However, board diversity denotes that the directors have a different background, socially, educationally, mentally, jurisdiction. In this way, it is not feasible to seek any strong ties for any ulterior motives. Conversely, findings also reveal that diversity causes additional challenges, social cohesion, and different ideologies, which can negatively affect the corporation to make rational decisions timely. Furthermore, the study aims to evaluate the role of diversity in different areas of business such as CSR activities, consumers and customers, employees, shareholders, and stakeholders. Hence, the study aims to comprehensively elaborate country’s approach towards diversity, its potential benefits, initiatives, challenges and finally glance over potential recommendations. To this end, the research mainly aims to read UK Corporate governance code 2018, the stewardship code 2020, parker review report, the Company act 2006, and other essential policy papers. The study further aims to read the Norwegian code of practice for corporate governance code 2018, California Assembly Bill No 979, and renowned journal articles to give comparative analysis with the UK approach. Examination reveals that USA and some European countries have adopted compulsory measure for gender diversity. However, UK approach is based on purely voluntary.