Diversity Within The Board of Directors

Abstract

This article aims to explore the importance of the diversity of boards within the composition of the board from a corporate governance perspective. Much of the available literature appears to focus on demographic diversity, in particular gender, in the sense of board diversity research. However, there are other forms of diversity that are essential in diversity, such as social capital, political and human capital. As a result, four forms of diversity have been reviewed here, including gender diversity, social capital diversity, political diversity and human capital diversity. A brief glimpse of how Malaysia is addressing the diversity of boards can also be found in the discussion of this post. In general, all four types of diversity make a positive contribution to businesses, especially in terms of results. However, there is a lack of board literature on human resource diversity accessible from an empirical point of view in general at this point of time.