TY - JOUR

T1 - The economic versus moral perspective of board diversity

T2 - A time for regulation after the financial crisis?

AU - Stiglbauer, M.

AU - Velte, P.

PY - 2013

Y1 - 2013

N2 - The recent financial crisis has led to a loss of trust in the quality of corporate governance worldwide. Among other reforms, the European Commission (EC) currently intends to regulate board diversity (at first gender diversity) by quota as companies did not voluntarily meet the EC's expectations on this issue so far. Considering the political debate it often becomes obvious that the debate on board diversity is primarily discussed from a moral perspective and on the basis of standard economic arguments or stereotypes ignoring the majority of empirical findings in this field. Focusing on this gap we identify very mixed results on the link between different attributes for board diversity and economic outcomes. Furthermore, these empirical findings mainly do not consider important aspects of work psychology and organizational behavior in the black box/closed circle of corporate boardrooms and often only focus on single attributes for board diversity and their direct impact on economic outcomes. Thus, without having a deeper understanding of the processes and dynamics within corporate boardrooms, we do not think this is the right time to regulate board diversity. Additionally, we think such a measure disproportionately intervenes in companies' authority to staff their boards and neglects companies' specific (economic) situation.

AB - The recent financial crisis has led to a loss of trust in the quality of corporate governance worldwide. Among other reforms, the European Commission (EC) currently intends to regulate board diversity (at first gender diversity) by quota as companies did not voluntarily meet the EC's expectations on this issue so far. Considering the political debate it often becomes obvious that the debate on board diversity is primarily discussed from a moral perspective and on the basis of standard economic arguments or stereotypes ignoring the majority of empirical findings in this field. Focusing on this gap we identify very mixed results on the link between different attributes for board diversity and economic outcomes. Furthermore, these empirical findings mainly do not consider important aspects of work psychology and organizational behavior in the black box/closed circle of corporate boardrooms and often only focus on single attributes for board diversity and their direct impact on economic outcomes. Thus, without having a deeper understanding of the processes and dynamics within corporate boardrooms, we do not think this is the right time to regulate board diversity. Additionally, we think such a measure disproportionately intervenes in companies' authority to staff their boards and neglects companies' specific (economic) situation.

KW - Board Diversity

KW - Economic Perspective

KW - Moral Perspective

KW - Regulation

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=84884695858&partnerID=8YFLogxK

U2 - 10.18848/2328-6261/CGP/v12i02/40161

DO - 10.18848/2328-6261/CGP/v12i02/40161

M3 - Journal articles

AN - SCOPUS:84884695858

VL - 12

SP - 71

EP - 77

JO - The International Journal of Organizational Diversity

JF - The International Journal of Organizational Diversity

SN - 2328-6261

IS - 2

ER -