Since 2014
Searching for a Perfect Composition for a Board of Directors
Journal of Corporate Responsibility and Leadership
View Archive Info| Field | Value | |
| Title |
Searching for a Perfect Composition for a Board of Directors
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| Creator |
Hernik, Joanna; The Faculty of Economics, West Pomeranian University of Technology in Szczecin
Vera, Antonio Minguez; The Faculty of Economics and Business, The University of Murcia |
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| Subject |
board of directors; changes; corporate governance; human resources; market
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| Description |
Background: When one hears that company X achieved success, adopted a strategy, or struggles with difficulties, there is always a company board behind this news. Typically, a company board is a reflection of decisions taken by the owner; in practice, there is no rule as to how to appoint a company board. However, if we consider the long-term interest of the company, we may suggest a few ideas that will allow the company to better adapt to the market; they may also help to build the competitive advantage and have a positive impact on the company’s market position. This article presents a belief that the company board composition should evolve from merely reflecting the goals of the owner and the professionalism of the members, into a board, whose structure reflects employees and the market in which the company operates. This approach stems from the need to adapt to the market condi-tions, which is easier when the process of change starts with the company board. To illustrate these ideas, a fictitious example of a limited liability company will be used, for which we developed various board models based on the market situation.Purpose: The aim of this article is to develop a new approach to board of directors’ creation, through the lens of decision-making theory, sustainable development and business performance.Design / methodology / approach: To build a new model of a board of directors, a critical-realistic approach was used along with a case study of a fictitious limited liability company. Hypo-thetical-deductive technique was a base of the analysis.Findings: Conceptual models of a board of directors – which reflected human capital of the company and market structure – were developed.Research and practical limitations/implications: A guidance for businesspeople on how to compose a board of directors is provid-ed. As this is a theoretical work, it may be a base for future market/ real testing of the presented ideas.Originality/value: The article responds to a lack of research and wider works on connections between a board of directors and developing company performance, so this paper will be of par-ticular value to those involved in the appointment of directors. In conclusions, we propose how to create better boards of directors.Paper type: Conceptual article.
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| Publisher |
Nicolaus Copernicus University in Toruń
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| Contributor |
—
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| Date |
2017-06-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://apcz.umk.pl/czasopisma/index.php/JCRL/article/view/JCRL.2017.002
10.12775/JCRL.2017.002 |
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| Source |
Journal of Corporate Responsibility and Leadership; Vol 4, No 1 (2017): Human Resources and Diversity Management; 19-38
Journal of Corporate Responsibility and Leadership; Vol 4, No 1 (2017): Human Resources and Diversity Management; 19-38 2392-2699 2392-2680 |
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| Language |
eng
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| Relation |
http://apcz.umk.pl/czasopisma/index.php/JCRL/article/view/JCRL.2017.002/13740
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| Rights |
Copyright (c) 2017 Journal of Corporate Responsibility and Leadership
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