INDIAN COMPANIES IN THE LIGHT OF DIVERSIFIED BOARD COMPOSITION: AN EMPIRICAL STUDY WITH REFERENCE TO FAMILY AFFILIATION

Gender balance of boardroom has been gaining utmost attention in the diversity arena in affiliation with different origin, race, religion, age, and gender. In recent years, boards in European and Scandinavian countries like France, Germany, Norway, Sweden, Denmark have reflected the significant existence of gender divergent board composition. India came vigorously with its sincere move on gender diversity under section 149(1) of the Companies Act, 2013. With effect from 1st April 2015, it is compulsory to appoint at least one woman director in the category of Indian companies. But in the real stage, it appears that the ‘family affiliation’trapped women directors and precludeother flourishing knowledge to reach organizational apex position. In this context, the objective of the study is to find out the perception of ‘family affiliation’, influence, and practices in the composition of gender diversified board in a backdrop of Nifty 50 companies. After careful observation, we find out that most of the companies scale down their effort of diversified board composition after touching the basic legal quota. As far as family affiliation is concerned, it can be concluded that the degree of gender diversity with top board position is not that correlated with family affiliation.

KEYWORDS: Gender Diversity, Family Affiliation, Empirical Study, Legislature, Legal Compulsion.


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