Searching for a Perfect Composition for a Board of Directors

Abstract

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 conditions, 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 Journal of Corporate responsibility and leadersHip HuMan resourCes & diVersity ManageMent 20 Joanna Hernik, Antonio Minguez VeraPurpose: 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. Hypothetical-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 structurewere developed. Research and practical limitations/implications: A guidance for businesspeople on how to compose a board of directors is provided. 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 particular value to those involved in the appointment of directors. In conclusions, we propose how to create better boards of directors.

Triple Bottom Line: The Pillars of CSR

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Intersections Between Diversity Management and Human Resources Management in Polish Enterprises

“…For instance, there are many intersections between diversity management and corporate social responsibility (Jamali and Dirani, 2014;Maj, 2017) or corporate governance (Hernik and Minguez Vera, 2017). According to Starostka-Patyk, Tomski and Zawada (2015) CSR is closely related to human resources management.…”