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BUS 8500

Research Methods in Management


Assignment – 3
IULIIA ZHUPIKOVA – 21701649
POOJA SHAH – 21704171
Contents
Abstract................................................................................................................................................................................. 3
1. Introduction................................................................................................................................................................... 3
2. Literature review........................................................................................................................................................... 4
3. Research question and hypothesis................................................................................................................................ 5
4. Research Methodology and Methods............................................................................................................................ 6
5. Results........................................................................................................................................................................... 8
6. Discussion...................................................................................................................................................................... 8
7. Limitations..................................................................................................................................................................... 8
8. Conclusion..................................................................................................................................................................... 8
References............................................................................................................................................................................. 8
Abstract
Due to globalisation valuing diversity has become one of the important topic research related to organizational
performance. Under diversity we can understands distinct elements and qualities, such as gender, age, ethnic,
religions and other differences. However,gender diversity has been gaining more importance these days. Gender
diversity and its impact business performance, is among the new but challenging topics of research. A consulting
firm Grant Thornton conducted a survey on Women in Leadership in New Zealand the drop in 2018 has been 21
percentage which is considered all-time low since 2004. (The business of women: Boosting balance in the
boardroom, 2018) Gender diversity is considered an important factor by 60% of the companies but only 17% of
companies have a gender diversity policy. Our research focuses on gender diversity whether it affects the financial
performance of the company or not. Our research based on secondary data. The data will be analyzed using the
quantitative method. The findings of the research will be compared with the previous research result. Finally, we
will conclude about how do companies value gender diversity.

Introduction
Today the world economy is significantly integrated due to increasing globalization framework that has required
organizations responding. Organizations, regardless of the field, are starting to search for new opportunities for
enhancing their business performance and for identifying solutions for their business issues. In this regard,
organizations actively examine the inclusion of workforce diversity in the traditional structure. Today workforce
diversity is considered more than only ethics, it becomes a big business opportunity. Most organizations start to adopt
diversity at their workplace and become more creative and open to change. Workplace (also called workforce) diversity
can generally be identified as "an organization, in which employees possess distinct elements and qualities, differing
from one another”. (Foma., 2014)Review of previous literature on workforce diversity has shown that the majority of
the researchers are considering these elements and qualities in wide concept embracing class, ethnicity, gender,
physical and mental ability, race, sexual orientation, spiritual practice. (Angel., 2016) (Mrs. Doris., 2016) (Darwin,
2015) Also, the researchers have noticed that workforce diversity does not impact business performance. We have
found this definition too broad and unclear to examine this issue. In this regard, we have narrowed the scope of the
definition of workforce diversity for our research and will consider only gender diversity within organizations in New
Zealand. We have chosen gender diversity based on actuality the issue in the country. According to the Stats NZ data
female participation over the two decades in workforce rate slightly has been increased from 58 to 62 percent. In
contrast, male workforce participation has been stable and fluctuating around 74 percent. As is the case with female
representation in the management, on average, females hold 44% of the roles at the governance level overall. (Stat NZ,
2014) Based on the New Zealand Diversity Survey in 2017, data has been shown that public-sector organizations have
female representation at the decision-making level more than private-sector organizations. In private-sector
organizations, women make up less than 25 percent of the leadership team and governance. Across the surveys carried
out in 2017 among various organizations of New Zealand gender has been identified among crucial diversity issues in
ranking 32% - 45%. (Dr. Terruhn., 2017) Thus, we can see the issue of gender diversity and its impact on organizations
in New Zealand is open and actual. It should be noted that looking at gender diversity within the framework of
business performance, organizations can gain a range of advantages. For example, gender diversity can be associated
with resources that can provide organizations with a sustained competitive advantage. These resources can comprise
market insight, different cognitive abilities and improved problem-solving. Gender workforce diversity can provide a
better understanding of the different needs of male and female customers. Moreover, gender diverse workplace may
enhance overall creativity and innovation. From another side, gender diversity may have adverse effect role
expectations based on stereotypes, a lack of cooperation and increased conflict among group members. (Dr. Metz.,
2007) Some of the previous researchers also have indicated that gender diversity tends to reduce coordination,
communication and increase employee turnover. (Darwin., 2015) All of these outcomes may impact on business
performance overall. As known New Zealand is a socially diverse and inclusive nation. However, reviewing literature,
we have found there is lack of New Zealand research into gender workforce diversity and its impact on business
performance. Moreover, we have decided to confine a definition of business performance for our research and this
issue will be considered only as financial performance. Thus, statistics of New Zealand and review of literature have
given us the base of our research topic that is “gender workforce diversity within organizations of New Zealand and its
influence on financial performance". In our research, we will analyze fifteen New Zealand organizations. The research
will be based on secondary data such as annual reports, code of conduct and diversity policy.
1. Literature review

This section introduces the current academic literature related to the research topic, which is workforce diversity and
its impact on the organization. First of all, this section shows different aspects of the research topic in which the
researchers were focused on. Secondly, this section explains the relation between workforce diversity in the
organization and its performance by discussing the current literature. Finally, this section describes the researchers
conclusions related to the workforce diversity and how it impact organizations. The review of current academic
literature has shown that the researchers emphasized on three different aspects of workforce diversity in an
organization. The first aspect is how the workforce diversity affects the organization’s performance. The second one is
what are the benefits and breadth of issues that workforce diversity brings, and the last is how do organizations
manage or can manage their workforce diversity more effectively.

All authors described a diversified workforce is key factor of organization which is somehow effects on organization. As
workforce diversity is a broader topic to discuss, the researchers have mostly chosen one or more of the demographic
group, mostly: age, gender, and ethnicity. They have made an empirical judgment which is whether age, gender, and
ethnicity have direct linkage to organizations performance or not.

All the authors cited the benefits of workforce diversity like - increase in the pool of qualified personnel from different
backgrounds, increase productivity, creativity, and improves problem-solving. The authors (Darwin Joseph &
Selvaraj., 2015) (FAROOQI, 2017) (Idrees, Abbasi, & Waqas, 2013) felt that the workforce diversity demographics like
age and ethnicity have more benefits like they found that the younger generation is more aware of the new technology
and are bigger risk takers than the older generation. It was also noticed in the organizations of Singapore, Nigeria, and
Pakistan that the older generation was cognitive and had balanced socio-emotion. The researchers even said how the
organizations could benefit from the combination of both the age groups. In the research paper by (Fleury, 2016), the
author had very well explained the emergence of the workforce diversity in Brazilian organisations and theoretical
concept of culture diversity. The author had collected data from six different organisation but however, the findings
was presented on only one company in the form of case study analysis. Brazilian organization found that the white
men were more committed to the company objective than the black, the black’s felt more prejudiced. However, all the
authors who had gender demographic as one of its parameter believed that the organizations definitely would have a
more advantageous position as the decisions taken will be more sound. They also acknowledged that the workforce
diversity bring their own complexities like no proper communication due to age gap and ethnicity issues, different
ways of doing work, discrimination, resistant of not adopting the new culture, not able to adjust with others attitudes
and behaviour. The research paper by (Darwin Joseph & Selvaraj., 2015), the author had a very good understanding of
the workforce diversity this is seen through the empirical theory and even though the statistical hypothesis formed.
The research and methodology were very well defined and the author analysed the data to prove there with no
significance between workforce diversity demographics like age, gender and ethnicity and organization performance.
Limitations and suggestions were clearly outlined and were feasible. The authors (Foma, 2014), (Mrs. Doris Wanja
Gitonga, Kamaara, & Orwa, 2016) (Darwin Joseph & Selvaraj., 2015) strongly feel that there is no significant influence
of workforce diversity on the performance of the company but it has been identified that “The organizational strategies
of individual companies are likely to have an influence on the impact of workforce diversity”. It has also been
concluded that the workforce diversity has a positive impact on working for an organisation and creates a harmonious
environment to work in. In spite of different aspects on the research topic, it that has been evident from the research
papers under review that there is no direct link between the workforce diversity and the business performance.
However, all the authors summarized that organization are facing the biggest challenge in terms of managing their
diversified workforce and are in constant need of monitoring and managing them to derive the best outcomes.
2. Research question and hypothesis

Empircal studies discussed in the previous chapter have proven that organisations have been facing workforce
diversity related issues. During the literature we observed not much work done relating to workforce diversity in New
Zealand. This had interested to research on workforce diversity in New Zealand. As workforce diversity is a vast area,
given the time limitation we have narrowed down our research specifically on ‘gender diversity’. The area that impact a
highly diversified workforce is the performance of the organisation. The performance of the organisation can be
measured by 4 different metrics, they are fiancial, customer, process and people. (Jackson, 2017) For the purpose of
this research we have decided to measure the organisation performance by using financial metric i.e., gross revenue of
the company. The reason to use financial metric is can be quantified and it is a direct measure of how a company is
performing. The other metrics are qualitative and more subjective in nature.

2.1 Research questions

Research questions are used to explain the purpose of the study and they used for guiding the research. The research
question for this paper is ‘whether there is a relationship between the gender diversity and financial performance of
the company?’ As the purpose of this research is check if financial performance of the company i.e., revenue/sales is
impacted by the gender diversity or it is completed independent factor which is influenced by other factors.

2.2 Hypothesis

Hypothesis are formal statements that present the expected relationship between the dependent and independent
variables. The hypothesis can either be non-directional or directional. The hypothesis for the research were as follows:

Research hypothesis (H1): There is a relationship between gender diversity and financial performance of the company.

Null hypothesis (H0): There is no relationship between gender diversity and fiancial performance of the company.

The above hypothesis were tested using the methodology mentioned in the next chapter.
3. Research Methodology and Methods

In this section, we will outline the research undertaken, the methods by which the research was carried out and why
did we choose the methodology. In this section we will also discuss how did we collect the data and why do we think it
is appropriate for this research. We will discuss the research material used to carry out the research and why we deem
it appropriate for this research. It will also focus on the methods used for analysing the data and why do we deem it
appropriate for this research.

4.1 Objective of the research

The objective of this research is to find if there is any relationship between gender diversity and financial performance
of the company or not. The research findings will be compared to the previous research to see if New Zealand differ
from the previous research findings. The research has several limitations due to time constraint. But as there is rarely
any research on this subject matter, this research will throw more light on the pressing issues which all the companies
are facing Worldwide. As New Zealand is also exposed to the global markets of the World we would like to present our
research to explore this area and recommend the future researchers to explore primary data and qualitative methods
to find more accurate results.

4.2 Sources of data

Data collection plays a very crucial role in the statistical analysis. Data can be collected by two means they are primary
data and secondary data. (Douglas, 2015)Primary data is the data collected by the researchers for the first time while
secondary data is collected from pre-existing sources. Primary data is related to more factual and first-hand data,
whereas secondary data is related to just analysis and interpretation of primary data. The main reason for collecting
the primary data is to solve a problem in hand secondary data is collected for other purposes. Primary data is collected
by the researchers for the first time and it is a real-time data. Secondary data is pre-collected data and relates to the
past. Primary data collection is a very involved process. On the other hand, secondary data collection process is rapid
and easy. Primary data sources include surveys, observations, experiments, questionnaire, personal interview etc. on
the other contrary, secondary data collection sources are government publications, websites, books, journal articles,
internal records etc. For purpose of this research, we are depending on the secondary data sources for lack of time and
ease of carrying the research with factual data. However, we recommend for future researchers to use primary data
collection based on surveys or exploratory methods. The previous researchers have used primary data as the source of
data. We have decided to use secondary data to see if the results differ from what the previous researchers.

4.3 Data collection

Secondary data sources used for collecting data are based on the annual reports of the 15 companies for the financial
information. The diversity information is obtained from the annual report as well or a different diversity report
published by the companies. This method of data collection was chosen to ensure that we get the ethical figures as
these numbers are audited by the external auditors. The figures are ethical or not is also checked by checking if the
company is a listed company on any of the stock exchange in the world.

4.4 Data size and samples

The data size has been chosen is 15 companies. We have chosen the size as 15 companies to compare and contrast the
data of diversified companies. The previous researches performed the research and concluded that diversity of any sort
does not affect the financial performance of the company. However, there has not been much research on diversity in
the New Zealand workforce and more importantly gender diversity in New Zealand. Our research focuses on gender
diversity in New Zealand, which will differ our research from the previous researches. The size of the data might not be
the appropriate projection of all the companies in New Zealand, however, for the purpose of our research, we have
decided to analysis the data for 15 companies to test our hypothesis. We have selected a sample size of 15 companies to
ensure there is no bias in our results. We have chosen 15 companies belonging to high, medium and low financial
performing companies. The samples selected for the purpose of this research is on a random basis. The only criteria to
choose the companies as they have their presence in New Zealand irrespective of the size or profits of the companies.
The companies selected are a mix of established in New Zealand and not established in New Zealand.

4.5 Data analysis

In order to test the relationship between the gender diversity and financial performance of the companies, we chose
statistical method i.e. regression analysis. “Regression analysis is used to study the relationship between two or more
variables. Moreover, the regression technique is used to observe changes in the dependent variable with changes in the
independent variables. The parameters in the regression equation are obtained by using the least square method.”
(Regression Analysis, n.d.) The independent variable is gender diversity and the dependent variable is the financial
performance of the companies. There are few assumptions made under the regression analysis as followed:

 The error term follows a normal distribution with mean 0 and constant variance.
 There is no correlation between independent variables and error terms.
 The error term is the same for all values of the independent variable.

There are two types of regression techniques, Linear Regression and Non-Linear Regression. Linear Regression
Analysis is categorized into two types, Simple Linear Regression and Multiple Linear Regression. Simple linear
regression is used to study the linear relationship between one independent and one dependent variable. Multiple
linear regression is used to study the linear relationship between one dependent variable and more than two
independent variables. Non-linear regression is used to study the non-linear relationship between two or more
variables. Non-linear regression can be categorized into following types, Polynomial regression, Logistic regression,
Power model regression, Weibull growth model regression, Exponential regression and Poisson regression.

For the purpose of this research, we will be using multiple linear regression technique. As the objective of the research
is to find out if there is any relationship between gender diversity and financial performance of the company. This
methodology of analysing the data is considered appropriate as a relationship between two variable can be tested
statistically. Our previous researches have also correlation coefficient to analysis their data as it helps us to find the
relationship between two variables. We have also used descriptive statistics in the results sections to describe about
our data and the results that we found.

4.6 Data assumption and limitations

The research has been conducted on various assumptions. The gender diversity information provided by the
companies are right and the financial information true and fair. We have not validated the gender diversity number
against the gender diversity policy of the companies. We recommend the future researchers to validate the gender
diversity numbers with the gender diversity policy. This will give a true picture of whether the gender diversity
numbers project the diversity policy of the company or not. Due to time constraint, the research has been prepared
using the secondary data. We recommend the future researchers can use primary data sources and qualitative data
analysis techniques to have more factual data as this will help derive at a workable solution to the problem at hand. As
the use of the secondary data will only tell us if our hypothesis is correct or not. The sample size is not an ideal size and
does not give a real projection of all the companies in New Zealand. The size of the sample can be increased to include
factors like high and low diversified companies, high and low revenue generating companies, companies with high
migrants etc.

4.7 Timeframe

This project will start with the data collection from fifteen different companies which will take around three days. After
the data collection, we will start putting the data in the format required for the regression analysis. After the data is
obtained from the regression analysis, we will analysis the data and compare and contrast with the prvious research
which will take around one week. The overall project will require a timeframe of 15 days.
4. Results

This section displays the result of the multiple regression analysis involving the 15 companies gender diversity and
financial performance details. This result will help us to understand if the research hypothesis can be accepted or null
hypothesis should be accepted. We have considered the gender diversity and financial performance details of the
following 15 companies, all these companies have their presence in New Zealand:

Sl. No Company Name


1 Contact Energy
2 The Warehouse Group
3 Fisher & Pakel
4 Woolworths Group
5 Air New Zealand
6 westpac
7 Wellington Airport
8 Meinfreight
9 Genesis Energy
10 Fonterra
11 a2 Milk
12 Smiths City Group
13 Spark
14 Trust Power
15 Xero

The dependent variable was financial performance of the companies and the independent variable was the gender
diversity of the company. The financial performance was total revenue/sales in New Zealand dollars in millions. The
gender diversity was considered as percentage of the total female and male employees of the company. We have
considered percentage as this will give consistency on the independent variable. The limitation of the taking the
number of employees as whole was certain companies companies had more employees as compared to the other
companies. Majority of the companies with high revenue had 60% of male and 40% of female. (table as below)

Company Name Male % Female% Total Revenue/Sales 2017 (NZ $ mn)


Westpac 0.60 0.40 37,518
Fonterra 0.60 0.40 19,200
Air New Zealand 0.59 0.41 4,376

As the revenue decreased we found inconsistency in the male and female ratio. 3 out of the 15 samples only had female
ratio more than the male ratio.
Our results revealed that the sample data collect did not have much significance (R: 0.0464, F: 0.2922). Futher we also
found that the there is no relationship between gender diversity and financial performance of the company (p-value:
0.6654). Hence, we will be accepting the null hypothesis for this research and concluding there is no significant
relationship between gender diversity and financial performance of the company.
5. Discussion

Our research was based on two variables which are gender diversity within organizations of New Zealand and financial
performance. The objective of the study was to establish whether one variable -gender workforce diversity influences
on another variable -financial performance or no. The results of regression analysis did not give empirical support for
the proposition about gender workforce diversity’s impact on financial performance. One possible reason for this can
be that the financial performance of a company may be driven by various other factors such as micro which include
internal factors or macro/external factors. Any changes in internal factors, such as operational cost management,
income diversification, capital adequacy or liquidity may effect ambiguous on a company's financial performance. For
instance, moderate amount of liquidity may propel financial performance, but an surplus of liquidity may adverse
impact on it. The same related to external factors, where any volatility of economic or political environment correlate
with financial business performance. Therefore, gender diversity may contribute towards financial performance of
organization, but not significantly as there are other types diversity which we have not discussed. For example, age,
ethnicity, religion and others. Looking across previous research we found that the authors (Ehimare., A & Ogaga--
Oghene., J.) also did not find support for a hypothesis about workforce diversity’s impact on organizational
effectiveness. However, the authors found significant correlations between some of the diversity variables, as well as
individual diversity variables with the measures of organizational effectiveness. For example, gender was negatively
related to employee productivity and performance bonus (rs = -.275 and -.111, ps<0.01 respectively), but is
significantly related to employee productivity (r = -.275, p<0.01). Another researchers (Darwin Joseph R. &
Palanisamy Selvaraj) which examined relationship between gender diversity and employee performance in Singapore
Organisations found mean and standard deviation estimated for the responses on the effect of gender diversity. The
results shown 45.9% of respondents have agreed that genders are good for team performance, whereas 18.0%
disagreed with that. The positive impact of the female has been acknowledged by 55.7%. About 21.2% had disagreed
to perceive gender diversity as corporate image and brand value. Moreover, gender diversity has been viewed as an
effective tool for achieving targets by 56.3% and 34.8% remained neutral and 8.9% disagreed. The authors concluded
that there is no significant relationship between gender diversity and employee performance. However, researchers
pointed out that there is a positive relationship (0.032) between gender of employees and their performance. The
value of correlation coefficient (0.032) falls in the range of 0 to 0.19 which is interpreted as “very low and almost
negligible”. The significance of the relationship is 0.572 which is greater than 0.05. Thus, the researchers accepted null
hypothesis that there is no significant relationship between gender diversity and performance.

(Fleury., M.) has accomplished an exploratory research in Brazilian companies. The aim was to research the company
competitiveness showing how a policy of managing cultural diversity can bring out or develop new competencies,
adding value to the business. The author used the qualitative method, such as case study. The case study included the
company of the USA, with branches in 22 countries; it employs 17,000 people in approximately 100 plants around the
world, its revenue is US$6 billion. The research was conducted among the employees, aiming at gathering their
perceptions about diversity. Was observed that most do not perceive recruitment and career promotion to contribute
to a diversified environment. The case study has observed developed a set of indicators (quantitative and qualitative),
in order to measure the effectiveness of diverse programs are related to achieving business targets. Indicators of inputs
(related for example with recruiting a diversified labour force, job rotation, and so on) are being combined with an
indicator of outputs (adding value to the organization). Findings from the case study have shown that in a country like
Brazil, a quite heterogeneous society, with great social inequalities, the theme of cultural diversity is of great
importance to the company’s value. The rest of the researchers broadly measured diversity on workplace and used only
descriptive analyses in their studies.

5.1 Implications for the New Zealand managers

This research has concluded there is no significant relationship between gender diversity and financial performance.
However, gender diversity at workplace are very important factor to bring new perspective. It is a well known fact that
men and women perceive a situation or a problem from totally different veiwpoints and come up with the solutions
accordingly. Thus the organization can benefit from varied creative ideas and in-depth insights, which can ultimately
lead to superior performance. Gender diversity will also helps to expand the customer base and help relate to the
customers better. In a gender diverse workplace, good morale always leads to a healthy work culture where employees
motivate each other to perform at a high level. If managers dynamically promote equality and workforce diversity,
then the organisation will flourish and people of all qualifications and backgrounds can come together and attain
accomplishment. For these above and other reasons, it is always important for organizations to make the gender
diversity as a priority.
6. Limitations

As all research have limitations , even this research had few limitations. The limitations were as follows:

 Due to time constraint, we were able to performance research on secondary data only.

 The gender diversity numbers were assumed to be correct and not compared to the gender diversity policy.

 The sample size chosen for this research is not ideal and not a true presentatives of all the New Zealand
companies. As major New Zealand business are small scale but do not have the information of the
organisation revenue and gender diversity information online we had to choose companies only with Global
presence.

7. Conclusion

Gender diversity is considered to be an understated fact. Diversity is consider the main drivers of the innovation.
Though our results did not any relationship between gender diversified companies and their financial performance, it
will not be wrong to say that they do have positive impact on the work place dynamics. As we had certain limitation
when we carried out this research we were not able to go in depth analysis of impact of gender diversity. We suggest
that the future researchers have more scope to perform a research on gender diversity and its impact on the financial
performance. The future researchers can validate the numbers of the gender diversity of the company against the
policy of the company to see they follow what they say. The gender diversity may not have impact on financial
performance of the company as a single variable, hence the for the future research it can be coupled with the other
diversity factors like age, ethnicity etc and a research can be conducted to check its impact. There is also a scope to
check just on the financial performance of the company but the future researches can also conduct exploratory
research to check its impact on the work place dynamics.

This research has given an opportunity to learn about how important is gender diversity and it also gave us so much
insight on how do companies value gender diversity. This research brought us certain facts that companies still are
driven majorly men and women still have to find their way up.
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