-
UK’s largest companies urged to increase transparency
around diversity policies and targets
-
new Business Diversity and Inclusion Group meets for
the first time
-
the Financial Reporting Council will consider proposals
for greater transparency around diversity as part of a review
of the UK Corporate Governance Code
Business Minister today (7 September) urged the
UK’s largest companies to increase transparency about the
diversity of their workforce ahead of the first meeting of the
new Business Diversity and Inclusion Group.
The group was set up to coordinate action to increase diversity
and inclusion in business and build on the work of a number of
government-backed reviews led by senior business leaders into
workplace diversity. At today’s meeting chaired by Business
Minister , the group will seek to
establish what information listed companies could disclose to
help tackle barriers in the workplace.
It comes a week after the government put forward proposals for
listed companies to increase transparency about their diversity
policies, targets and progress towards those targets, as part of
its corporate governance reforms.
The Financial Reporting Council (FRC), which sets high
standards of governance for listed firms through the UK Corporate
Governance Code, will consider the government’s proposals as part
of a review of its code later this year.
Speaking ahead of chairing the first-ever meeting of the Business
Diversity and Inclusion Group today, Business Minister said:
Being open and transparent about the diversity of workforces is
effective in bringing about cultural change – helping to remove
barriers in the workplace from the shop floor to the boardroom.
So I am calling on our largest companies to lead from the front
and promote greater inclusion in their workplaces by increasing
transparency about their diversity policies, targets and
progress.
I would also like to acknowledge the hugely valuable role
played by the late Dame Helen Alexander in the effective work
on the gender issue. Her loss will be felt by all members of
the group.
Stephen Haddrill, CEO, FRC, said:
Diversity at all levels in organisations builds strong
foundations for long-term success, in both the private and the
public sector. Making good use of the talent, skills and
experience of all drives better corporate performance and a
successful economy.
Those businesses which reflect the diverse nature of the
environment in which they and their stakeholders operate are
the ones that employees, customers and other stakeholders
value.
The Business Diversity and Inclusion Group will build on the work
of a number of government-backed reviews into workplace
diversity, including:
All reviews have set targets to improve diversity in the
workplace including aiming for 33% of FTSE
350 board positions to be filled by women by 2020,
all FTSE
350 firms to have at least one director from an
ethnic minority and for all companies with more than 50 employees
to publish a breakdown of their workforce by race and pay band.
The meeting is set to be attended by:
- Business Minister
- Minister for Women
-
, Chair of
Race in the Workplace Review
- Sir John Parker, Chair of Ethnic Diversity on Boards Review
- Sir Philip Hampton, Chair of FTSE Women Leaders Review
- Jayne-Anne Gadhia, Government champion for women in finance
- Stephen Haddrill, Chief Executive of the Financial Reporting
Council
- David Isaac, Chief Executive of the Equalities and Human
Right Commission
- Amanda Mackenzie, Chief Executive of Business in the
Community
- Lady Barbara Judge, chair of the Institute of Directors
- Neil Carberry, Managing Director of People and Infrastructure
at the Confederation of British Industry
- Denise Wilson, CEO of the
Hampton-Alexander Review
Notes to editors
- The Hampton-Alexander Review was published in November 2016.
The key recommendations were:
- 33% target for women on FTSE
350 Boards by the end of 2020
- 33% target for women on FTSE
100 Executive Committees and Direct Reports to
the Executive Committee on a combined basis by 2020
-
FTSE
350 companies to increase number of women roles
of Chair, Senior Independent Director and into Executive
Director positions on their boards
- The McGregor-Smith Review was published in February 2017. The
key recommendations for companies with more than 50 employees
were to:
- publish a breakdown of their workforce by race and pay
band
- draw up 5-year aspirational diversity targets
- nominate a board member to deliver on these targets
- The Parker Review was published in November 2016. The key
recommendation for FTSE
350 companies was to:
- have at least one director from an ethnic minority
