CBI calls on firms to improve diversity
In a bid to boost the number of female employees on boards, all
listed companies could be asked to track their progress on the
issue.
The Confederation of British Industry (CBI) has called for the
UK Corporate Governance Code to be reviewed and revised in order to
encourage firms to improve diversity.
Listed companies may be required to report on the ways in which
they are embracing diversity within their organisations, on a
'comply or explain' basis.
The CBI's proposal would see firms reporting their progress in
line with internally set targets and, if they fail to hit the
targets, being asked to explain why. Certain firms that already
employ a higher number of women will set higher targets.
CBI President, Helen Alexander, said, "Boardrooms should harness
the talents of the many, not just the few. Although women make up
half of the population and more than half of university graduates,
they remain woefully under-represented at board level.
"What is needed is cultural change, not quotas, ratios or
tokenism. That is why we are calling for a flexible system that
will allow firms to set targets that reflect the realities of their
businesses," Ms Alexander added.
The CBI's proposal follows in the footsteps of a similar scheme
which has already been rolled out in Australia, to great
success.
As a result of the scheme, in the first half of this year, 27
per cent of new appointments to Australian firms were women,
compared to just five per cent over the same period last year.