Boardroom diversity consultation launched
A consultation into whether listed firms should be required to
publish their gender diversity policies has been launched.
The move comes following a recommendation in Lord Davies’ recent
'Women on Boards' report. Launched by The Financial Reporting
Council (FRC), the consultation will investigate whether revisions
should be made to the UK Corporate Governance Code.
The revisions could require listed companies to publish these
policies and report on them each year.
Baroness Hogg, FRC Chairman, said, "Board diversity and
effectiveness are closely linked. Diversity widens the perspectives
brought to bear on decision-making, avoids too great a similarity
of attitude and helps companies understand their customers and
workforces.
"A board with too few women on it risks a weakness in at least
one of these respects. But as Lord Davies noted in his report, the
rate of change in recent years has been glacial. That is why we are
now responding to his proposal that boards should report on their
gender diversity policy by consulting on whether it would be
appropriate to add this to the Code,” she added.
The consultation will close on 29 July 2011, and a decision on
whether to introduce the proposed revisions will be announced
before the end of the year.