Employment bodies hit out at FTSE boards over lack of diversity
Employment bodies have hit out at the UK’s largest companies after today’s Parker report review found that it will be “challenging” for FTSE 100 firms to hit diversity targets by next year.
In 2017 the initial report recommended that all FTSE 100 boards should have at least one director from an ethnic minority background by 2021.
However today’s review finds that only 37 per cent of FTSE 100 boards had met this target, with only 11 companies adding an ethnic minority director since 2019.
In addition, 69 per cent of FTSE 250 companies surveyed – 119 of the 203 respondents – did not have any ethnic minority representation on boards.
Dr Jill Miller, senior policy adviser for diversity and inclusion at the Chartered Institute of Personnel and Development, said:
“The lack of ethnic diversity at the top of organisations is unacceptable in 2020 and although we are seeing movement in the right direction, the speed of progress reported today is disappointing.
“Action is long overdue and must be a business priority.”
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Matthew Fell, CBI chief UK policy director, echoed her comments: “While some FTSE firms have made measurable progress when it comes to ethnic diversity in the boardroom, the bottom line is business has to significantly up its game.”
On the fact that over 50 FTSE 350 constituent companies did not respond to the survey, he added:
“It is an essential first step that every FTSE company shares their data with the Review – there are no excuses for not doing so.”
Hephzi Pemberton, chief executive of Equality Group, which focuses on diversity in the financial services and tech sectors, said:
“As a society of business leaders, decision-makers and professionals we need to be committed to applying strategies that would challenge the systemic discrimination and create access to a democratised career ladder that promotes inclusion for all at every level.”
Raph Mokades, managing director at Rare Recruitment, said that part of the challenge was ensuring that diverse talent was retained:
“Employees who can’t see a place for themselves at senior levels are going to leave, and until more work and thought goes into retaining diverse talent and improving workplace culture, the view at the top will not change.
“The review illustrates the difference between the companies that are systematic in their approach to retaining and promoting people, and those that just aren’t there yet.”