If you talk a lot about a subject with conviction then people can believe you are knowledgeable on that topic, possibly an expert. Perhaps the same is true for companies, if we talk about diversity a lot and have a policy then we must be really good at it! The stats would tend to argue the opposite point of view. The quote from attached article states 98% of FTSE 100 have diversity policies yet only 15% comply with the guidance from the corporate governance watchdog.
There is progress 29% of FTSE board appointees are women and that is followed closely by 23% in FTSE 250 but globally less than 2% of CEO roles are held by females according to recent IMF research. The power for change is with the shareholders but then who are the leaders that control the larger portion of shareholdings?
Box ticking is not going to change the situation fast enough. The gender pay gap reporting has created a focus in many organisations on practical steps to address underlying organisational issues but can we wait that long?
Despite 98% of FTSE 100 companies having a policy on the issue, the Financial Reporting Council’s latest research shows that only 15% of them are actually bothering to comply fully with the corporate governance watchdog’s guidance on diversity. To be clear, the strictures of this code are not exactly tough. Companies are asked by the FRC to do four things: explain the company’s process around board appointments, including its diversity policy; describe measurable objectives to fulfill the policy; report progress against those objectives; and say whether it has used search firms or openly advertised for candidates, to stop the chairman simply tapping up his friends. There’s not much to do here, yet 85% of London’s biggest listed companies can’t even do that.