From James Brockett in People Management:
All listed companies should be required to measure their progress on improving diversity but there should be no quotas for the number of women on boards, the CBI has argued.
In its submission to the review being carried out by Lord Davies on increasing female representation in the boardroom, the business group called for the UK corporate governance code to be revised to require listed companies to report on diversity on a “comply or explain basis”. This would mean companies reporting on their progress towards internally-set targets and having to explain if they fail to deliver.
Firms in sectors with many female employees would be expected to set themselves higher targets on female representation than in more male-dominated industries which would be starting from a lower base.
The CBI pointed out that an Australian scheme along these lines has already resulted in 27 per cent of new board appointments in 2010 being women, compared to just 5 per cent in 2009.
CBI president Helen Alexander said: “Although women make up half of the population and more than half of university graduates, they remain woefully under-represented at board level. We need to see more women progressing through the ranks and do more to keep them moving along the career pipeline into the top jobs. Schemes such as flexible working, mentoring and networking have helped, but making progress at the very top levels of business will require more sophisticated talent management. What is needed is cultural change, not quotas, ratios or tokenism.”
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