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The issue of women’s representation in top jobs has been making headlines more and more.
The CBI takes this issue seriously and through our work on diversity and boardroom representation we are laying out a positive and workable plan to make progress.
The issue of diversity matters to everyone. You would notice if you walked into a shop and all the customers were women and all the shop assistants were men.
You would notice if all the assistants appeared over 50 but all their customers were teenagers.
We are used to seeing a range of people while out and about. Although it can be harder to spot, the same is true for businesses.
An active approach to diversity is key to business growth, though it is important to appreciate the legal distinction between positive action and positive discrimination.
The former is allowed under existing law and designed to create a level playing field so that historically disadvantaged groups can compete on equal terms. The potential rewards are significant.
An organisation that recruits staff from the widest pool will unleash talent and develop better understanding of its customers.
Promoting diversity in the workplace need not be expensive or time-consuming but it does require a commitment to trigger a change in culture and attitude.
At the top level of the private sector, the CBI believes there is a strong business case for increasing boardroom diversity, which helps to promote good governance and challenge “group think” mentality.
Diverse boards also act as a powerful driver for innovation and creativity, and provide a better reflection of a firm’s customer base.
A few weeks ago, it was reported the number of women on the boards of both FTSE 100 and FTSE 250 companies has increased significantly in the two years since the Davies report, which called for concerted voluntary action by UK companies to redress the gender imbalance of UK boards.
Yet comparatively few women are in key executive positions. The direction of travel is encouraging, with only seven all-male boards left in the FTSE 100. There were 21 when the report was published.
Businesses seeking to improve boardroom diversity need to think how best to develop their emerging management and executive talent.
Businesses know the employee journey through a typical career is much more varied and sporadic than previous generations.
As a result, how companies treat their employees is under greater scrutiny than ever before. The smart companies know this and it is the smart companies that grow.