Parker review of ethnic diversity on boards showed good progress being made, says Chartered Governance Institute for UK & Ireland
The Chartered Governance Institute UK & Ireland (CGIUKI) welcomes publication today from Sir John Parker’s review committee because his committee is on Improving the Ethnic Diversity of UK Boards.
Peter Swabey, FCG Policy & Research Director at The Chartered Governance Institute for England and Ireland (CGIUKI), said:
“We welcome publication today of the latest update of the Parker Review. It showed the original target set by the review committee has nearly been met, with only three FTSE 100 companies . They do not now have at least one director from an ethnic minority background on their board.
“ Moreover, this increase in board diversity mirrors the results of The Institute’s own survey of FTSE 350 companies. Our Bellwether survey of the FTSE 350 showed that 55 % of respondents consider their boards to be ethnically diverse. This was substantial progress on our December 2019 report . That report showed just 29 % of respondents considered their boards diverse, demonstrating the pace of change.
“This is very positive news and sets the standard for FTSE 250 Boards to match this success by 2024.
“Moreover, we have seen great and positive changes in gender diversity in recent years. We would encourage greater attention on improving ethnic diversity both at board level and supporting the talent pipeline“
“The governance professional plays a unique role as bridge between the board and the organisation, supporting the realisation of a common culture and corporate purpose. After all, the visibility of an ethnically diverse board and senior leadership sends an important signal to employees and investors of that culture. “However, as we have said with gender diversity, the central issue remains in the executive pipeline, and it is disappointing to see so few executive directors from ethnic minorities. Companies should develop a diverse pipeline of board-ready candidates and include these individuals in future succession planning. They should also seek to enhance transparency and disclosure of their records and track progress against their diversity objectives.”
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