EDITORIAL: ETHNIC DIVERSITY IN THE BOARDROOM – FIVE YEARS ON

It is five years since the publication of the first report into the ethnic diversity of UK boards in 2017 by Sir John Parker and the Parker Review Steering Committee. Last month saw the publication of the latest update on progress.

Despite the range of disruptive impacts that the Covid-19 pandemic has had on companies, including board recruitment, there has been remarkable progress towards achieving the ‘One by 21’ target set out in the Parker Review. 

In the FTSE 100, 89 companies declared in the December 2021 voluntary census that they had achieved the target. An additional five companies have announced new ethnic minority director appointments in early 2022 and, given that a further three companies report that they are actively engaging in recruitment, that is very encouraging. 

Of the three companies which have not signalled their commitment, one is being acquired by a US group and will de-list; another is a Russian steel and mining company, and the final one is a UK subsidiary of a US-based group. 

With three years to go for the target of ‘One by 2024’, the FTSE 250 has also made good progress. Some 55 per cent of companies have achieved the target. This gives genuine hope that the full FTSE 350 will meet the target by 2024. 

It is now generally acknowledged that having a more diverse board enhances good decision-making. Having different perspectives sitting around the table helps to question perceived wisdoms and encourage meaningful, although not always easy, debate. 

In addition, companies that have a reputation for valuing difference and diversity are more likely to attract talented employees. Therefore, valuing diversity will help enable organisations to attract and retain the widest possible talent pool.

You can view the full report here.