Business Sector is Failing Diversity

A recent report released by Green Park has exposed the failing diversity across the business sector, as the number of ethnic minorities and women gaining leadership has become a growing concern.

Despite a campaign by former business secretary Vince Cable to encourage at least one non-white director by 2020, there is still a decline in the number of diverse managers being promoted to the boardroom. While women are maintaining a steady growth in the competition for leadership, the ethnic diversity of those within FTSE 100 companies is nose-diving at a drastic level.

Women now comprise 12.6% of executives and hold 27.9% of non-executive positions, but little has really changed at the board level with an increase from 18.7% to last year’s 18.2%. It’s a slow and steady rise of women in Top 20 and Top 100 positions, and although it offers some encouragement in the case of gender, there is still something of a pipeline for women to be able to gain more executive roles. As women continue to feature disproportionately as non-executive board directors, the true level of influence is far smaller than the numbers suggest.

“Regardless of the focus on increasing diversity within the UK’s FTSE 100 to help businesses become more competitive around the world, the research that has been found clearly illustrates that companies are getting less ethnically diverse rather than more in the past year,” Raj Tulsiani, chief executive of Green Park explained to The Guardian.

As discovered by the report there are no ethnic Chinese or Asian executive directors in the FTSE 100, even though there is significant importance for businesses to embrace Asian economies as trading partners. In total, the FTSE 100 lost the equivalent of 40 if its 480 non-white leaders, whilst the number of all whiteboards has grown by 11%.

Britain’s “widening diversity deficit” is putting the UK’s companies at a huge disadvantage when it comes to doing business on a global scale, as a deeper understanding of diversity is a tool that can develop a company’s growth.

Talent management is the only way forward to encourage the employment of the most successful educational demographic in the UK as it genuinely brings people of different outlooks, experiences, and cultures to the table.

The Financial Reporting Council has indicated that next year, the definition of ‘diversity’ should be expanded to include ‘and race’ in the UK Corporate Governance Code, which will have a momentous impact on reinforcing diversity including race, and encouraging a future-proof workforce. Employers need to ensure that their performance and appraisal processes are fair and transparent so that all staff has equal opportunities for career progression.
Big companies now need to ask themselves why they are not drawing on some of the most talented minorities that could provide them with a competitive edge.

Leave a Reply

Your email address will not be published.

Tinder Metaverse Dating Plans on hold as Business Falters
Business Gadgets and Apps Startups Technology

Tinder Metaverse Dating Plans on hold as Business Falters

Published by BANG Showbiz English Match Group are putting Metaverse dating plans for Tinder on hold. The online dating giant, which funded in 2009 and operates the largest portfolio of dating apps, was originally in talks to have its leading brand Tinder venture into the Metaverse. Following a disappointing set of earnings in the last […]

Read More
Chase Money Order – All Questions Answered
Business Finance

Chase Money Order – All Questions Answered

You can buy a money order at any Chase branch, but it will cost you. The fee for buying one ranges from $5-$8, and then there’s an additional charge depending on where you are located in the country. We contacted various Chase branches to confirm the details of their money order fees. We found that […]

Read More
Is TurboTax Plus Worth it? 2022 Review
Finance Business Education

Is TurboTax Plus Worth it? 2022 Review

How does your tax preparer of choice compare to others? Many online and at-home filing services are available, but Turbo Tax is among the most popular option. With millions of annual users worldwide (and counting), it’s no wonder this program has become such a household name in America! Keep reading if you want an honest […]

Read More