Upcoming Events :
Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
Government backs calls for more boardroom diversity
Fri 28 May 2010
The government has expressed its support for calls to make boardrooms in the UK more diverse.
A new Corporate Governance Code was unveiled recently by the Financial Reporting Council (FRC), which included a recommendation to have a greater number of women in the boardroom.
According to equalities minister Lynne Featherstone, this is a very positive step, as only 12 per cent of FTSE 100 directors are female.
She said a more equal workplace would help businesses become more successful and help the UK become a fairer society.
Sue Kelly, an employment partner at Winckworth Sherwood, said: "It certainly seems counter-intuitive that ignoring half of the potential talent pool in promoting to the board should be good for business - and research confirms that it is not.
"A lack of diversity means that a group of like-minded individuals tend to reinforce each other's views rather than engaging in creative debate."
Meanwhile, business minister Edward Davey stated that Britain's corporate society will become more responsible and transparent if the FRC's recommendations are implemented.
He said greater transparency is "integral" to rebuilding the public's trust in the corporate sector.
Baroness Hogg, chairman of the FRC, added that the new code has been designed to reinforce board quality and make business leaders more accountable to shareholders.
