Diversity progress 'painfully slow': Change the Race Ratio campaign calls FTSE companies to take action

Diversity progress 'painfully slow': Change the Race Ratio campaign calls FTSE companies to take action

 

Diversity progress 'painfully slow' on racial and ethnic diversity in corporate companies. The employers' body, CBI (Confederation of British Industry), has recently launched its Change the Race Ratio campaign, and warns that business was likely to miss the 2016 government review targets set around diversity at work. 

With 37% of FTSE 100 firms having no ethic minority representation at board level, the CBI called for such firms to ensure they have at least one person of an ethnic minority background on their boards by 2021, asking companies to set clear targets for diversity within management and to publish progress annually.

See below for comments from our experts regarding the impact on Employment and Corporate Law:

 

Philip Thornton, LexisNexis Employment Law

 

The ‘Change the Race Ratio’ campaign, being launched by the CBI, alongside companies including Aviva, Brunswick, Deloitte and Microsoft, has as its overall objective the achievement of an increase in participation in British businesses by persons from racial and ethnic minority backgrounds.

More specifically, it commits those companies that sign up to the campaign to a number of goals, including:

  • FTSE 100 firms to have at least one racially and ethnically diverse board member by end 2021
  • FTSE 250 to have at least one racially and ethnically diverse board member by 2024
  • to take action to set clear and stretching targets to increase racial and ethnic diversity at executive committee level, and one step below that, and publish them within 12 months
  • to establish a separate target for black participation at both those levels
  • to disclose ethnicity pay gaps by 2022 at the latest
  • to focus on recruitment and talent development processes to drive a more diverse pipeline

Although the legal framework for gender pay gap reporting is already in place, there is no parallel legal duty in relation to race or ethnicity. The government ran a consultation on introducing such a duty that closed in January 2019, but as yet no outcome has been published. This campaign is thus asking those that sign

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Amy leads the content marketing strategy for LexisNexis UK, writing thought leadership and product content for marketing campaigns, insight reports and legal industry magazines. She is an established writer and researcher, having contributed in national publications, such as City A.M. and Financial IT. She is also one of the writers and digital editors of LexisNexis' insights blogs, the Future of Law and the In-house blog.