Released 20 July 2021
The Financial Reporting Council (FRC), in conjunction with London Business School, has published research highlighting the positive effects that more diverse boards have on UK Listed companies.
To maximise the benefits, boards should acknowledge that change takes time and diversity, without active inclusion, lessens the likelihood of attracting new talent.
The main findings of Board Diversity and Effectiveness in FTSE 350 Companies include:
•responsibility rests on the Chair of a board to increase inclusion;
•regulators and companies must focus on collecting more data on types of diversity, board dynamics and social inclusion;
•the Nomination Committee itself should be diverse and clarify its mandate to work with search firms that pool talent from wide and diverse groups; and
•greater representation of women in the boardroom is reshaping culture and dynamics that benefit businesses from a social justice as well as a performance perspective.
Further details can be found at: https://www.frc.org.uk/news/july-2021/diverse-boards-lead-to-better-corporate-culture-an.