Firms slow to reap the benefits of above-board diversity

It's becoming increasingly acknowledged that boosting diversity and social mobility isn't just a good thing to do, but a strategic business imperative for growth and an improved bottom line. 

Ever since McKinsey's publication of evidence in 2015, showing the clear link between increased diversity within a business and performance, the case has only become stronger. 

This makes sense. A group of people with different talents, skills and experiences; holistic approaches to complex and nuanced problems, and the elimination of the danger of 'groupthink,' trumps the dangers of a narrow approach to operating a business.

While strides have been taken in the right direction, some businesses aren't realising this benefit as soon as they should. 

The Parker Review, whose analysis published this week, showed more than a third of the UK’s leading businesses do not have any representation of ethnic minorities on their boards.

Its findings showed that only 37% of FTSE100 businesses had non-white members of their board. 

Performing even worse than FTSE100 boards on diversity, was the FTSE250. Of the 173 FTSE 250 companies observed in the dataset, 119, or 69%, had no ethnic diversity on their respective boards. 

And while there has been a marginal improvement on board diversity since the Report was originally set up in 2017, there's still a long way to go, and a lot of progress to make. 

But this isn't just a blow for diversity as a principle and ethical good. But it's crucial for the intrinsic business case to be made. 

It's an approach that champions and advocates how businesses can improve their revenues and profits by unlocking and levelling up the talents from diverse backgrounds. 

Callum Crozier,

Director of Policy and Engagement, Social Mobility Pledge