CBI to press for greater gender, ethnic and social diversity in businesses
UK companies risk reducing the issue of diversity to a mere footnote of other priorities, even though it’s a key driver of productivity and competitiveness, according to the leader of one of Britain’s most powerful business lobby groups. In a speech today, Carolyn Fairbairn, director-general of the Confederation of British Industry (CBI), will say that greater diversity in the workplace “is not just a matter of fairness, but a
hard-nosed business case in the face of major changes in demographics and technology”.
According to remarks that she’s due to deliver at a conference in London, Ms Fairbairn will say that progress towards inclusive workplaces must accelerate as a matter of urgency, not just in terms of gender, but also in terms of ethnicity, social background, sexual orientation and age. “We need to use what we know works and make it the norm in all our businesses. Not as a footnote to other priorities, but as a top strategic priority for our country,” she will say.
Ms Fairbairn is expected to say that enhanced diversity in the workplace will be particularly important as we head into “a perfect storm of changes in demographics and technology that will make talent the number one worry for our firms”. “Government has a role, but this is mostly down to us. We must speed things up.”
The CBI has in the past pressed the Government to provide clarity on issues such as immigration and freedom of movement as the UK embarks on Brexit negotiations. Last month the president of the CBI, Paul Drechsler, warned that Britain would face a “Pandora’s box of economic consequences” if it crashed out of the EU without a new trade deal in place. Also in March, Ms Fairbairn warned against “flash-in-thepan industrial strategies” and said that the Government must sharpens its focus in order to navigate economic headwinds and political uncertainty.
Ms Fairbairn is due to say today that although headway has been made in terms of diversity – for example, in appointing more women to senior and management positions – there’s a risk of reversing that progress amid “a time of great change”. According to the CBI, the Government’s Davies Review, first introduced back in 2010, was successful in increasing the share of board jobs going to women from one in seven to one in three, but over the last year that proportion has slipped back to four. The number of female chief executive’s in the FTSE 350, meanwhile, stood at 18 in 2015 but has since fallen to 16.
“I worry progress in other areas may reverse if economic headwinds grow,” Ms Fairbairn will say. “In tougher times, a search for experience might well end up being a search in a traditional pool, closing the door on greater inclusion. Only committed leadership can win against this and is why it matters so much.”
She is expected to call on the Government to make diversity a key part of its industrial strategy going forwards, arguing that firms with the highest levels of gender diversity are 15 per cent more likely to outperform their rivals, while those companies with the highest levels of ethnic diversity are 35 per cent more likely to do so. “It is about building inclusive workplaces that harness the best innovation and productivity the British workforce can offer because people feel accepted, supported and have opportunities to thrive,” she will say. “We of course know that real change will take more than stated commitment. The more I see of what works, the more it’s clear me to that leadership is the key.”