05 May 2011
FRC begins consultation on boardroom equality
A consultation over whether it should be made compulsory for listed firms in the UK to make their policy on boardroom gender diversity public knowledge has begun.
The Financial Reporting Council (FRC), an independent regulatory body, is investigating this matter on the grounds that the publication of internal ways of working - and then making companies report annually against these - could reduce instances of sex discrimination in senior management positions.
As a result of this consultation - which has come about following a recommendation made in Lord Davies' report on the issue earlier in the year - British employment law could be altered as these factors would be inserted into the country's Corporate Governance Code.
Baroness Hogg, chair of the FRC, noted that variety of people at boardroom level is inextricably linked to the success of any company.
"Diversity widens the perspectives brought to bear on decision-making, avoids too great a similarity of attitude and helps companies understand their customers and workforces," she added.
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Posted by Daniel Stevens