At ABSTRACT, we think equality, diversity and inclusion will continue to be a key focus area in 2022. Especially as last year saw 84% of companies taking action to improve diversity in their business. (1)  So most corporate boards and public sector organisations will continue to take the next steps to make further progress during this year and beyond.

How will this progress be measured?

Every business is individual and run differently but it is important to keep an eye on annual reporting. Here are a few we take interest in:

• FTSE Women Leaders Review: Focuses on improving gender balance, building on the work of both the Hampton-Alexander and Davies Reviews over the past decade. The first report of their next phase will be published on the 22nd February 2022, and then annually. (2)
• The Parker Review: An independent review by Sir John Parker. It reports on how to improve the ethnic and cultural diversity of UK boards so that they better reflect their employee base and the communities they serve. (3)
• Better Balance For Business: Based in Ireland, they continue to strive for more diverse boards and leadership teams, supported by gender pay gap reporting now being mandatory in Ireland. (4)

So what’s next?

Many corporate boards, investors and regulators globally will continue to shine a spotlight on the diversity of companies and challenge the status quo, not just because it’s the right thing to do but because of the benefits in terms of well-being, decision-making and commercial performance. For example, the global asset and wealth manager, Schroders, recently announced that from 2022 they will take action against all-white boards in the UK by voting against the nominations of the committee chairs of FTSE 100 firms who have not met Parker Review recommendations. (5) Schroders may have been influenced by the likes of BlackRock, the world's largest asset manager, who have also been using their considerable influence as a major shareholder to further the equality, diversity and inclusion agenda, calling for corporations “to play an active role in improving the environment, working to better their communities, and increase the diversity of their workforces”. (6)

Fixing board representation is easier than building a sustainable pipeline of future leaders. This will be critical to success. As we continue to emerge from the worldwide pandemic, our team at ABSTRACT will continue to focus this year on our vision to make the corporate world a better and fairer place by helping our clients and their people. This will be through the delivery of programmes that focus on inclusive leadership, career management development, cultural competence and character, helping to build modern businesses fit for today’s social objectives and working with organisations to support the growth and development of their people. However what we really want to inspire and develop in teams is cultural intelligence and inclusive leadership.  

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References:

(1) Deloitte Annual Report Insights

https://www2.deloitte.com/uk/en/pages/audit/articles/annual-report-insights-2021.html/#/people

(2) FTSE Women Leaders

https://ftsewomenleaders.com

(3) The Parker Review

https://www.gov.uk/government/publications/ethnic-diversity-of-uk-boards-the-parker-review

(4) Better Balance For Business

https://www.betterbalance.ie

(5) Schroders : taking action against all white boards in the UK

https://www.schroders.com/el/uk/private-investor/insights/markets/taking-action-against-all-white-boards-in-the-uk/?t=true

(6) Black Rock

https://www.blackrock.com/corporate/about-us