Boardroom to improve
British FTSE 100 boardrooms do not reflect the ethnic diversity of modern Britain and are being too slow in making much-needed changes, an update report to the Parker Review recently found. Unfortunately, this isn’t a problem limited to FTSE 100 companies. The legal industry, although improving, needs to be doing much more in this area. BAME lawyers are still heavily underrepresented in City firms and BAME partners represent only 5% of all partners in the UK. Alongside its overall conclusion, the original report contained some interesting facts about boardroom composition: at the time it was written, 51 of the FTSE 100 companies had no BAME representation on their boards. The update identified that 37% of the FTSE 100 companies surveyed (31 out of 83) still did not have any ethnic minority representation on their boards.
Law firms see this too. Far too often in the legal industry we find BAME faces on the brochure, but not in the boardroom. This means that organisations can present themselves as progressive while getting away with doing nothing to address actual problems of systemic inequality at work.
Thankfully, we’re now getting to the point where senior executives are being convinced of the financial benefits of a diverse workforce. A diverse board means ‘group think’ is avoided, corporate culture improved, brand value boosted, and complex supply chains more sensitively approached.
A diverse workforce is one thing, however a diverse boardroom is another. This is where the ‘inclusion’ part comes in. What’s the good of championing diversity in the workplace if BAME people cannot get up the ladder?
At Moore Barlow, we recognise that action is necessary. We’ve implemented initiatives like compulsory BAME representation on the pay and promotions committee, which means important decisions that affect progression are made by a diverse group. We also run compulsory unconscious bias training, which allows staff to be more self-reflective, raising consciousness of the types of thinking that can lead to discrimination and bias. We believe this training has created a much more inclusive working environment.
I’ve been encouraged to see the profession talking about adopting other changes such as ‘blind’ recruitment, diversity events focused on minorities, and forums for anonymised feedback. Initiatives like these across FTSE 100 companies and law firms would mean that the careers of early or mid-career BAME people are less hindered by discrimination, however subtle or unintended. In turn, this will lead to better representation in the boardroom.
I’m mindful that I’m one of the few black equity partners in the country. With this comes an awareness that, by being visible in this role, I can hopefully encourage other BAME employees to see themselves at this level. As well as creating a fair path to the boardroom in terms of opportunity, it is crucial that we build an environment where people from BAME backgrounds actually have the confidence to apply for leadership positions. As the Parker Review makes clear, a diverse boardroom yields a significant return on investment, as well as a better, more inclusive industry. Law firms must act now.
