We are only three months away from July 1, which is the anticipated implementation date for the ASX’s revised Corporate Governance Principles and Recommendations that will require every listed company to disclose their diversity policy. In addition, listed companies will have to report on the number of women employees in the whole organisation, in senior management and on the board, whilst Boards will be required to disclose what skills and diversity criteria are sought in any new board appointment.
The ASX believes that these governance changes will “compel listed companies to pursue diversity at all levels within the organization” and will “require companies to focus on developing diversity policy with measurable objectives relating to gender”.
Of course, the problem is much more complex than just setting targets or explicitly imposing quotas (which most do not agree with at this stage, as it could cause other issues). Plus, diversity is more than gender, as Rhondalynn Korolak’s article on Anthill Warning: Legislation to mandate more women on boards is not the answer shows:
“I do not consider the fact that there are not enough women on boards and in senior management positions to be merely a sexist thing. What I mean is that there is an ingrained corporate culture that says the leaders and directors want to hire others that are ‘like them’.”
However, we do need to start somewhere to improve what are diabolical diversity statistics, particularly at senior levels. And diversity does have an impact. According to a recent study by the University of Illinois, those organisations with greater racial and gender diversity performed better on all measures of organisational success (sales revenues, customer numbers, market share and profits).
I believe – at the very least – that we are heading towards an era of more transparency and hence improved discussion about how to improve diversity in the workforce and on Boards. When we are armed with more information, such as what diversity policies are achieving targets, and that these people are actually being supported and succeeding in their roles, then we can all learn from one another on better ways to improve diversity in the senior management and governance of organisations.
Stay tuned …
2 Comments
As said diversity goes beyond genders.
What about age? Governments are asking mature workers to stay in the workforce, and make more difficult for them to retire or semi-retire, however, is the market prepared to give jobs to mature workers, and allow a career to go as far as it’s required in today’s economy?
The answer is probably closer to NO than YES. We certainly need to start talking more about this subject, because jobs for mature workers affect job availability for younger workers, as well as career progression. We are all in the same boat after all….
Thanks for taking the time to share with everyone this information. Loved it thankyou.