26 October 2020
Momentum builds for campaign aimed at increasing racial and ethnic participation in senior leadership
Change the Race Ratio, a campaign to increase racial and ethnic participation in British businesses announces 20 companies have become signatories since the campaign was launched on 1st October. Businesses across all sectors have engaged with the campaign and will be able to collaborate with the Founder Partners of the campaign and each other to ensure that they are making the best possible progress towards achieving its objectives.
The new signatories are:
Alexander Mann, Axa, Diageo, Domestic and General, Egon Zehnder, Green Park Ltd, Heidrick & Struggles, ITV, Keela, KPMG, Lygon Group, MWM Consulting, Pearson, PWC, Sam Allen & Associates, Sapphire Partners, Siemens, Spencer Stuart, Warren Partners, Wincanton.
As signatories to the campaign, companies make the following four Commitments to Change:
- Increase racial and ethnic diversity among Board members: take action to set targets to achieve:
- FTSE 100 – At least one racially and ethnically diverse Board member by end 2021
- FTSE 250 – At least one racially and ethnically diverse Board member by 2024.
- Increase racial and ethnic diversity in senior leadership: take action at ExCo and ExCo minus one to set clear and stretching targets and publish them within 12 months of making this commitment.
- In addition, establish a separate target for black participation at both levels.
- Be transparent on actions: publish a clear action plan to achieve the targets and share progress in the Annual Report or on the company website.
- In addition, disclose ethnicity pay gaps by 2022, at the latest.
- Create an inclusive culture in which talent from all diversities can thrive: focusing on recruitment and talent development processes to drive a more diverse pipeline; data collection and analysis; fostering safe, open and transparent dialogue, with mentoring, support and sponsorship; and working with a more diverse set of suppliers and partners, including minority owned businesses.
Lord Karan Bilimoria CBE DL, CBI President said, “We have been overwhelmed with interest from businesses since we launched our campaign; they have told us that they want very much to make progress in this critical area and they are making the key commitments to change. We recognise there is a problem we have to address as a business community; we have known it for some time, but progress has been too slow. The benefits of increasing racial and ethnic participation in business goes way beyond the obvious question of fairness and appropriateness in society today; we know from a range of studies that not only are diverse companies more attractive to talent and have better employee satisfaction, they also perform better. And not doing it costs us money; in 2017 the McGregor-Smith review found that lack of ethnic diversity in business cost the UK £24bn a year in lost GDP. So it is high time we act and I am very pleased that so many companies have already responded to our urgent call for action. We look forward to welcoming many more to our campaign over the coming weeks”.
Cindy Rampersaud, Senior Vice President of BTEC and Apprenticeships at Pearson, said:
“At Pearson, we are committed to ensuring that we are an inclusive and diverse organisation where every employee belongs, can develop and thrive. We are also committed to an inclusive culture that is reflective of our employees, learners, products and partner organisations. By ensuring that our products and services are aligned with this commitment, our organisation will be set up for success as the world’s trusted learning company, keeping true to our mission to help people access education and learning and make progress in their lives. This is why we are delighted to join this campaign as part of our drive to increase racial and ethnic participation in our business, as well help others to make change."
The Change the Race Ratio campaign website has launched at www.changetheraceratio.com where businesses can register interest and find out how to become a signatory.