The ethnic minority faces marginalization despite of the regulation which instructs FTSE 100 to have a director at the board level from an ethnic minority background.
As the government supports campaign to increase diversity at the board-level, report reveals there has been a declination in representation of unpopular ethnicity in the FTSE 100 directors.
At the London Stock Exchange, the biggest 100 companies’ reserved only 84 slots out of 1,048 slots held by the top level business person for the ethnic minority as to 85 in the previous year. This means 8% of the total directors are from the ethnic minorities.
Most FTSE 100 institutions still lag behind in increasing the number of ethnic minority while some have none. The number of business slightly increased from 51 to 54 from a year ago out of the biggest 100 businesses. The recent development might seem like a leap but it’s a crawling movement.
The FTSE 100 was charged to at least appoint a minimum of one member of the ethnic minority into the top level position of a director by 2021. This was put together at the first annual update on the Parker review.
The review was conducted by Sir John Parker, the chairman of the mining company Anglo American, who implored companies to step-up their quest.
This come barely 24-hours after the British Prime Minister, Theresa May, revealed a scheme that could compel the big-shots to reveal the pay grade between diverse races and also make sure the companies reveal the pay difference between men and women.
“We’ve got to make real progress. The purpose of this update is really to alert again, and to make business leaders even more conscious they need to step up,” – Sir Parker stated.
Amidst security concerns, big businesses are battling the waters of financial crunch for about a decade, disparity, austere conditions, and corporate misconducts. Meanwhile the government is pressured to amend the administrative rules.
The PM’s scheme has received backlash from the Labour, who would rather prefer a total revamp of the corporate ecosystem by giving workers a fair share on the board and mandating the transfer of company shares to workers.
Despite a downward movement in the number of women on boards in the corporate ecosystem as revealed by the Cranfield University earlier this year. A little progress can be recorded in having women steering the wheel of companies at the apex level.
Meanwhile, the Parker review amplified the need for women on boards, with the inclusion of Mervyn Davies, the former Chief Executive of Standard Chartered in 2011 and Hampton-Alexander review lately.
As much aspersion are casted over the succession cycle of business, the government interference as it is in other nations of the world is advised to be discontinued by the chairman of the mining company Anglo-American.
Sir John Parker said: “A voluntary target is worth 10 quotas. I’m against them and I don’t think that professional people want to be there because there is a quota.
“I do believe that companies will take this seriously. It’s very much in companies’ business interest.”