Leading business groups have called on the government to stop using the archaic word ‘chairman’ if it is serious about improving gender balance in business.
A letter signed by the British Chambers of Commerce (BCC), the Institute of Directors, Make UK, the Confederation of British Industry and 53 accredited Chambers of Commerce calls on the government to introduce legislation that would require the neutral term ‘chair’ to be used on official company documents.
The word ‘chairman’ is still used by Companies House as its default term in its model articles, meaning it is then repeated in the articles of thousands of companies.
The letter urges the government to use the upcoming corporate governance legislation to require the use of gender-neutral language – an approach that was favoured by 78% of directors in a recent survey, it claims.
While businesses can change the language they use themselves, many are under the impression that the term ‘chairman’ is a requirement of Companies House, said BCC chair Sarah Howard.
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“Language matters. Just as ‘policeman’ and ‘fireman’ have been replaced with more inclusive terms, so too should ‘chairman’ be consigned to the history books,” she said.
“Research from the World Bank suggests a direct link between the use of gendered language and differing employment rates between men and women. It’s a small but very significant alteration that will help break down subconscious bias and send a clear message to future generations that they have an equal role to play in running businesses whatever their gender identity.
“There is much more that all of us need to do to help address inequality in the business world, and this change would send a clear message on government intent.”
Jonathan Geldart, director general of the Institute of Directors, said: “While significant strides forward have been made on improving gender balance in board and leadership positions, we must continue to strive for greater representation by women. Clearly changing Companies House’s model articles is no silver bullet, but neither is it trivial.”
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The bodies believe this subtle change will help more women into senior positions. Research from the FTSE Women Leaders Review 2022 revealed that just 8% of FTSE 100 CEOs and 13.7% of executive directors were women.
A spokesperson for the Department for Business, Enterprise and Industrial Strategy said: “We wholeheartedly support increasing the diversity of business leaders and championing women in business. Companies already have the flexibility to craft their own articles, and to amend their articles as they see fit.”
