A Government initiative to diversify UK boardrooms has been welcomed by the Institute of Directors (IoD).
‘Building Better Boards’, a best practice guide launched today by trade and industry secretary Patricia Hewitt, follows on from the recommendations of a government commissioned report by Derek Higgs and Laura Tyson of the London Business School, which called for more diverse and effective boardrooms.
The guide offers recommendations and tools to help companies improve recruitment and performance in the boardroom, particularly related to the gender balance.
Patricia Peter, head of corporate governance at the IoD, said: “Prosperous and well-run companies need the best boards with the most appropriate people on them. Ignoring those from diverse backgrounds denies a large pool of talent.
“In particular, boardroom Britain has to reflect the major contribution women are making in organisations at middle and senior management level,” she said.
The new guide:
– sets out the business case for effective diversity and better practices in the boardroom
– cites the benefits for companies, with evidence from some of Britain’s best known businesses and names
– outlines Government and business-led initiatives to develop the talent pool of women.