Financial Reporting Council ignores disabled talent in favour of just women in touting ‘benefits of diversity on corporate board appointments
By ECM Plus staff
ECM Plus +++ The FRC has proclaimed changes to their ‘UK Corporate Governance Code’ and is urging companies to respond ‘rapidly’.
FRC has decide to amend Britain’s Corporate Governance Code was meant to strengthen the “principle” on boardroom diversity.
According to the FRC, the amendments will demand that listed corporations report annually on their boardroom ‘diversity’ policy, to include ‘gender, and on any measurable objectives that the board has set for implementing the policy and the progress it had made in achieving the objectives.’ No mention was made of other groups in diversity, notably, disabled talent.
The FRC added that it will update the corporate governance code to include the diversity of the board, including gender, as one of the factors to be considered when evaluating its effectiveness.
The current revised Code, which came into effect in June 2010, included for the first time a principle recognising the ‘value of diversity’ in the boardroom, which states that, “The search for board candidates should be conducted, and appointments made, on merit, against objective criteria and will due regard for the benefits of diversity on the board, including gender”.
Again, no mention of disability has been made in the revised code.
In May 2011, the FRC said it issued a consultation document seeking views on whether the governance code should be revised as recommended by Lord Davies of Abersoch in his review of the ‘gender’ diversity of the boards of British listed companies published in February 2011.
The new ‘provisions’ on diversity will apply to financial years beginning on or after 1 October 2012. This will provide the FRC with an opportunity to consult on other changes to reflect the current discussions around narrative reporting and effective company stewardship. However, the FRC strongly encourages all companies voluntarily to apply and report on the diversity additions to the Code with immediate effect.
Disability issues were again not mentioned in these ‘additions’.