(11 years, 2 months ago)
Lords ChamberRead Hansard Text Read Debate Ministerial Extracts
Baroness Howells of St Davids
To ask Her Majesty’s Government what action they will take to address the under-representation of women, especially black and ethnic minority women, on FTSE 100 boards.
Baroness Stowell of Beeston
My Lords, in 2010, the noble Lord, Lord Davies, reviewed the barriers to women reaching the boardrooms of UK plc. Following his report, a voluntary, business-led strategy for the advancement of all women irrespective of their ethnicity was adopted. This is working; for example, the number of FTSE 100 all-male boards has fallen from 21 to six. However, we are not complacent. The most recent figures for women on FTSE 100 boards prove that there is no room for that.
Baroness Howells of St Davids
I thank the noble Baroness for her response. She has cited the report from which I was going to quote. It seems absurd that, after more than 30 years of equality legislation, we continue to see only glacial progress in the representation of women on the boards of our 100 most lucrative companies. Women are now successful at university and in their early careers, but attrition rates increase as they progress through those organisations. The companies are missing out. Evidence suggests that companies without strong female representation are less successful because they are unable to draw from the widest possible range. My concern is not women who are European—although I know that they are suffering—but those from black and ethnic minorities who are willing to serve on boards.
Baroness Howells of St Davids
I would like to ask the Minister what the Government are doing about that.
Baroness Stowell of Beeston
The noble Baroness is absolutely right that we want more women on boards. We do so because they make up more than half of the nation’s talent and we cannot afford for the best and brightest not to be there. The statistics on black and minority ethnic women are not available because the statistics for women on boards are not broken down in that way, but I know anecdotally that they are not great. What I can say to the noble Baroness is that, through a range of measures that the Government are taking, we are ensuring that our effort expands to cover all women. She may like to know that the Women’s Business Council, which we set up to make sure that we address the pipeline so that more women come forward, is chaired by Ruby McGregor-Smith, who is chief executive of MITIE and the only Asian woman chief executive in the FTSE 250. She is chairing that council for the Government because she is so committed to diversity in all its forms.
Baroness Brinton
My Lords, 17.5% of FTSE 100 boards are made of up of women. I prefer to use that figure rather than the number of companies that have one token woman on the board. I know that it is below the target set by the noble Lord, Lord Davies, but it is a step forward from the 1990s. Given this very low figure, what steps are the Government taking to ensure that sufficient mentoring and counselling are available to women below board level who have ambitions of rising within companies and breaking through the glass ceiling?
Baroness Stowell of Beeston
My noble friend is right that mentoring is an important aspect of encouraging more women to put themselves forward for these senior roles. That is an important issue that the Women’s Business Council, which I just referred to, is looking at. I hope that we will see some evidence to help us in its report due out later this year.
Baroness Wall of New Barnet
My Lords, I am sure that the noble Baroness is aware of the tremendous investigation and work carried out by my noble friend Lord Davies of Abersoch. One fundamental issue that has come through in that research is that role models start very young. Are the Government consciously working to ensure that young women going from schools into colleges and universities—that is, black women and those from ethnic minorities, but also all women—have that aspiration?
Baroness Stowell of Beeston
We certainly need to make sure that all girls at school have high aspirations and that we encourage them to be ambitious. If the noble Baroness is around for the International Women’s Day debate that follows Questions, that is an area that I hope to expand on in my opening speech.
Lord Kakkar
My Lords, I declare my interest as a member of Sub-Committee B of your Lordship’s European Union Committee, which was involved in scrutinising a directive provided by the European Commission on this matter. Are Her Majesty’s Government content to accept that directive in view of the fact that both Houses of this Parliament have sent a reasoned opinion raising their concerns about it to the European institutions?
Baroness Stowell of Beeston
As the noble Lord knows, the Government very much welcomed the reasoned opinion put forward from this House and the other place. Sadly, I am told that not enough member state Parliaments issued a reasoned opinion for that to be successful in raising what is termed a red card or yellow card in Brussels—I am not sure. As far as we are concerned, we are still actively working with other EU members to make sure that whatever arrives finally from the European Commission supports our own approach to this issue.
Lord Flight
My Lords, I believe sincerely that there is a general wish and support for more suitably qualified women on boards. Yet surely the role of directors is to oversee the running of a business and that needs people with the appropriate skills. To the extent that they are representative, they are representative of shareholders and not really in a quantitative context of the nation at large.
Baroness Stowell of Beeston
Okay. I say to my noble friend that we need more women on boards because half the people who spend money in the economy are women, as are half the people who have pensions that are part of the investment into those companies that enjoy that benefit. We just bring so much more that I find it astonishing that he does not feel the same way.