Promotion of Women in Business

David Simpson Excerpts

Tuesday 22nd March 2011 Westminster Hall

[Mrs Grant]

My hon. Friend makes a very good point—I could not agree more. I shall cover that issue later. I am grateful for his intervention.

In Britain, we have much to do. Only 5% of FTSE 100 companies have a female chief executive, and only 12% of board directors are women. Our Government have promised to promote gender equality, and I am encouraged by coalition policies on flexible working and parental leave. Lord Davies of Abersoch is leading a review on women on boards, and his report has just been published. He has got it just about right and is seeking to accelerate glacial rates of change without causing global warming. Recommendations include encouraging head-hunters to put more women on shortlists, requiring chairmen to explain why boards lack female representation, inviting investors to take more responsibility in holding their plcs to account on matters of gender balance and, importantly, introducing voluntary targets to raise the number of female directors in Britain’s biggest companies while not ruling out quotas.

Enforced quotas worry me. I am really, really sceptical about them, because such positive discrimination can demean a woman’s real value among her peers and alienate men. Some would also say that quotas treat symptoms, not causes, and there is some truth in that. Surely our aspiration must be the creation of fair, real and equal opportunities, where meritocracy wins the day. Change is coming, and whether it comes eventually through quotas or by more gentle pressure will be a matter for serious and ongoing debate. Even without legislation, some British companies are already committed to gender balance and a variety of methods are being used. Mentoring and sponsorship, setting targets and using best practice illuminated by the light of transparency can all work very well. Part-time working arrangements can improve female retention. In fact, any family-friendly strategy that allows women just a little more flexibility, especially when their children are young, can pay big dividends—and word gets around because women talk. On an individual level, women can help themselves, too. We may need to be more assertive in our approach and not be afraid to take credit for our achievements.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Lady on obtaining the debate. I promised my wife that I would be here this morning, because she is a business woman—it is more than my life is worth not to be. Although we perhaps have an issue around Government policy, does she agree that dealing with the matter should start earlier in life and that our colleges and universities could help to encourage women in entrepreneurship, so that things are more equal across the boardroom table?

[Mrs Grant]

The hon. Gentleman makes a very important intervention—I am sure that his wife will be proud. I could not agree more. Part of dealing with the problem is considering how to ensure that our girls—our young ladies—have much brighter, bigger, bolder, ambitious career advice when they are at school and university. The sky should be the limit—I agree with him completely.

I come back to men. Men, too, need to become better listeners. They need to learn to hear a woman’s voice and embrace the enlightenment of a broader horizon, because when courageous women and enlightened men—we have a few of those here today—come together, there is little that cannot be achieved. The non-believers should consider the following comment made by an all-male board member:

“Our board is really effective. We all think the same way. We all have the same views. Discussions are very short and we always reach the same conclusions”.

That all sounds very happy, but is that board healthy? Balanced boards are a noble aspiration, but there is a bigger picture. Boards are central in corporate life, but senior executives and managers create the wealth. That is where gender balance can be so effective. If we can recruit more women to those senior executive positions and train, nurture, promote and encourage them, then the transition to CEO and the board should be a much more natural step. In many ways, dealing with that is more difficult than dealing with quotas.

Enlightened leaders, both male and female, cast a lengthy shadow. Our Prime Minister, David Cameron, has set himself a target of one third of Ministers to be female by 2015. Likewise, a group of powerful London businessmen are aiming at one third female boards by 2015. A few weeks ago, the Financial Times published its list of the top 50 women in world business. Those women run organisations such as PepsiCo, Kraft Foods, Yahoo! and Xerox. Their success is cause for much celebration and they stand as much-needed role models. The aspirations of those leaders encourage millions. I take great heart in their initiatives, because it says to me that there is room at the top and the door is open.

In conclusion, this is an exciting time for the promotion of women in business, the professions and politics. Government have an important role to play, but legislation alone will not fix the problem. We need chairmen, chief executives, investors and head-hunters to all take action. The Davies report is a step in the right direction. I urge the Government to accept its sensible recommendations and to reconsider the whole issue of child care. Inadequate and unaffordable child care prescribes many women to the home, or to not having children. If some improvements can be made, many capable women will be released back into the working economy as taxpayers, entrepreneurs and wealth creators, which is exactly what our country needs at this difficult time.