Oral Answers to Questions

Baroness Laing of Elderslie Excerpts

Thursday 10th November 2011 Commons Chamber

[Mr Blunt]

Obviously we have seen the proposals coming from the Opposition. We need to look at the evidence on how the existing legislation has or has not been used effectively and assess whether further work could be done on using existing harassment legislation properly. We are looking at the proposed amendment; during the course of the debate, we will come forward with a proper assessment and answer to it.

[Mrs Eleanor Laing (Epping Forest) (Con)]

6. What steps the Government are taking to encourage corporate boards to have a more representative proportion of women.

[The Secretary of State for the Home Department and Minister for Women and Equalities (Mrs Theresa May)]

The Government are continuing to work with business and others to ensure that the recommendations set out by Lord Davies in March this year are implemented effectively. Cranfield university presented a report to the Prime Minister three weeks ago, which showed that steady progress is being made to increase female board representation. The rate at which women are being appointed to FTSE boards has doubled and the number of all-male boards has almost halved since 2010.

[Mrs Laing]

I thank my right hon. Friend for that answer. The House will warmly welcome the enormous progress made in recent times. In particular, we welcome the Davies report, but will my right hon. Friend agree that this is not just a matter of an abstract idea about equality for the sake of equality. Lord Davies cites a report by McKinsey which states:

“Companies with more women on their boards were found to out-perform their rivals with a 42% higher return in sales, 66% higher return on invested capital and 53% higher return on equity.”

Having women involved is also good for business.

[Mrs May]

My hon. Friend makes an extremely important point. There has been progress. We know that there are now only 12 all-male boards within the FTSE 100, down from 21 in 2010. We know that women have made up an increasing percentage of the directors appointed to FTSE 100 companies since Lord Davies’s report. The point she makes is absolutely right: having women on boards is not just a women’s issue; it is about the state of the economy, and it makes good business sense.