Oral Answers to Questions

Rehman Chishti Excerpts

Thursday 27th October 2016 Commons Chamber

[Rehman Chishti (Gillingham and Rainham) (Con)]

5. What steps the Government are taking to increase the number of BAME people on boards and at senior executive levels of FTSE companies.

[The Parliamentary Under-Secretary of State for Women and Equalities (Caroline Dinenage)]

A diverse boardroom that reflects its customers and wider society is likely to perform better and make better decisions. The Government are very supportive of the private-led diversity initiative chaired by Sir John Parker, who is currently considering how to increase ethnic diversity in FTSE 100 companies, and we expect the group to report on its findings next month.

[Rehman Chishti]

I thank the Minister for that answer. I am chair of the all-party group on communities engagement, and fewer than 4% of directors in the 150 largest FTSE companies have ethnic minority backgrounds. Will the Government support a target of increasing the percentage of board members or directors with black and minority ethnic backgrounds to 10% by 2021?

[Caroline Dinenage]

My hon. Friend rightly points out this unsettling statistic, but, as with the fantastic work to get more women on boards, we support the principles of increasing the ethnic diversity of the boards of the FTSE largest companies through a business-led voluntary approach because we believe there is a strong business case for better board diversity. We need to tackle the root cause, which is why we have established the Baroness Ruby McGregor-Smith review looking at the obstacles faced by businesses in developing BME talent across the board, from recruitment right through to executive level.