18 April, 2021

Compliance failures and diversity doubts

The revised UK Corporate Governance Code has emphasised the importance of board diversity, but there is consternation over corporate commitment to it as many firms fail to comply fully with reporting requirements.

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While the Financial Reporting Council (FRC) has set a path towards increased focus on boardroom diversity within its new corporate governance code, there is some consternation that its existing guidelines are not being followed fully, raising a question as to corporates’ commitment on the issue. Research by the reporting regulator and the University of Exeter Business School shows that the vast majority of FTSE 100 and FTSE 250 businesses (98% and 88% respectively) report a policy on board diversity. However, only 15% of FTSE 100 companies report against all the diversity measures outlined in the current code, including a process for boa

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board appointments, boardroom diversity, Corporate Governance Code, FRC, gender diversity, women on boards