Boardroom diversity consultation launched

A consultation into whether listed firms should be required to publish their gender diversity policies has been launched.

The move comes following a recommendation in Lord Davies’ recent 'Women on Boards' report. Launched by The Financial Reporting Council (FRC), the consultation will investigate whether revisions should be made to the UK Corporate Governance Code.

The revisions could require listed companies to publish these policies and report on them each year.

Baroness Hogg, FRC Chairman, said, "Board diversity and effectiveness are closely linked. Diversity widens the perspectives brought to bear on decision-making, avoids too great a similarity of attitude and helps companies understand their customers and workforces.

"A board with too few women on it risks a weakness in at least one of these respects. But as Lord Davies noted in his report, the rate of change in recent years has been glacial. That is why we are now responding to his proposal that boards should report on their gender diversity policy by consulting on whether it would be appropriate to add this to the Code,” she added.

The consultation will close on 29 July 2011, and a decision on whether to introduce the proposed revisions will be announced before the end of the year.