Private sector companies consider next steps for board diversity

Five private sector and two public sector companies have welcomed the Scottish Government’s role in highlighting and tackling the issue of boardroom diversity in Scotland.

The Scottish Government has made clear that it sees improving the diversity of boardrooms up and down Scotland as a priority, and through its Partnership for Change: 50/50 by 2020 campaign has sought to shine a spotlight on the issue while inviting companies to help tackle it. Achieving greater diversity on boards is also a key component of the Scottish Business Pledge.

The companies, all champions of board diversity through their membership of the Partnership for Change and the Scottish Business Pledge, met with representatives of Scottish Government and its development agencies at a roundtable hosted by Scottish Enterprise today to discuss the business challenges and opportunities associated with increasing diversity, and particularly female leadership, at senior levels.

Delegates heard that firms with higher numbers of women in senior management positions and on corporate boards are more profitable. They discussed what more can be done to encourage businesses to improve their diversity and competitiveness, and how best to encourage more women and other under-represented groups onto boards in Scotland.

International research has reinforced the business case for more women in senior leadership positions, though companies continue to report that improving diversity remains a significant challenge.

Eleanor Mitchell, Director of High Growth Ventures at Scottish Enterprise chaired the meeting. Commenting after the event, she said: “More and more businesses are realising that progressive business practices, such as increasing diversity and supporting gender parity, make good business sense. Today’s event is an encouraging reflection of forward-thinking and innovative businesses taking hold of the opportunities which greater diversity present, and we are grateful for the input from the companies that have attended today.

“Encouraging more diversity on Boards is an important focus for the Scottish Business Pledge and the Partnership for Change Initiative, but our research among our account managed companies has found that it is the least understood element of the Pledge. Today’s event will let us better understand the challenges that companies face.

“Committing to the Scottish Business Pledge - or Partnership for Change - is one way in which companies which have recognised the importance of progressive and sustainable business practices can publically signal their intention to grow their business and help make Scotland a wealthier, fairer and more forward-looking nation.”