The UK Corporate Governance Code could be
changed to include gender diversity policy in all annual reports,
following a consultation issued by the UK Financial Reporting
Council (FRC).
The FRC has issued the consultation for all
listed companies to include information on company gender policy
every year.
The latest Corporate Governance Code, issued
last July, includes principles recognising the value of gender
diversity. However in a report issued by Lord Davies earlier this
year, entitled Women on Boards, the FRC is asked to amend
the code to include measurable objectives for
implementing the policy, including a summary of the policy and
progress made in achieving the objectives annually.
FRC chairman Baroness Hogg said the regulator will
respond to the Davies proposal by consulting on whether it would be
appropriate to add this information to the Code.
“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,”
Baroness Hogg said.
The consultation is open for comment until 29
July.
