Skip to content
Search

Latest Stories

Firms criticised for failing to improve diversity

By Nadeem Badshah

BRITAIN'S biggest companies have been slammed for their "painfully slow" progress in meeting targets for ethnic minority directors.


Ahead of the 2021 deadline, only 53 of UK's largest listed firms on the London Stock Exchange have at least one director from a BAME background.

The figures, published in February, are a small increase from the 49 companies that met the target since the Parker review on diversity was launched in 2017.

The review gave FTSE 100 firms four years to appoint at least one non-white board-level director. The same target was set for the FTSE 250 with a deadline of 2024 - with only 54 firms reaching the goal so far.

Pinky Lilani CBE, founder of the Women of the Future Programme, told Eastern Eye: "I think it is quite unacceptable that progress is painfully slow.

"I know from the work we do that  there so many talented ethnic minority women but they need champions to open doors for them and more robust networks that give them access."

Among the FTSE 100 companies that were found to have failed to take steps to improve diversity are mining firm Glencore, wealth management firm St James’s Place and housebuilders Taylor Wimpey and Persimmon.

The Parker review also found that few firms have set clear targets for the ethnic make-up of their board with just 14 per cent of the FTSE 100 and two per cent of FTSE 250 firms doing so.

Professor Sunitha Narendran, director of the University of Roehampton Business School, said the findings are disheartening since the new trends in corporate governance are about creating and sustaining diversity.

She told Eastern Eye: "I would have imagined that companies would have fully understood the benefits and skill sets that gender, racial, and ethnic diversity could bring to boardroom discussions.

"I also believed that companies are responding to the upsurge in pressure from the market, investors, activists, and the government for more diversity in board composition.

“There is of course plenty of research evidence to demonstrate the positive impact of diverse of board composition.

"For example, large companies with women on their boards have outperformed businesses with all-male boards. Companies with diverse boards also seem to have fewer instances of unethical business practices as well better oversight of financial performance."

The Parker review update relied on voluntary disclosure from companies to report on their progress.

Just 30 of FTSE 100 firms confirmed they had not met their targets, while a further 13 failed to provide clear information about their board’s ethnic composition. Four of the UK’s largest listed companies, including JD Sports, did not respond to requests for data.

Paresh Raja, CEO of Market Financial Solutions, said the statistics paint an ugly picture and called for more investment in education, apprenticeships and internships.

He added: “Around a fifth of the UK population is non-white. There is a huge pool of potential talent that could rise up to become directors of large businesses, but this talent is evidently not being nurtured or given the necessary pathways to reach the top level.

"The same is true when you look at entrepreneurship and startups –  a mere five per cent of the UK’s small businesses are ethnic minority-led. So, the finger of blame cannot be pointed solely at FTSE firms.

“As a society we must do more to ensure there are equal opportunities for ethnic minorities, which includes investing heavily into regions where such minorities are often clustered."

The latest figures have led to The Financial Reporting Council urging companies to ramp up statistics on diversity in annual reports, branding Britain's record on boardroom ethnicity "poor".

Ritam Gandhi is director of digital firm Studio Graphene.

He said: “This failure to act means talented people are being excluded from leadership positions simply because the opportunities and avenues for progression are not presenting themselves.

"So whether it’s by introducing mandatory minority representation quotas, or enforcing sanctions for those with inadequate representation, the pressure is now on UK businesses to set a new gold standard for diversity in business.

“Rather than treating diversity as a tick-box exercise, however, and making bold promises that fail to translate into achievable policies, I want to see companies take a bolder approach and create more seats at the table on their boards for those from ethnic minority backgrounds."

Meanwhile, a third of all board positions in FTSE 100 companies are now held by women, meeting a key target of the government-backed Hampton-Alexander Review.

Some 33 per cent board members are female, up from 12.5 per cent less than a decade ago. But only 15 per cent of FTSE 100 finance directors are women.

Business secretary Andrea Leadsom said: “The Hampton-Alexander Review has done fantastic work. But it’s clear that women continue to face barriers to success, whether that’s through promotion to key roles or how they are treated by colleagues.

“Businesses must do more to tackle these issues and we will support them in doing so, including through our world leading reforms to workplace rights.”

More For You

Microsoft and ASUS Bring Xbox Gaming to Handhelds with ROG Ally

Microsoft says the updated interface is centred around the Xbox app and Game Bar

iStock

Microsoft brings Xbox experience to handheld PCs with ROG Ally launch

Microsoft has revealed its new strategy to combine Xbox and Windows for handheld gaming PCs, starting with two new ROG Xbox Ally devices developed in partnership with Asus. The devices feature a full-screen Xbox experience tailored for portable gaming, in a move designed to better compete with Valve’s SteamOS on the Steam Deck.

A new Xbox experience for handhelds

The ROG Xbox Ally devices will boot directly into a customised Xbox full-screen interface, designed to streamline the gaming experience on portable Windows devices. This marks a shift away from the traditional Windows desktop and taskbar, which are hidden by default to improve performance and reduce distractions.

Keep ReadingShow less
science-tech-iStock

As part of this plan, £86bn will be directed towards 'turbo-charging our fastest growing sectors, from tech and life sciences, to advanced manufacturing and defence,' the government said in a statement. (Representational image: iStock)

£86 billion UK investment plan to focus on science, tech, defence by 2030

THE UK government has announced plans to invest £86 billion in science, technology, and defence by 2030. The announcement comes days before it outlines its broader spending plan for the coming years.

Chancellor Rachel Reeves has already introduced cuts to public budgets in recent months, citing tight fiscal conditions. She has also approved more borrowing for investment, enabling a total of £113bn in investment by the end of the decade.

Keep ReadingShow less
Dinosaur Breeding Debuts in Jurassic World Evolution 3

Jurassic World Evolution 3 builds on the popularity of its predecessors by adding new features

YouTube/ Jurassic World Evolution 3

Jurassic World Evolution 3 announced with dinosaur breeding feature and October 2025 release

Frontier Developments has officially revealed Jurassic World Evolution 3 during Summer Game Fest 2025. The third instalment of the dinosaur park management simulator will launch on 21 October 2025 across PlayStation 5, Xbox Series X|S and PC, priced at £49.99.

This latest entry introduces a key new feature, dinosaur breeding. For the first time, players can breed and care for baby dinosaurs, forming family units within their parks. The game includes over 80 dinosaur species, with 75 of them available for breeding.

Keep ReadingShow less
Resident Evil 9

Resident Evil Requiem was described as a "bold shift for the franchise

YouTube/ PlayStation

Resident Evil 9 officially announced, coming February 2026

Capcom has officially unveiled Resident Evil 9, titled Resident Evil Requiem, during Summer Game Fest 2025. The latest entry in the long-running survival horror franchise is set for release on 27 February 2026 and will be available on PC, PlayStation 5, and Xbox Series X|S.

Announced live on stage by host Geoff Keighley, Resident Evil Requiem was described as a "bold shift for the franchise both in tone and gameplay". The upcoming title will blend the series’ trademark survival horror with high-stakes cinematic action, promising a fresh experience for fans.

Keep ReadingShow less
Vijay-Mallya-Getty

In April, Mallya lost an appeal against a London high court bankruptcy order in a case involving over ₹11,101 crore (approx. £95.7 million) debt to lenders including the State Bank of India. (Photo: Getty Images)

Getty Images

Vijay Mallya says he may consider returning to India if assured fair trial

FUGITIVE tycoon Vijay Mallya has said he may consider returning to India if he is assured of a fair trial.

He spoke to Raj Shamani on a four-hour-long podcast released on Thursday.

Keep ReadingShow less