A substantial majority of business leaders are in favour of gender diversity targets on boards rather than quotas, which is an upcoming European Union requirement, research by the Institute of Directors (IoD) in Ireland has found.
The latest quarterly Director Sentiment Monitor report found that 71 per cent of business leaders are in favour of board targets rather than board quotas (14 per cent) or other methods (15 per cent) of ensuring a more diverse and inclusive board.
As of July, Iseq 20 companies had an average female representation of 32 per cent at board level.
However, the boards of other listed companies outside of these had an average of only 23 per cent female representation. Some 13 per cent of all Irish companies had no female board member.
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This IoD research comes after the recent decision by the Council of the European Union regarding boards, which notes that at least 40 per cent of non-executive director positions in listed companies should be held by members of the underrepresented gender by 2026. This EU decision will have to be transposed into Irish law.
The IoD report also found that a majority (69 per cent) of business leaders believe the hybrid working model has had a positive impact on ensuring a more diverse and inclusive work environment.
However, IoD chief executive Caroline Spillane added a note of caution, calling for closer monitoring of diversity and inclusion in the workplace in the post-pandemic era.
“We do not want a scenario whereby on the surface it seems like it allows for more recruitment of a particular group; however, in truth it means then this group cannot progress in their career as they are not visible in the office due to remote working,” she said.
The findings also suggest diversity is important for board and company performance and effectiveness, with 85 per cent noting it as being relevant for boards, and 78 per cent for a company’s performance.
