Firms listed on UK stock exchanges should be forced to set a target for the number of female board members.
This is according to the CBI, which has suggested that a minimum target for female board members be incorporated into the UK Corporate Governance Code.
The business group wants to see firms who fail to meet their target forced to explain why. But it does not want any further penalties introduced.
Helen Alexander, president of the CBI, also said that she wants businesses to be able to set their own targets, suggesting that they know best what is suitable and realistic. Ms Alexander said she wants to see boardrooms harnessing “the talent of the many, not just the few.”
She added: “Although women make up half of the population and more than half of university graduates, they remain woefully under-represented at board level.
“What is needed is cultural change, not quotas, ratios or tokenism. That is why we are calling for a flexible system that will allow firms to set targets that reflect the realities of their business.”
