All listed companies should have to measure their progress on improving diversity in order to boost the number of women on UK boards, according to the CBI.

In its submission to Lord Davies’ review, the CBI recommends that the UK Corporate Governance Code be revised to require listed companies to report on diversity on a “comply or explain basis”. This would involve reporting progress against internally set targets that reflect companies’ circumstances and having to explain if they fail to deliver.

Some of the CBI’s other recommendations include:

• Ensuring the company chairman acts as mentor and advocate to female board candidates, while also encouraging women to take up non-executive directorship roles externally and shaping wider HR policy at the company to support the female talent pipeline.
• Improving transparency around board-level appointments, including requesting a diverse list of candidates from search consultants and considering skills acquired in non-linear career paths or from less traditional roles.
• Developing and sustaining the talent pipeline through to the boardroom, including ensuring women have a clear path through operational and profit centre management roles; guiding employees on career choices and making the management of all talent a priority as well as supporting women at natural break points in their careers, including returning from maternity leave; implementing flexible working policies; encouraging mentoring schemes and networking opportunities.

Helen Alexander, CBI president, says: “Boardrooms should harness the talents of the many, not just the few.

“Although women make up half of the population and more than half of university graduates, they remain woefully under-represented at board level.

“We need to see more women progressing through the ranks and do more to keep them moving along the career pipeline into the top jobs.

“Schemes such as flexible working, mentoring and networking have helped, but making progress at the very top levels of business will require more sophisticated talent management.

“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 businesses.”