FTSE 100

FTSE 100 top companies show poor record in employing Black managers

Despite over 20 years of race equality legislation ethnic minorities are still seriously under-represented at senior managerial level in the FTSE 100, the Financial Times Stock Exchange top companies; and something must be done. This was the message to Dr. Marjorie Mowlam, Minister For the Cabinet Office, and representatives of the European Commission from the Corporate Face in Europe conference organised by The Runnymede Trust, the foremost UK-based independent think-tank on race relations.

Changes urged
Delegates were told of new research findings at a session chaired by the Trust's chief executive Ms. Sukhvinder Kaur Stubbs. While overall representation of ethnic minorities among the FTSE companies is only slightly less than in the population as a whole (5.4% against 6.4%), representation decreases dramatically up the executive and managerial scale with just 1% of senior managers coming from ethnic minorities.

Blacks least favoured
Black African and Caribbean communities experience even greater under-representation at senior levels compared to other ethnic minority groups, with no Black African or Caribbean directors reported.

Equality not given top priority
Delegates learned that "racial equality is not perceived as a business issue by many companies and, until it is, these organisations will keep it very firmly in that 'nice to do' category, rather than putting appropriate resources towards addressing the issue."

Progress in core group
Ms. Stubbs said: "Companies must open their eyes to the effects of their policies and must strive for best practice. The research clearly shows that while there is low representation from ethnic minorities at senior level, few companies believe they have a problem. They think the policies and procedures they are following do not discriminate against ethnic minorities".

A core group of 10 leading companies were revealed as emerging paragons of "best practice". They include the banks National Westminster, Barclays, and HSBC, the high street retailers Boots, Marks and Spencer, the supermarket Sainsbury, and British Telecom and British Airways in communications and travel. Ms. Stubbs said: It is now a question of educating the business community to understand how they can re-energise their policies and practices to ensure equality of opportunity, overcome discrimination and embrace diversity."

Implications across Europe
The pan-European implications were also spelled out. Ms. Stubbs said: "The changes and challenges in Europe have made the issues of access to employment opportunities and fair treatment of black and minority ethnic groups in member states become even more important. This research will help us understand the perceptions and experiences of black and minority ethnic professionals and managers in the UK and their views about working across borders in the European Union, and makes some specific recommendations for change. It will enable us to move forward in addressing the issues that are raised and open the eyes of companies across Europe regarding the effect of their policies and practices."

Prominent speakers and participants Key speakers at the conference were The Right Honorable Dr Marjorie Mowlam, Minister for the Cabinet Office; Adam Tyson, principal administrator, Eureopean Commission; Ms Sukhvinder Kaur Stubbs, Chief Executive, The Runnymede Trust; Lord Swraj Paul, Chairman, Caparo Group; and Trevor Phillips OBE, Broadcaster. In attendance were representatives from business, government, black and ethnic minority people in senior level positions in the private and public sectors, academics and race equality non-governmental organisations.

The research, which was carried out for the Runnymede Trust by Schneider-Ross, consultants in equality and diversity, focused on two crucial aspects. One is the policies and practices adopted by FTSE 100 companies to improve recruitment, retention, advancement and mobility across the European Union. The other is the perceptions black and ethnic minority professionals and managers share regarding opportunities for, and barriers to, progress and mobility. A summary prepared by the researchers, Schneider-Ross, is given below.

Racial equality is not yet on the business agenda of many of the FTSE 100 companies - this is one of the conclusions of a national survey presented at The Runnymede Trust conference on diversity in the workplace entitled The Corporate Face in Europe on 7 February 2000. As a result, ethnic minorities continue to be under represented at the top of organisations, and over represented among unemployed graduates.

In our survey report, Moving on UP?: Racial Equality and the Corporate Agenda - A study of FTSE 200 companies, "We've found that among many of the companies we surveyed, there is often a lack of awareness," said Robin Schneider, managing director of the diversity consultants Schneider-Ross. "Many firms who responded don't have even basic levels of ethnic origin data, and they therefore remain unaware of many of the problems that exist.

"We've found too that few companies make the effort to consult their ethnic minority employees. In the absence of such steps, how can any company say that its policies are fair and merit-based?" he asks.

The survey of FTSE 100 companies, which was commissioned by the Runnymede Trust, also found that even among global organisations needing staff to be mobile, those from ethnic minorities were apprehensive about the prospect of relocation to Germany, Austria and France.

Where companies have made the effort to examine the commercial benefits of racial equality, they have been able to make significant progress, the report says, and it points to a small number of top companies that are blazing a trail on the issue.

The Schneider-Ross recommendations for FTSE 100 companies include:

• appointing a board-level champion to develop action on racial equality
• gathering data on employee representation and attitudes, and use of data to build a business case
• setting goals for improvement.

• removing confusion about positive discrimination, through joint action by the Commissions
• continuing its work on diversity and equality in the Civil Service.

• adopting anti-discrimination legislation, proposed by the European Commission, among all member states
• funding research on equality issues across member states
• using the modernising agenda to ensure that the European Commission itself becomes more ethnically diverse.

Contact details:
John Ruskin, Schneider-Ross on 01264 882400
Web site: www.schneider-ross.com
Debbie Leven, Runnymede Trust on 0171 833 5655
Web site: www.fhit.org/runnymede