We rarely shy away from discussing gender equality in business but what about ethnic balance? It's an equally important priority
As chair of the Ethnic Minority Advisory Group, I brief ministers on policy initiatives, particularly those aimed at narrowing the employment rate gap for minorities. Although the gap is closing, it's not doing so fast enough and government funding cuts in the public sector and the third sector may have a disproportionate effect on these groups.
There is much talk about gender parity in the workplace but we tend to shy away from discussing ethnic balance. Why? I don't buy into daft claims of institutional racism. Often, employers are unaware of the ethnic composition of their board or workforce. Working in catering, it's not an issue for me. I employ people from every ethnic background in my company and at every level.
It's generally accepted that people tend to recruit people like them. In the late 1980s, I was one of only a handful of journalists of an ethnic minority background working on a national newspaper and it was soon clear as to why—editors would gather with colleagues in environments which weren't a natural domain for many staff, and so career development accrued from reporters' willingness to be part of that social network. The pub was the centre for this activity and I soon worked out that if I bought my boss a pint every now and then, I would be given more and better assignments.
Take that routine example of career progression and place it in the context of Oxford University where some colleges have no black students, and you start to build a picture of how recruiting from one's social peers leads to severe under-representation of ethnic minorities in boardrooms, senior positions and, more generally, in the workforces of companies possibly like yours. This happens not by design, but by default.
Organisations such as government departments go out of their way to make sure their commitments to workplace diversity ring true. Large businesses increasingly do so because it's good for business. If Asda, for example, opens a new store in an area with a big Muslim population, it won't just put halal products on its shelves, it will build prayer rooms so that it is considered a suitable place to work as well as to shop. It's smart business.
I recently attended a Business in the Community conference on this subject and was amazed to see how advanced big businesses have become on this agenda. Companies such as Lloyds and Barclays compete with each other to see who has the tougher, more robust strategies to ensure that they attract talent from all sections of the community. This is not just to be seen to be fair, but to ensure that their business is relevant and attractive to would-be customers.
Some organisations go further. The Department for Work and Pensions and Transport for London have both looked at their procurement procedures. And they're asking: Are the sub-contracting companies we pay millions to really fit to supply? In other words, are they using your money to challenge or perpetuate workplace inequalities?
To be on the approved supplier list at TfL, you need to be able to show strong diversity practices. If you don't, you lose out on the chance to do business. The London Development Agency has a diversity toolkit and will show you how to get your company on the list.
Historically, politicians have been scared to tell businesses how to conduct themselves and some business organisations bleat about more red tape. But businesspeople recognise that if you make the effort there are potentially significant commercial gains. Director readers will always be looking for new revenue streams and here's one that is so close to home-your own company and the make-up of the staff you employ.
We all have latent biases and there is growing evidence that by not challenging them or seeing a wider perspective, we are losing out. We must recognise how we can build a fairer place for all.
The Business in the Community conference was organised by its Race for Opportunity group, where I am involved. It offers an online toolkit for employers to assess where they stand and how they are placed on diversity. I recommend you try it. Hold a mirror up to your company and see if you're missing out.
