8.2 Diversity in governance

Question 1

State Principle J of the 2018 UK Corporate Governance Code

Answer 1

Both aapointments and succession plans should be based on merit and objective crieria and, within this context, should promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths.

Question 2

What factors relating to diversity does the Code require the annual board evaluation to consider (and disclose in the ARA)?

Answer 2

The process used for appointments, including how diversity is supported.

The policy on diversity and inclusion, its objectives and the linkage to strategy.

The gender balance of those in senior management and their direct reports.

Question 3

The FRC Guide to Boardroom Effectivness requires boards to decide which aspects of diversity are important in the context of the business and its needs, with input from you?

Answer 3

stakeholders

Question 4

Define equality.

Answer 4

The moral case for equal opportunities.

Question 5

What is the zoo metaphor for diversity?

Answer 5

This metaphor considers how diversity can either be treated as a way of “housing” different variety, like a zoo, rather than promoting a truly diverse system such as a rainforest.