The majority of Australia’s listed companies have implemented or plan to implement a gender diversity policy, according to a new report on the adoption of the ASX Corporate Governance Council (CGC) diversity recommendations.
But the uptake of the gender diversity recommendations depends on the size of the entity reporting. While 82% of the ASX200 had set measurable objectives, just 58% of the 200 surveyed ASX 201-500 companies had done so, although 29 companies indicated they were developing the objectives. Of the 200 ASX501+ companies surveyed, only 28% of companies had created a set of measurable objectives with 22 currently developing such objectives.
This trend was also true for disclosing the proportion of women in the company. Ninety per cent of the ASX200 reported on the proportion of women in their senior executive ranks, compared to the 71% of ASX201 – 500 companies and 56% of the ASX501+ companies surveyed.
The report by KPMG for the ASX investigated 600 ASX-listed companies and their compliance with the ASX CGC gender diversity principles introduced in 2011. Those 600 companies covered the ASX200, and 200 companies from both the ASX201 – 500 and the ASX501+.
While the recommendations weren’t mandatory, should companies not meet the recommendations they were required to explain why not. Across the 600 companies surveyed, over 90% of companies complied either by reporting their progress or explaining why not.
The ASX200 have now all complied with the gender diversity principles and recommendations.
Ninety three per cent of the ASX200 (185 companies) had a diversity policy and 82% (165 companies) had set measurable objectives with a further 14 companies indicating they were developing their objectives. Ninety three per cent of the ASX200 reported the proportion of women in their whole business, 90% reported on the proportion of women in their senior executive and 84% reported the percentage of women on their boards.
Jillian Segal, ASX non-executive director, said in a statement that the findings indicated a strong commitment to gender diversity reporting by most listed companies.
She particularly highlighted the leadership of the larger companies. “Notably, Australia’s top 200 listed companies are setting a strong example with almost all of them reporting that they have diversity policies in place. Smaller listed companies that do not have policies in place indicated that their size and stage of development was a barrier to establishing a diversity policy,” said Segal.
The gender diversity principles and recommendations include adopting and reporting on a diversity policy, establishing a set of measurable objectives and disclosing the proportion of women in the whole business, senior executive and board.
According to KPMG, the most common explanations for not meeting such recommendations were that change was currently in progress.
Other reasons cited by companies included that their current practices in place were sufficient, they were undergoing changes in management, or that the company promotes and recruits based on merit and individuals rather than gender or background.
The diversity initiatives reported on covered training, mentoring and networking programs, flexible work arrangements, diversity committees, pay equity reviews and a more mindful and measurable approach to recruiting.