Anne Marie Morris
Main Page: Anne Marie Morris (Conservative - Newton Abbot)Promotion of Women in Business
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Mary Macleod (Brentford and Isleworth) (Con)
I congratulate my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) on securing this important debate on an issue that, for me, is all about aspiration and allowing individuals—men and women—to achieve their potential. We know that many women are stopped from achieving that potential, from being the best they can be and from delivering real value at senior levels in business. We need to do something about that.
I welcome the report from Lord Davies. He has looked at the issue in detail, involved many people in the discussion and come out with a good series of suggestions. I am a strong believer—as might be imagined from me being here—in the importance of having more women in business at senior levels. I worked for more than 20 years in the City in different sectors and have seen the lack of women at senior levels. I fundamentally believe that that is not necessarily because women are doing something wrong—although I agree with my hon. Friend that they can promote themselves better—but because there are serious issues about how we select women and people on to the boards in the City.
Anne Marie Morris (Newton Abbot) (Con)
Does my hon. Friend agree that part of the challenge is the structuring of the career path? We are all now living longer. If we could find ways of structuring career paths, whether in the corporate or professional worlds, so that men or women could go into it at different times, that might ease the problem. In the professional and corporate worlds, we see a hub at the age of 30 where it is either make or break—the same time that many women want to have their families. That puts on undue pressure and makes that decision much harder than it would be if we had a career span that was much longer, over the many years that we are going to be working.
Mary Macleod
I agree with my hon. Friend. There is not a one-size-fits-all way of doing things. Different women will have different career paths and will do things at different stages of their lives. We want the flexibility to adapt to those different career paths and still to allow people to get to the top levels in business. I have seen the lack of opportunity and meritocracy that currently exists in business. We are not drawing from the possible range of talent that exists. That means that organisations suffer, that business and the economy generally suffer, so the country suffers. We need to do something about that, because there is a huge untapped pool of talent.
Why is this issue important? As my hon. Friend the Member for Maidstone and The Weald has mentioned, some of the reports and studies are not only about aspiration, but performance. Studies such as one by McKinsey’s have looked at a range of statistics that show that companies with a higher proportion of women in senior management teams, in essence, outperform their rivals, with a 42% higher return on sales, a 66% higher return on invested capital and a 53% higher return on equity. There is improved decision making, as was mentioned. Such companies may also be more responsive to the market, make better decisions and have improved corporate governance.
The current position is an issue. Only 12.5% of directors of FTSE 100 companies are women and only 7.8% of directors of FTSE 250 companies are women. Some 52.4% of companies have no women on their boards at all. That is a disgrace. There are a few reasonably good examples. GlaxoSmithKline, in my constituency, has 38% of senior positions held by women. It is good that that has improved year-on-year in the past five years, and that it has improved at the different levels—whether manager, director, senior vice-president or vice-president. That is what we want to see: an ongoing improvement at all levels so that there is opportunity for all.
In so many organisations, the frustrating thing is that progress has plateaued. Contrary to the widely held myth, there is no evidence to suggest that there is a shortage of appropriately qualified women in the pipeline. There are plenty of women to take on board-level roles, but we need to start to change the thinking about what the requirements are. As Lord Davies said, we must promote on the basis of merit and skills. That is important if we want a true meritocracy, and to have true fairness and opportunity. Lord Davies’ report mentions getting companies to talk about and publish their figures. That is a great starting point and something that we absolutely should do.
Other measures that need to happen include the better mentoring and sponsoring of the next generation of executives. One programme that exists and works very well is the FTSE 100 cross-company mentoring programme. Many chairmen of FTSE 100 companies are trying that new mentoring approach that will help in the long term, because it aims to sponsor, nurture and mentor the next generation and help them with the skills and experience to get to the next level.
More also needs to be done with networking for senior women in business. A study by Higgs and Tyson found that almost half of the directors they surveyed had been recruited through personal friendships and contacts. That is probably something that we all recognise, so it is important to build up those networking opportunities.
We also need to fight media images and stereotypes. The more we can create, promote and highlight role models, the better it will be, because we want the younger generation of women to see that it is possible to get to the top of their business or sector, and that that will happen purely on the basis of fairness and merit.
Also, we should promote companies that have a good record on gender diversity and flexible working options, which, for some people, is important. We have to work with the chairmen of FTSE 100 and FTSE 250 companies so that, as Baroness Bottomley put it, they look through the window when recruiting boards and not in the mirror. That is something that needs to be adjusted so that, as my hon. Friend the Member for Maidstone and The Weald said, people do not recruit only those who are similar to them and who are already on boards but see the value of having new and different skills on boards.
Anne Marie Morris (Newton Abbot) (Con)
Many of the points that I might have made have been made already, given that I am speaking towards the end of the debate, but perhaps I can dwell on a couple of them and give them a little more thought.
In an intervention earlier, I raised the idea of flexibility over career timing. The ability to start a career later—perhaps after having children—is often not open to those of us who work in the City or the professions. I agree with other speakers that that is perhaps not something that can be legislated for; rather, it is about creating the right environment. We need to look at the issue, however, because we will all live longer and need to work longer. This is not, therefore, just a women’s issue, but a cross-gender issue.
Brandon Lewis
I am sorry to delay my hon. Friend, but having had two children, my wife has gone back into work and successfully set up her own business, in exactly the way my hon. Friend has described. Does my hon. Friend agree that part of the issue is the need for us all to highlight the fact that such things can be done? More women, and indeed men, would then realise that being a certain age does not mean that they cannot achieve something and do something new. Highlighting such things would raise the profile of this issue in the way that my hon. Friend has.
Anne Marie Morris
I absolutely agree. That is absolutely right. However, the real challenge is changing that culture.
My second point builds on the idea of confidence and experience. I welcome the idea of a Select Committee, which would be a first-class way of encouraging more thought on this issue. I was delighted to hear about the FTSE 100 mentoring programme, which sounds like a first-class initiative. The challenge is to have more role models and better mentoring programmes—I agree that they should be for men and women—and to help rebalance individuals, so that they have the broad suite of skills that we all need.
In that respect, perhaps I can dwell on men for a minute. If we look at what is happening in schools, we see the reverse of that. Boys’ results are not as good as girls’. Girls are tenacious and exam focused, and they are good at the process involved in passing exams. More and more women are going into the professions, and more women than men are going into the junior level—not the top level—of medicine and law. Leaving aside the leadership issue, we therefore also have a problem with the gender balance in those professions. We need to help men to go into those professions and to compete, just as we need to help women to go into the corporate world and compete there. The gender balance in the professions and corporate life is completely different.
One of the challenges facing us is that the skills that make people successful in the corporate world are not embedded at school, and I suspect that that may be an issue for the Secretary of State for Education. The issue is which skills we need people to gain at school to help us right the imbalance that I have described. Another challenge is to ensure that we have better integration between school and the workplace. One of my frustrations is that the children we talk to about the requirement to do work experience talk about it as if it were a tick-box exercise; there is no real sense of the role they will have in the workplace. Indeed, there is still a bit of a sense that the expected option is to stay at home.
Anne Marie Morris
That would be very helpful. In the same way that we have looked at the intellectual aspects of education, including issues such as the English baccalaureate, we are now looking at the skills aspects of education through the Wolf report. I agree that we need to develop a fundamental understanding of these issues among boys and girls at school. I do not have an answer as to how we can more effectively integrate business into education, but the issue absolutely needs to be resolved.
My third point relates to child support, which is a real issue. Partly, it is about money, but is also partly about culture, expectation and provision. A number of organisations are looking at crèches, part-time working and job sharing. However, it is one thing to look at introducing such provisions and to recognise that they are the right thing to do, but another thing to work out how to make them really effective. There is a bit of a tick-box approach, with people thinking that they have ticked the box because they have a crèche. In that respect, I was really struck by the comments of my hon. Friend the Member for Skipton and Ripon (Julian Smith). What is important is the ability to sit down and have a meaningful conversation about how we can work together and take on board the fact that, biologically speaking—certainly in our lifetimes—only women will have children. The question is how we make a different outlook more of a reality, and a Select Committee could probably sensibly spend some time looking at the issue.
When I was thinking about today’s debate, I remembered that we had a married man’s allowance in the old days, and I wonder whether a working mother’s allowance might be appropriate in the modern world. I put that out as a thought, and I appreciate that the piggy bank is a little empty at the minute, but such a proposal might be food for thought. We need a holistic approach to the fact that women have the babies. We need to integrate that and enable women to contribute in the workplace, which is crucial.
My final point relates to the corporate issue. I was impressed by what I read in the report to which a number of contributors have alluded. Diversity is certainly key. I agree that it would make a lot of sense to ensure that the numbers of women coming through an organisation are published in the accounts. Although I agree that we do not want more bureaucracy, such a process would not be a big issue for the top FTSE companies. We have information about the very senior women, because of the reports to Companies House, but we need to see the progression planning, and we will not get it without information about the women coming through the organisation. That is what I would describe as a nudge, rather than a push. I agree that legislation is not the answer, because we need to shape and encourage. Once organisations begin to see that there is a spotlight on the issue, it will begin to make a difference.
The real difference in corporate life will come, however, with the review of the governance code, which is important. How do we ensure that we are really talking about diversity, not trying to right the gender balance? We have to acknowledge that women want to be recognised for the different skills that we bring. I would almost like to see job descriptions that show that companies have thought through the different skills that they need and how roles might work slightly differently to encompass the broader range of skills that are available through employing women. When we look at the governance code, we could try to give some guidance on what might go into it. We are not talking just about men and women, but about the qualities of good management. If we can articulate that, it would be a good way forward. However, I am conscious of the time, so, on that note, I will conclude my contribution.