Corporate Boards (Diversity)

David Lammy Excerpts

Wednesday 28th October 2015 Commons Chamber

[Mr Umunna]

I am afraid that there are simply too many people out there with the talent and ability who are not being appointed. That is the reality of the situation in 2015.

[Mr David Lammy (Tottenham) (Lab)]

I am grateful to my hon. Friend for all that he is saying, and I congratulate him on his engagement, which was announced in the last few days.

Does my hon. Friend agree that this is not special pleading? If we look overseas to America, we see that they have made huge strides with the appointment of African-Americans and Latinos to boards. That increases the diversity of talent, and most pioneering companies understand that to be the case.

[Mr Umunna]

I could not agree more with my right hon. Friend, and I thank him for his best wishes. On the point that he makes, he and I represent very similar constituencies, and we cannot carry on like this. When my young black constituents ask me what they should consider doing in the future, I want to be able to point to people who look like them in the boardrooms, to inspire them to think that they can do it too. In 2015 there are far too few people who I can point to and give as an example.

--- Later in debate ---

[Anna Soubry]

I absolutely understand that. Lots of people are doing all sorts of research. After the first Opposition day debate this afternoon, I went to an event in the Shard organised by a foundation called the Pink Shoe Club. It is doing a lot of in-depth work with women to see why, for example, women in small businesses are not having the successes that men have. It is complex. One reason is access to money. Another is that, frankly—I can say this as a woman—it would seem that not enough women have enough aspiration. It is not simply the case that there is still discrimination and bias—I am sure there is and there is no debate about that—but there are lots of other factors. Obviously, with the rise of women through the ranks, there will always be that debate on the topic of children and how women fit their children in with that sort of career and advance. Any man can do it—the problem never seems to stop men having children and continuing their career. It is hugely complicated.

[Mr Lammy]

Does the Minister agree that chairmen and CEOs have to lead and say that the issue is important, and they have to mentor? In that sense, it is no different from politics.

[Anna Soubry]

I completely agree with the right hon. Gentleman—he is now my right hon. Friend for the purposes of this debate. When I was a Defence Minister, one thing that really struck me was that the people at the very top of the three armed services undoubtedly got it. They understood that it was unacceptable that there were not enough women, gay people or people from ethnic minority backgrounds making their way up through the ranks in the same way that white, straight men were. After the people at the very top got it, we began to see the most astonishing successes. For example, our armed forces have done particularly well in getting rid of the awful discrimination against gay people. Some progress has been made for people from ethnic minority backgrounds. Frankly, we could do a lot more for women. The right hon. Gentleman is absolutely right that it has to come from the top, because that is where the leadership is.

This probably sounds completely obvious to those of us who get it, but it is not about saying, “I want 50% of my board to be women, and I want more people with brown skin on my board, because that’s what we really should be doing.” It is about saying, “We’ve got to have the very best people on our board, so there should be no barriers to them getting there. If there are barriers, how can we be sure that we’re getting the best people?” It is not about saying, “We want more women and more people from ethnic minority backgrounds because that reflects society.” It is about saying, “We want the very best, and that means people with ability have to be able to get on.”