Last week, the UK House of Commons Treasury Committee issued a report detailing the findings of its inquiry into sexism in the financial sector, concluding that efforts to resolve these issues are moving at a "snail's pace."
"Firms must take responsibility for improving their culture," said Harriett Baldwin, Chair of the Treasury Committee. "There have been several high-profile cases which show the existential risk to firms who don't tackle sexual misconduct... Regulators and the Government also have a role to play but they need to think carefully about what will deliver the best outcomes and avoid introducing tick-box exercises."
Many respondents to the inquiry emphasized establishing inclusive cultures as the most important factor for improving diversity. "If I had to pick out the overarching driver of what needs to change, it is culture," Karen Northey, Director of Corporate Affairs at The Investment Association, told the Committee. "A lot of that is culture within individual firms. It starts at the beginning of someone's career."
Despite these observations, the recommendations in the report focus instead on updates to systems, policies, and procedures, areas that constitute formal management structures in an organization. These include:
While these recommendations are well-meaning and would likely be beneficial, they ignore the underlying culture and related informal structures that allow sexism and harassment to persist. In a contribution to our upcoming 2024 Compendium, Elizabeth Broderick, the Former Australian Sex Discrimination Commissioner, will discuss how leaders can address these cultural shortcomings in their organizations. To learn more about the 2024 Compendium, click here.
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