Survey reveals 59% of directors believe DE&I quotas should not be mandatory for board composition

In reply to the question as to whether they have a DE&I policy in place, 28% of respondents said they did not, citing the size of their enterprise or the belief that the current legislation and standard practice is sufficient to cover off DE&I. 

Enhancing company culture (24%), attracting/retaining talent (21%) and altruism (27%) were the three most popular objectives expressed by respondents for establishing an organisation-wide DE&I programme*. 

Post implementation of a DE&I policy, the sentiment towards DE&I among directors is mostly positive with 88% and 80% saying it has had a positive impact on company-wide culture and on attraction and retention of talent, respectively. Just under 72% of respondents said that there was a positive impact on external reputation, while 58% of respondents said that DE&I has no impact on the financial performance of their organisation. 

When asked to comment on the impact question, the answers highlighted that some organisations would only hire based on the candidate being the right person, and others said that it was too early to mention or that financial impact was difficult to quantify.

This new survey by IoD Ireland, undertaken between 1st and 12th July 2024, assessed its members’ attitudes to DE&I and was completed by 333 directors and business leaders.

Speaking about the survey findings, IoD Ireland CEO, Caroline Spillane CDir, said:

“The results of this survey illustrate beliefs directors now have around DE&I and the supports they feel they need. Interestingly respondents mentioned having a good gender split in their organisations but that there was progress to be made in other DE&I areas. Boards and business leaders need to look at their governance structures to allow for DE&I – having a policy to begin with, training on unconscious bias, clear KPIs to monitor success and having a board succession plan in place. Additional areas of reflection from the research addressed the importance of assigning DE&I responsibility at director/senior management level.”

Spillane continued:

“It is important for directors and business leaders to have an inclusive mindset when creating DE&I policy programmes to ensure all elements are included, and not just gender for example. Of those surveyed, one third of business leaders disagreed that the composition of their board took all elements of DE&I into account and no one strand was more important than others. Directors, consumers and employees, should feel that DE&I policies are representative for all, and are not just about simply filling targets, but a genuine mission of ensuring an inclusive and representative organisation. We, at IoD Ireland, will take respondent’s suggestions on board and will continue to offer support and education around diversity, equity, and inclusion for its members."

Spillane also noted that:

“IoD Ireland will be launching a new Bursary in Gary Kennedy’s memory aimed at promoting diversity, equity and inclusivity.  The bursary will include a fully- funded place on our highly-regarded Chartered Director Programme in 2025. Gary was a member of our Council and a long-standing IoD member until he sadly passed away early last year. We are honoured to establish this bursary in his name as he was a champion of inclusivity believing that, as in all areas of society, equity and fairness in business is vital."

The directors surveyed are all IoD Ireland members and represent a wide range of businesses as well as State or semi-State bodies, not-for-profit organisations, SMEs, and plc/multinationals.

IoD Ireland is dedicated to developing and improving the effectiveness and performance of directors and boards throughout Ireland. In October 2023, the organisation launched a new CPD framework for directors, c-suite and senior executives, and boards to drive higher standards in corporate governance in response to the ever-evolving policy, regulatory, macro-economic and governance environment in Ireland.