A survey carried out by the Institute of Directors (IoD) has found that almost 60% of directors believe that diversity, equity, and inclusion (DE&I) quotas should not be mandatory.

The IoD survey also found that 28% of respondents did not have such a policy in place, citing the size of their enterprise or the belief that the current legislation and standard practice was sufficient to cover DE&I issues.

Of the 333 directors taking part, 27% said that altruism was the main reason for setting up an organisation-wide DE&I programme, followed by enhancing company culture (24%), and attracting or retaining talent (21%).

Company culture

Directors of organisations that had implemented DE&I policies were also asked about its impact, with 88% saying that it improved the company’s culture, and 80% citing a positive effect on the attraction and retention of talent.

Just under 72% of respondents said that there was a positive impact on external reputation, while 58% of respondents said that DE&I had no impact on the financial performance of their organisation.

Caroline Spillane (IoD CEO) said that some respondents had mentioned having a good gender split in their organisations, but had also pointed out that there was progress to be made in other DE&I areas.

“Of those surveyed, one-third of business leaders disagreed that the composition of their board took all elements of DE&I into account,” she stated.

“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,” Spillane added.