Nearly three quarters of business leaders here would prefer board targets rather than quotas or other methods for achieving diversity and inclusion in the boardroom, a report by the Institute of Directors has found.
The survey of over 300 directors and businesspeople here found that 71% were in favour of board target while 14% preferred board quotas and 15% were in favour of other methods for reaching diversity targets on boards.
The European Union agreed earlier this year to impose gender quotas to ensure women occupy at least 40% of non-executive director seats on the boards of large companies by mid-2026.
The legislation applies to listed companies in all 27 EU member states, although it has yet to transposed into Irish law.
"While targets are acknowledged as an important factor, they are just one of a number of diverse and notable criteria to be considered when selecting board candidates in pursuit of a diverse and inclusive board.," Caroline Spillane, CEO of the Institute of Directors said.
"This research indicates that "filling a skills need" is by far the leading criteria influencing how a director is recruited followed by "enhancing the level of critical discussion and diversity of perspectives in the boardroom" and "Diversity and inclusion (D&I) targets", she explained.
Ms Spillane said it was essential that companies address and review their board composition policies and have an organisational diversity policy or statement in place.
The research found that only 59% of members had a board composition policy in place, while just over half have a diversity policy or statement in place.
The latest quarterly Director Sentiment Monitor research report also found that a majority (69%) of business leaders believe the hybrid working model has had a positive impact on ensuring a more diverse and inclusive work environment.
However, it leaves a sizeable almost one third who are either undecided or disagree on this view.
"For some groups hybrid working has been a positive development, but it is crucial to monitor for its true impact over time," Ms Spillane said.
"We do not want a scenario whereby on the surface it seems like it allows for more recruitment of a particular group, however, in truth it means then this group cannot progress in their career as they are not visible in the office due to remote working," she added.
