(9 July 2008)

Businesses in London and the UK can benefit and prosper if they adapt and address an increasingly diverse social mix, according to findings released today. The research with top executives at thirty leading London-based companies was announced to an audience of business leaders. Diversity Works for London undertook the research to see how leaders of large businesses view diversity as a factor in the success of their organisations. The results present a compelling business case for diversity.

They show:

• Over three quarters (77%) of business leaders surveyed said that the future success of business lies in having a diverse workforce
• Almost two-thirds (63%) felt that without a diverse workforce, business in London can’t survive
• 97% said that diversity practices are good for business and 87% said that workforce diversity makes financial sense because it increases opportunities for business with new, diverse customers
• 80% agreed that businesses in London should have a diverse workforce to reflect the capital’s diverse population

The survey also found that:

• 80% of business leaders felt that it was difficult to implement diversity policies
• 70% said that they do not have a programme to open up their supply chain to diverse suppliers
• Over a quarter (27%) of executives said that there remained a limited understanding of diversity
• One in five (20%) stated that their organisations were not doing enough to promote it
• Over a quarter (27%) also said that workforce diversity was not viewed as a key strategic priority for their businesses
  

The research was unveiled by Diversity Works for London at the launch of its new diversity “Gold Standard” - a benchmark for companies to ensure that they meet and exceed best practice. Diversity Works for London also launched a new online toolkit that will help large companies implement and profit from diversity.

Deputy Mayor of London Richard Barnes said: “Any organisation that does not have a diverse work force or a diverse supply chain, or is not working towards having them is committing slow economic suicide. It is simply a matter of good management and any organisation that does not enjoy good management will not survive. The Mayor and I are committed to the ‘Gold Standard’ across London and will be heavily promoting the diversity tool kit. We want all of London to prosper and thrive.”

Diversity Works for London (DWfL) is a programme for London’s businesses designed to promote how a diverse workforce makes good business sense. DWfL engages businesses and other organisations to help them harness the benefits of a diverse workforce and supplier base. It is part of the London Development Agency, which works to improve the quality of life for all Londoners and drive sustainable economic growth.

Diversity Works for London’s “Gold Standard” and online toolkit can be found at www.diversityworksforlondon.com

• People from black, Asian or other minority ethnic (BAME) groups make up 6.4% of the total population of working age in the UK. Across the country BAMEs will account for half the growth in population of working age over the next 10 years.
  
  
• London is the most diverse region in Britain. Nearly half of the U.K.'s total minority ethnic population lives in the capital, where they comprise over 32% of all residents, largely represented by Africans, Caribbeans and South-East Asians
  
  
• Londoners speak over 300 languages and belong to at least 14 different faiths.
  
  
• Mintel Research estimates that by 2011 people from BAME groups will be a “majority” in half of the London boroughs
  
  
• Over the next ten years BAME groups will account for 80% of the increase in London’s working age population
  
  
• BAME-owned businesses generated a combined sales total of £90 billion in 2004, and made a significant contribution to the London economy in terms of job creation, GDP, income and wealth creation
  
  
• London's BAME communities have enormous spending power, with an after-tax income of around £16 billion
  
  
• At least 5% of London residents are gay or lesbian – the economic value of the 'Pink Economy' in the UK is estimated to be around £95 billion. By 2010, 40% of the workforce will be over the age of 45.