Fashion’s Leadership Discrepancy: New Report Advocates Inclusive Boardrooms

A recent report highlights a persistent lack of diversity in the top echelons of the British fashion industry, emphasizing the necessity for greater inclusion in boardrooms and executive positions. The inaugural Fashion Diversity, Equality, and Inclusion (DEI) report, released by the British Fashion Council, (Fashion) Minority Report, and McKinsey & Company, reveals that merely 9% of executive roles and 11% of power positions (such as CEO, CFO, chair, and creative director) are held by people of color. Moreover, women occupy 39% of executive teams and 24% of power posts.

The report underscores the significant business case for diversity, stating that diverse workforces enhance decision-making up to 87% of the time, leading to improved financial performance. Diverse businesses are found to be 39% more likely to outperform financially, while enhancing DEI is crucial for attracting talent, as 39% of global job seekers have refrained from pursuing opportunities due to perceived lack of inclusion.

Consumer trends also indicate a preference for brands reflecting their values, with around 50% of millennials considering gender equity an important factor in brand choice. Jamie Gill, founder of the Outsiders Perspective, co-author of the report, emphasizes the need to reposition DEI as a business imperative for profitability in the current economic climate.

The report also exposes a dissonance in beliefs about diversity within the industry. While 86% of white men believe the industry to be diverse, only 46% of women of color share the same perception.

Acknowledging the progress made in outward-facing aspects such as catwalk representation, the report stresses the urgency of addressing internal disparities in boardrooms and workplaces. Leadership commitment is identified as a crucial factor in effecting change, with company heads urged to set diversity goals. The report further emphasizes the necessity of filling gaps in data collection, specifically pertaining to LGBTQIA+, neurodiversity, socioeconomic background, size, age, religion, and gender. This comprehensive call to action seeks to encourage the fashion industry, traditionally considered a leader, to address its current shortcomings in diversity and inclusion.