The British Chambers of Commerce (BCC) has joined forces with other leading business groups to call on the UK Government to stop using the outdated term ‘Chairman’, and replace it with ‘Chair’ instead.
Currently the word ‘Chairman’ is still used by Companies House as its default term in its model articles, meaning it is then repeated in the articles of many thousands of companies across the country. However, UK business organisations want Chairman to be replaced with Chair, in a bid to promote gender equality and #BreaktheBias. Make UK, The Institute of Directors, the Confederation of British Industry, and all 53 of the Accredited Chambers of Commerce have joined the BCC in signing an open letter to Government asking for the change; ahead of International Women’s Day.
The letter calls for this to be changed to the neutral term ‘Chair’ and points out the change could easily be incorporated in upcoming corporate governance legislation. All of the letter’s signatories are taking steps to amend their own articles to use the word ‘Chair’; and they are encouraging all other businesses to follow suit.
LANGUAGE MATTERS
“More needs to be done to help the young girls and women of today achieve their ambitions. Research from the FTSE Women Leaders Review 2022 reveals just 8% of FTSE 100 CEOs are women and only 13.7% of executive directorships,” highlighted Sarah Howard, Chair of the British Chambers of Commerce. “Currently Companies House still uses the word ‘chairman’ in its model articles of association and has done for many years, meaning it has been used by thousands of businesses across the country when they are set up. While businesses can change it themselves, many are under the impression that it is a requirement of Companies House. Language matters. Just as ‘policeman’ and ‘fireman’ have been replaced with more inclusive terms, so too should ‘chairman’ be consigned to the history books.”
While it may seem trivial to some, language matters. Research from the World Bank suggests a direct link between the use of gendered language and differing employment rates between men and women, which is why leaders like Howard are pushing for the change. “It’s a small but very significant alteration that will help break down subconscious bias and send a clear message to future generations that they have an equal role to play in running businesses whatever their gender identity, stressed Howard. “There is much more that all of us need to do to help address inequality in the business world, and this change would send a clear message on government intent.”
BREAK THE BIAS
All signatories believe that together they can #BreakTheBias. Although they recognise that this amendment is not a silver bullet, and other initiatives and activity are needed, they believe this change would signal to future generations regardless of gender, that they have an equal role to play in running businesses across the country.
“Whilst significant strides forward have been made on improving gender balance in Board and leadership positions, we must continue to strive for greater representation by women. Clearly changing Companies House’s model articles is no silver bullet, but neither is it trivial,” added Jonathan Geldart, Director General of the Institute of Directors. “The importance of language should not be underestimated. By taking this small step, the Government can ensure that gender neutrality is instilled in new business ventures at their inception.”
OVERDUE CHANGE
Dame Judith Hackitt, Chair of Make UK, agreed: “This is a welcome and long overdue change which is easy to make and which I hope all businesses across the UK will support. Despite progress in recent years, it remains the case that women are under-represented in the most senior roles across companies. This is a small, but positive and highly symbolic change that I hope Government will back.”
The letters signatories include:
- Sarah Howard MBE Chair of the British Chambers of Commerce,
- Lord Karan Bilimoria CBE, DL President, Confederation of British Industry
- Dame Judith Hackitt, Chair, Make UK
- Jonathan Geldart, Director General, Institute of Directors
- Aberdeen and Grampian Chamber of Commerce
- Ayrshire Chamber of Commerce and Industry
- Barnsley & Rotherham Chamber of Commerce
- Bedfordshire Chamber of Commerce
- Black Country Chamber of Commerce
- Business West
- Cambridgeshire Chambers of Commerce
- Chambers Wales South East, South West and Mid
- Cornwall Chamber of Commerce & Industry
- Coventry & Warwickshire Chamber of Commerce
- Cumbria Chamber of Commerce and Industry
- Devon & Plymouth Chamber of Commerce
- Doncaster Chamber of Commerce
The open letter to government can be found here.
Although women gained nearly 50% of new corporate board appointments in the last quarter, diversity is still lacking on the majority of company boards, a new study show. Click here to read more.
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