In light of the increasing emphasise being placed on the importance of ethnic diversity in the workplace, Lloyds Banking Group PLC is making efforts to improve staff diversity. Moody’s Investors Service, has called these efforts “credit positive”.
Measures outlined in the UK bank’s “Race Action” plan, which includes promoting more black employees to senior roles and publishing an ethnicity gap report this year, are “credit positive because they will improve staff diversity at all levels and reduce Lloyds’s exposure to social risk”, according to a Moody’s report published on the 23rd of July.
The killing of George Floyd by Minneapolis police in May has spurred Black Lives Matter protests globally, rightfully prompting public companies including Lloyds to review their approach to diversity and inclusion. Black employees currently account for 1.5% of the firm’s total workforce and o.6% of its senior management, the bank said this month.
“The underrepresentation in financial services of ethnic minorities, and in particular black staff, and at a senior level, is a social issue that is subject to increasing importance by investors, regulators, and politicians in several countries,” Moody’s said in its report.
This is certainly welcome news. It is encouraging to see plans on diversity and inclusion put in motion. We will continue to keep an eye on other organisations preparing to follow suit.