DCA is disappointed that the ASX Corporate Governance Council’s proposed new governance rules to increase diversity and inclusion requirements did not receive the broad member support needed for adoption. Despite evolving perspectives on diversity and inclusion, maintaining transparency around diversity targets remains a strategic and practical imperative.
DCA research shows that inclusive organisations don’t just support employees – they are more innovative, adaptable, and resilient, contributing to a stronger and more sustainable economy.
When the ASX introduced gender targets and reporting in 2010, women’s representation in ASX leadership rose significantly. However, progress beyond gender has been slow. Only a small percentage of entities publicly report on other dimensions of leadership diversity, including First Nations peoples, people who are culturally or racially marginalised, LGBTQI+ people and disability status.
Last year, DCA provided a joint submission calling for the ASX to enhance its corporate governance principles by incorporating objectives for greater cultural and racial diversity. In partnership with University of Sydney Business School/Jumbunna Institute for Indigenous Education and Research and University of Technology Sydney Business School, we recommended raising the gender balance to 40% women, 40% men, 20% any gender.
We also advocated for Boards to disclose additional diversity data. DCA supported expert submissions relating to LGBTQ+ leadership and disability leadership, and reinforced the importance of recognising and reporting on Indigeneity.
Achieving meaningful diversity takes commitment, but the benefits are clear. Inclusion doesn’t just create better workplaces – it is key to better business outcomes. Our research shows inclusive organisations are significantly more likely to be innovative, provide excellent customer service, and collaborate effectively. Employees in inclusive environments also report higher satisfaction, improved wellbeing, and greater career support, making them three times less likely to leave their organisation.
These benefits can extend to leadership and governance, with diverse Boards driving better decision-making, stronger performance, and reduced risk of discrimination and harassment.
We encourage the ASX to maintain its focus on advancing board diversity and ensure Australia remains competitive, innovative, and inclusive on the global stage.
To learn more about DCA’s advocacy and policy activities, go to our Advocacy & Policy page.