From policy to impact: Racial equity practices in FTSE 350 firms 

This project will explore how racial equity practices in UK-listed firms influence tangible outcomes like pay equity and progression, alongside intangible experiences such as inclusion and belonging. 

Why this project is important

The FTSE 350 cover most UK-listed market capitalisation and helps shape governance and pay norms across high-wage sectors, making its DEI commitments and disclosures important for labour market equity. Yet, despite growing investment in workplace racial equality – reflected in increased voluntary ethnicity pay gap reporting and diversity tracking by more than 75% of FTSE 350 firms – disparities persist. 

What the research will involve

At the same time, approximately one-third of UK employers have paused or reduced their DEI initiatives, signalling a broader organisational retreat. Additionally, evidence remains limited on which practices drive meaningful change. The research team will address this gap by answering the following questions: 

1. How do FTSE 350 firms perform on a pilot Racial Equity Scorecard across five dimensions (Governance and Strategy, Culture and Agency, Business Model, Community Engagement, and Controversies)? 

2. How do racially minoritised employees, including those at the intersection of multiple identities, experience racial equity practices, particularly in relation to inclusion, belonging, and career progression? 

3. What is the relationship between firm-level DEI practices and employee-reported outcomes and experiences across sectors and organisational contexts? 

4. How do historical and structural inequalities influence DEI practice effectiveness and the implications for employee well-being and organisational accountability? 

The research will involve:  

• Using the Scorecard to evaluate 100 firms, integrating publicly available disclosures and controversies.   

• Conducting around 75 semi-structured interviews with racially minoritised employees across diverse sectors and roles.  

• Surveying 1,500–2,500 employees to quantify perceptions of inclusion, fairness, and DEI practices.   

How the research will make a difference 

Findings will be shared with key stakeholders, including policymakers, regulators, employers, and investment professionals. Outputs will include policy briefing papers, case studies, practitioner guides, and a public dashboard.