The pattern of cultural representation within the cohort of chief executives and equivalents broadly tracks that of the total group of 2490 senior leaders in this study. The level of non-European background representation, however, is substantially lower (2.7 per cent compared to 4.7 per cent). There is a combined total of 11 chief executives who have a non- European or Indigenous background – or 3.0 per cent of the total 372 chief executives. Put another way, 97 per cent of chief executives have an Anglo-Celtic or European background. This is a dismal statistic for a society that prides itself on its multiculturalism. It challenges Australia’s egalitarian self-image. It also challenges Australia as a nation whose prosperity relies upon international trade, capital inflows and mobility of people. It would be complacent to believe that it will only be a matter of time before cultural diversity is better represented. There remains limited cultural diversity that appears in the leadership pipeline, as demonstrated by our findings regarding non-chief executive senior leaders. Getting serious about the issue demands that leaders and organisations take committed action in three areas: leadership, systems and culture. We reiterate the general guidance outlined in Leading for Change (2016), which can be summarised as below. There is one general area where efforts can be strengthened on cultural diversity. The experience of gender equality has demonstrated the power of having data and reporting on gender. If we are committed to deepening our success as a multicultural society, there must be consideration of official collection and reporting of comprehensive data on cultural diversity within Australian organisations and institutions. Cultural Backgrounds of Chief Executives and equivalents Cultural background Number Percentage of senior leaders Percentage of Australian population Percentage over/under- representation (+/-) Anglo-Celtic 286 76.9 58 +18.9 European 75 20.1 18 +2.1 Non-European 10 2.7 21 -18.3 Indigenous 1 0.3 3 -2.7 Total 372 02
Findings The Australian population Providing definitive statistics about the cultural diversity of the Australian population is a difficult task. There are no official statistics on the ethnic or cultural composition of the population. The Australian Bureau of Statistics, through the Census, collects data on people’s place of birth, languages spoken at home, and self- identified ancestry. However, none of these variables alone provide a satisfactory measure of cultural diversity. In 2016, the Leading for Change report referred to studies suggesting at least 10 per cent of the population have a non-European background. It drew upon Census figures from 2011 which showed that almost half of the Australian population were born overseas, or have a parent born overseas.13 New analysis, undertaken for this report, provides an updated estimate of Australia’s cultural diversity. By combining aggregate data from the 2016 Census and record-level data from the 2011 Census, in particular responses to questions about ancestry and Aboriginal and Torres Strait Islander identification, we suggest that the Australian population is even more culturally diverse than previously estimated.14 We estimate that about 58 per cent of the population has an Anglo-Celtic background. An estimated 18 per cent of the population has a European background, 21 per cent of the population has a non-European background, and 3 per cent of the population has an Aboriginal or Torres Strait Islander (Indigenous) background. According to these estimates, Australia’s cultural diversity has increased over time. Figure 1: Australia’s population by cultural background Anglo-Celtic European Non-European Indigenous Sources: ABS; estimates from RBA ERG Senior leaders of Australian organisations The cultural diversity of Australian society is significantly under-represented within the senior leadership of Australian organisations. Our study examined senior leaders in business, politics, government and higher education. Of those who occupy 2490 of the most senior posts in Australia, 75.9 per cent have an Anglo-Celtic background, 19.0 per cent have a European background, 4.7 per cent have a non-European background and 0.4 per cent have an Indigenous background. Described another way, about 95 per cent of senior leaders in Australia have an Anglo- Celtic or European background. Although those who have non-European and Indigenous backgrounds make up an estimated 24 per cent of the Australian population, such backgrounds account for only 5 per cent of senior leaders.
Chief executives and equivalents Of the 372 chief executives and equivalents identified in this study, we find that 76.9 per cent of chief executives have an background, 20.1 per cent have a European background, and 2.7 per cent have a European background. There is one chief executive who has an Indigenous background (0.3 per cent). While the pattern of cultural representation within the cohort of chief executives and equivalents broadly tracks that of the total group of 2490 senior leaders in this study, the level of non-European background representation is substantially lower (2.7 per cent compared to 4.7 per cent). There is a combined total of 11 chief executives who have a non-European or Indigenous background – or 3.0 per cent of the total of 372 chief executives. Put another way, 97 per cent of chief executives have an Anglo- Celtic or European background. This is a dismal statistic for a society that prides itself on its multiculturalism and egalitarianism. Table 2: Cultural Backgrounds of Chief Executives Cultural background Number Percentage of senior leaders Percentage of Australian population Percentage over/ under-representation (+/-) Anglo-Celtic 286 76.9 58 +18.9 European 75 20.1 18 +2.1 Non-European 10 2.7 21 -18.3 Asian 6 1.6 Middle-Eastern and Northern African 2 0.55 Other Non-European background 2 0.55 Indigenous 1 0.3 3 -2.7 Total 372 Figure 3: Cultural Backgrounds of Chief Executives Percentage of chief executives 2.7 76.9 European Non-European Indigenous 20 A
3.4 Senior executive management (non-chief executive ‘C-suite’) Of the 2118 senior executives and equivalents (non-chief executive officers) identified in this study, we find that 75.7 per cent have an Anglo-Celtic background, 18.9 per cent have a European background, 5.0 per cent have a non- European background, and 0.4 per cent have an Indigenous background. Cultural representation at this senior executive level shows a slightly higher proportion of non-European representation than at the CEO and equivalent level (5.0 per cent compared to 2.7 per cent). However, this does not indicate that there is a solid pipeline for non-European leadership. When compared to the non- European proportion of the general Australian population (21 per cent), 5.0 per cent indicates a very low level of representation. Table 5: Cultural Backgrounds of Senior Executive Management (non-chief executive ‘C-suite’) Cultural background Number Percentage of senior leaders Percentage of Australian population Percentage over/ under-representation (+/-) Anglo-Celtic 1604 75.7 58 +17.7 European 399 18.9 18 +0.9 Non-European 106 5.0 21 -16.0 Asian 70 3.3 Middle-Eastern and Northern African 20 0.9 Other Non-European background 16 0.8 Indigenous 9 0.4 3 -2.6 TOTAL 2118 Figure 4: Cultural Backgrounds of Senior Executive Management Percentage of senior (C-suite) leaders 5.0 75.7 Anglo-Celtic European Non-European Indigenous
out cultural diversity. Any ‘ethnic zoning’ or ‘ethnification’ of roles or job categories can quickly reproduce itself.48 If cultural diversity is well represented in junior, administrative and technical roles – but not well represented in executive and public-facing roles – organisations 28