Diversity, equity and inclusion (DE&I) quotas should not be mandatory according to almost three out of every five directors.

A survey of directors by the Institute of Directors (IoD) also found that just over a quarter of firms do not currently have a policy around diversity, equity and inclusion in place.

Only two thirds also believe their board composition reflects the DE&I policy of their organisation.

"Boards and business leaders need to look at their governance structures to allow for DE&I - having a policy to begin with, training on unconscious bias, clear KPIs to monitor success and having a board succession plan in place," said Caroline Spillane, IoD chief executive.

"Additional areas of reflection from the research addressed the importance of assigning DE&I responsibility at director/senior management level."

When asked to choose from a list of possible answers questioning why the respondents thought there should be a DE&I programme across the organisation, 24% cited enhancing company culture.

A further 21% reference its importance in attracting and retaining talents, while 27% picked altruism as a reason.

Among those who have already put a DE&I policy in place, 88% said it has impacted positively on company culture.

80% also said it had a helped with attracting and retaining talent.

72% of the respondents referenced the positive effect on external reputation.

Over three quarters of the 333 directors who responded to the survey agreed that hybrid working ensures a more diverse and inclusive work environment.

Half disagreed that it was straightforward to find a director with the right skills and experience and to fit in with DE&I policy.

"Of those surveyed, one third of business leaders disagreed that the composition of their board took all elements of DE&I into account and no one strand was more important than others," said Ms Spillane.

"Directors, consumers and employees, should feel that DE&I policies are representative for all, and are not just about simply filling targets, but a genuine mission of ensuring an inclusive and representative organisation," she added.