In this period the workforce has been transformed, with many more older people, ethnic minorities, disabled people and women employed. But despite this progress, equality issues are perhaps as high up the business/ political agenda now as at any time since then.

There are two main drivers of this agenda — recruitment and legislative compliance. Both are challenging and that is why SCDI is hosting business seminars on 27th September in Inverness and 30th October in Elgin in partnership with Equality Matters in Business. Speakers will include representatives from local companies demonstrating good practice.

Turning first to the carrot. Decent economic performance has led to a tight Scottish labour market, with some skills gaps and shortages. The influx of migrant workers from Eastern Europe has been its saviour, but questions remain about their long-term intentions and potential replacement. By 2010, only a fifth of the population will be white, male, non-disabled and under 45, so there is clearly a need for diversity in recruitment. But with, for example, a third of 50-plus men out of work, talent seems to be getting wasted.

Nor are the incentives to work improving sufficiently. A report by the UK Equalities Review published earlier this year warned that some kinds of inequality are set to remain at unacceptable levels. At the current rate it will take until 2085 to close the gender pay gap, and the employment penalty facing disabled people may never be eliminated.

This explains why the second driver, the legislative stick, has been wielded again. Changes have recently been made to age discrimination laws. In October, the new Commission for Equality and Human Rights will be launched, bringing together the work of the Racial Equality, Disability Rights and Equal Opportunities commissions. It will have new powers to enforce legislation more effectively and promote equality for all.

Clearly, here is a need for businesses to get up to speed. Is it best to remove age-related information from application forms? (Yes). Does the Disability Discrimination Act cover firms of all sizes? (Yes). Is a business responsible for what its employment agency does? (Yes). The aim of SCDI's workshops is to spell out where businesses' legal obligations start and finish. They are also designed to show the benefits of diversity in the workplace.

The benefits on offer are more than just a larger group of talent from which to recruit. There is also great potential for SMEs to access new business opportunities. There are around 1 million disabled people in Scotland, with an estimated spending power of £5 billion. The ethnic minorities consumer market is worth about £32 billion in the UK.

This is "European Year of Equal Opportunities for All". It is right that equal opportunities are available to everyone in society and it makes sound economic sense. But businesses can give themselves a competitive advantage by embracing the equality agenda.

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