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When such data is collected, there is also the option for a person to say 'does not wish to answer'. As for the issue being about 'personal questions', then lets look at the LGBT example. It's quite common for people to assume that being gay is a private matter, though people aren't straight whilst they're at work and then gay at 5pm when they can go home. When straight colleagues come to work, it's clear from their conversation, pictures on their desks etc, what their sexuality is and rightly so. It's this image of LGBT issues of being 'private' that keeps it in the closet (if you'll pardon the pun).

And, Arthur, I absolutely agree with you about other local businesses that are not asked about such diversity data. I think any firm that has above a certain employees should be required to do this by the local authority in which they are based.