London, Apr. 4 (ANI): A new report by British parliamentarians has blamed lack of women on the boards of city firms for the global financial crisis.
The Treasury Select Committee said that lack of women in city firms could partly be the reason behind recession, as greater female representation may have helped avert the downturn.
"Our report urges the city to take matters into its own hands and improve gender diversity," Sky News quoted Committee Chairman John McFall, as saying.
The parliamentary committee suggested that the change should be cultural, rather than legislative.
"However, we recommend that the Treasury Committee in the next Parliament monitors this: I am sure it will want to see evidence that this voluntary approach is yielding results. If it does not, then the pressure for compulsory measures is likely to grow," he added.
"We believe the lack of diversity on the boards of many, if not most, of our major financial institutions may have made effective challenge and scrutiny of executive decisions less effective." Sky News quoted the TSC report, as saying.
The report pointed out that diversity among financial firms in the FTSE 100 Index is lower than other top companies.
Women make up to only nine percent of listed bank boards, while other firms have 12.2 percent women on their boards.
Meanwhile, Harriet Harman, Minister for Women and Equalities, said firms should "play their part" in encouraging greater female representation in senior positions.
"Businesses that run on the basis of an old boy network and do not draw on the talents of all the population will not be the ones that flourish and prosper in the 21st century," she said. (ANI)