BOARDS must step up their focus on corporate culture and work to foster longer-term goals if they want to win back public trust and ensure sustainable businesses, the UK accountancy regulator said.
Sir Win Bischoff, chairman of the Financial Reporting Council, will tell delegates at the regulator’s conference that companies must review their cultures and nurture environments that foster trust and encourage good behaviour at all levels.
“Rebuilding genuine confidence in business and long-term prosperity demands companies to have a culture that lowers the risk of failure and achieves a wide range of positive outcomes, including serving the needs of wider society”, Sir Win will say.
Prime minister Theresa May has said she will crack down on executive pay and rebuild trust between business and society.
“We need a concerted effort to improve the integrity of business and its connectivity to society. There simply has to be increased focus on company culture. When there is a healthy culture, the systems, procedures, and the overall functioning and mutual support of an organisation exist in harmony. This will lead to enhanced integrity, confidence, long-term success and ultimately trust.”
In July the FRC published a report on culture and the role of boards that underlined how stakeholders and society have a vested interest in healthy corporate values, attitudes and behaviours that lead to sustainable growth and long term economic success.