Following the recent spate of company failures, the UK's Financial Reporting Council (FRC) has called on firms to keep a close eye on company culture. “A series of company collapses linked to unhealthy cultures — whether that be BHS, Carillion, Greensill, or Patisserie Valerie — have demonstrated why cultivating a healthy culture, underpinned by the right tone from the top, is fundamental to business success,” said Sir Jon Thompson, chief executive of the FRC.
Internal auditors have warned about a “post-Covid organizational culture crisis” at UK companies. As a result of hybrid and remote working arrangements, many fear organizational culture has degraded and that conduct risk has been elevated. Despite this, more than half of internal auditors say that they had not been asked to report on company culture or equality initiatives by their board or audit committee.
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