An independent review of PwC Australia has unveiled a deeply flawed corporate culture that tolerated bad behavior and prioritized the pursuit of profit "growth at all costs." The review, conducted by former telecommunications CEO Ziggy Switkowski, also found a lack of governance that allowed misconduct to persist unchecked for years, ultimately leading to the firm's tax leaks scandal.
"The report highlights that we've had failure of leadership, by individuals and by the firm," said Kevin Burrowes, who was appointed CEO of PwC Australia following the ouster of his predecessor.
Switkowski's report made 23 recommendations for reform, including adding independent members to the governance board, granting the board power to dismiss the CEO, and overhauling weak risk management systems. The report also repeatedly emphasized that the chief executive role had become too powerful and effectively unaccountable. "Culturally, the generally accepted view is that the CEO' runs the show'," Switkowski wrote. "During a long period of commercial success, this has translated to a reluctance of partners to challenge the CEO, even at senior leadership levels."
Additionally, the review revealed a troubling "good news" culture within the top partnership, where bad news was not communicated, leading to blind spots. Additionally, the report noted a lack of transparency regarding sensitive complaints and legal matters, with limited information shared with the board of partners.
PwC Australia has accepted all the report's recommendations and, notably, committed to publishing audited financial statements from 2025, a first among Big Four accounting firms. However, critics, including Labor Senator Deborah O'Neill and Greens Senator Barbara Pocock, believe PwC was aware of misconduct for too long without taking adequate action and call for further independent investigation of the firm.
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