Chairman of the FRC highlights the importance of company culture

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10 Mar, 2016

The Chairman of the Financial Reporting Council (FRC), Sir Win Bischoff has highlighted, at a recent conference, the importance of company culture to the success of business.

Speaking at the conference, Sir Win Bischoff indicated that “embedding a healthy corporate culture, through improving behaviour, is [therefore] vital to the success of any business”.  Sir Win Bischoff highlighted the work of the FRC in promoting good corporate behaviour through its Culture Coalition; a group of organisations containing the Chartered Institute of Internal Auditors (IIA), the Chartered Institute of Personnel and Development (CIPD), the Chartered Institute of Management Accountants (CIMA), the Institute of Business Ethics (IBE) and City Values Forum specifically focused on culture.

He indicated that improving corporate behaviour through promoting a healthy corporate culture is “high on the FRC’s agenda”.  Sir Win Bischoff commented:

For the UK economy to prosper, business needs to have a corporate culture which creates trust in business, reduces company failings and serves the needs of wider society.

He further stated that it is the leaders, namely the Board, within the business that are required to set an appropriate company culture.  This will require them to “define the purposes of the company and what type of behaviours it wishes to promote in order to deliver its business strategy”.  He also stated that culture should be company specific and that “there is no one-size-fits-all” approach. 

Concluding he commented:

Values, behaviours and corporate culture are central to the way an organisation achieves its objectives.  When these are integrated into its business model, good and sometimes great things will follow, financially as well as reputationally.

The full text of the speech can be obtained from the FRC's website.  Melanie McLaren, Executive Director, Codes and Standards, gave a similar speech at the Internal Audit Leaders' Conference that can be accessed on the FRC website here.

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