PwC partners who make the firm money are known as “untouchables” and “rainmakers” to whom “the rule don’t always apply”, according to a scathing cultural review that confirms the pursuit of profit often outweighed ethical responsibilities.
The review by former Telstra boss, Ziggy Switkowski, found many staff believe “revenue is king” and that partners who exceed financial expectations are considered “heroes” who are not always held accountable for their business practices.
It also reveals internal dismay that the firm did not immediately confront a breach of confidentiality that infuriated the federal treasurer and eventually triggered a police referral, prompted accusations it engaged in a “calculated” breach of trust and a “deliberate cover-up”, and ensured a reputation crisis that resulted in its entire government services division divested for just $1.
Switkowski’s review was prompted by a former partner breaching confidentiality agreements with the Australian government and sharing secret information about future tax policies with private clients, allowing them to prepare in advance.
“For your eyes only,” the partner wrote almost a decade ago, while emailing secrets to colleagues who would later use them to make millions of dollars. Nine partners have been exited from the firm since those emails became public, although some dispute their involvement and maintain they were not aware of the breach.
Switkowski was not asked to investigate the misuse of confidential information. He was instead asked to examine PwC Australia’s internal culture and governance standards. He made 23 recommendations including an overhaul of leadership structures and changes to ensure more transparency and accountability.
Some of the 90 partners and senior executives interviewed along with an unknown number of staff who contributed to 18 focus groups “consistently” reported that a “high-performance, results-focused culture has been used as an excuse to justify poor behaviour”.
“They think the revenue they bring in means they can do what they want and it comes through in their behaviours towards fellow partners and teams,” one partner told Switkowski.
“The Australian partnership operates largely from a profit seeking perspective, sometimes at the expense of ethics and doing what’s right. I do not believe this aligns with our values,” said another.
Switkowski found the firm’s “aggressive growth agenda overshadowed and occurred at the expense of the firm’s values and purpose”.
“The focus on ‘whatever it takes’ seems, at times, to have contributed to integrity failures. Some partners did the wrong thing, while others failed to do the right thing by overlooking or minimising the significance of questionable behaviours,” the report said.
“This creates the risk of unethical behaviour, or behaviour that exceeds the firm’s risk appetite, making it more challenging to drive a culture of ‘doing the right…
2023-09-26 21:43:45
Article from www.theguardian.com