Culture-driven governance: Why influencing behaviour is an essential compliance strategy

  • In achieving financially sustainable results, boards and senior leaders must ensure the means are both ethical and prudent.
  • Creating a desirable workplace culture takes both a ‘top-down’ and ‘bottom-up’ strategy.
  • This article outlines the key steps any organisation can take to ensure leaders have a positive impact on culture and governance.

Outlines of two heads with arrows in between

Let’s face facts. Things haven't been going particularly well when it comes to corporate governance in Australia, or indeed around the world. It isn't difficult to find examples of organisations and leaders who have spectacularly failed to deliver on their duty of care to shareholders, customers and employees. At the heart of the issue are ego, greed, power, risk-taking and a clear lack of compassion or integrity.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has exposed a deeply entrenched culture of ‘win at all costs’. In reference to how the major banks have dealt with small business, Michael Hodge QC highlighted a series of examples of bad behaviour which devastated lives and could result in moves against them by the regulators and legislators.

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