The Times Australia
The Times World News

.
The Times Real Estate

.

Beyond the PwC scandal, there’s a growing case for a royal commission into Australia’s ruthless corporate greed

  • Written by Carl Rhodes, Professor of Organization Studies, University of Technology Sydney
Beyond the PwC scandal, there’s a growing case for a royal commission into Australia’s ruthless corporate greed

Accounting and consulting group PwC has been front page news ever since its chief executive Tim Seymour stepped down “effectively immediately[1]” in May, when the firm said it had “betrayed the trust” of Australians and promised an independent review[2] of its governance, accountability and culture.

That review, conducted by former Telstra chief Ziggy Switkowski, was published[3] on Wednesday, along with an assurance from the firm that it would implement the recommendations.

Released with the review was a separate Statement of Facts[4] prepared by PwC. This set out how it had provided advice to clients based on confidential government information about tax policy, which had been provided to one of its partners on the condition it be kept confidential.

‘Untouchables’ and ‘troublesome practice matters’

Ziggy Switkowski reviewed PwC Australia’s culture and governance. Julian Smith/AAP

Switkowski found PwC Australia’s culture and governance practices were so weak they led to “integrity failures”.

It was an organisation that prized revenues and growth over ethics, values and purpose, with a “whatever it takes” culture that made “heroes” out of partners who raked in the most money.

If you were at the top, you were called a “rainmaker”. The biggest rainmakers who brought in the most money were referred to as “untouchables”, to whom “the rules don’t always apply”.

Switkowski found the culture was “collegial” in the sense that dissent wasn’t welcome.

While good news was shared among partners, difficult news was kept quiet and referred to internally as “troublesome practice matters”, or TPMs. Legal updates about TPMs were “generally verbal”.

Read more: More than reputation at stake: PwC faces penalties, including jail time[5]

The chief executive, elected by partners in a “presidential-style campaign”, was “not perceived to be accountable to the board”.

Among Switkowski’s most important recommendations were that PwC Australia be run[6] like a public company listed on the Australian Securities Exchange – with a board that included independent directors and had the power to hire and fire the chief executive.

PwC Australia has agreed to this, and all 23 recommendations[7].

Problems far from over

As damning as the report is, Labor Senator Deborah O’Neill – who is chairing the Senate inquiry into the management and integrity of consulting services – says it “merely scratched the surface[8]” of what was going on both at PwC.

Her committee has until November[9] to report.

Back in May, the Australian Treasury asked the Australian Federal Police to consider commencing a criminal investigation[10] into PwC’s improper use of confidential Commonwealth information.

And in July, Greens Senator Barbara Pocock formally referred PwC’s conduct to the new National Anti-Corruption Commission[11].

This all spells more trouble ahead for PwC, and perhaps for the Australian consulting industry more generally.

More than one bad apple?

Although sparked by the revelations about PwC Australia, Senator O'Neil’s committee is inquiring into the behaviour of all of Australia’s consultancy groups[12].

It has taken evidence from Deloitte, EY, KPMG, McKinsey and The Boston Consulting Group.

New research by Roy Morgan[13] suggests the bad image of corporations spreads beyond the consultants.

Asked about distrust or distrust of any brand in Australia in June, the result was an all-time high for distrust.

Roy Morgan Australia Risk Monitor[14] Roy Morgan identified the PwC tax scandal and the data breaches at Optus and Medibank among recent events accelerating distrust. It also identified: the Harvey Norman JobKeeper scandal, Rio Tinto’s destruction of the Juukan Gorge, Qantas’ refusal to pay back any of the $2.7 billion in COVID government handouts and the class action by hundreds of thousands of customers fuelled by the airline’s unwillingness to refund $2 billion in cancelled flights A record number of those surveyed identified “too motivated by profit” as a reason for their distrust. This makes it reasonable to ask whether a culture of ruthless profiteering has infiltrated Australian corporate cultures across the board. After the consultants have been dealt with, there is a case for royal commission into whether Australia’s entire corporate sector is meeting its responsibilities. PwC has helped open the door. Read more: My 3-point plan to untangle the public service from consultants such as PwC[15] References^ effectively immediately (www.pwc.com.au)^ independent review (www.pwc.com.au)^ published (www.pwc.com.au)^ Statement of Facts (www.pwc.com.au)^ More than reputation at stake: PwC faces penalties, including jail time (theconversation.com)^ run (www.asx.com.au)^ 23 recommendations (www.pwc.com.au)^ merely scratched the surface (www.smh.com.au)^ November (www.aph.gov.au)^ criminal investigation (treasury.gov.au)^ National Anti-Corruption Commission (www.afr.com)^ all of Australia’s consultancy groups (www.aph.gov.au)^ Roy Morgan (www.roymorgan.com)^ Roy Morgan Australia Risk Monitor (www.roymorgan.com)^ My 3-point plan to untangle the public service from consultants such as PwC (theconversation.com)

Read more https://theconversation.com/beyond-the-pwc-scandal-theres-a-growing-case-for-a-royal-commission-into-australias-ruthless-corporate-greed-214474

The Times Features

Why a Garage Shed is the Perfect Addition to Your Property

The most straightforward and most wholesome extension for any property. A garage shed is a potential solution for you, whether you are looking for an additional space for storage...

Revitalising Homes Through Strategic Architectural Renewal

Residential window replacement is one of the few home improvement interventions that goes far beyond simple aesthetic upgrades. Door frames and windows constitute these vital archi...

The Benefits of Animal-Assisted Speech Therapy For Children

Speech therapy has long been a standard for supporting children’s communication and emotional development. But what happens when you introduce a furry friend into the process? Th...

The Hidden Dangers of Blocked Drains and the Ultimate Solution for a Hassle-Free Home

Drain blockages are a big hassle to every homeowner and business owner alike. Whether it is a sink in the kitchen or bathroom, a clogged toilet, or a foul smell circulating aroun...

Understanding the Dangers of Ignoring a Gas Leak

Gas leaks are silent threats lurking within both homes and workplaces. A gas leak occurs when natural gas or any other gaseous substance escapes from a pipeline or containment. T...

Can You Sell Your House Privately in Queensland? Here’s How

Selling a house privately in Queensland is entirely possible and can be a cost-effective alternative to using a real estate agent. While agents provide valuable expertise, their co...

Times Magazine

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

How AI-Driven SEO Enhancements Can Improve Headless CMS Content Visibility

Whereas SEO (search engine optimization) is critical in the digital landscape for making connections to content, much of it is still done manually keyword research, metatags, final tweaks at publication requiring a human element that takes extensiv...

Crypto Expert John Fenga Reveals How Blockchain is Revolutionising Charity

One of the most persistent challenges in the charity sector is trust. Donors often wonder whether their contributions are being used effectively or if overhead costs consume a significant portion. Traditional fundraising methods can be opaque, with...

Navigating Parenting Arrangements in Australia: A Legal Guide for Parents

Understanding Parenting Arrangements in Australia. Child custody disputes are often one of the most emotionally charged aspects of separation or divorce. Parents naturally want what is best for their children, but the legal process of determining ...

Blocky Adventures: A Minecraft Movie Celebration for Your Wrist

The Minecraft movie is almost here—and it’s time to get excited! With the film set to hit theaters on April 4, 2025, fans have a brand-new reason to celebrate. To honor the upcoming blockbuster, watchfaces.co has released a special Minecraft-inspir...

LayBy Shopping