On 8 March, Sir Win Bischoff, the Chairman of the Financial Reporting Council (FRC), gave a speech at the Financial Times Banking Standards Conference on improving corporate behaviour.
In his speech, Sir Bischoff explains that the FRC’s mission is to promote high quality corporate governance and reporting in the public interest. Apart from maintaining codes and standards for corporate governance, investor engagement and corporate reporting, the FRC is also responsible for audit and other forms of assurance, and for actuarial information. The Chairman believes that embedding a healthy corporate culture is vital to the success of any business.
While codes and standards put forward principles for best practice that make bad behaviour less likely to occur, and reporting can make it harder to conceal such behaviour, it does not completely prevent inappropriate behaviour. The Chairman states that only people within the business (particularly the leaders) can do that.
To help improve corporate behaviour, the Culture Coalition has been set up. This is a collaborative effort with a number of organisations and proposes “to assess how effective boards are at establishing company culture and practices, and embedding good corporate behaviour, and to consider whether there is a need for promoting good practice.”