PwC hopes outsiders will cure ‘shadow culture’

afr.com:

PwC Australia will add three independent directors to its board and publish audited accounts, a first for the big four, in a bid to cure a “shadow culture” uncovered by Ziggy Switkowski’s report into the tax leaks scandal.

The firm will also adopt ASX corporate governance principles that can be applied to a private partnership, as part of an action plan to put a line under a crisis that has caused unprecedented damage to the once dominant accounting and consulting outfit.

PwC Australia boss Kevin Burrowes and PwC global chairman Bob Moritz.  

The report by former Telstra chief executive Dr Switkowski, to be released on Wednesday, is expected to conclude that there was an effective “shadow culture” within the partnership that rewarded partners who brought in revenue and overlooked bad behaviour.

PwC global chairman Bob Moritz is expected to be in Australia to brief partners and clients about the firm’s response. Australian chief executive Kevin Burrowes said the response will show the firm’s commitment to improving its governance.

“The publication of Dr Switkowski’s independent review is an important day for the firm,” he said in a statement. “It marks a moment from which we, and others, can measure progress against our commitments to enhance the firm’s governance, accountability and culture.“

“From the top down we are committed to rebuilding and re-earning the trust of our stakeholders. We are committed to learning, changing and leading. This is our promise to our people, our partners, our clients and our communities.”

Dr Switkowski’s expected criticisms of the firm’s former leadership echo an earlier apology made by temporary CEO Kristin Stubbins in May in which she blamed the tax leaks on a lack of respect for client