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Financial Reporting Council publishes findings of corporate culture study by Smith Lara





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Financial Reporting Council publishes findings of corporate culture study by
Article Posted: 11/16/2016
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Financial Reporting Council publishes findings of corporate culture study


 
Business,Judaism,Public Speaking
The findings of a study from the Financial Reporting Council (FRC) have been released, bringing fresh insight into the relationship between corporate culture and business success in the UK.

The FRC interviewed more than 250 chairpersons, CEOs and other leading industry experts from some of the UK's biggest companies to explore the importance of culture within organisations, and the links between corporate culture andlong-term business goals and values.

A culmination of the FRC’s Culture Coalition group, a collaborationwith CIMA, the City Values Forum, IBE, IIA and CIPD, the report highlights useful information that can be used to the advantage of businesses across the UK and indeed the globe.

The report emphasised the importance of a healthy corporate culture, which the FRC described as "a valuable asset, a source of competitive advantage and vital to the creation and protection of long-term value.

"It is the board's role to determine the purpose of the company and ensure that the company's values, strategy and business model are aligned to it. Directors should not wait for a crisis before they focus on company culture."

Also highlighted in the report was the importance of leaders - particularly chief executives -embodying the desired culture of the organisation, "embedding this at all levels and in every aspect of the business? Boards have a responsibility to act where leaders do not deliver."

Openness and accountability were two key terms referenced throughout the report, with the FRC clearly also considering communication to beessential to good company culture. As we have previously discussed at London Registrars, strong governance is a vital element of any organisation and without it, the right values and ethos cannot be instilled into employees.

Successfully embedding the values of a company throughout every aspect of an organisation – including human resources, internal audit, ethics and compliance and risk functions – remains as imperative for companies in the UK today as it has ever been.

Giving every employee the chance to feel empowered and embedded within a company’s ethos can offer meaningful and long-lasting benefits, including increased morale, higher job satisfaction and improved communication between departments.

The findings of the FRC offer useful recommendations that you should consider implementing into your own corporate operations. In addition to the wide range of other business services that we offer here at London Registrars, our Corporate Governance Review can empower you with the expert advice and guidance needed to drive forward the values and culture of your business.

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