Tone from the Top

Transforming words into action
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A short extract of the panel question and answer session, chaired by PwC Fraud Academy Chairman John Tracey at the 'Tone from the top' event held on July 8 2010.

Setting the right tone from the top is critical to building trust and value with shareholders, employees, customers and business partners.

Our report, based on a survey of 144 PwC Fraud Academy members, has shown that, while leaders are articulating the ethical values and principles they want others to work by, these are not regularly measured or evaluated and are often undermined by their own leadership teams’ behaviours.

More than 40% of the survey respondents said that, on occasions where tone from the top had been undermined it was due to leadership not acting as role models and their actions not matching the ethical message being communicated.

The report questions whether organisations are effectively measuring and reporting on the ability of the organisation and employees to act with integrity, or whether leaders are just playing lip service to ethical behaviour.

This issue is all the more relevant with companies needing to demonstrate ‘adequate procedures’ to prevent bribery if they are not to be caught by the Bribery Act. The Act has powers to hold management liable for abuses within their own businesses, sales channels or by their third parties and agents.  

Read the full report on the PwC Fraud Academy website