|Whistleblower reports to the Financial Conduct Authority on ‘unacceptable’ workplace culture increased by 35% in 2019. This increase in reports could be due to the growing awareness of unacceptable business practices. “Over the last couple of years, organisational culture has become an increasingly important part of the risk landscape for firms,” consultancy Kroll reports.|
Questions regarding ‘fitness and propriety’ — which relates to an individual’s honesty, competence and financial soundness — made up the most commonly reported problem, with 442 such cases. Systems and controls and compliance matters were also common problems, with close to 400 reports each.
“If toxic internal issues hit the headlines, the repercussions on both reputation and the bottom line can be catastrophic. To avoid being associated with such risks, organisations are adding ‘culture checks’ to their corporate due diligence processes,” Kroll observed.