When PwC consultants decided to share confidential government tax policy with other clients, they shredded their promises, mocked their values and landed PwC in the crosshairs of the federal police.
Breaking promises always has consequences. But it rarely lands the promiser at the top of the news cycle. PwC is there because some people inside the company chose to risk reputation for short-term gains.
An unnamed executive is quoted in emails to colleagues saying: “Because it was provided to us on a confidential basis, I ask that you don’t circulate it beyond us or discuss it outside PwC – it would really put PwC Australia and me in a real bind.”
A bind is an understatement for the conflagration currently engulfing the firm’s Australian branch, with tentacles reaching worldwide.
Labor senator Deborah O’Neill said: “This is a disgraceful breach of trust, a sickening example of a lack of integrity, and reveals a toxic culture of unprofessional practice at PwC that stretches across the globe”.
Funny O’Neill should mention integrity. ‘Acting with Integrity’ is the first value listed on the PwC website page about values with the headline — and you can’t make this stuff up —”Building trust for today, and tomorrow”.
Pick up a newspaper or open a news website today and there’s no shortage of articles dissecting PwC’s actions. I’m more interested in how this all fits a pattern of big businesses behaving badly and flouting their stated values.
Although the actions are vastly different, PwC’s arrogance has similar roots to Rio Tinto’s cavalier destruction of sacred cave art and Crown Casino’s rotten-to-the-core culture.
At least that unnamed PwC executive seemed to have an inkling that, if exposed, breaking confidentiality would cause problems. Although apparently it wasn’t enough to drive them to categorically say ‘stop’. “I ask that you don’t…” is just the kind of passive mealy language corporates use to provide people wiggle room to keep doing whatever they’re doing.
Imagine a different outcome if the executive said: “This information is confidential. Only share or discuss it with the client or PwC Australia.”
And so, back to values and PwC’s promise to “Act with Integrity.”
I vocally support organisations’ right to define their values beyond commonly-held meanings. But when you invoke one of the holy trinity (the other two being trust and honesty), you better have your culture and promissory ducks in a row. And given the current revelations, why would a client trust PwC’s word?
Alongside purpose, values are the bedrock of brand. They are how I do things. So, when values are a veneer, it’s no surprise to see out-of-step behaviours and a corresponding hit to how people perceive you. I regularly see the disconnect play out across all kinds of organisations.
If people at PwC believe they should “act with integrity”, breaking client confidentiality should never be an option.
Yet it was.
Headlines are tracking the immediate damage to their reputation, and the cost of lousy press alone will exact a toll. I imagine a lot of reassuring clients and propping up morale is happening.
Longer-term consequences are harder to foresee. Will clients choose another firm next time they seek advice? Will the people involved face criminal charges?
Whatever plays out, I think it’s safe to say PwC’s brand holds less value today. A brand stores the value created by an organisation’s actions. But it’s never one way. Broken promises remove value, and wrong choices can quickly erode years of work.
There’s a lesson for all businesses in PwC’s plight. Beyond the obvious, keep your promises and don’t sell out clients. Think carefully about what your values mean for how you do things, and don’t assume people know what is non-negotiable.
Michel Hogan is an independent brand counsel.
Michel Hogan is an independent brand counsel. She advises organisations on the risk to their purpose and values or making the wrong promises — with a robust, resilient brand as the result. You can find Michel at michelhogan.com, follow her on Twitter and LinkedIn. Her ebook, Between Making Money and World Peace, is now available.
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