2 minute read 2 Jan 2019
Magnifying glass

How boards can improve decision-making through the lens of culture

Authors

Ken Williamson

EY UK&I Professional Practice Partner and Partner in Corporate Governance

Passionate about governance and audit which are critical to trust in business and a renewed focus on social purpose. Wine and exercise enthusiast - a perfect combination.

Mala Shah-Coulon

EY UK Corporate Governance, Associate Partner

Passionate about governance – a vital ingredient to running a successful enterprise and not a compliance imperative. Mum of twins and trustee at Bliss.

2 minute read 2 Jan 2019

With corporate culture a hot topic, we look at how boards can improve decision-making through the lens of culture.

Corporate culture has been a hot topic since the financial crisis. In examining the underlying causes of corporate failings, many commentators began to reflect on the role of corporate culture in decision making. Questions were also asked about the quality of corporate governance and board oversight of cultural issues.

Culture affects behaviours and decision making. It directly affects risk management and ultimately business performance. Culture shouldn’t just be a hot topic for discussion, but also for governance action.
Mala Shah-Coulon
EY UK Corporate Governance, Associate Partner

A strong focus on the importance of the board’s role in monitoring and aligning culture to purpose, values and strategy has now also been introduced in the updated UK Corporate Governance Code, Quoted Companies Alliance Corporate Governance Code for AIM listed companies, as well as the new Wates Corporate Governance Principles for Large Private Companies. This heightens the call for many kinds of businesses and boards to begin considering the role of culture in more depth.

Updated in early 2019 to reflect the latest corporate governance developments, this paper is designed to help boards and committees consider the decisions they make and the oversight they exercise through the lens of culture. With key questions for the board and each of its main committees, it aims to stimulate constructive debate and discussion which will help boards and committees discharge their responsibilities and get more insight into the culture of their organisations.

Download the paper here

Summary

What roles do board and board committees play in asssesing and monitoring an organisation’s culture, and what questions should they be asking about organisational values and purpose, employee behaviours and attitudes, reward structures and the way things are done? What indicators do they use to assess culture? The answers could indicate how effectively they are addressing the impact of organisational culture on corporate performance.

Download the paper here

About this article

Authors

Ken Williamson

EY UK&I Professional Practice Partner and Partner in Corporate Governance

Passionate about governance and audit which are critical to trust in business and a renewed focus on social purpose. Wine and exercise enthusiast - a perfect combination.

Mala Shah-Coulon

EY UK Corporate Governance, Associate Partner

Passionate about governance – a vital ingredient to running a successful enterprise and not a compliance imperative. Mum of twins and trustee at Bliss.