Governance aligned to culture

Good governance is integral to our firm’s culture and the way it operates. The publication in September 2023 of a landmark independent review from Ziggy Switkowski, in response to failures in governance and accountability in PwC Australia, encouraged us to reflect on our own governance structures and culture.

We recognise the importance of our governance structures, including the Supervisory Board, Public Interest Body and our Audit Oversight Body, and the role they play in providing independent challenge to the Management Board. The integral role that our governance bodies played in our reflections, actions and lessons learnt from the independent review, and in the election of a new Alliance Senior Partner, demonstrated our commitment to our governance, as we consider how we continually strengthen it moving forward.

On a firmwide basis, all staff (including contractors and secondees) and UK firm partners are required to complete annual mandatory training to reinforce our risk aware and resilient culture. Our 100% completion rate continues to demonstrate our people's commitment to managing risk and combating corruption.

Our Code of Conduct is based on the PwC purpose and a core set of shared values. The Code sets out a common framework around how we are expected to behave, do business and do the right thing. This includes encouraging our people to use our Speak Up helpline if they come across a situation that is inconsistent with the Code or our values. We have reinforced the importance of Speak Up, throughout the year, in a variety of firmwide communications. However, we recognise the need to continue to improve, to reinforce the importance of a Speak Up culture with our people.

We also have a dedicated Business Conduct team, are required to report to the FRC on non-financial conduct matters, and a duty to report to the ICAEW.

There have been no major or minor non-conformities under ISO 27001, which is the international standard for managing information security.

Our Transparency Report is designed to help our stakeholders stay informed about important information relating to our Audit practice and audit-related services. As the audit profession continues to be under significant scrutiny and given its importance to corporate governance and the functioning of the economy, we consider it critical to continue to share insight into what we do, and how we do it - whether it’s our approach to recruiting, training and rewarding our people, our focus on audit quality, or how we create an inclusive culture - all overseen by robust governance structures.

We are a large partnership managed and governed by four main bodies each with a different role and responsibility. The key matters, and how the firm managed risk, considered in the year by our governance bodies included culture, people, quality, performance, regulation and reputation.

Management Board

Our executive body responsible for the policies, strategy, direction and management of the UK firm. Read more about the Management Board.

Supervisory Board

Our elected governance body with responsibility for the interests and wellbeing of the wider partnership and the UK firm. Read more about the Supervisory Board.

Public Interest Body

Our majority independent governance body responsible for discharging PwC UK’s duties under the Audit Firm Governance Code. Read more about the Public Interest Body.

Audit Oversight Body

Our Audit Oversight Body is a committee of the Public Interest Body whose purpose it is to oversee the UK firm’s obligations with respect to the pursuit of the Financial Reporting Council’s objectives, outcomes and principles for operational separation of audit practices insofar as they are within the control of the audit practice. Read more about the Audit Oversight Body.

You can hear more from members of our governing bodies in our Transparency Report.

As a leading professional services firm, we’re committed to respecting and upholding internationally recognised human rights. Current geopolitical instability, the increased cost of living and the effects of climate change being felt more starkly across the world, are leaving vulnerable people increasingly exposed to exploitation. That’s why it is important that we continue to proactively identify and manage potential risks associated with human rights violations in our business and supply chain, adapting to dynamic global affairs.

In FY24 we continued to review and strengthen our approach to human rights, including modern slavery, across our operations and supply chain. We have a comprehensive programme to manage the associated direct and indirect risks, which draws on the principles of the UN Guiding Principles Reporting Framework. We report on our progress annually in our Modern Slavery Statement, in line with the UK legislative requirements of the Modern Slavery Act (2015).