According to the Financial Reporting Council, poor culture is a business risk in itself. Boards are therefore advised to “seek assurances about the health of the culture by taking the temperature of the organisation on a regular basis”.
GoodCorporation has developed an Ethical Culture Healthcheck to provide an assessment of corporate culture that can be benchmarked for use in internal and external reports
This helps organisations meet the requirements of the 2018 UK Corporate Governance Code that boards should assess and monitor culture.
As the Code states, where it is not satisfied that policy, practices or behaviour throughout the business are aligned with the company’s purpose, values and strategy, the board should seek assurance that management has taken corrective action. The annual report should explain the board's activities and any action taken.
This means gathering evidence by monitoring chosen indicators to gain insights into the overall culture. Qualitative and quantitative data should be gathered and analysed annually to enable boards to demonstrate that its corporate culture is aligned with company purpose, strategy and values. This can be done using GoodCorporation's Ethical Culture Heathcheck.
GoodCorporation has a thorough understanding of how to measure ethical business conduct and to build this into the audit process. Analysing ethical business conduct and non-financial risk is a challenge for many businesses and we are very pleased that we have been able to take such a leading position through our work with GoodCorporation.
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