The regulator says the values and standards of behaviour set by the board are an important influence on culture and there are strong links between governance and establishing a culture that supports long-term success.

In order to develop guidelines in this area, the FRC is working in partnership with the Chartered Institute of Management Accountants (CIMA), the City Values Forum, the Chartered Institute of Personnel and Development (CIPD), the Institute of Business Ethics (IBE) and the Chartered Institute of Internal Auditors (IIA).

The project has four workstreams: delivering sustainable success  (which looks at the role of an effective board); people issues (aligning culture, values, human resource practices and performance reward systems); stakeholder issues (relationships between culture and business models, with shareholders, customers and suppliers, and the impact on the wider community and environment); and embedding and assurance (measuring and monitoring culture, the role of internal audit, risk management and public reporting of cultural indicators).

The FRC says it will publish a report of  the project’s observations and activity, identify best practice and develop practical, market-led ‘how to’ resources to help boards across a broad range of sectors and industries take effective action on culture. It will also replace its existing guidance on board effectiveness to reflect the need to put renewed emphasis on corporate culture.

The regulator is encouraging a wide range of stakeholders with expertise, experience or an interest in this area to participate to provide input to the debate. Those interested in getting involved should email [email protected] by 30 October 2015.

More details of the FRC project are here 

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