Where does your business sit on the conduct advantage map?
Recognise and uncover the one percent of things that could go wrong before they become reputational or regulatory issues.
11 December 2017: A new report released today by Deloitte Australia will help Australian corporations and business use conduct to their advantage. By asking the right questions and being proactive, organisations can better understand how a relationship between corporate culture, trust and behaviour can drive improved performance and business outcomes.
Are you in? Conduct – it’s everyone’s responsibility is a roadmap for all organisations to prepare for a future of increased scrutiny. Regulatory and social expectations have shifted, meaning leaders, company boards, and senior executives are finding themselves under the spotlight to ensure their businesses behave, act and conduct themselves to meet customer expectations.
Conduct Lead Partner at Deloitte, Philip Hardy said: “Businesses today face a ‘trust deficit’ with customers being increasingly sceptical of the system. The challenge ahead for corporations is to recognise and uncover the one percent of things that could go wrong, because those are the things that are damaging the 99 per cent of what is going right.”
“Leaders need to look in the right places.”
Using two levers of time and severity, Deloitte has plotted Australian business sectors on a conduct advantage map. Eleven sectors, almost half of the 24 sectors considered, are in the red zone. These sectors face conduct issues at present, or will do so in the near future, with the impact being significant. These organisations need to look at investing in behaviours and practices focused on delivering fair outcomes for customers, employees, suppliers and markets.
“Our sector-wide conduct map is about understanding how Australian businesses can seize the opportunity to deal with issues. It is about helping organisations be more vigilant and proactive when it comes to the impact of their behaviours and practices,” said Mr Hardy.
“It is also about timing. We have plotted a time scale for sectors that are either dealing with issues currently or in the next six to twelve months, through to four years.
“The Conduct Advantage Map is a guide to better discover those one percenters – those critical vulnerabilities – before they become either reputational or regulatory issues.”
Richard Deutsch, Deloitte Managing Partner, Audit and Advisory said: “Anyone who thinks conduct issues are now contained across corporate Australia or particular sectors is not looking over the horizon. This may be just the start of the journey.”
Mr Deutsch said, “By discussing conduct and the intricacies of the current landscape, organisations will be better prepared for what may come, and better able to detect, control and grow their companies.
“We designed the report to help boards and senior executives ‘be in the know’ and use a checklist of questions to ensure they visibly lead and actively choose to know and act, in order to be fit for the future.”
Are you in? Conduct – it’s everyone’s responsibility can be downloaded here.