ASIC Warns Boards on Corporate Culture

ASIC chairman Greg Medcraft has warned directors that they are responsible for the culture of their companies and says he will take up cases of poor corporate behaviour to make them a boardroom issue. “What the board says, does and most importantly expects, is absolutely critical in setting the tone for the organisation,” Mr Medcraft said on Tuesday. “Board members might be hands off, but I do think they should have their noses in.” It was in companies’ interest to promote a healthy culture from a business perspective, as well as a regulatory one. “Building and maintaining a culture that your customer can believe in is imperative; there are more choices and information available to customers now than there has ever been before,” Mr Medcraft said.