www.pwc.com/annualreview                          Building                          relationships.                        ...
The PwC network             North America and             the Caribbean             37,643             people             ...
ContentsPwC people161,718                                 Chairman’s letter                                        Clients...
Chairman’s letterValue in the worldDennis M. NallyChairman,PricewaterhouseCoopers InternationalDennis M. Nally was elected...
FY                                                                              2010                   US$ 26.6 billion re...
Our brand promise:                                        Building relationships that                                     ...
Thus we focus on people’s careers with         change by repositioning the profession       Futurethe same intensity we ap...
ClientsStrong relationships:The key to unlocking value6   PwC
PwC member firms consistentlybuild relationships that help clientscreate the value they’re looking for.Client relationship...
These sorts of challenges mean that              In our experience, it is almost always the                               ...
Some capabilities – such as technicalmastery, industry knowledge, and awell-rounded business sense – representthe threshol...
Famed for its ‘Superdry’ brand,             understanding of our sector, andSuperGroup is a fast growing UK-based       th...
One quality in particular is key to          To an extent, the relationship that           We take a similar approach in t...
What’s next forcorporate reporting?Ian PowellPwC UK senior partner and memberof the Network Leadership Team
Corporate reporting plays a pivotal             explanation of how and why a companyrole in the effective functioning of t...
PeopleCreating culture: The PwC Experience12 PwC
PwC is a remarkably diverseorganisation. Our workforce includesbusiness advisers, accountants, auditors,forensic investiga...
Our people – all 162,000 of them –          The most compelling and enduringThe PwC Experience captures     recognise that...
The entry of women into the labour market has contributedmore to growth in global GDP than either new technology orthe eme...
Culture and Brand:What’s next for PwC?Bob MoritzPwC US senior partner and memberof the Network Leadership Team
Some businesses dismiss culture as              closely with them to help them create the‘soft stuff’, far removed from th...
Building bridges                              these up: “Treat people as individualsA native of Nanjing, China, Suwei Jian...
Overseas experience                           a multinational school with teachersWhile serving oil and gas companies     ...
Corporate ResponsibilityGetting down to business18 PwC
Over the past decade, the meaning and          While the concepts of CR, stakeholderimportance of ‘corporate responsibilit...
Pleas by businesses to                                                        PwC has always believed that the            ...
Taking a leadership rolePwC is acutely aware of its obligationto take a leadership role in promotingthe concept and practi...
Climate change in fast-growing               businesses to turn off their lights and“Entire new industries are    economie...
Corporateresponsibility:A look aheadSilas YangPwC China senior partner and memberof the Network Leadership Team
It’s official. Corporate responsibility has   Second, companies will move fromgone ‘mainstream’ in the most important     ...
Ms Fikile Zikhali, a trainee of the Ujima                           Bakwena Co-operative, is one of the many              ...
The journey to sustainability               Hour campaign. Engagement withPwC Australia has moved to     In Australia, PwC...
We have moved to using66%renewable energyPwC Australia                         Our people have spent                      ...
TransparencyCommitted to sharing information26 PwC
It is the breadth and consistency        Legal structure, ownership and                             of our network that di...
PwCIL governance bodiesGlobal BoardThe Board is responsible for the                 PwC member firms                      ...
Pw Cglobal Annual Review 2010
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Pw Cglobal Annual Review 2010


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Pw Cglobal Annual Review 2010

  1. 1. www.pwc.com/annualreview Building relationships. Creating value. Global Annual Review 2010Reviewing 2010, lookingforward to 2011
  2. 2. The PwC network North America and the Caribbean 37,643 people Western Europe 57,702 people 154 Global Middle East and Africa 10,033 people countries 766 South and Central America 10,428 people locations PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See pwc.com for more information. In this Global Annual Review we look at issues that impact PwC clients and people around the world, and we examine our performance, our key network policies and standards, and our work in the global community during FY 2010.
  3. 3. ContentsPwC people161,718 Chairman’s letter Clients 6 2 People 12Central and Eastern Corporate Responsibility 18Europe6,837 Transparency 26people Facts and figures 32 Asia 32,225 people Australasia and www.pwc.com/annualreview Pacific Islands In this Global Annual Review, the terms 6,850 PricewaterhouseCoopers, PwC, our and we are used to refer to the network of member firms of people PricewaterhouseCoopers International Limited (PwCIL). Each member firm is a separate legal entity and does not act as an agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way. FY 2010 runs from 1 July 2009 to 30 June 2010. Global Annual Review 2010 1
  4. 4. Chairman’s letterValue in the worldDennis M. NallyChairman,PricewaterhouseCoopers InternationalDennis M. Nally was elected Chairmanof the PwC network for a four-year termbeginning on 1 July 2009. He joinedPwC’s Network Leadership Team in2008. From 2002-2009, he was SeniorPartner of PwC US. He joined PwC in1974 and became a partner in the USfirm in 1985.2 PwC
  5. 5. FY 2010 US$ 26.6 billion revenues in FY 2010 26.6 bn We know that the PwC network is at developed nations, and falteringDear friends and its best when we listen closely to our consumer confidence have all clients, understand their goals and contributed to sluggish conditions.colleagues, collaborate with them in creating Forecasters predict a ‘two-speed’ value. The same goes for our people scenario for the future. For the rapidly – we want to create an experience at developing economies, primarily the PwC that encourages them to realise BRICs (Brazil, Russia, India and China), their potential and create their own the recovery has taken a firm hold. personal value. Meanwhile the economies of the That is our brand promise – building mature industrialised nations seem relationships that help clients and people stuck in a lower gear. Despite these create the value they want – and we are disparities, the economic fortunes of continually looking to intensify our efforts the emerging and developed economies to deliver and validate that promise. remain closely intertwined. We are seeing the pace of globalisation accelerate That is why, for the first time in 12 years, to pre-recession levels and expect we have changed our brand. We’re excited cross-border activity to increase as about our new look, but of course brand clients continue to seek new markets is much more than visual identity – it is and pursue cost savings. what we do to bring the PwC brand to life in the market that really matters. Without question, the state of the global economy has also altered the One of the key elements of the PwC brand business environment for PwC. that we live every day is independence Competition, always fierce in our markets, of mind. Independence, and the straight- has sharpened, and the economic crisis talking that goes with it, are critical to has heightened the need to provide our role as auditors but they also infuse clients with consistent, top quality every part of our business and the value services across the PwC network that we provide. Because we embrace add value to their business. independence we strive to provide our best advice even in cases when that Results advice is uncomfortable or contradicts Despite these tough conditions, PwC’s conventional wisdom. Critical thinking aggregate global results for FY 2010 and balanced, independent judgements were up slightly compared to last year. are the foundations on which we build our relationships. As in the economy at large, PwC firms in different geographic markets are Economic environment recovering from the downturn at varying The uncertainty of the current economic rates. Firms in the emerging market environment clearly demands a countries showed renewed growth, sharpened focus. For many businesses, with PwC firms in Korea, Mexico and the long-anticipated economic recovery China in particular reporting boosts in remains frustratingly elusive and our activity. Revenues in many developed expectation is that overall global markets also picked up, although at a economic expansion will continue to more modest rate. PwC firms in Spain, be slow at least through FY 2011. the UK, Germany and Canada each reported returns to growth. But revenues Fears of renewed fiscal crises, high dipped slightly for the PwC US firm. unemployment rates in the most Global Annual Review 2010 3
  6. 6. Our brand promise: Building relationships that help clients and people create the value they want PwC’s Advisory practice rebounded PeoplePwC firms are among the well to grow by 7.9 % over last year in The global economic crisis also a very tough, competitive environment. highlighted lessons to be learned fromlargest graduate recruiters The consulting business grew strongly, a people perspective. When companiesin the world. Our future up 15%, despite the continued cut headcount and scaled back spending,absolutely depends on our slowdown in the market for advice on they were often unable to move talent deals. Advisory now accounts for US$ around quickly. For some organisationsability to continue to attract 6.2 billion of PwC’s aggregate revenue, this led to layoffs to save cash at oneand retain talented people and we expect its growth to continue extreme, but also left crucial ‘talentwho are committed to both organically and through strategic gaps’ at the other. acquisitions in markets where wehelping clients and PwC choose to compete. Fortunately, for the most part, at PwC wefirms achieve their goals were able to anticipate this development. Revenues in our Assurance and Overall, we held the course in anticipation Tax practices, both the world’s largest of the upturn, and are optimistic this in their markets, held up well. A rise strategy will yield benefits in 2011 and in demand for Assurance services was for the longer term. more than offset by pricing pressures. Tax revenues improved as the year PwC is committed to providing people progressed, despite a slowdown in with opportunities to achieve the full corporate deals and restructuring work. measure of their professional and personal potential. To do so, we must Overall, we believe our results are continue to develop cultural dexterity, a creditable achievement. Key to this working across multiple dimensions success has been the progress we are of our workforce diversity. The global making in improving coordination economy requires matching people across our global network – again with the right skills with client needs with the overriding goal of bringing regardless of borders. More than ever we added value to our clients. In this effort, seek to provide people with opportunities I’m thankful for the collegial spirit of outside their home countries, benefitting the other members of the PwC Network both clients and peoples’ careers. Leadership Team who also serve as senior partners of PwC firms: Bob Moritz Collectively, PwC firms are among the (United States), Ian Powell (United largest graduate recruiters in the world. Kingdom), Norbert Winkeljohann Our future absolutely depends on our (Germany) and Silas Yang (China). ability to continue to attract and retain talented people who are committed to helping clients and PwC firms achieve their goals. If talented people do not reach their potential, they will look elsewhere.4 PwC
  7. 7. Thus we focus on people’s careers with change by repositioning the profession Futurethe same intensity we apply to meeting to better meet the needs of investors, With the strongest network and theclients’ needs. recasting the financial reporting model best people, PwC is uniquely positioned for better access and understanding. to work with companies of all sizes asIn FY 2010, PwC firms were recognised they manage through these uncertainby numerous external media organisations Today accountants and auditors face times and create the value they want.for their innovative, best-in class human a rapidly changing global regulatory It is demonstrated in the performanceresource programmes. Among others, environment – one in which regulatory, of the 162,000 people in PwC firmsPwC was again ranked among the 100 legal and standard-setting processes around the world – in the passion,Best Companies to Work for by Fortune are struggling to keep pace. As a result, knowledge and commitment broughtmagazine, and was among the top 10 we are not operating as efficiently as to every relationship.companies on Working Mother’s best we should. Businesses continue to payworkplace list for the 7th consecutive the price for a system that is too complex As the global economy emerges fromyear. PwC was also placed first in and cumbersome. the downturn, we expect FY 2011 toThe Times (London) Top 100 Graduate continue the slow growth pattern,Employers survey, and was among the Responsibility although with regional differences.Top 10 Best Companies to Work for by Corporate responsibility permeates all But we do see exciting opportunitiesConsulting magazine. aspects of business today. Specifically, emerging as well, particularly in the challenge of managing issues around industry sectors such as healthcare,Profession sustainability is seen by most business financial services and infrastructure,The economic downturn also gave rise leaders as an important factor in long- and we are poised to help clientsto questions about the role of accountants term prosperity. PwC firms are likewise capitalise on them.in the financial crisis, the long-term conscientious about their conduct inrelevance of auditing and what value it the communities where they operate. We are not reluctant to share our ownbrings to the marketplace. The European ambition at PwC – to be the world’sCommission announced it will publish PwC firms also collaborate closely with leading professional services network.a wide-ranging discussion paper on organisations such as the United Nations, We want to be distinctive in everythingauditing, dealing with such issues as the World Economic Forum and the we do; to set ourselves apart from ourindependence, the dominance of the World Business Council for Sustainable competitors as much by the quality ofBig Four accounting networks, and the Development to help find solutions. our relationships as by the excellenceownership and governance of audit Our initiatives are guided by our of our performance.firms. Similar debates are also taking commitment as a member of the Unitedplace at national levels such as in the Nations Global Compact. Through that As you reflect on the examples andUK. The financial crisis has given all commitment we seek to improve lives stories shared in this publication, I hopeof us much to reflect on – not only what by applying the UNGC’s 10 principles you will understand why I am confidentcould have been done to potentially in the areas of human rights, labour, these ambitions are well within our reach.mitigate the impact of the crisis, but what the environment and anti-corruption.should be done to avoid a recurrence. Elsewhere in this report, you willPwC welcomes these debates and takes see examples of how PwC is workingseriously the responsibility to participate to incorporate the 10 principles of thefor the benefit of our clients and ourselves Compact in the marketplace, in the wayas well as the wider public interest. we treat our people, in our interactions Dennis M. Nally in our communities, and in our Chairman, PricewaterhouseCoopersThe relevance and value of the audit is environmental initiatives. Internationaldirectly related to the corporate reportingmodel. We must help shape the agenda for Global Annual Reveiw 2010 5
  8. 8. ClientsStrong relationships:The key to unlocking value6 PwC
  9. 9. PwC member firms consistentlybuild relationships that help clientscreate the value they’re looking for.Client relationships go beyond singleengagements. We work hard tounderstand the client’s businessand how they define value.PwC’s clients typically turn to us forhelp in solving problems that involvenumerous concurrent factors, weighingcomplex trade-offs, and prioritisingmultiple objectives. Case studyFounded in 1950, China MinmetalsCorporation is a major Chinese miningcompany listed on the Shanghai Stock China Minmetals: TrustedExchange. It deals globally in thedevelopment, production, trading and relationships and drive for valueoperation of metals and minerals, andhas an ambition to become a world-class combine for winning ventureproduct provider in its sector.In recent years, PwC China Advisorypartner Ken Su has worked with hisAudit partner colleague Timothy Ho todevelop a strong working relationship ensuring success. It was truly a singlewith the China Minmetals team. When team working with the client to achieveChina Minmetals was looking to acquire one overriding aim – to help our clienta significant amount of the copper, zinc achieve optimum value from theand lead assets of Australian-based Oz transaction.”Minerals, it turned to PwC China for Following the acquisition of key assets ofdue diligence services in relation to the Oz Minerals, Minmetals formed a newUS$ 1.38 billion deal. company called MMG (Minerals andAll the cross-border strengths of the Metals Group). As the opportunity toPwC network came into play as Ken Su’s audit this new company became apparent,team collaborated with colleagues in the PwC mining team in Australia, led byPwC Australia along with PwC’s tax Tim Goldsmith, worked with PwC Chinateams in China. This collaboration colleagues in Hong Kong and Beijing toenabled PwC China to provide added- seek and ultimately win the audit of MMG.value advice to Minmetals in the areas The client awarded the engagement toof deal structure, negotiation strategy PwC as a result of the partnership andand target value/risk assessment. Ken trusting relationships developed throughSu recalls: “Throughout the project, the years, and deep industry knowledge,trusted relationships and close as well as PwC’s candour and attentioncollaboration were key factors in to detail. Global Annual Review 2010 7
  10. 10. These sorts of challenges mean that In our experience, it is almost always the technical expertise must be reinforced case that a strong relationship between with excellent judgement, broad business PwC and its client leads to better results. experience, and a keen understanding This is PwC’s approach to doing business. of the client’s implicit, as well as explicit, goals. In circumstances like these – Of course, creating a strong relationship particularly when the stakes are high – with a client takes time and effort. there is an excellent opportunity for One thing that PwC people have deeply a strong and lasting relationship to embedded in their work, is a strong develop between a client and its PwC awareness that clients judge PwC on engagement team. the entire ‘package’ of benefits and impressions that they receive during the course of an assignment. In other words, the client’s view of us is shaped both by the big things and the little things we do for them. Case study Eli Lilly: Pulling together to help create value Founded in 1876, Eli Lilly is one of aside any feelings of competitiveness and the largest pharmaceutical companies work together closely with a single goal in the world. Of the company’s 40,000 in mind – to create and preserve value employees, more than 7,000 are engaged for Eli Lilly.” in research and development activities. This sort of teaming among Lilly and its A true multinational enterprise, Lilly has external advisors was put to good use manufacturing plants in 13 countries; during the company’s recent multi-billion conducts clinical research in more than dollar acquisition of ImClone Systems. 50 countries; and markets its products The PwC US mergers and acquisitions in 143 countries. team worked closely and effectively with The Lilly organisation is highly collegial, Lilly’s external legal advisors and auditors and close and collaborative relationships to ensure that this complex transaction with its external advisors are very went smoothly. The transaction important to the company. Indeed, Lilly’s subsequently led to a bigger role for PwC Chief Tax Executive, David Lewis, likes to during the post-acquisition restructuring say: “We don’t care what you know until phase, which involved tax, M&A and we know that you care”. PwC’s relationship transfer pricing professionals from the with Eli Lilly goes back more than a PwC US and PwC Switzerland firms. decade, and is now overseen by US Tax Says Eli Lilly’s David Lewis: “What’s partner Art Wachholz. important to Lilly is that our external Art says: “After just a few days working advisors all pull together with the with Lilly people, it became very apparent ultimate aim of helping us to create to me that this is a relationship-driven value for our business. The PwC people organisation. The importance that Lilly we’ve worked with clearly recognise this people attach to ‘teaming’ is evident and, as a result, we’ve developed a close throughout the company’s culture. working relationship with them at all In particular, Lilly’s Tax department levels of the Lilly organisation. For Tax, expects all its external advisors to put they are truly trusted advisors!”8 PwC
  11. 11. Some capabilities – such as technicalmastery, industry knowledge, and awell-rounded business sense – representthe threshold capabilities expected of us.Other traits – like anticipating the client’sissues and being highly responsiveto their needs – are more subtle andpersonal, but no less important.Consequently, in every interactionwith a client, PwC people seek tocombine their ‘hard’ technical skillswith their ‘soft’ people skills in a waythat will nurture the client’s confidencein us. In time, this approach helps alasting and productive relationshipto emerge and grow. Founded in 1975, Microsoft is an acknowledged world leader in software, services, and solutions that help people and businesses realise their full potential. With more than 88,500 employees in Case study operation centres in Ireland, Singapore and the US, subsidiaries in 109 countries and its corporate headquarters in Microsoft: United in drive Redmond, Washington, the company has a presence in every corner of the globe. to be better, stronger, faster Microsoft is on a continuous mission to transform its operations – an ongoing drive to become better, stronger, faster. Helping Microsoft succeed in this mission is PwC. The long-term, multi-faceted, Management capabilities. Over the global relationship between the two past number of years, for example, organisations spans more than a decade, the PwC team worked closely with and is overseen by US partner Robert L. Microsoft to plan, manage and Moline. He manages a global team of successfully complete the purchase of 200 PwC people who serve Microsoft the Norwegian technology company on a wide array of projects worldwide in FAST Search. PwC US Advisory partner areas as diverse as finance effectiveness, Patrick Pugh, who led the project, intellectual property management, explains: “We were able to put together IT security, project and programme a team with the right skills at short management, risk management, notice. Throughout the project, our tax and customs advice, training and focus was on delivering quality work environmental sustainability. Robert and investing in relationships.” says: “We are all keenly aware that every PwC’s thorough and highly collaborative time Microsoft takes the decision to approach is appreciated on the client’s engage us, we are expected to deliver side of the relationship. Joe Wittinghill, recognisable value in each and every General Manager of Microsoft’s Venture project we undertake. This has always Integration Group, adds: “What we been our mission, and has become even appreciate most about working with more critical in recent times.” members of the PwC team is their One of the ways in which Microsoft is commitment to our company and to driving its transformation is through helping us create the value we need. acquisitions. To help it integrate many They are responsive; they understand our of these acquisitions into its existing business and our needs; and they know businesses, Microsoft relies on the how to supplement our methodologies support of the US firm’s Integration with their good practices.” Global Annual Review 2010 9
  12. 12. Famed for its ‘Superdry’ brand, understanding of our sector, andSuperGroup is a fast growing UK-based they executed their work extremelyinternational retailer and wholesaler professionally. Their enthusiasm andof branded youth fashion. Founded commitment, coupled with their highin 1985, SuperGroup has a total of quality technical advice, played an49 stores in the UK and Ireland plus a instrumental role in ensuring wefurther 58 concessions within House of achieved a successful listing at anFraser stores. Internationally, Superdry incredibly fast pace. In addition theybranded products are sold in more were an integral part of the team.than 30 countries with franchised and The part I liked and welcomed mostlicensed outlets in Belgium, France, was their ability to step in when extraScandinavia, North America, South help was needed. In among all the hardAmerica and Australia. work and long hours, they maintained a very professional managementIn its bid to become the first successful style that was challenging, respectfulUK retail listing since the start of the and supportive.”economic downturn, SuperGroupsought help from PwC UK. PwC UK’s Steve Smith, PwC’s project leader on thePhil Robinson managed the reporting IPO, sums up: “It was a great experienceaccountant role from a tax perspective working on a project where we couldand engineered the most tax-efficient really add value and take the pressure offlisting structure for the Initial Public the client. There were many service linesOffering (IPO). He says it was a involved but our delivery was seamless.technically demanding transaction – The client saw us as one coherent teamand that the experience of the PwC and that’s how it should be.”team was a key success factor: “We wereable to deliver excellent value in termsof the benefits we were able to produce.At all times we considered what thedifferent stakeholders in the businessrequired, and our focus was alwayson ensuring that the advice met all ofthese needs.”Following successful completion ofthe IPO – and after close collaborationbetween the client and PwC teammembers from audit, capital markets,structuring services, tax, transactionservices and risk assurance –SuperGroup successfully enteredthe FTSE 250 in March 2010.Chas Howes, SuperGroup plc FinanceDirector, says: “The support we hadfrom PwC was absolutely fantastic.I was delighted with their input to this Case studycomplex and demanding process. Theybrought a strong blend of skilled peopleto the table who had an in-depth SuperGroup: Teamwork and focus on value lead to successful listing10 PwC
  13. 13. One quality in particular is key to To an extent, the relationship that We take a similar approach in the wayevery strong relationship: trust. For we seek to establish with clients is a we work with clients. In our view, PwC’sthe people of PwC, the word ‘trust’ has reflection of PwC firms’ long and rich own intellectual capital is amplified andspecial meaning. In the first instance, heritage as public auditors. That role extended by that of its clients. By workingtrust is a core element of our business, has instilled in our people the quality in close collaboration, PwC firms andwhich is to build the public’s confidence of ‘independence’ – an attribute their clients enter into a relationship inin the fair and efficient functioning of that isn’t limited to compliance with which learning occurs in both directions.capital and financial markets around regulatory rules, but instead extendsthe world. This means everyone in PwC to independence of mind. As a result, At PwC, we’re persistent and patient inshould exhibit a high level of personal we tell clients what we think, without our efforts to build and sustain strongintegrity and responsibility at all times. fear or favour. relationships with clients. We knowThis imperative provides an excellent that the sorts of relationships we wishbasis for establishing a trust-based While independence of mind is critical to establish take time. We also knowrelationship with our clients. to our ability to carry out the role of they require us to exhibit – in every public auditor, it is also an attribute interaction with every client – the that infuses every part of our business. implicit qualities of trustworthiness, Because we embrace independence, independence, and empathy, together‘Putting ourselves in the we are compelled to give clients our best with an explicit desire to work in close,client’s shoes’ allows us to advice, even in cases where that advice respectful collaboration. In bringingconnect deeply with clients is uncomfortable to hear or contradicts these attributes to every assignment we conventional wisdom. Clients value our take on, PwC simultaneously enrichesand grasp the practical straight-talking approach, regarding it – the professional lives of its people andbusiness context in which quite rightly – as an excellent starting unlocks the door to creative, value-richthey operate. point for generating innovative solutions solutions for clients. and building lasting relationships. To maximise the resulting benefits,On a practical day-to-day level, trust is independence of mind must go hand-in-also established when we demonstrate hand with empathy – or, as PwC peoplea number of our qualities to our clients. often say to one another, ‘putting ourselves in the client’s shoes.’These include a capacity for listeningand asking the right questions; for This mindset allows us to connect deeplyfocusing on their objectives rather with clients and grasp the practicalthan our processes; for grasping the business context in which they operate.big picture; and for delivering what we It keeps us focused on the client’s agendapromise. In the absence of trust, most rather than our own. It also enables usprofessional service providers appear to keep our egos in check and acknowledgemore or less interchangeable. But add that we don’t always have all the answers.trust to the equation, and you gainthe opportunity for ‘creative tension’ What else contributes to strongbetween service provider and client. relationships? In our view, a collaborativeIn such relationships, both parties are working style is a further prerequisite.sufficiently comfortable – both Not surprisingly, collaboration comesintellectually and emotionally – to naturally to PwC people because it’sengage in an open and challenging central to the way we work amonggive-and-take of ideas and perspectives. ourselves. After all, PwC is a global network of national firms with various communities of interest: industry generalists, functional specialists and subject matter experts. To address particularly complex client issues, members of these communities come together to form self-organising, non-hierarchical teams where ideas can be proposed, discussed, and either disposed of quickly or taken further. In these fluid teams, deference is paid to ingenuity, innovation and know-how rather than rank. Global Annual Review 2010 11
  14. 14. What’s next forcorporate reporting?Ian PowellPwC UK senior partner and memberof the Network Leadership Team
  15. 15. Corporate reporting plays a pivotal explanation of how and why a companyrole in the effective functioning of the is likely to be sustainable in the long run.market economy. By ‘corporate This has to address critical issues suchreporting’, we mean all the mechanisms as a frank explanation of the businessby which companies communicate their model and the alignment of managementperformance and activity to their incentives with the business strategystakeholders, particularly the investment and the management of risk. Whethercommunity. When these mechanisms you look at external drivers, strategicare functioning well, they enable priorities, business models or broadshareholders and investors to assess the performance indicators, the fact isperformance of a business, establish its that all aspects of a business are closelyvalue and exercise effective oversight. interrelated and interdependent. The only way to portray a true pictureSince the start of the global economic of a company’s business activities andcrisis there has been much debate about longer-term prospects is to consider eachthe effectiveness of corporate reporting. aspect in the context of the others, ratherOur current reporting model has its roots than in isolation. This is what we callfirmly in the 19th century. It struggles to integrated reporting.cope with the challenges of globalisation,technology and changing patterns of Companies have much to gain frombusiness and share ownership. In the adopting such a model. If done well,course of my own career, corporate integrated reporting can deliverreports have generally increased in size competitive advantage in a number ofand complexity but not, I believe, in the ways: for example, it can secure capitalclarity of insight they offer on the strategy and credit, help win the war for talentand performance of the company. and build strong business relationships.These shortcomings have been amplifiedby the failure of the traditional corporate There is still a long way to go to makereporting model to address broader corporate reporting ‘fit for purpose’ inissues such as resource constraints and today’s fast-moving world. That’s whyclimate change. PwC UK has decided to take action, to work with institutional investors,In my opinion, today’s corporate accounting bodies and other stakeholdersreporting focuses too much on financial to identify the changes needed toinformation. It should be about much overhaul and improve the current system.more than that: at root, it should be One thing is clear – we need to developabout delivering a more holistic greater clarity and understanding about the barriers to effective reporting, and about the changes needed to make the system ‘fit for purpose’ in the future.
  16. 16. PeopleCreating culture: The PwC Experience12 PwC
  17. 17. PwC is a remarkably diverseorganisation. Our workforce includesbusiness advisers, accountants, auditors,forensic investigators, financialanalysts and tax experts – among otherservice professionals. Similarly, ourclient portfolio contains companies ofevery conceivable size and shape; andour service mix varies from countryto country according to local marketneeds and national regulation.So does an auditor in Hong Kongreally have anything in common witha Performance Improvement colleaguein Madrid? Yes – quite a lot, actually. client relationships. And the team isAnd that commonality is found in their where PwC’s culture of commitment to Does an auditor incommitment to helping clients tackle clients is passed on to younger members. Hong Kong really havetheir most difficult problems, and As a consequence, PwC’s organisationalcreate the kind of value that will help structures aim to help engagement anything in common withthem succeed. teams connect with clients, win work, a Performance Improvement deliver superior service, mentor the next colleague in Madrid?While PwC is one of the largest employers generation of PwC leaders, and createin the world, the organisational unit that value for clients. This is the culture that Yes – quite a lot, actually.we rely on most frequently to create value we’re working to build across PwC firms’for clients is our most basic of all: the operations in 154 countries. We call itclient engagement team. Most of the the PwC Experience.decision-making relating to how we meetclient needs rests with the engagement In building a consistent businessteam. What’s more, the team has primary culture across such a diverse workforce,responsibility for building and expanding we’ve had to take special care with the articulation of the PwC Experience. In a word, we’ve had to keep things simple. In turn, that simplicity has helped us to build understanding and buy-in from PwC people around the world. Global Annual Review 2010 13
  18. 18. Our people – all 162,000 of them – The most compelling and enduringThe PwC Experience captures recognise that technical excellence insight into business to have emergedour fundamental goals, to and deep global resources are qualities in the past decade is that companiestreat our clients like people that PwC has in abundance. But they need non-financial goals to inspire and also know that an equally important guide the entire organisation. The PwCand our people like clients – consideration for clients is their Experience captures our fundamentaland to build trusted experience of working with PwC; how goals, to treat our clients like people andrelationships so that we can we relate to them as people, and our our people like clients – and to build commitment and ability to help them trusted relationships so thatcreate greater value for our create value. PwC people – regardless we can create greater value for ourclients and one another. of where they work, or their particular clients and one another. In the end, business line or market segment – this commitment is what differentiates understand this and try to deliver that PwC from its competitors. experience every day. To that end, we interact with clients on the basis of Here are just three short stories that four simple but powerful behaviours: demonstrate the skill and determination • We invest in client relationships that our people are eager to harness in order to bring value to their own lives • We share and collaborate as well as add value to their clients. • We put ourselves in our clients’ shoes • We focus on creating client value To keep what we stand for simple and well-understood across the PwC network, we mirror these four client behaviours in the way we treat one another inside PwC: • We invest in our people • We share and collaborate • We put ourselves in one another’s shoes • We focus on enhancing the value of our people14 PwC
  19. 19. The entry of women into the labour market has contributedmore to growth in global GDP than either new technology orthe emerging economies of China and India. Sahar HashemA compelling case this status. PwC hopes her successOver the past few decades, the entry will encourage more Saudi womenof women into the labour market has to consider a career in accountancy.contributed more to growth in globalgross domestic product (GDP) than Sahar, an associate based in PwCeither new technology or the emerging Saudi Arabia’s Jeddah office, says:economies of China and India. The “The past two years have beenincreasing presence of women in the peppered with moments of incredibleworkplace – not just in terms of the achievement, and challenges thatnumbers joining the workforce, but at some points seemed almostalso their entry into middle and senior insurmountable. The support I receivedmanagement positions – is reflected from colleagues throughout the PwCin PwC’s own global workforce. network inspired me to push through – and I’m delighted that the hard workA compelling case in point is Sahar and commitment has resulted in suchMohammed Hashem, PwC Saudi an accolade, none of which would beArabia’s first female Saudi national possible without their continuousemployee to pass the Saudi Organisation support and encouragement. I trulyof Certified Public Accountants (SOCPA) believe that PwC is building a globalfellowship examination. The exams are corporate culture around the PwCwidely viewed as the highest possible Experience, in which empathy,achievement within the Saudi collaboration, and the best ideas areaccountancy profession, and Sahar is recognised and practised.”only the fourth Saudi female to achieve Global Annual Review 2010 15
  20. 20. Culture and Brand:What’s next for PwC?Bob MoritzPwC US senior partner and memberof the Network Leadership Team
  21. 21. Some businesses dismiss culture as closely with them to help them create the‘soft stuff’, far removed from their value they are seeking. We’ll achieve thissuccess in the marketplace. At PwC, only if we have a single unified culturewe take a different view. and brand across our network. And in setting the bar high for ourselves in termsWe understand that culture is of our own culture, we’ve also createdintertwined with the value our clients a new and higher standard for the wayreceive and the value that our people we deal with clients and all otherderive from their work experience with external stakeholders.us. At its core, an organisation’s culture isabout how its people behave. This makes A strong and well-tuned culture createsculture critical to every relationship, greater clarity and cohesion in a workforce,every interaction, every decision across and directly improves individualthe business and, ultimately, to our performance. In turn, it ultimatelysuccess in the marketplace. strengthens an organisation’s brand. That’s what we’re seeking to do with theAt PwC, we acknowledge at all levels PwC Experience. Our goal is to energisethat our continuing success depends our people to change the way they work,critically on the strength and quality of to continue our relentless drive for theour culture. This culture is made up of highest quality in both our people andthe fundamental values shared by all our the services we offer – and, ultimately,people, the reasons why we exist, and the to deliver greater value to clients. This isgoals we set ourselves, both individually critical if we are to be – and remain –and collectively. number one in professional services. So the PwC Experience will be a criticalThe word ‘culture’ is often closely strategic priority in the years to come.associated with ‘brand’, and with goodreason. If culture is the internal value and No organisation can renew its culturebelief system that guides and animates through management decree. Instead,an organisation’s people, then brand is a strong culture and a durable brandthe external manifestation of this system. come from bottom-up, driven by theIn other words, culture is the organisation’s enthusiasm and willingness of tens ofpromise to stakeholders – and brand is thousands of people at all levels tothat same promise delivered. embrace certain behaviours in their interactions with clients and colleagues.So a brand’s strength – or lack of it – flowsfrom the culture that shapes it. Culture So the changes we have in mind formay appear ‘soft’ in terms of being difficult PwC must involve everyone. Every day.to quantify, but it’s even more important Everywhere. At every level.as any of the ‘hard’ stuff that drivesbusinesses forward. As such, culture This is why we don’t have one set of rulesmust be regularly monitored, nurtured and expectations for partners and anotherand – when necessary – renewed. for staff. Or one set for one business line and a different one for another. We’reThis is what we have done at PwC. all pulling together in the same direction.We’re now explicitly committed to being We believe that the marketplace will soonthe world’s number one professional take notice. When it does, we think it willservices network, building even stronger like what it sees.relationships with our clients and working
  22. 22. Building bridges these up: “Treat people as individualsA native of Nanjing, China, Suwei Jiang – not stereotypes. And be genuinely “Our clients welcomeoriginally came to the UK as an exchange interested in their objectives, priorities the opportunity to havestudent. Since joining PwC UK in London and challenges. Really, it’s no differentin 1998, Suwei’s career has followed from how you should treat everyone.” a frank exchange ona steady upward path. Currently, she’s important issues witha Director and Senior China Advisor While Suwei clearly brings an someone they trust,with the UK-based China Business Group, abundance of technical expertise to hera network of Chinese-speaking PwC clients, she also tries to bring something without having to worrypeople who focus on helping UK and more. “Our clients – even the most about office politics.”Chinese companies make cross-border senior among them – sometimes feel ainvestments. Not surprisingly, it’s a role sense of isolation. So they welcome the Suwei Jiangthat keeps Suwei fully occupied. opportunity to have a frank exchange on important issues with someone they“China’s rapid rise has had a tremendous can trust, without having to worryimpact on the world economy,” says about office politics. That’s a role thatSuwei. “So PwC is constantly fine- we regularly play. And in doing so, wetuning its own operational model in often help clients gain insights that theyorder to ensure that we can deliver might have otherwise missed.” Suweicross-border services at consistently adds that interacting with the clients onhigh levels.” She uses one of her recent this level is both ‘value-adding and aprojects as an example of PwC teams’ way to build long-lasting relationships.’ability to coordinate across severaltime zones. “We performed financial Suwei acknowledges that her riseand tax due diligence and tax at PwC is due in part to the mentoringstructuring work for a Chinese oil and she received along the way. “There aregas company doing a multi-billion dollar a number of PwC people who have hadtransaction in Brazil. Our lead team a significant influence on my career,”worked out of London. Other PwC teams she says. “What they taught me waswere providing input from Brazil, the the importance of learning fromNetherlands and China. With so many others, of trusting and empoweringpeople in so many locations, flawless others, and that honesty and integrityproject management was absolutely are indispensable.” Suwei Jiangcritical to the project’s ultimate success.The client was impressed.” And what advice does Suwei have for more junior PwC people? “First, focus onPart of Suwei’s job is building bridges building relationships. And secondly, inbetween disparate cultures. In doing adverse situations, stand firm and focusso, Suwei says that she applies a few on ways of turning things around.”tried-and-tested principles. She sums16 PwC
  23. 23. Overseas experience a multinational school with teachersWhile serving oil and gas companies and students from over a dozen countries.out of Houston, Texas, Kenny Hawsey “They’re learning that there’s a bigwas taken aside one day by a PwC US world out there.” Kenny observes.senior partner and given this counsel: As for Kenny, he simultaneously serves“Energy is a global game. If you want a portfolio of multinational oil productionto work with the major players, you and service companies while travellingshould get overseas experience.” throughout the region as PwC’s EnergyThat piece of advice soon launched Tax Leader for the Middle East.a peripatetic career that, over thefollowing decade, found Kenny Hawsey As Kenny’s global experience hasin postings to Moscow, Azerbaijan and expanded, so has his network ofDubai. During those years - as Kenny’s personal and professional contacts. Kenny Hawseyknowledge of the industry deepened and Kenny tells the story of developinghis perspective on the world widened – a close relationship with a client inhis ability to provide value to clients Azerbaijan, who, almost a decade later,progressed by leaps and bounds. turned up recently in a new role as his company’s manager of Middle East “People know that“During my years in Moscow, I spent most tax operations. The two are now againof my time helping clients understand the working closely together. “These sorts I understand the bigimplications of the special tax regimes of relationships are invaluable,” Kenny picture and can providethat apply to multinational oil companies.” says. “From past experience, people immediate value.”Kenny says. “Then, when I got to know that I understand the big pictureAzerbaijan, I became much more involved and can provide immediate value.” Kenny Hawseyin helping to shape the Production SharingAgreements that host governments grantoil companies for the right to explore andproduce.” Kenny’s Azerbaijan tour wasfollowed by 18 months in Dubai, duringwhich he visited countries throughoutthe region.In 2002, Kenny – now a PwC US partner– returned to the US. But seven yearslater, the travel bug bit him again.Today, he lives in Riyadh with his wifeand three children. The kids go to Global Annual Review 2010 17
  24. 24. Corporate ResponsibilityGetting down to business18 PwC
  25. 25. Over the past decade, the meaning and While the concepts of CR, stakeholderimportance of ‘corporate responsibility’ interests and sustainability have takenhave undergone a rapid and decisive a decade or more to reach the businesstransformation. Once largely associated mainstream, their collective impact iswith acts of corporate philanthropy, CR now revolutionary. Because businessnow serves as a set of implicit standards impacts society at so many levels, societythat help to determine how a business in turn claims a degree of authority inshould be run, the types of activities in granting or withholding each business’swhich it should and should not engage, ‘licence to operate’. Also, while profits,and even whether it should exist at all. job creation and innovation are stillThis profound shift has seen a host of important measures of a business’snew issues – environmental concerns, contribution to society, the fact is thatsocietal needs, employee development governments, activists, academics andand well-being, ethical marketplacepractices – muscle their way to the topof the corporate agenda. CR now serves as a set of implicit standards that helpWith the rise of CR, business people to determine how a business should be run, the typeshave realised that their ‘stakeholders’ – of activities in which it should and should not engage,a term once deemed almost synonymouswith ‘shareholders’ – are now a far larger and even whether it should exist at all.and more diverse grouping than everpreviously imagined. consumers now apply wider and more complicated measures of a company’sAlongside the redefinition of ‘stakeholder’, worth and purpose. Issues regardinganother recent coinage has joined the climate change, water use, workermainstream business vocabulary: exploitation, resource depletion andsustainability. While definitions vary, environmental degradation are nowsustainability is generally regarded regularly laid at the door of the businessas a demonstration of the sorts of community. Pleas by businesses tocorporate behaviours that satisfy simply ‘trust us’ are now met by thea business’s present requirements blunt reply, ‘show us’.without compromising the needs offuture generations. Of course, the argument that these sorts of environmental and societal problemsSo sustainability obliges businesses to result from a rapacious business culturefind ways to continuously renew and is simplistic, and ignores the hugereplenish the resources they consume. contributions that business makes toThese resources are many and varied: society every day. More immediately,raw materials and energy; human it misses the point that the knowledge,and intellectual capital; and the trust capabilities and good intentions of theand goodwill of trading partners, business world will be indispensible ingovernments and society at large. finding solutions to these problems.No longer can any company affordto mismanage or misuse any of these This latter point is not lost on businesslimited resources. executives. Many of the world’s leading enterprises are already working hand- in-hand with governments, regulators Global Annual Review 2010 19
  26. 26. Pleas by businesses to PwC has always believed that the best business solutions grow out of collaborative relationships with clients. simply ‘trust us’ are Today, the same applies with corporate responsibility, stakeholder engagement and sustainability. That’s why PwC has now met by the blunt collaborated closely with international organisations such as the World Business reply ‘show us’ Council on Sustainable Development, the World Economic Forum’s Global Citizenship Initiative, and the United Nations Refugee Agency in support of projects ranging from the adoption of low-carbon technologies, to rural electrification, to establishing primary school education for 20,000 Darfur refugee children. More recently, firms in the PwC network have agreed to align their CR efforts and NGOs to tackle the most complex around three specific areas of concern: global challenges. While the practice youth education, climate change and of CR has too often been dismissed in social inclusion/diversity. These three the past as corporate ‘feel-goodism’ themes serve as the guiding principles or a form of stealth marketing, our that focus actions on our commitment experience with most clients confirms to act responsibly in the four areas in that management takes CR extremely which we operate - namely Marketplace, seriously. Indeed, we’re seeing a People, Community and Environment. step-change in the way business leaders view their CR responsibilities. All of PwC’s CR-related initiatives are The traditional ‘compliance mindset’, guided by our commitment as a member focused on meeting CR obligations of the United Nations Global Compact at bare minimum levels, is being (UNGC). The stories that follow provide supplanted by a ‘conviction mindset’ an overview of how PwC is helping to – one that proactively embraces CR improve the lives of people today by both as the right thing to do and also applying the UNGC’s principles. as key to future success. We believe CR has now reached the point of potent maturity, which is encouraging news both for society and business. Figure A: PwC Global CR Framework Youth education Climate change Social inclusion Market Place People Community Environment Doing Good Inspiring Developing Contributing Business Responsible Future to a Healthier Leadership Leaders Environment20 PwC
  27. 27. Taking a leadership rolePwC is acutely aware of its obligationto take a leadership role in promotingthe concept and practice of corporateresponsibility. One very visible exampleis our participation in the UnitedNations Global Compact (UNGC),the world’s largest corporate citizenshipand sustainability initiative, whichbrings together more than 5,100corporate participants and stakeholdersfrom over 130 countries. The UNGCprovides a policy platform and frameworkfor firms committed to responsiblebusiness practices. We participate init through a written commitment touphold the 10 principles it has definedin the areas of human rights, labour,the environment and anti-corruption.PwC firms actively support theseprinciples in their respective geographies.In addition to this direct participationin the UNGC, PwC has also collaboratedwith a number of UN agencies to assist and the UN to investigate thein activities and programmes that role of responsible business andfurther support the UNGC’s principles. investment in bringing about theAs a signatory to the UNGC, PwC also much-needed transformation toparticipates in the Communication on more sustainable markets.Progress (COP) process, which requiressignatories to provide reports annually As the greening sponsor, we appliedon their progress in implementing our expertise in climate change andthe UNGC’s principles. This process sustainability on a pro bono basishelps to instil accountability and drive to map the carbon footprint of thecontinuous improvement among Summit and mitigate its environmentalparticipants, while simultaneously impact. The UN then offset the Summit’sbuilding a useful set of responsible impact by buying Certified Emissionscorporate practices. Reductions generated at a geothermal project in Guatemala. Dennis Nally,As part of our ongoing involvement, Chairman of PricewaterhouseCoopersPwC recently served as the greening International, spoke at the event aboutsponsor of the 2010 annual UN Global PwC’s role in greening the conference,Compact Leaders Summit. This event as well as its wider commitment tobrought together 1,500 leaders from sustainability both internally andbusiness, civil society, labour organisations, with clients.the investment community and academiawith representatives from government Global Annual Review 2010 21
  28. 28. Climate change in fast-growing businesses to turn off their lights and“Entire new industries are economies non-essential appliances for one hourlikely to emerge in which PwC China/Hong Kong is committed to promote conservation. PwC China/ to playing an active and responsible Hong Kong also seconded two colleaguesthe central business model role in improving our impact on the to assist WWF China in providingwill be based on innovative environment. In pursuit of this goal, project management support, and– and perhaps radical – a Climate Change Steering Group has also reached out to 13,000 of our been driving pro-environment policies business partners encouraging themapproaches to improving and practices such as reduced lighting to engage in Earth Hour.social or environmental and automatic timers, double-sidedconditions. Call it printing, a car pooling database in Furthermore, PwC firms provide a Beijing and Shanghai, and the use of range of sustainability and climate‘sustainable capitalism’.” video conferencing as an alternative change services. These help clients to business travel. This Steering identify the relevance of sustainabilitySilas Yang Committee was appointed as an arm and integrate it into their strategies andPwC China senior partner of the Corporate Responsibility team operations, seize opportunities to growand member of the NetworkLeadership Team to help coordinate PwC China/Hong revenues and reduce costs, and manage Kong’s various green engagements, sustainability-related risks. Leveraging direct efforts in measuring and reducing this expertise, PwC China/Hong Kong its carbon footprint, and develop an is a founding sponsor of the China environmental sustainability policy. Greentech Initiative, an open-source commercial collaboration of over 80 We as a network strive to be an of the world’s leading green technology environmentally responsible organisation firms, entrepreneurs, investors, NGOs that inspires people and clients to engage and policy advisors. PwC China/Hong in sustainable business practices and Kong made crucial contributions to drives positive change in the the China Greentech Report 2009, community. In keeping with this seconding a full-time project manager, commitment, PwC China/Hong Kong developing several sections of the report partnered with WWF on Earth Hour and hosting most of its working sessions. 2009, a global call to households and22 PwC
  29. 29. Corporateresponsibility:A look aheadSilas YangPwC China senior partner and memberof the Network Leadership Team
  30. 30. It’s official. Corporate responsibility has Second, companies will move fromgone ‘mainstream’ in the most important simply managing societal expectationsdomain of all: the public consciousness. to maintaining open channels of communication with interestedWhether you look at your customers, stakeholders. In this sense, stakeholdersyour shareholders, or your employees, will be brought inside the enterprisevirtually everyone now has a new set of as agenda-setters and problem-solversassumptions and expectations regarding in important CR-related issues.your business’s level of accountabilityand transparency. So if you’ve been Lastly, further down the road manysearching for a ‘business case’ to justify large, established companies will rethinkjumping into CR, look no further. their business models, with a view toIgnoring the assumptions that are establishing new sorts of social contractsprevalent across society could put your between their enterprises and the largerbusiness at risk. society. Similarly, entire new industries are likely to emerge in which the centralSo, where does CR go from here? business model will be based onIn the years ahead, I foresee three innovative – and perhaps radical –likely developments. approaches to improving social or environmental conditions.First, instead of being viewed as a Call it ‘sustainable capitalism’.secondary function bolted onto thecorporate machinery, business norms and In the meantime, however, CR doessystems will become much more aligned add another layer of complexity to thewith CR principles. Expect CR to: become already tough job of running a profit-a primary input in all corporate planning making enterprise. But as CR is wovenactivities; inform employee behaviours ever deeper into the corporate fabric,and decision-making; and be reinforced business will also have greater scope forconstantly through performance more frequent and meaningfulstandards and reward mechanisms. interactions with society at large. These will create opportunities for building relationships with citizens and organisations that were previously off the corporate radar. Where the number of relationships is increasing, so too is the potential for creating value for an ever-expanding number of people.
  31. 31. Ms Fikile Zikhali, a trainee of the Ujima Bakwena Co-operative, is one of the many women to have benefitted from the Faranani Rural Women Training Initiative. Fighting corruption Faranani: A rural women“PwC helped these women The need to reduce the risk of corrupt training initiativeacquire the skills they practices taking place has resulted in PwC South Africa is continuously an increasing number of companies working towards social and economicneed to generate their taking initiatives to improve internal development in the rural areas ofown income and become integrity, transparency and accountability. South Africa. In 1992, PwC Southmeaningful contributors The quest for corporate social Africa – in collaboration with the responsibility received further impetus National Industrial Chamber –to their communities and in 2004, when, at the first United established the Business Skills forthe country.” Nations Global Compact Leaders South Africa Foundation (BSSA). Summit, the Secretary-General of the To date, BSSA has successfully trainedThabani Jali UN called for the adoption of the 10th more than 20,000 entrepreneurs.Executive Chairman of Principle of the UN Global Compact, In 2006, PwC South Africa extendedPwC Southern Africa which states: “Business should work the initiative to include rural women against corruption in all its forms, in business through the Faranani including bribery and extortion”. Rural Women Training Initiative. To support this agenda, PwC Austria Small businesses form the backbone collaborated with the United Nations of the South African economy, Office on Drugs and Crime (UNODC) and women own a growing number to produce a report into what companies of these enterprises. Faranani in the Fortune Global 500 are doing to supports women who want to become fight corruption. The report provides business-owners, by providing them an overview of the direct and indirect with the knowledge to start and measures that companies have adopted actively manage their own businesses. to combat corruption and economic This year, to promote the empowerment crime, including extortion, bribery of all women, PwC South Africa invited and other forms of fraud. Rather than various organisations to nominate commenting on companies’ anti- suitable candidates to undertake the corruption performance, this report training course. is designed to act as an inspirational tool for companies that wish to adopt Thabani Jali, Executive Chairman of and enforce effective anti-corruption PwC Southern Africa, says: “PwC helped policies but lack the necessary these women acquire the skills they ‘know-how’, or that wish to review need to generate their own income and enhance their existing practices. and become meaningful contributors to their communities and the country. The report is expected to stimulate We extend sincere and prosperous further debate and analysis, leading good wishes to these women as they to the identification of minimum use these skills to create a better life standards and good practices for for themselves and their communities.” corporate anti-corruption policies and measures. UNODC has acknowledged the contribution made by PwC Austria, on a pro bono basis, for the benefit of the private sector. Global Annual Review 2010 23
  32. 32. The journey to sustainability Hour campaign. Engagement withPwC Australia has moved to In Australia, PwC continued its environmental initiatives continuesusing 66% renewable energy, environmental sustainability journey to grow among its people. This was during FY 2010. PwC Australia has demonstrated by an internal campaignand has again offset all its moved to using 66% renewable energy, entitled ‘How Low Can You Go?’ inresidual carbon emissions to and has again offset all its residual which service teams across Assurancemaintain carbon neutrality. carbon emissions to maintain carbon in Australia competed in reducing neutrality. During the year, PwC the environmental footprint of their Australia continued to improve its engagements. processes for collecting and reporting environmental data, and achieved The Australian firm was also a platinum reductions in electricity usage, paper sponsor of the Australasian Cleantech consumption and waste to landfill. Forum for the sixth successive year. The Corporate Responsibility Index Held over three days, the forum was score for Environmental Management attended by more than 500 delegates increased dramatically, from 46% to including industry pioneers, local and 88%, illustrating the many improvements international Cleantech companies and to its environmental objectives, targets, members of the local and international reporting, employee engagement capital markets community. A number and communication. of PwC Australia partners and Cleantech specialists participated. Support for PwC Australia’s two environmental charity partners in FY 2010 included more than 480 volunteer days provided to Landcare for Revegetation programmes, and participation in the WWF Earth24 PwC
  33. 33. We have moved to using66%renewable energyPwC Australia Our people have spent 7,058 hours volunteering in their communities during FY 2010 PwC China/Hong Kong To date, more than 20,000 entrepreneurs successfully trained PwC South Africa Global Annual Review 2010 25
  34. 34. TransparencyCommitted to sharing information26 PwC
  35. 35. It is the breadth and consistency Legal structure, ownership and of our network that differentiates network arrangements PwC among the world’s leading Network arrangements and professional services organisations. member firms In most parts of the world, the right The PwC network has a set of standards to practise audit and accountancy is with which all PwC member firms agree granted only to national firms that are to comply. These standards cover key majority-owned by locally qualified areas such as independence and risk professionals. PwC is a global network management, people management, of separate member firms, owned andIt is the breadth and brand and communications. operating locally in countries around the world. PwC member firms are membersconsistency of our network In order to use the PwC name, PwC of PricewaterhouseCoopers Internationalthat differentiates PwC member firms agree to follow network Limited and have the right to use theamong the world’s leading standards and be subject to periodic PricewaterhouseCoopers name. reviews. PwC member firms’ complianceprofessional services with the standards of the network is The network provides a platformorganisations. monitored regularly. on which member firms can share knowledge, skills and resources, We believe in the principle of enabling PwC member firms to transparency. In this chapter we work together to provide high- share some detail of the PwC network’s quality services on a global scale to organisation, standards and processes, international and local clients while including specifics in relation to still operating as local businesses. independence, remuneration and continuing education. PricewaterhouseCoopers International Limited PricewaterhouseCoopers International Limited (PwCIL) is a UK private company limited by guarantee in which PwC firms are members. PwCIL does not provide services to clients. It also neither manages nor controls PwC member firms. Its primary activities are to: identify broad market opportunitiesand develop associated strategies; strengthen internal services, skill and knowledge networks; promote the PwC brand; and develop and support application of common risk, quality and independence standards by PwC member firms. Global Annual Review 2010 27
  36. 36. PwCIL governance bodiesGlobal BoardThe Board is responsible for the PwC member firms nurture a culturegovernance of PwCIL and the PwCnetwork and oversight of the NetworkLeadership Team. The Board doesnot have an external role. Boardmembers are elected by partners that supports andfrom all PwC member firms everyfour years, with the current board encourages all PwC people to do thetaking up office in April 2009.Network Leadership TeamThe Network Leadership Team setsthe overall strategy for the PwC right thingnetwork and the standards to whichmember firms agree to adhere.Strategy CouncilThe Strategy Council, which is madeup of the leaders of the largest PwCmember firms, agrees changes in the Standards and internal quality The way we do businessstrategic direction of the network and control systems PwC member firms conduct theirfacilitates alignment in the execution A member firm’s membership in the PwC businesses within the framework ofof strategy. network depends on its implementation applicable professional standards, of common standards. Every PwC laws, regulations and internal policies.Network Executive Team member firm is fully responsible for These are supplemented by a Code ofThe Network Executive Team reports its own risk and quality performance Conduct for their partners and staff.to the Network Leadership Team and and, where necessary, for drivingcoordinates key service line and improvements. To support transparency PwC people have an obligation tofunctional areas such as Risk and and consistency, each member firm’s know, understand and comply withQuality, Human Capital, Operations, Territory Senior Partner signs an annual the guidelines contained in the Codeand Brand and Communications confirmation of compliance with certain as well as the values – Excellence,across the PwC network. standards. As stated above, these cover Teamwork and Leadership – on which a range of areas, including independence, the guidelines are based. ethics and business conduct, Assurance, Advisory and Tax risk management, Sustainable culture governance and data protection To promote continuing business success, and privacy. PwC member firms nurture a culture that supports and encourages all PwC There are some common processes people to do the right thing, especially to help member firms apply the when they have to make tough decisions. standards. Key elements include: PwC people have ready access to a wide array of support networks within their • the way we do business respective member firms – both formal • sustainable culture and informal – and technical panels to help them reach appropriate solutions. • quality policies and processes There is also a culture of cooperation • quality reviews between member firms, and consultation supports this culture.28 PwC