From collapse to compass
how PwC can climb out of the ethical abyss (and you can prevent falling in)
The Essence of Real Change: Profound Personal Transformation
The recent scandal at PwC has illuminated the unstable foundations of corporate ethics, and the deep-rooted tension between personal integrity and organisational incentives. Despite a plethora of well-articulated Codes of Conduct and ambitious value statements, many firms are grappling with the reality that pragmatic self-interest often overshadows principled practices. While the immediate reactions tend to focus on short-term remedies, a deeper exploration suggests the need for profound personal transformation within the corporate realm. In this follow-up to our
initial examination of the PwC incident, we delve into the essence of genuine change and the strategies to foster and sustain it.
I argue that the ultimate remedy to a values disconnect is not workshops but soul work: deep personal transformation, a conversion in the way one thinks and acts. PwC, and others, do not need to ‘sign off’ on new Codes of Conduct, but rather the people inside organisations need to sign up to personal change, to a ‘metamorphosis’, embracing and embodying these values in their very essence.
Change is fundamentally an inside job, and so organisational transformation begins with, continues with, and is sustained by, personal transformation of all, starting at the top.
Consider this. Another PwC report found that “financial institutions spend, on average, 14% of annual operating costs on change management functions to drive productivity gains.” However, financial investment, even at those levels, is not the answer. After all, can you truly change someone just by throwing money at the problem? Most of us struggle to even change ourselves, let alone others.
This brings us to a key insight from ancient Greece: what they called metanoia. This term refers to a change of ‘nous’, a change of mind. However, it means more than a mere change in the way you think. It refers to a holistic shift in your perspective and actions. It’s not just about thinking differently, but being different. True ethical behaviour doesn't come from knowing what honesty is, but from becoming an honest person. It's the difference between understanding a virtue and embodying it. Even the most corrupt individual can understand honesty, but living it is another matter entirely.
The Corporate Solution: Deep-Dive Values Retreats
What then, is the proactive step that institutions across business, government, or civil society, must take? The answer isn't in short-lived values workshops but in profound values retreats. These retreats provide the setting for people to undergo significant shifts in perspective and values, setting them on a journey towards true personal fulfillment. And as people become fulfilled they model deeply human values.
the ultimate remedy to a values disconnect is not workshops but soul work
A values Retreat is a two day, offsite, immersion experience. It does not change people, but rather creates the conditions in which they can change. Immersion in beauty is one of the most powerful ways for this to happen, as our heart responds to and is drawn out of itself, beyond ourselves. This is the experience of awe when one looks on the sunrise, or the star filled sky on a cold and frosty night. Research shows that a direct experience of beauty, and the harmony one is drawn into, creates the conditions for inner change: for conversion.
Such retreats, typically spanning two days, immerse participants in an environment that is conducive to self-reflection and change. It's not about enforcing change but about creating an atmosphere where change can occur in an unhurried manner. Immersion in nature, and allowing the transformative power beauty to work in us, is one of the primary ways of doing this. Whether it's the awe-inspiring vista of a sunrise or the tranquil serenity of a starry night, beauty has a unique way of drawing us out, making us more receptive to change. It’s reminiscent of those quiet moments when we have experienced insight—on a solitary walk or a moment on the beach, where, disconnected from the daily hustle, our thoughts become clearer, and our hearts open up to new possibilities.
Now, one might balk at the costs involved. But think of it this way: PwC faces an estimated loss of around US$300 million in annual revenues due to a significant ethical misstep. Investing in values retreats isn’t just ethically right; it’s financially prudent. When the stakes are this high, such an investment becomes an absolute necessity, not just an idealistic venture. Would you fly with an airline if you knew they were cutting their safety budget?
However, remember: retreats are the inception, not the culmination. Values need nurturing. Just as flowers left unattended wither away, values relegated to posters on the wall fade into oblivion. Continuous emphasis, regular check-ins, and reinforcement of character-based values are vital to ensure that they remain the standard of corporate behaviour.
Some companies focus on Values in Practice
While waiting to board a flight from Helsinki to New York, I watched as the Customer Service Manager briefed the crew about the upcoming journey. Irrespective of specifics of that particular flight, safety always takes precedence in these discussions, explored through hypothetical scenarios to ensure the crew’s preparedness. Meanwhile, at every Ritz-Carlton Hotel, a daily team meeting becomes a platform to discuss and reiterate values. A designated individual explains their understanding of a particular value, such as 'Customer Service', sharing personal experiences and highlighting instances where a colleague demonstrated that value. Day in and day out, this practice not only sets clear expectations about behaviour but also celebrates those who live by these values. Practices such as these eliminate ambiguity and uncertainty about values and acceptable behaviours.
Top-Down Modelling of Values
In order for values to genuinely permeate an organisation, they must be embodied and demonstrated by its leaders. This top-down modelling starts at the very pinnacle: the Board and C-Suite. They should not merely pay lip service to values but must strive to live them, setting an example and standard for everyone else.
I once had the privilege of meeting Robert Swannell, the then Chairman of Marks and Spencer in the UK, and gave him the shirt off my back—literally. Marks and Spencer have a very well developed clothing recycling program, with recycle bins in all their stores. As Robert handed me his business card he took great pride in pointing out the back of the card, bearing the words ‘Plan A’, and the firm’s vision regarding responsible sourcing, waste reduction and helping communities. Robert explained that this Plan A approach—because there is no Plan B— is personally embraced by members of the Board, who frequently deliberate on the behaviours that flow from these values. Robert Swannell’s leadership underscored the notion that leaders are always in the spotlight, setting behavioural standards for the entire organisation.
Whether an airline, an hotel, or a department store: whatever kind of business you are in, values should be a part of every gathering. The kinds of approaches highlighted in these stories reveal that once we are clear about values, it takes little more than five minutes in every meeting to sustain them.
Robert Swannell also introduced me to a unique approach he had seen in a previous role: the concept of ‘wise elders’. These aren’t just senior executives or mentors but rather are acknowledged ‘sages’ within the firm, specifically entrusted with the role of upholding its values. They serve as both lighthouses and safe harbours—guiding people through ethical challenges and providing a confidential space for discussing emerging dilemmas. This system acknowledges the intricacies of leading a values-driven life and offers a resource for individuals to navigate its complexities.
Values: The Unseen Safety Net of Corporations
The CEO of a major airline once quipped to me “The only thing that matters in this job is ensuring that the number of landings equals the number of take-offs.” It was his shorthand way of highlighting that while many things were important, safety was paramount. As a frequent flyer, I have encountered my fair share of flights that have been delayed, cancelled, or rerouted due to safety concerns. I am always grateful for the delay, knowing that no compromise will be made when safety is at stake.
Drawing a parallel to the corporate world, imagine if every employee held the power to pause a project when values were at risk. If your immediate counter-question is “Would they truly understand what constitutes a values breach?” then it is possible you have a training and trust gap. If staff cannot be trusted to call out a values breach, then we have breached our obligation to teach and model values.
when you sacrifice your values you sabotage the firm
Consider this: when was the last time your manager inquired about your alignment with the company's values, and some challenges you may be facing to do so? More often than not, our workplace dialogues revolve around projects, clients, and deadlines. As PwC, and others before them, have found out to their peril, when you sacrifice your values you sabotage the firm. The antidote lies not in consultant’s report or corporate overhauls. Rather, it is grounded in transformation of individual human hearts. We don’t just think about values, we desire to live by values. The ultimate question then becomes: Are corporate boards ready to make a deep, lasting commitment to such profound change? Doing so will be doing a profound service to your people and our societies.
Should We Work Together?
Hi! I’m Anthony, a global philosopher, writer, and entrepreneur, dedicated to fostering a new Renaissance. Every morning I wrestle with words, trying to make sense of the metacrisis confronting humanity. Afternoons are spent coaching, mentoring, and empowering CEOs and their teams with moral and value-based leadership capability to help them survive and thrive beyond the crises. If you want to amplify your impact, or be part of a new Renaissance, let's connect.
Love this, Anthony! If you do a LinkedIn post about these retreats, please let me know, so I can share with my network :).