PwC needs to rethink its global governance

The accounting and consulting firm, known as PwC, has faced significant scrutiny for its failure to detect financial misconduct and for its own involvement in questionable practices. Between 2010 and 2023, the firm incurred approximately $450 million in fines and settlements due to inadequate audits and other forms of misconduct across various countries. This troubling trend highlights the challenges faced by large firms in maintaining effective oversight and accountability as they expand. The decentralised structure that once served PwC well is now seen as a liability, as the firm struggles to manage its global operations effectively. The increasing complexity of financial regulations and the growing expectations from stakeholders demand a more cohesive governance framework. As a result, there is a pressing need for PwC to reassess its organisational structure and governance practices. The consequences of these issues extend beyond financial penalties; they also impact the firm’s reputation and client trust. As PwC continues to grapple with these challenges, it risks losing its competitive edge in the accounting and consulting industry. Stakeholders are calling for a more robust governance model that can ensure compliance and ethical conduct across all levels of the organisation. In light of these developments, it is crucial for PwC to implement changes that will enhance its accountability and oversight mechanisms. By doing so, the firm can work towards restoring its reputation and ensuring that it meets the expectations of clients and regulators alike.