Cultural failings that go to core competence – in Westpac's case providing financial services safely for legitimate customers and keeping the creeps and criminals on the outer – can be very damaging.
If it wasn't already seared on every ASX 200 director and executive's frontal lobe, it will be now after Westpac Banking Corp's humiliating settlement with the financial crimes regulator in a saga that unfolded publicly over 10 months, but originated years earlier.
Cultural failures are costly: ask Rio Tinto, Cleanaway, AMP and QBE. Even ones that some might argue don't reflect on competence in the core business – such as AMP, QBE and Cleanaway's various failures of senior management conduct towards subordinates – can cost CEOs their jobs and companies business and market value.
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Ben Potter writes on energy, climate change and innovation, and has been Washington correspondent, opinion editor and companies editor. Connect with Ben on Twitter. Email Ben at bpotter@afr.com
