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Ben Potter

Westpac's culture lesson: don't block bad news

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.

Ben PotterSenior writer

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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

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    Original URL: https://www.afr.com/companies/financial-services/westpac-s-culture-lesson-don-t-block-bad-news-20200924-p55ypp