Oh.no... it’s… a scandal! PwC, one of the biggest accounting firms worldwide, recently found itself in the eye of a storm. Peter-John Collins, a partner at PwC, was caught leaking confidential government information on planned tax laws. 

Yikes! Now, if you're wondering, "Why is this a big deal?", grab a cuppa and let’s dive in 


Tom Seymour, PwC's former  chief executive of PwC, and eight other partners left following an internal investigation.. This insider information was leveraged by PwC to secure new business, despite the firm's Code of Conduct serving as the cornerstone of its business practices. Furthermore, internal emails showed that PwC partners paraded around the confidential info to score business on the US West Coast and even popped the champagne for $2.5 million in new business in North America. To minimize the damage,  pwc agreed to sell its government consulting business to Allegro Funds for a symbolic A$1, exiting all government advisory work in Australia. Although Google, which received this insider information, claimed it did not affect its compliance with Australia's Multinational Anti-Avoidance Law (MAAL), the repercussions were far-reaching.

PwC's expressed deep regret over the incident and expressed hope that the steps being taken would result in a stronger firm. The leakage of confidential government information by a PwC partner, resulting in significant reputational damage, loss of government-linked clients, including major players like Australia's largest pension funds and the Reserve Bank of Australia., and exit from government advisory work in Australia, underscores the potential consequences of violating these principles, and this caused the australia government to reassess its relationship with consultants.

PwC talking proudly in it’s the Code of Conduct, which serves as the foundation for all its business practices and is vital for its success. It is built on a  company’s purpose and values, crucial pillars for its triumph. While it does has not provide answers to every single question, it provides a framework, and a way of thinking, promotes consultation, and encourages speaking up about concerns. Now, here’s the point- despite all this, the company ended up breaking its own Code of Conduct. It’s like baking a cake and then dropping it on the floor! Collins, partner of pwc,   who was leaked  to sensitive government information regarding tax laws. This act not only went against PwC’s Code of Conduct but also spoiled their public image.

Now, let’s  explore into the role of corporate governance in this incident. In terms of organisation management, corporate governance is the structures and systems in place to direct and manage a company. These include the rules, practices and processes of the organisation.

Corporate Governance structures serve as the mechanisms that distribute decision-making responsibilities and oversee the monitoring and controlling of those decisions within a company. The Board of Directors, management structures and practices, among other internal firm entities, will be some of these structures and procedures. Some of these structures and processes will be appointed by the company, such as auditors. Some of these systems and procedures will envelop and penetrate the business such as , regulators and adhering to a regulatory framework. 
In this case, there was a clear breach of corporate governance as confidential information was mishandled, and the trust of stakeholders was compromised. In this instance, there was a glaring breach of corporate governance as confidential information was mismanaged, compromising stakeholder trust.

Could a watchdog approach have prevented this situation? watchdog approach entails active monitoring and oversight to ensure compliance with laws, regulations, and standards. Potentially, this could have thwarted the leak by surveilling the actions of individuals with access to sensitive information and ensuring adherence to the Code of Conduct.

In summary, the PwC scandal underscores the necessity of adhering to a company’s Code of Conduct and the consequences of failing to do so.