PwC is going through a “once-in-a-generation brand disaster”, a PR expert says, as a new survey shows four in five people want the consultancy to be banned from any new government contracts.
Progressive think tank The Australia Institute asked respondents whether the consultancy — which is in crisis mode after a former top executive leaked government tax briefings — should be banned from getting more taxpayer-funded work. The survey found 79% of the 1002 respondents wanted the ban, and nearly half wanted the ban to be permanent.
The institute’s democracy and accountability program director Bill Browne said there needed to be “long-lasting” consequences for PwC’s “abuse of public trust”.
“There is overwhelming public support for PwC to face serious consequences for its gross breach of integrity and trust … The consulting firm has shown it cannot be trusted to continue receiving government work that can and should be performed by public servants,” he said.
The survey, conducted between June 6 and 9, found just 2% of respondents thought PwC should be allowed to get new government contracts. Nearly 20% weren’t sure.
The desire for a permanent ban cut through political divisions: 59% of One Nation voters; 55% of Greens voters; 55% of independents; 43% of Coalition voters; 39% of Labor voters.
Tim Riches, group strategy director at the public relations firm Principals, said it would take a long time for PwC to repair its brand.
“It’s a once-in-a-generation brand and reputation disaster,” Riches told Crikey. “It’s entirely understandable that people responded to the survey in that way, when people in the community are kind of feeling very squeezed in terms of their own cost-of-living situation.
“These sorts of stories are particularly triggering for people because they shine a light into a world which most people aren’t a part of, a world that seems kind of cosy, protected, privileged. That’s why you get such a visceral response to these stories.”
PwC doesn’t have to imagine what it would be like to be banned from government contracts. Last week the NSW government temporarily suspended it from working on tax projects. The ban was announced at the same time as MPs launched an inquiry into the state government’s use of consultants.
PwC’s public relations nightmare began in January when the Tax Practitioners Board (TPB) issued a media release revealing PwC’s former tax partner Peter-John Collins had been deregistered as a tax agent for integrity breaches. The TPB said Collins had made “unauthorised disclosures” relating to proposed tax laws with PwC colleagues. Acting chief executive Kristin Stubbins has since apologised for “betraying the trust” placed in PwC.
Nine partners have been placed on leave, and the Australian Federal Police has confirmed it’s investigating a report of “crime relating to the alleged misuse of confidential government information”.
PwC was contacted for comment.
In her public apology last month, Stubbins said PwC had “ringfenced” its Commonwealth business “to minimise conflicts of interest and enhance governance”, made plans to appoint two independent directors to its governance board, and vowed to publish an independent review report in full once it’s finished.
“Although investigations are still under way, we know enough about what went wrong to acknowledge that this situation was completely unacceptable,” Stubbins said in an earlier statement.
“No amount of words can make it right. But I am fully committed to taking all necessary actions to re-earn the trust of our stakeholders. And as we work through this process, I am committed to being fully transparent.”
If you were asked, would you say ban PwC from all future contracts? Let us know by writing to letters@crikey.com.au. Please include your full name to be considered for publication. We reserve the right to edit for length and clarity.
