Poor corporate culture affects staff retention, Australian Securities and Investments Commission Chairman Greg Medcraft has warned.

“Think about whether you personally would want to work for a firm that has a bad culture,” he told a CFA Societies Australia conference in Sydney last week.

“Individuals increasingly want to work for an employer that can deliver both a profit [and] an impact. By creating a customer-first culture, a firm makes itself a desirable place to work.”

Mr Medcraft says attracting the best staff has a positive impact on the bottom line.

Fines are just one consequence of bad culture.

“A recent report by KPMG suggested, since 2011, the largest banks in Britain have paid almost 60% of their profits in fines and repayments to customers,” Mr Medcraft told the investment professionals’ group.

“Put more simply, a bad culture impacts on the bottom line.”

Creating a trusted brand can deliver a competitive advantage, which is a weapon against disruptors.

“If you don’t want to be disrupted, you need to have a brand that has trust and confidence. In a competitive industry, customer satisfaction is a primary driver of customer loyalty and retention.”

Mr Medcraft says in the digital age companies must consider how a crowd views them. If it is unfavourable, they will not survive.

“A customer that has lost trust and confidence may also voice their concerns publically, to a friend or neighbour, or more broadly through social media,” he said.

“This, in turn, can have flow-on effects to the retention and acquisition of customers. So poor culture can damage brand and reputation, and the value of the firm itself.”