Black Sun reports that only 14% of the FTSE 100 directly report on culture, a number that the corporate communications agency suggests is far too low.

Annual reports should identify all of a company’s assets; the tangibles and the intangibles, and most communicators would agree that corporate culture is tantamount to a business’ success.

The Corporate Culture report found that, while 48% of the FTSE 100 define the values of their organisation, only 35% define their purpose. Purpose has become a major buzzword for businesses. It defines an organisation’s reason for existing; what it offers the world in terms of value.

Currently, only 14% of the FTSE 100 directly report on culture. But Black Sun says that this figure is likely to increase in the coming years, due to an increased focus on culture by UK regulators.

A general shift in focus towards purpose in business was reflected in the UK 2014 Corporate Governance Code, which emphasised the role of the board in establishing the culture, values and ethics of a company. This also demonstrates the responsibility that the employer has with regards to shaping the culture of a company.

Leadership and company culture gone wrong can be a huge issue for organisations, as becomes very apparent when a corporate scandal hits the headlines. CEOs are always the first to be held accountable when crises, such as the Volkswagen emissions scandal, come to light. The financial implications of these crises are apparent as stocks plummet, which is why it is so important for organisations to, firstly, monitor company culture and purpose from the top down, and secondly, to share that story.