Rapport annuel PwC 2014

Anticipating
problems, finding
solutions
Global Annual Review 2014
www.pwc.com/annualreview
Working with our clients
and communities to build
trust in society and solve
important problems.

PwC firms provided services to:
Fortune Global 500
companies
FT Global
500
companies
Our global network
T comp
Pw s 157
countries
758
locations
This year our global
workforce reached its
largest ever total of:
195,433
PwC has a presence
in every corner of
the world.
Our clients
417
462
Our people
44,721
People joined PwC firms
around the world
20,030
Graduates
20,507
Experienced
professionals
4,184
Support staff
Note: All figures relate to the year ending 30 June 2014.
PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more
than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Find out more and tell us
what matters to you by visiting us at www.pwc.com.
In this Global Annual Review, we look at issues that impact our stakeholders around the world, and we examine our performance,
our key network policies and standards, and our work in the global community during FY 2014.
Note to readers:
In this Global Annual Review, the terms PricewaterhouseCoopers, PwC, our and we are used to refer to the network of member firms of
PricewaterhouseCoopers International Limited or, as the context requires, to one or more PwC member firms. For more information, see
www.pwc.com/structure. FY 2014 runs from 1 July 2013 to 30 June 2014.
Revenue and other global figures are aggregates of results of individual PwC member firms.
www.pwc.com/annualreview

PwC Global Annual Review 2014 1
Corporate
responsibility
600,000
hours of professional
services and skilled
volunteering
6%
increase
6% US$34bn
Global
3% US$15.1bn
Assurance
10% US$10bn
Advisory
8% US$8.8bn
Tax
Our revenues
53,000
PwC people involved
in community activities
13%
increase
Contents
Interview with Chairman Dennis Nally 2
Global megatrends 6
Network report 11
Revenues 12
Corporate responsibility 16
Clients 22
People 24
Diversity and inclusion 32
Assurance – Solving important problems 34
Advisory – Mapping out the growth path 40
Tax – Rebuilding trust 46
Committed to transparency 52
Network leadership 56

2
PwC Global Annual Review 2014
Chairman’s interview
Dennis M. Nally
Chairman, PricewaterhouseCoopers International Limited
Dennis M. Nally was elected chairman of
the PwC network on 1 July 2009; he began
a second term as chairman on 1 July 2013.
He joined PwC’s Network Leadership Team
in 2008. From 2002-2009, he was senior
partner of PwC US. He joined PwC in 1974
and became a partner in the US firm in 1985.
Olga Grygier-Siddons
PwC Central and Eastern Europe
senior partner
Olga Grygier-Siddons became senior partner
of PwC Central and Eastern Europe on
1 July 2014. Prior to that, she served as senior
partner of PwC Poland. She joined PwC in
1991 and became a partner in the Corporate
Finance Energy team in London in 1998.
Olga: Before I start asking about how PwC
performed in FY 2014, I’d like to hear how
the year was for you personally.
Dennis: Well, just like everyone else in PwC, I’ve
had a really busy year. I’ve visited many parts of the world, meeting with our clients, meeting with our people, meeting with regulators, hearing about developments first-hand. It’s been fascinating.
It’s also been a really positive year, with several key milestones: for example, we hired 45,000 people this year, a record high. We’ve also had a lot of business opportunities and launched some exciting new products and services in response to client needs. And, of course, we’ve made a number of key acquisitions. So I feel really good about what’s been achieved professionally, but personally as well.
Olga: So how did we perform as PwC
during FY 2014?
Dennis: As you know it’s been a tough and very competitive market, but our overall results have
been really good. Top-line revenue was up 6%,
which I think says an awful lot about what
we’re doing across the whole network.
Equally important, looking across our lines of service, again there’s a strong performance by
all three, each exceeding FY 2013. Our Assurance practice was up 3%. Given what’s happening with competition and pricing, that’s a really great result. The Advisory business was up 10%, reflecting the demand across the whole network for both Consulting and Deals. And Tax was equally impressive, up 8%
in a very challenging marketplace. So it’s a strong performance we can all be proud of.
Olga: Are there any particular bright spots
or stars that you’d like to give credit to?
Dennis: One of the key megatrends is the economic shift from the developed to the developing world – and we have some really strong performances in developing markets. Whether you look at China, India, Brazil or Mexico, they all put in great performances this past year. But our successes in developed markets are equally impressive. Take Spain – a very competitive marketplace where our firm grew in double digits. It’s all about the strategy, and about what we’re doing to serve clients and make
a difference. When we do that, the results just follow.
Olga Grygier-Siddons recently sat
down with Dennis Nally, Chairman of PricewaterhouseCoopers International Limited, in Warsaw, Poland to talk about the highlights of FY 2014 and
the year ahead. You can read excerpts from Olga’s interview with Dennis
here or view video selections at
www.pwc.com/annualreview.

Olga: So, a pretty impressive performance.
How can we sustain and grow next year?
Dennis: The marketplace will remain incredibly challenging in FY 2015. So we need to stay focused on what we’re doing for our clients to help them deal with their issues. We must also continue to innovate, and make sure we’ve got the right products, services and skills to help our clients be really successful in a challenging marketplace. And, of course, we need to keep enhancing the quality of our work.
We’re looking at a number of new areas that we
think can make a further difference. Areas like
data analytics, digitisation of our services, cyber security, and in particular new assurance-type services. It’s about focusing on making sure our services stay relevant and responsive to what
our clients are seeking.
Olga: Let’s move on to the economic and business environment. Here in Europe, we started 2014 with a lot of optimism, but
now things don’t look so promising. What’s your view on the global economy?
Dennis: I definitely think it’s better today than a
year ago, despite some ups and downs. In Europe, you’re right that things are slowing down a little, particularly in major economies like France and Germany. But there’s a bright spot in the UK,
while in Poland we’re expecting growth of about
3%. The US may not be growing as fast as hoped,
but nonetheless it’s making progress.
However, as you say, there are challenges out there. Brazil previously had outstanding GDP growth,
but has now slowed down. There are obviously
issues in the Middle East as well. So there are pluses and minuses – pointing overall to a period of slower economic growth. That’s going to be the reality for the next several years.
Olga: Alongside economic challenges, we’re facing a lot of regulatory pressure. Here in Europe we’ve seen the regulators being especially active. As a network, are we well prepared for regulatory change?
Dennis: I’ve been in the profession 40 years, and
this is probably the most challenging regulatory environment I’ve seen. Coming out of the financial crisis, we see regulators – not just here in Europe,
but around the world – focusing on the changes needed to prevent another crisis. So what’s happening is no surprise, and is certainly not
unique to our profession.
How well prepared are we? I think we’re on top of
it and addressing the issues as best we can, whether around mandatory firm rotation or restriction of services. We’re committed to making the right decisions in the best interests not only of PwC, but also of our clients and stakeholders. It’s really about staying focused on quality and doing the things
that make the most sense for the longer term.
“It’s really about staying focused on quality and doing the things that make the most sense for the longer term.”

4 PwC Global Annual Review 2014
Olga: Let’s turn to some of the things
we’ve accomplished this year – particularly the acquisition of Booz & Company to
create PwC Strategy&. How do you see us
operating together?
Dennis: First off, I’m really proud of that acquisition – which was all about talent and responding to our clients’ needs. We could see our clients facing up
to challenges stemming from the megatrends, and that they needed help not only in understanding the strategic implications of the megatrends, but also
in addressing and dealing with the resulting issues. So that part of our business was being totally redefined, with clients wanting to go all the way from strategy to execution.
Given this shift, the acquisition of PwC Strategy& gives us tremendous capabilities that are a real differentiator. Our vision is around creating a ‘category of one’: no-one else is focused on this.
And we’re off to a great start with some tremendous wins, where Strategy& and PwC together have responded to opportunities in ways neither of us could have done alone.
Olga: Consulting is getting a lot of attention and investment from PwC. Are we still
paying enough attention to our core business of Assurance?
Dennis: Well, we often talk about Consulting or Advisory, and sure, it’s an important part of what we’re trying to do. But our core businesses of Assurance and Tax are still the largest of their type
in the world. And I continue to see tremendous opportunities in both these businesses to keep developing our service offerings, stay responsive and relevant to the needs of our clients and stakeholders, and deliver outstanding growth.
Olga: Turning specifically to tax, there’s
been a heated public debate about whether multinationals are paying sufficient tax.
Is PwC playing enough of a role in this
debate – and could we be doing more
around global tax reform?
Dennis: First, we should never underestimate the value we deliver to clients by helping them comply with complex tax rules and regulations worldwide. However, when it comes to international tax reform, the fact is if you reform one country’s tax system, it might be a winner, or might be a loser. But whatever you do on one side, it’s going to impact someone else.
Do we have a point of view on how that could best
be done? Absolutely. Is it a huge challenge for governments? Certainly. Are we engaged in the conversation? Most definitely. I’m fascinated to see how it’s all going to play out. But nobody should underestimate the challenges involved.
Olga: We’ve already discussed the changing world, and we see our clients investing to
stay ahead. Given PwC’s structure and how we operate, do we invest enough?
Dennis: In terms of investment, I think there are
two really important trends that we need to get
in front of. The first is the economic rebalancing
from the developed to developing world. Today, the developing markets represent 20% of PwC’s total revenues – and we see that rising significantly in
the next five years. So we need to target the right investments and develop the talent we’ll need to respond to client opportunities in those markets.
The second trend is technology, which many
believe will have a bigger impact than the Industrial Revolution. And, of course, it will affect how PwC makes investments and focuses its business for the future. We’re very much in front of – and actively adapting to – these two trends.
“As the challenges our clients face become ever more complex, we need people with diverse skills and diverse backgrounds to
help solve them.”

Olga: Staying with emerging markets,
which ones – beyond the BRICs – do you
think we should focus on going forward?
Dennis: There was a time when the BRICs all moved in a very similar way. Today, that’s not the case: you have growth rates in China very different from those in India. Brazil has been slowing down. Then you have Russia. All very different. In terms of other developing economies with tremendous potential, there are parts of Africa and the Middle East, and places like Indonesia and Vietnam. And of course Central and Eastern Europe. We need to stay focused on all these areas.
Olga: Turning to the future of PwC, I think two things will shape our success: our powerful brand and our people. How can we continue to recruit and keep the best talent?
Dennis: You’re spot on. Our major asset is our
people. So continuing to attract, retain and develop the very best talent is vital. And we’re fully focused on that, with our development activities and efforts to create an environment where people can be really successful. One thing I’ve learned over the years is that a one-size-fits-all career model doesn’t work.
So we need a lot of flexibility, particularly with the diversity we have today, so people can build their own careers.
Also, as the challenges our clients face become
ever more complex, we need people with diverse skills and diverse backgrounds to help solve them. All those diverse individuals should feel they can really contribute as part of the team.
Olga: That brings me to our purpose –
to build trust in society and solve important problems. We launched it earlier this year. How are we progressing with it?
Dennis: It was very important to get real clarity
on what PwC stands for. And the purpose we’ve highlighted builds on the tremendous foundation
of what PwC has been historically, while also differentiating us.
In terms of ‘building trust’, we typically think about trust in the capital markets. But we also have a vital role to play in building trust in society, which is
much bigger and more expansive. Equally important is ‘solving important problems’, which extends into societal issues beyond our clients’ immediate challenges. We need to claim a seat at the table, and offer our best thinking on big, critical issues like food safety and the environment, and the challenges around megatrends like urbanisation (see pages 6-10).
So I’m very excited about our purpose. It’s a guiding light for how we invest and channel our resources. While it’s early days, we’re heading in the right direction. And the best is yet to come.
Olga: So, my final question. For FY 2015
and beyond, what would you like to see
us accomplish?
Dennis: As I see it, PwC is all about making a real difference for our clients and our people, whatever the distractions. So, staying very focused on what
we do really well, serving our clients, and developing our talented people is what I’d like to see us achieve in FY 2015. And if we do that, we’ll be fine.
Olga: Thank you very much for your
time, Dennis.
Dennis: Thank you, Olga. Great to be with you.
“PwC is all about making a real difference for our clients and our people, whatever
the distractions.”
Do you have any questions for Dennis?
Email dennis.m.nally@us.pwc.com
@Dennis_Nally

In the past year, we’ve seen the ongoing effects of the megatrends and the collisions between them
continue to reshape and disrupt the global economic and commercial landscape. The five members of
the PwC Network Leadership team revisit the trends they examined in our last Global Annual Review,
and take a fresh look at their dynamics and impacts.
Five global megatrends
continue to advance
Demographic and
social change
Within the next minute the global population will rise by
145. By 2025, we’ll have added another billion people to
reach about 8 billion, with the over-65s the fastest-growing
group. But there will be sharp regional variations: Africa’s
population is projected to double by 2050, while Europe’s
is expected to shrink.
While these demographic changes bring risks for businesses
that fail to respond adequately, they also bring big
opportunities for forward-looking organisations. We’re
finding that our clients are targeting two core sources of
growth: the consumption power of growing population
segments; and the innovative potential of a diverse
workforce. For example, Nigeria’s population should exceed
America’s by 2045. And with women in the G7 countries
already controlling two thirds of the household budget,
the wage gap with men narrowing, and an estimated
865 million women set to enter the economic
mainstream in the coming decade, women’s purchasing
power will continue to rise.
Another opportunity is global mobility. The number of
people being assigned by their employers to roles outside
their home country has increased by 25% over the past
decade – and we project a further 50% rise by 2020. Put
simply, people are planning to move, so there’s an
opportunity for companies to make their employment
offers more attractive.
Across all these opportunities, the common thread is the
move to a more diverse world. And there’s growing evidence
that workplace diversity is linked to improved performance
by businesses and economies. Innovative companies are
already tapping into rising workforce diversity – and it’s
a resource that’s set to become ever richer.
However, alongside the opportunities, demographic
change also brings challenges. The absolute increase in
global population is not in itself the biggest demographic
challenge facing us all. Instead, it’s the combination of
rising life expectancy and – in some parts of the world
– declining birth rates, a combination that will drive
dependency ratios upwards. In 2050, the average age in
Japan is set to be 53, against 21 in Nigeria.
Whichever side of this divide they sit, countries have
to respond quickly. Europe, Asia and Latin America
will need more women and elderly people in their
workforces, together with higher immigration. Africa’s
younger population offers a demographic dividend – but
only given the right policy responses. And the timeframe
is tight. France took a century to double the share of
over-60s in its workforce from 7% to 14%. China, India
and Brazil face doing it within three decades.
In regions with ageing populations, such as Europe,
a further challenge is soaring healthcare costs related to
chronic diseases and caring for the elderly. According to
the EU, 30% to 40% of healthcare expenses are already
being spent on people aged 65 or above. As the share of
this group in the overall population continues to rise, the
costs of caring for them will also increase – putting social
and healthcare systems under intensifying pressure.
Demographic and
social change
Shift in global
economic power
Rapid urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
1 billion
expected increase in the
world’s population by 2025
Norbert Winkeljohann
PwC Germany senior partner

Shift in global
economic power
On current trends, the aggregate purchasing power
of the ‘E7’ emerging economies – Brazil, China, India,
Indonesia, Mexico, Russia and Turkey – will overtake
that of the G7 by 2030. By 2015, Asia Pacific will have
a larger middle class than Europe and North America
combined. And the global emerging middle class will
represent an annual market of some US$6 trillion by
2021. Such trends and tipping-points mean the
traditional way of classifying economies is becoming
increasingly irrelevant.
This change is underlined by widening divergences
within these groupings. Italy’s economy has not grown
in real terms since 2000, while Canada’s has expanded
by over 30%. China’s economy has tripled in size while
Mexico’s has ‘only’ grown by a third.
These huge economic shifts between countries, and
within groupings, are resulting in momentous changes
in consumption patterns – which in turn are creating
and amplifying key challenges for businesses worldwide.
They have to chase a moving target, as consumers evolve
differently in various markets faster than ever before.
They have to address the needs of ever more diverse –
and more demanding – customer segments. And they
have to fight off increasingly intense and new competition.
It’s no wonder that more than half of the business
leaders interviewed in our latest Global CEO Survey
are concerned about changes in consumer spending
and behaviours, and nearly half of all CEOs are worried
about new market entrants.
The ongoing rebalancing of global economic power
also brings major implications for investments in
infrastructure. Worldwide, we estimate that annual
spending on infrastructure will grow from US$4 trillion
in 2012 to more than US$9 trillion by 2025 – with a total
of close to US$78 trillion expected to be spent globally
between 2014 and 2025. The Asia Pacific market, driven
by China’s growth, will represent nearly 60% of global
infrastructure spending by 2025. In contrast, Western
Europe’s share will shrink to less than 10% from twice
as much just a few years ago.
Such global shifts are remarkable not only for their
scale, but also for their sheer speed. As a result, there is
no question that in a decade’s time, the global economic
landscape will be vastly different from that of today.
To begin to understand what that landscape will be, we
need a new view of the global economy. Here are four
features that we think will become more prominent in
the global economy:
• Emerging markets will challenge developed
economies in the production of high-end consumer
durables.
• Today’s ‘F7’ frontier markets – Bangladesh,
Colombia, Morocco, Nigeria, Peru, Philippines and
Vietnam – will become tomorrow’s growth markets.
• An expanding pool of highly skilled talent will fuel
this emergence, with people from emerging markets
increasingly leading global multinationals.
• Developed countries will benefit from ‘re-shoring’
as wage differentials close.
To prepare for this new landscape and succeed in
tomorrow’s changed environment, today’s business
leaders need to identify which markets hold the greatest
growth potential. Our Global CEO Survey shows CEOs
are already making these calls.
Silas Yang
PwC China senior partner
Demographic and
social change
Shift in global
economic power
Rapid urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
China will replace the US as the
world’s largest economy by 20151
2015
1 This is by Purchasing Power Parity (PPP) rates; by market exchange
rates, we project China will replace the US by around 2030.

Rapid urbanisation
The global rise of cities has been unprecedented. In
1800, 2% of the world’s population lived in cities. Now
it’s 50%. Every week, some 1.5 million people join the
urban population, through a combination of migration
and childbirth.
Inevitably, this rapid expansion is putting cities’
infrastructure, environment and social fabric under
pressure. Over the next decade, New York, Beijing,
Shanghai and London alone will need US$8 trillion
in infrastructure investments. The numbers living in
urban slums have risen by a third since 1990. Cities
occupy 0.5% of the world’s surface, but consume 75%
of its resources.
Rapid urbanisation brings major implications for
businesses as they refocus their offerings, marketing
and distribution towards an increasingly urban
customer base with distinct needs and consumption
habits. And they must be alert to new opportunities
arising from lifestyles shaped by rising population
density and readier access to resources.
For city leaders, the implications are also significant as
they work to ensure that cities grow in a sustainable way.
Leaders face tough choices trying to keep their cities
liveable. Options being examined include floating cities
– especially relevant for low-lying regions threatened by
rising sea levels – and revitalising ‘ghost’ cities or failing
economies through crowdfunding. A further approach
is to build a new city around the latest technologies: the
‘smart city’. From Masdar City in Abu Dhabi to Migaa
near Nairobi, spending on smart cities will hit
US$1 trillion within two years.
However, for these manufactured cities, the financial,
environmental and social costs can outweigh the
benefits from technology. So another approach has
emerged: harnessing citizens’ own ‘smartness’ by
deploying the technology directly to them in order to
keep cities growing and liveable. Examples range from
developing an energy self-sufficient street in Austin,
Texas, to pioneering groups of small production units
in Barcelona. PwC has been working on many projects
including, in India, the Mumbai Smart & Safe City.
Rapid urbanisation brings challenges and wider
opportunities. One key opportunity is that it can provide
part of the solution to another of the megatrends –
demographic shifts – as the challenge of the ‘greying
planet’ grows. In the future, the majority of the world’s
ageing population will probably live in cities. And as
people remain healthier for longer, their continuing
contribution to social and economic value – for example,
by working beyond traditional retirement ages, helped
by advancing technology – may produce a ‘longevity
dividend’ rather than a burden.
As all these initiatives and opportunities demonstrate,
technology is changing the reason why cities exist.
wTheir main attraction used to be jobs. Now people
come seeking a better quality of life – at any age.
Demographic and
social change
Shift in global
economic power
Rapid urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
By 2025, there could be nearly
40 cities each with a population
of over 10 million
40 10m
Ian Powell
PwC UK senior partner

Climate change and
resource scarcity
As the world becomes more populous, urbanised and
prosperous, demand for energy, food and water will
rise. But our planet’s natural resources to satisfy this
demand are finite.
Just how finite is becoming increasingly clear.
At current rates of consumption, we may have just
half a century’s worth of oil and gas left. Yet to meet
our development needs, we’re highly dependent on
fossil fuels which in turn drive carbon emissions.
That’s why we look set to miss the carbon target to
keep temperature rises to 2°C by 2034.
The impact of our economic development model is
amplified by the linkage between climate change and
resource scarcity. Our resulting projection could lead
to either of two extreme outcomes: a policy shock,
with a global agreement that severely penalises carbon
emissions; or a climate or resource shock, where a
natural event causes massive environmental and
economic damage.
Faced with these risks, many people are looking to
governments for solutions. However, in practice, policy
actions will remain unpredictable, inconsistent and
reactive. So businesses must take the lead in mitigating
environmental damage and tackling climate and
resource challenges, while simultaneously striving to
make their organisations more agile and resilient.
If businesses are to rise to these challenges,
sustainability will be vital. Corporate responsibility
has evolved from a ‘luxury’ to a business imperative.
Ultimately, sustainability is the lens through which
every business will be judged by its consumers, workforce,
society and even investors. And as businesses move
to embrace sustainability, they also need to be able
to report on it in a credible and trustworthy way.
As a result, an increasingly important area of
focus for businesses worldwide is understanding,
measuring and reporting on the environmental and
social impacts of the decisions and actions they
take. This need is driving the development of innovative
ways of measuring and reporting more transparently
and holistically on companies’ overall impacts.
Over time, progress in this area will help businesses
understand and explain their impacts more fully, make
better-informed decisions, and rebuild public trust by
providing wider and more credible insights.
Not surprisingly, PwC is supporting these efforts to
enhance measurement and reporting, through our
development of the Total Impact Measurement and
Management (TIMM) framework (see page 39).
Specifically designed for today’s multifaceted world,
TIMM helps business leaders and stakeholders
understand how an organisation’s activities contribute
to the economy, public finances, the environment and
society as a whole. And the wider insights it provides
enable external stakeholders to decide for themselves
how much trust they should place in a company’s
reported information – both financial and non-financial
– and how sustainable its business model really is.
Shift in global
economic power
Rapid urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
of supply left in
proven oil reserves
50years
Dennis Nally
Chairman of PricewaterhouseCoopers
International Limited

Technological
breakthroughs
In our latest Global CEO Survey, business leaders
told us technology is one of the biggest disrupting forces
in their organisations. One aspect is that the time it takes
to go from breakthrough technology to mass-market
application is collapsing. In the US, it took the telephone
76 years to reach half the population. The smartphone
did it in under 10 years.
The price of new technologies is falling equally
rapidly: since 2001, the cost of DNA sequencing per
genome has plunged from US$96m to less than
US$6,000. At the same time, digitisation via the
internet has created extraordinary value, as exemplified
by Google. And social media is steadily strengthening
its position as a dominant force in the day-to-day lives
of people across the globe, enabling many of the
world’s top brands to capitalise on it to deepen their
relationships with customers.
Indeed, the impacts of digital disruption are now so
pervasive that no business in any sector – from the
smallest family business to the largest multinational – is
immune from them. And the pace of technological
advances hasn’t slackened at all during the past year.
Far from it. According to MIT Technology Review, in 2014
alone we’ve seen breakthroughs in technologies ranging
from agricultural drones that enable higher crop yields,
to ‘neuromorphic’ chips configured like human brains;
from microscale 3D printing of an ever wider range of
products, to agile robots that can walk or even run across
uneven terrain; and from ultra-accurate, big data-enabled
weather forecasts that will boost the
contribution from renewable energy, to genome editing
that will help tackle previously baffling brain disorders.
All of these advances either help to solve complex
problems or open up new ways of using technology –
or both. And in each field the progress to date is
just the start.
So, what’s next? Over the next decade, we think the
transformative potential of digital for consumers will
play out in three waves:
• The First Digital Wave: we’ll see more and more
companies adopt ‘e-commerce’ or add a web channel
to their existing portfolio. In this wave, even fairly
traditional organisations will make this move.
• The Second Digital Wave: digital will move beyond
a channel to an ‘economy of outcomes’. That means
we’ll see businesses teaming up with the consumer to
find an outcome. A good example would be that a
number of companies today are involved in helping
us live healthier lifestyles.
• The Third Digital Wave: this will be driven by
consumers taking back their digital identity and
extracting value from it. You’ll see consumers
owning their digital brand and expecting
organisations to know what they want and to really
deal with them as individuals.
Across these successive waves, companies will find
value by uniting four aspects of digital: Social, Mobile,
Analytics and Cloud. For businesses, having a digital
strategy will no longer be enough. Instead, they’ll need
a business strategy fit for the digital age.
Rapid urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
76 10
Years taken for the telephone
and smartphone to reach half
of US households
Bob Moritz
PwC US senior partner

“We welcome
the opportunity
to demonstrate
our commitment
to doing the right
thing, and for
all of us to show
the qualities
of leadership
needed to
help create a
sustainable
future.”
Network report
We recognise the importance of
communicating to all our stakeholders
– our people, clients, regulators and
wider communities. This network
report is just one way we seek to
achieve this.
We are proud of the geographic spread and strength
of the PwC network, and we realise that this carries
with it an obligation to record and explain the impact
our actions make on the environment, communities
and markets in which we live and do business.
In presenting this report, we welcome the
opportunity to demonstrate our commitment to
doing the right thing, and for all of us to show the
qualities of leadership needed to help create a
sustainable future.
In the following pages, we illustrate through facts,
figures and stories the highlights of the past year,
and the areas where we’ve had an impact.
We apply various lenses to our business to help
you understand our revenues both geographically
and by the different services we provide. We also
aim to embed corporate responsibility in the heart
of our operations and contribute to the growing
debate on the role of business in society.
Additionally, the report covers our focus on clients
and people and the distinctive experience that we
strive to deliver consistently. We also show how we
are moving to build a more inclusive culture through
our approach to diversity and inclusion. Finally,
we include more detailed sections on each of our
three lines of service, and share our commitment
to transparency.
I encourage you to take a look at what we are
doing, and give us your feedback by contacting
us at www.pwc.com/annualreview/contact.
Richard Collier-Keywood
PwC Network Vice Chairman Our network

Revenues
For the year ending 30 June 2014,
PwC’s gross revenues were US$34 billion,
up 6%. Revenue growth was strong
across all of PwC’s lines of business
and geographic regions. Encouragingly,
revenue growth increased on the
previous year despite continuing
challenging economic conditions
in parts of the world and a clear
commitment by PwC to pursue only
high quality, profitable work.
PwC firms in the Americas continued to grow
strongly with revenues from North America
increasing 7% and South America a very impressive
13%. Revenues from the United States grew 6%,
with strong growth across all business lines.
Our strategy over the past few years of increasing
investment in Africa and the Middle East is also
showing results, with revenue growth of 16% in
FY 2014, up from 7% in the previous year. Africa and
the Middle East will be increasingly important
markets for PwC in the future; we will continue to
invest in these markets and expect to significantly
expand our operations there over the next five years.
Despite some continuing tough economic conditions
across Europe, PwC’s operations continued to grow
solidly, with revenues from Central and Eastern
Europe growing 3% and revenues from Western
Europe increasing by 4%. This was a particularly
good result in Western Europe, with growth rising
from 2% in FY 2013. The ongoing economic
uncertainty in the Eurozone is having a negative
impact on economic growth and we expect that
uncertainty to continue in FY 2015. However, our
firms in the Eurozone are seeing increased demand
for services and we are experiencing particularly
impressive results from Italy and France, given the
difficult economic conditions in those countries –
both with revenues up 8% and 5% respectively.
PwC’s largest firms
around the world
continued to grow
well. The US grew
6%. In Europe, the
UK and France each
grew 5%, Germany
4% and Italy 8%.
In Asia, revenues
from China were up
11%, India 24% and
Japan 10%.

Figure 1: Aggregated revenues of PwC firms by geographic region (US$ millions)
FY14 at FY14
ex. rates
FY13 at FY13
ex. rates
% change % change at
constant ex. rate
Asia 3,902 3,706 5.3% 9.2%
Australasia and Pacific Islands 1,552 1,642 -5.5% 3.9%
Central and Eastern Europe 821 809 1.5% 2.5%
Western Europe 12,777 11,829 8.0% 4.1%
Middle East and Africa 1,170 1,074 9.0% 15.9%
North America and the Caribbean 12,704 12,000 5.9% 6.5%
South and Central America 1,026 1,028 -0.2% 12.8%
Gross revenues 33,952 32,088 5.8% 6.1%
FY14 revenues are the aggregated revenues of all PwC firms and are expressed in US dollars at average FY14 exchange rates. FY13 aggregated
revenues are shown at average FY13 exchange rates. Gross revenues are inclusive of expenses billed to clients. Fiscal year ends 30 June.
Revenues from PwC’s operations in Asia bounced
back in FY 2014 with growth of 9%, up from just
2% in FY 2013. This was driven by solid results from
right across the region, and in particular the benefits
of increased investment in PwC’s operations in China,
India and Japan which posted revenue growth of
11%, 24% and 10% respectively.
As anticipated last year, PwC’s revenues in
Australasia and the Pacific Islands have returned to
healthy growth with an increase of 4% in FY 2014,
boosted by focusing on the growing advisory
services market in Australia. Economic conditions
in Australia continue to be uncertain, but we believe
we have the right strategy in place to secure future
profitable growth.
The share of PwC’s revenues from emerging markets
is 20% and this is expected to grow substantially
over the next five years.
Figure 2: Aggregated revenues of PwC firms by service line (US$ millions)
FY14 at FY14
ex. rates
FY13 at FY13
ex. rates
% change % change at
constant ex. rate
Assurance 15,137 14,761 2.5% 2.7%
Advisory 10,002 9,153 9.3% 10.0%
Tax 8,813 8,175 7.8% 8.0%
Gross revenues 33,952 32,088 5.8% 6.1%
Expenses and disbursements on
client assignments (2,025) (1,863) 8.7% 9.0%
Net revenues 31,927 30,226 5.6% 6.0%
FY14 revenues are the aggregated revenues of all PwC firms and are expressed in US dollars at average FY14 exchange rates. FY13 aggregated
revenues are shown at average FY13 exchange rates. Gross revenues are inclusive of expenses billed to clients. Fiscal year ends 30 June.
Revenues

Assurance
In FY 2014, revenues from Assurance operations
increased by 3% to US$15.1 billion, a very impressive
result given the highly competitive market for
assurance services. PwC is the leading Assurance
business in the world as a result of very significant
long-term investment in our services. We continue
to have a relentless focus on quality and to make
substantial investments in new technology and people.
The demand for broader forms of assurance such
as reporting on internal audit and risk controls
continues to grow. This trend is set to continue as
new technology allows the principle of assurance
to be applied to wider areas such as social and
environmental reporting.
Advisory
Revenues from PwC’s Advisory operations continued
to grow strongly in FY 2014, increasing by 10% to
break through the US$10 billion mark for the first
time. Our rate of growth increased from last year,
and in the last five years, PwC’s Advisory business
has nearly doubled in size.
As in previous years, the growth in PwC’s Advisory
revenues was mainly driven by organic growth and,
in particular, a focus on complex, cross-border work
involving a broad range of advisory services – from
strategy through execution.
The acquisition of Booz & Company (now Strategy&)
earlier in the year has greatly boosted our capability
to deliver strategy-led work and we fully expect our
revenues from this area to continue to grow strongly
in the year ahead.
However, as the Strategy& deal was only completed
three months before the end of our financial year,
its full impact will not be seen until FY 2015. We
also saw robust demand from clients for work in
the areas of technology, deals implementation and
transaction services.
Tax
PwC’s Tax operations grew strongly in FY 2014,
with revenues increasing by 8% to US$8.8 billion.
Growth in tax operations was driven by an increasing
demand for tax compliance and tax advisory services
around the world as governments continue to compete
for tax revenues. This growth was supported by our
strong brand position for tax services. We believe our
brand position has been enhanced by our commitment
to be transparent about the tax work that we undertake;
we issued our first Tax Code of Conduct in 2005.
PwC firms around the world have signed up to this
Code of Conduct and apply it to their everyday work.
PwC’s Tax business also contains revenues from our
Human Resource Services operations and our
network of legal practices around the world, which
are focused on providing integrated legal advice and
implementation services.
Figure 3: PwC’s service line mix (2010-2014) at constant exchange rates (US$ millions)
We continue to have
a relentless focus on
quality and to make
substantial
investments in new
technology and
people.
Assurance Advisory Tax
14,053
7,232
7,208
14,529
8,453
7,779
14,735
9,092
8,163
15,137
10,002
8,813
13,402
6,130
6,818
FY14 FY13 FY12 FY11 FY10

Revenues
12.5
12.6
13.4
2.3
2.6
3.1 4.2
4.9
5.4
6.0
6.4
7.9
7.2
11.5
Asset management
& private equity
Banking &
capital markets
Industrial
products
Retail & consumer
Energy, utilities
& mining
Technology
Professional &
business services
Government &
public sector
Insurance
Entertainment & media
Transportation & logistics
Automotive
Health industries
Communications
Figure 4: Aggregated revenues by industry sector (percentage of revenue)
Providing the best possible service means having
an in-depth understanding of the industries in which
our clients operate. That is why PwC goes to market
by industry, allowing us to pool our industry expertise
and giving our clients easy access to the full range
of our services.
As the chart above shows, in FY 2014 we served
clients across the full spectrum of industry sectors,
ranging from Banking & Capital Markets and Industrial
Products, to Healthcare and Automotive.

Corporate responsibility
At PwC, we have a significant role to play in building trust in society and solving important problems.
Our goal is to embed this in all we do, but nowhere is it more important and significant than in our global corporate responsibility (CR) strategy, under which we are committed to:
•
Doing the right thing – behaving responsibly
on issues that are central to our business and to society; and
•
Being a catalyst for change – using our skills, voice and relationships to influence and work with others to make a difference, generate change and create a lasting impact on the
world around us.
Our CR strategy is tailored to our specific strengths and opportunities as a network of professional services firms. It’s also designed to enable us to
apply our skills in ways that deliver measurable outcomes and create both business and social value.
This strategy has now been embraced by all PwC firms. Over the next few pages, we’ll demonstrate
our progress.
In November 2013, ‘super-typhoon’ Haiyan tore through the Philippines, leaving in
its wake a trail of devastation and more than 6,000 dead. PwC firms across our network responded by donating over US$1.4m to help fund a multifaceted approach by PwC Philippines, aiming to address both the immediate need for relief supplies and the rebuilding of this devastated region.
These efforts were not limited to fundraising – they provided tangible support to some of the hardest-hit areas, as demonstrated when a PwC team of volunteers travelled to the remote Busuanga Island to bring Christmas to some 600 children. The children received school bags and school supplies, clothing, slippers, hygiene kits, blankets and canned goods.
Recognising that immediate relief supplies were not enough, PwC Philippines
has also dedicated a significant portion of the funds to the rebuilding of 20 homes and two schools in Eastern Samar province, benefiting over 1,500 students – contributions that will have a lasting impact on the region.
On the ground help in devastated towns like Busuanga, backed by our disaster relief experience in other countries, has also allowed PwC Philippines to sign a memorandum of agreement with the Presidential Assistant for Rehabilitation and Recovery to provide the government with advice on governance and transparency of disaster relief funds. Providing access to our people’s skills is perhaps the most important contribution we can offer to make a lasting difference.
PwC brings relief to typhoon-hit
Philippines province

As businesses come to rely on increasingly global supply chains, their environmental footprint can become much more complex and significant than many realise. In response, smart organisations are taking action to identify and address their impacts across the world – and PwC is at the forefront of helping them do this.
One example is Kering, owner of luxury and sport & lifestyle global brands including Gucci, Alexander McQueen, Saint Laurent, Stella McCartney,
PUMA and others. As a forward-thinking company, Kering realised that the first step towards addressing its environmental footprint was to adopt innovative ways to measure its impacts. So in 2010 PwC UK began working with Kering and its brand PUMA to help create the first ever Environmental Profit & Loss Account (E P&L).
This was a significant achievement in itself. But Kering, working with PwC firms in France, Germany and the UK, evolved the E P&L methodology and extended this ground-breaking approach across all its brands to support real change.
Already Kering’s initial rollout of its Group-wide E P&L has covered 73% of the business. New learnings have been key to Kering’s strategy, with the E P&L analysis disclosing that the bulk of the Group’s impacts reside in its production and sourcing. This equals approximately 82% of the total impact.
Generating societal
benefits through
responsible business
Aside from specific CR activities, we generate
a range of benefits to society through the services we provide to clients and our responsible approach to business.
Many of our services help to underpin ethics, transparency and trust in a broader business context and contribute to economic development. Examples include our work in international development, human rights, disaster recovery, fraud prevention and management of international aid funds.
For example, PwC China launched its Strengthening Donor Communications and Mentoring project to help NGOs understand impactful reporting, good governance and robust internal controls. Sessions were run
in Beijing and Hong Kong benefiting over
100 NGOs.
We’re also using our distinctive skills and expertise to create new client services that
help others build more transparent, responsible businesses. For example, while our market- leading Sustainability and Climate Change services have been established for many years, we continue to invest in research and innovation to support efforts to address the opportunities and risks raised by environmental and social challenges (see case study on page 39).
Through work like this, we’re helping businesses around the world make corporate responsibility part of ‘business as usual’. Another innovation is PwC Australia’s Indigenous Consulting practice
(see next page).
To behave responsibly, business needs responsible leaders. We’ve supplemented our existing talent management programmes by developing a CR e-learning module that is available to all our firms. ‘Think Corporate Responsibility’ helps our people understand the social and environmental issues affecting businesses across all industries, whether they’re responding to natural resource scarcity because of climate change, or facing intensifying public scrutiny over business ethics.
“The E P&L from conception to implementation has been a multi-faceted and complex project to develop. PwC contributed their experience and specialised skills in performance management and economic impact analysis to work closely
with our team and support our efforts over the last four years.”
Michael Beutler, Director of Sustainability Operations at Kering
Kering breaks new ground with
PwC’s support

Australia has struggled to overcome generations of
disadvantage in indigenous communities. Indigenous
Australians are particularly excluded when it comes
to sharing in the country’s economic wealth.
Recognising the need for change, PwC has joined
with a group of indigenous consultants from across
Australia to create PwC’s Indigenous Consulting,
or PIC for short – a new member firm in the global
PwC network, and one unlike any other.
Launched in November 2013 with a specially-recorded
video message of support from Prime
Minister Tony Abbott, PIC is majority owned by its
indigenous co-owners, making it an unprecedented
organisation to be part of PwC globally. Its focus is to
bring cultural integrity to indigenous projects, policies
and programmes across Australia, to benefit both
indigenous Australians and wider society.
History shows that real and lasting change only
happens when it’s created by indigenous people,
not just for indigenous people. This is why PIC’s
founding principles are majority indigenous
ownership, management and delivery. And PIC’s
collective understanding of cultural, commercial
and community realities, combined with the breadth
and depth of the PwC network, positions PIC to drive
significant and lasting change.
“We like to think of
PIC as a partnership
between the world’s
oldest living culture
and one of the
world’s largest
professional
services
organisations.”
“The goal of the
R!SE Initiative is
to revolutionise
the way the world
does business.
Embedding disaster
risk management in
business processes
is key to resilience,
competitiveness
and sustainability.”
Margareta Wahlström, Head
of the UN Office for Disaster
Risk Reduction
With 18 staff across six locations, PIC has already won
more than 45 client engagements, and was recently
awarded ‘Telstra Up & Coming Supplier’ at the highly
regarded Supply Nation Awards.
PIC’s chief executive and co-owner Jason Eades,
who comes from the Gunnai nation in south-eastern
Australia, says: “PIC is shifting debate and public
policy away from one that for too long has focused
on indigenous disadvantage to one that’s all about
indigenous pride and indigenous advantage.”
For more information:
www.pwc.com.au/indigenous-consulting
Working with the UN to reduce disaster risk
Natural disasters have a profound effect on
economies and societies across the world, resulting in
the loss of more than 1.3 million lives and more than
US$2 trillion in economic costs since 2000.
Strengthening communities, creating advantage
Jason Eades
PwC’s Indigenous Consulting
chief executive and co-owner
Despite such warning signs, ‘business as usual’
investment is continuing in areas of known high hazard
such as river basins and low-lying coastal regions.
And the concentration of risk from natural disasters
has moved beyond any single nation’s ability to
manage it, with the Secretary General of the United
Nations Ban Ki-moon commenting: “Economic losses
from disasters are out of control, and can only be
reduced in partnership with the private sector.”
PwC co-created the R!SE Initiative, together with the
UN, and continues to lead the global expansion of
the scope of R!SE. This ground-breaking global effort,
launched in May 2014, brings all stakeholders together
in a single alliance to take leadership on disaster risk
resilience, with a focus on creating shared value by
making investments risk-sensitive.
PwC’s role in R!SE includes developing and promoting
improved disaster risk management capabilities, and
formulating voluntary industry standards for disaster
risk management. To meet these challenges, we’re
drawing on expertise from over 15 firms across our
global network in areas including enterprise risk
management, actuarial modelling, climate risk, business
continuity planning, business operations improvement
and supply chain optimisation.
For more information: www.theriseinitiative.org
PwC’s Scott Williams (far left) speaks to a group about
Tangible Earth, the world’s first interactive digital globe,
which was on display at PwC US’s New York office.

Helping entrepreneurs
A social enterprise can be defined as a business that
competes to deliver goods and services, but that has
a social or environmental purpose at the very heart
of what it does, and reinvests its profits towards
achieving that purpose. It follows that the social
entrepreneurs who lead these businesses create
social and economic value for their communities.
Many of our people use their knowledge to help social
entrepreneurs maximise value by improving their
business skills.
For example, PwC Netherlands organises quarterly
master-classes for social entrepreneurs and conducts
research into issues such as financing opportunities.
In 2014 the firm also launched the PwC Social Impact
Lab which provides advice and support to social
enterprises. Ronald van Vliet, director of a social
enterprise called ‘Specialisterren’, says: “I think it is
very good that PwC deploys knowledge and expertise
to support businesses such as ours. It services a need.
For many people who start a social enterprise, there
is plenty of idealism, but the business side is somewhat
lacking. It is precisely in this area that PwC can have
the most impact.”
PwC Switzerland also launched a successful
mentoring programme in 2014 with 100% of the
mentors saying they would recommend the
programme to their colleagues.
Meanwhile, in Spain, PwC has forged a partnership
with Banco Bilbao Vizcaya Argentaria and ESADE
Business School to run the Momentum Project, which
works with social entrepreneurs to develop effective
and scalable solutions to environmental and social
challenges. Over the past three years, 30 entrepreneurs
have participated in the programme, benefiting from
training, advisory services and financing.
PwC UK has provided comprehensive support for the
School for Social Entrepreneurs for several years, as
well as running its own Social Entrepreneurs’ Club,
which now boasts more than 200 members. The firm
also delivered master-classes for social entrepreneurs
on Social Impact Measurement, personal presence
and impact, and digital and social media.
Supporting education
Many PwC firms are involved in supporting education.
For example, PwC US’s highly successful ‘Earn Your
Future’ programme addresses two critical shortfalls in
the US education system: financial literacy among
young people and financial training for educators.
PwC Indonesia is stimulating young people’s interest in
becoming auditors by hosting mini-audit experiences
with college students, giving them a real taste of what
the job involves day to day.
PwC Japan’s career education programmes are aimed
at demonstrating the strong links between education
and business, as new graduates face problems of
irregular employment and leave their jobs early. And
PwC Brazil has worked with the FazINOVA business
school to develop free online courses aimed at young
entrepreneurs; over 12,000 students have registered.
Finally, volunteers from PwC Egypt supported 70
students from 35 universities to build entrepreneurial
skills in a competition to develop recycling and waste
management solutions.
Doing the right thing in Cyprus
The Cypriot economy has experienced a recession in the last two years, as
well as rising unemployment reaching 16% in late 2013. The result has been
a breakdown in trust in investors’ confidence.
PwC Cyprus acted quickly to ensure its 900 people’s jobs were safe, while
maintaining the firm’s financial sustainability. In FY 2014, the firm continued
to invest in the future by recruiting over 100 people, including 41 university
graduates, despite the very difficult economic environment.
The firm also initiated various actions to support the broader economy:
• Running support workshops for more than 45 unemployed people.
• Supporting the Startup Weekend for young entrepreneurs – a non-profit
event that brings together over 130 entrepreneurs of different
backgrounds to pitch ideas and start companies in just 54 hours.
• Organising the Cypriot Businesses Survival Conference for over 400
local business leaders, which provided practical tools to support them in
their recovery efforts.
• Engaging very actively in discussions with the government, business and
professional bodies to explore how they might provide advice for promoting
economic development, strategic planning and government reform.
Since the climax of the crisis in March 2013, the Cypriot economy has been
performing better than expected.

Our performance
In order to coordinate our CR activities, it is essential
that we are able to measure and report on the key
performance indicators that are most relevant to our
global CR strategy.
As an overall indication of one of our key stakeholders’
views, our Global People Survey revealed that 77%
of our people are satisfied with the actions PwC is
taking to be socially responsible, and 69% of our
people are satisfied that we are responding
appropriately to address the impact of our business
on the environment. These results continue to
improve year on year, and are on par with or better
than the external global ‘best in class’ norms.
Community engagement
The case studies presented in this chapter highlight
just some of the community engagement activities
taking place across the network. Over the past year,
almost 53,000 PwC people around the world took
part in community activities – up from 47,000
in FY 2013, an increase of approximately 13%
(figure 5). PwC firms in Australia, Canada and the
US saw particularly impressive growth in the
numbers of PwC people involved in community
activities.
The number of hours of skilled volunteering and
free or heavily discounted professional services
that we provided to community organisations also
increased to over 600,000 for the first time –
a 6% rise year on year. At the same time, we saw
a continued reduction in general volunteering
hours from 155,000 to 144,000. This shift towards
donating our professional skills is a key component
of our CR strategy and will allow us to support
more sustainable solutions for our communities
while also helping to develop our people.
The 21 largest firms in the network also donated
nearly US$53 million of cash contributions in
FY 2014 as part of an overall financial value of
contributions totalling over US$87 million (figure 6).
Environmental stewardship
At the network level, our focus is on measuring and
managing our greenhouse gas (GHG) emissions.
However, many PwC firms often adopt a broader
approach to environmental management, focusing
on areas such as energy efficiency, waste reduction
and water consumption. This is illustrated by the
fact that more than half of our largest 21 firms have
developed local environmental policies, with the
remainder due to have these approved in FY 2015.
Overall, our network’s gross emissions have increased
by 10% this year, with growth in emissions from
purchased electricity and air travel. Three main
factors account for this increase: a rise in emissions
in firms across our network that are experiencing
Figure 5: Community engagement in numbers
Figure 6: Financial contributions (in US$ thousands)
FY14 FY13 FY12
Cash donations from PwC firms 52,838 53,087 48,000
In kind donations 1,144 957 1,748
Cash donations from PwC people and
other third parties 33,030 21,930 16,748
Total 87,012 75,974 66,496
In kind donations: the value of all non-cash contributions other than professional services e.g. equipment,
property, access to our facilities etc.
Cash donations from PwC people and other third parties: financial value (in US$) of donations raised
from other parties as a result of the PwC network’s community activities or facilitated by the network
(e.g. via payroll deductions).
Number of PwC people participating
in community activities
FY14
FY13
FY12
Provision of professional services/
skilled volunteering (number of hours)
FY14 53k
FY13
FY12 40k
602k
409k
47k 566k
Volunteering hours
(general volunteering)
187k
FY12
155k
144k FY13
FY14
Giving (cash donations) (US$)
$48m
FY12 $53m
FY13
$53m
FY14
These figures relate only to the 21 largest firms in the PwC network.
strong growth; the inclusion of data from all 21 of
our largest firms; and a significant improvement in
reporting quality as our data has become more complete.
Many of the firms in the network have been
measuring their GHG emissions for a number of
years and by the end of 2013, PwC firms representing
almost half of our network (by revenue) had achieved
overall GHG reductions of between 28-42% against
their respective baselines.

Figure 7: Greenhouse gas (GHG) emissions (tonnes)
FY14 FY13
Scope 1 – Direct emissions 25,523 24,716
Scope 2 – Indirect emissions 180,291 174,9861
Scope 3 – Air travel 401,478 351,4742
Total (gross) 607,292 551,176
Avoided emissions through carbon offsetting,
the purchase of green energy and on site
electricity generation 215,416 146,1303
Total (net) 391,876 405,046
Scope 1 – Direct emissions: emissions from sources that are owned or controlled by the PwC network
Scope 2 – Indirect emissions: emissions from the generation of purchased electricity and heat consumed
Scope 3 – Air travel: emissions from work-related air travel
1 FY13 indirect emissions have been restated to account for a change in the way one of our key firms
calculates its electricity consumption
2 FY13 air travel emissions have been restated to account for the impact of radiative forcing
3 FY13 avoided emissions have been restated downwards following the identification of data errors
Currently, PwC firms representing over 80% of
our network (by revenue) have carbon reduction
approaches in place, including reduction targets,
carbon offsetting and the purchase of green electricity.
FY 2014 also showed a 47% increase in avoided
emissions from carbon offsets and the purchase of
green electricity, resulting in an annual reduction
of 3% in our net emissions.
The encouraging improvement in the quality of
our emissions data is a reflection of a growing level
of understanding in CR teams across the network.
However, we believe that there is potential to improve
the accuracy and completeness of the reported data
even further. This, together with setting a network
GHG reduction target and extending the scope of
GHG reporting, is a continuing priority.
Progress against our CR commitments
The table below outlines progress to date against our CR commitments for FY 2014-FY 2016. These commitments relate to the
implementation of our network CR strategy for our 21 largest firms and enhancements to our CR reporting at the network level.
Commitments – our 21 largest firms will: End date Status Coverage1
Harness the power of our network to scale responsible business behaviours
Align to the global CR strategy FY14 99%
Assess themselves against the leadership ladders and develop clear progression plans FY14 100%
Set targets for improved performance in the questions relating to CR in the Global People Survey FY14 83%
Build an even more inclusive culture that values difference2
Conduct blind-spot awareness training with their leadership teams FY14 n/a
Conduct a thorough demographic analysis to understand barriers and enablers to diverse leadership FY14 100%
Undertake efforts to raise their people’s awareness of the importance of diversity FY14 100%
Put programmes in place to drive increased diversity of leadership and our people FY16 n/a
Increase the positive social impact of our community activities
Provide opportunities for their people to take part in skilled volunteering activities FY14 96%
Pilot output and outcome-based performance measurement for their community activities FY15 n/a
Manage our impact on the environment
Implement a local environmental policy and environmental management approach FY14 84%
Enhance the transparency and relevance of our CR reporting
Enhance our reporting at the network level by including stakeholder engagement efforts FY14 100%
Put in place internal reporting structures to improve reporting on their CR performance FY14 86%
Introduce performance-based targets for the network as a whole FY15 n/a
Gain assurance on FY 2016 priority network key performance indicators FY17 n/a
1 – % of our largest firms by revenue that have met the commitment.
2 – Please see the Diversity and Inclusion chapter for more information. Please note the timeline related to the blind-spot awareness training commitment has been extended in
line with a recent review of our Diversity and Inclusion strategy.
3 – >50% have met the commitment.
n/a – progress on these commitments will not be assessed until a later date.
Please see www.pwc.com/corporate-responsibility/our-performance for further information about our progress, particularly the actions we are
taking to address commitments which have not been fully met.
In progress Partially completed3 Completed

Clients
Robert Swaak
PwC Vice Chairman,
Clients and Markets
PwC’s clients range from the world’s
leading multinational companies
to new and growing enterprises,
from large family businesses and
governments to NGOs, and private
individuals in nearly every country
around the world.
We are very proud of the strength and depth of
our client portfolio. For example, in the last year
we have helped over 90% of the companies in the
FT Global 500 list. And we advise and work with
over 100,000 entrepreneurial and private businesses
across the world.
Whoever our clients are, our role is clear: to help
them find solutions to their important problems
and to work with them, and our other stakeholders,
to build trust in society.
The current global economic environment presents
many challenges and opportunities. When we
spoke with business leaders in our most recent
Global CEO Survey they told us what was high on
their list of priorities:
• harnessing the benefits of new technology and
the wealth of data that technology can deliver
• developing a workforce fit for the future, and
• changing business models to meet the
increasing demands of consumers.
We are passionate about helping private companies
and individuals address the challenges that are
specific to their business. Every two years we carry
out our Global Family Business Survey. This year, we
asked almost 2,400 family business decision makers
across 42 countries about the key challenges they
are facing. They told us that price pressure, intense
competition and speed of change were top of their
priority list. Innovation, embracing digital
opportunities and succession planning were also
high on the agenda.
Working with clients to maximise the benefits
from each of these priorities, and to find the right
solutions to any problems they present, is what
PwC does best.
Figure 8: Clients of PwC firms as a percentage of the Fortune Global 500
Industrial products
Insurance
Retail & consumer
Transportation &
logistics
Technology
Asset management &
private equity
Professional &
business services
Automotive
Banking & capital markets
Communications
Energy, utilities & mining
Entertainment & media
Health industries
Audit clients Total clients
%
29
94
38
92
31
84
36
91
29
100
50
83
17
73
22
70
29
94
26
91
29
93
50
100
18
91

Clients
Figure 9: Global and regional client bases – company indices/lists1
FT Global 500 Fortune Global 500
FT Euro Fortune 500
S&P Asia S&P Latin America
Non client
7%
Non
audit client
61%
Audit client
32%
Non client
16%
Non
audit client
56%
Audit client
28%
Non client
12%
Non
audit client
54%
Audit client
34%
Non client
17%
Non
audit client
56%
Audit client
27%
Non client
16%
Non
audit client
44%
Audit client
40%
Non client
25%
Non
audit client
40%
Audit client
35%
In FY 2014, more
than two-thirds
of our Tax and
Advisory
revenues came
from clients that
are not audited
by PwC.
Less than one-third
of fees
from audit clients
in FY 2014 were
for non-audit
services.
1Audit clients include both sole and joint audits.
Non-audit clients are those companies where PwC did not provide statutory audit services and where revenues exceeded US$500,000 in FY14.

Our People:
Proud to be at PwC
By Nora Wu
As PwC’s new Global Human Capital Leader,
I’m delighted to have the opportunity to lead our
global people strategy. On the next few pages, we
highlight just a few of the many examples that
showcase our people.
As I reflect on our many accomplishments last year,
there is so much to be proud of. Our global headcount
is at an all-time high, with more than 195,000
partners and staff across all lines of service. As of
1 July 2014, 25% of new partners are female, which
is the highest percentage we have ever seen.
We have made progress with our people agenda.
Specifically, we experienced the highest Global
People Survey response across the network and
our employee engagement score held steady at 73%.
The ‘PwC Professional’
reaches out around
the world
Our focus in FY 2015 continues to be on attracting,
nurturing and developing our people. The PwC
Professional – our new framework for defining
and encouraging leadership at all levels – is playing
a significant role in changing the way our people
think, learn and develop together while at PwC.
The PwC Professional leadership framework
describes who we need to be and the behaviours we
need to adopt in order to meet the expectations of
our clients, colleagues and communities in today’s
changing global marketplace. As PwC professionals,
it is important for our people to influence others
constructively within and beyond PwC, by
demonstrating different forms of leadership at
various stages of their careers.
Nora Wu
PwC Vice Chairwoman,
Human Capital
“When I began my own professional career
in the US in 1988 – the first woman from
mainland China to be hired by a big
accounting firm in San Francisco – I had
a two-year-old daughter and spoke little
English. In 1995, with China opening up,
I moved back to China with my two children.
I was later elected to PwC’s global board and
also ran the PwC Shanghai office, with
3,200 people including 140 partners.
Building my career has demanded some
tough trade-offs – both personally and
professionally. However, I’m very proud
of what I have accomplished and my career
journey. It shows other women they can
overcome the challenges they may face in
their jobs and societies.”

Our people
The PwC Professional framework
leadership at all levels
The PwC Professional
Whole
leadership
Relationships
Business acumen
Technical
capabilities
Global acumen
Within the PwC Professional framework, there are
five attributes: whole leadership – the ability to lead
to make a difference and deliver results; the ability
to build genuine, trust-based relationships; business
acumen and technical capabilities, which create value
for clients and PwC; and global acumen, transcending
boundaries of geography, politics, race and culture.
The combination of these attributes aims to help our
people bring their best self to work – and to inspire
their colleagues and clients to do the same.
Enabling our people’s
development
Our people are learning all the time. To support
their ongoing development, we are continuing
to make our learning services and mobile learning
platforms accessible to our people, with content
that is meaningful and relevant.
In the second half of FY 2014, PwC provided
on-demand eLearning support services in 157
countries. Our global mobile learning continues to
help our people develop and gain support for their
performance, whenever and wherever they need it
– at their convenience. Platforms such as IQ, which
offers eLearning modules via smartphones and
tablets, are making training even more accessible –
in FY 2014 we saw an increase in adoption of IQ
across the network. We also saw a 17% increase
in total training hours amongst our people.
The Digital Learning Academy is another enabler of
our global development strategy, providing ongoing
development to our learning and development
professionals specifically, through formal learning
solutions, coaching and on-the-job support.
With digital transformation changing the business
landscape globally, our focus continues to be on
innovating our digital learning.
Proud to be at PwC
As we continue to demonstrate the behaviours of the
PwC Professional globally, we are confident that we
will continue to achieve results, including an increase
in our people engagement, strong brand health and
added value for our clients and communities.
Already we are seeing progress, with our latest Global
People Survey showing that 81% of our people are
proud to work at PwC. As part of our global mobility
long-term programme, we currently have 2,420
people on overseas postings and 1,113 new starters in
FY 2014, adding to the strength of our global acumen.
With the PwC Professional in place, we now have
one consistent roadmap to develop future leaders
across the world – while also delivering results in
a responsible, authentic, resilient, inclusive and
passionate manner. We look forward to an inspiring
year ahead.
“At the heart of
this is our belief
that we have
leaders at all levels
who are inspiring
colleagues, clients
and communities
to be the best they
can be.”
Nora Wu,
PwC Vice Chairwoman,
Human Capital
Figure 10: Employee engagement1 (FY 2010-FY 2014)
FY10
FY11
FY12
FY13
66%
68%
72%
73%
FY14
73%
1 People engagement relates to the overall employee happiness and involvement as well as the general
culture, respectfulness, and diversity of the employee’s immediate workplace.

‘Aspire to Lead’: inspiring and energising our
next generation of women leaders
“To me, leading is first about putting your effort into being
excellent in the things you need to master in order to achieve
your goals. I also recognise that to be successful, you need a
strong network… I’m someone who always wants to challenge
and stretch myself, so I suppose that’s how I aspire to lead!”
This is how international student and PwC US intern Shirlene
(Ying) Wang sums up her response to PwC’s ‘Aspire to Lead’
webcast, the first ever global forum to focus on women and
leadership, for students around the world.
Held in April 2014, the forum offered university students,
PwC people and clients the opportunity to talk about women
and ‘whole leadership’ and share their personal experiences
on how to navigate their career. Attendees also had the chance
to hear directly from Sheryl Sandberg, Facebook Chief
Operating Officer and author of the book ‘Lean In’, about the
importance of having an inclusive mindset and the need to
create a diverse workforce and culture.
With more than 6,000 listeners tuning in to the webcast,
48,000 visitors to pwc.com/aspire, and almost 2 million users
reached on Twitter via #pwcaspire, the impact of creating real
dialogue about what is most relevant for our people is clear.
Other participants were equally as enthused as Ying. Fellow
PwC intern and international student Aishat Akinwale says:
“I have high hopes of returning to Nigeria and eventually
becoming the governor of the Central Bank of Nigeria. My
aspiration to lead will be driven by the need to fill a gap in
my home country. As a young girl from Nigeria, there is still
the myth regarding a girl child and her ultimate position being
in the kitchen. I believe both sexes are destined to aspire to
greater heights, and I hope to be able to push for that as
I develop myself.”
Alejandra Nieto, a student at Georgetown University and
also an intern at PwC, adds: “My dream is to open a family
firm and clinic with my sisters. We would love to start our
own firm and clinic in which we support and counsel
Mexican-American communities in all of these spheres –
medical, legal and business. I’m hoping that through
Sheryl Sandberg’s messages, my mentors’ help, and most
importantly my spirituality, I can make a positive impact
on my communities.”
Shirlene (Ying) Wang
PwC intern and
international student at
University of California
at Berkeley
Aishat Akinwale
PwC intern and
international student at
Michigan State University
Alejandra Nieto
PwC intern and student at
Georgetown University

Our people
“We contributed in our own way
to the idea and even seemingly
small decisions eventually had
a huge impact on our success.”
Kim To, Theodore Leslie and Megan Walker
(pictured right)
Helping our UK interns
build real-world business
acumen by entering the
‘Dragons’ Den’
“The project was really exciting and a fantastic opportunity
to pitch our idea to real decision makers at the BBC. It was
hard work but the recognition we got from our colleagues,
peers and the One team made it all worth it. We developed
skills in teamwork, idea development and pitching. It was
an invaluable opportunity that none of us will forget.”
That was the response from the team, made up of PwC UK
Management Consulting and Assurance interns, pictured
above on clinching first place in a new PwC development
initiative. The team, made up of Kim To, Theodore Leslie
and Megan Walker, had emerged victorious in a new
competition based on ‘Dragons’ Den’, a popular BBC TV
show where would-be entrepreneurs pitch their ideas to
a panel of business experts.
This represents the second year of this competition,
which has been created on the ‘One’ site for those on PwC
UK’s six- to eight-week summer internship programme.
The One Project provides interns with an exclusive
opportunity to come up with ideas to solve a challenge
assigned to them by the BBC, and then to submit, share
and develop their ideas using PwC’s ideas management
platform, ‘One’.
The teams came together, as interns contributed various ideas
to ‘One’ and harnessed the creativity of the crowd. The teams
that came up with the best seven ideas were shortlisted and
invited to present their concepts to a ‘Dragons’ Den’ panel of
BBC executives and senior PwC personnel.
The Dragons then chose the winning pitch – a task that
proved very tough, given the high-quality thinking, creative
innovation, commercial awareness and strong teamwork
demonstrated by all the teams. Every idea was a potential
winner, showing clear evidence of the business acumen
and skills that the interns had gained during the programme.
Developing global acumen through
an international experience
A number of banks in India are currently working out how to comply with the US Foreign
Account Tax Compliance Act (FATCA) regulations. Fortunately for them, Vivek Belgavi – a
Financial Services partner in PwC India’s Mumbai office, specialising in technology consulting
– is well qualified to help. “When I tell them I spent several months working with PwC’s Global
FATCA Centre of Excellence in New York on solving challenges around data, they’re absolutely
delighted,” he says.
This is just one example of how international mobility is enabling PwC’s people to develop
global acumen and in turn helping us to solve complex problems for clients. For Vivek the
benefits are clear, since his experience of global mobility goes well beyond his FATCA work.
Back in 2009, after six years with PwC India, Vivek was offered the opportunity to take part
in PwC’s Genesis Park global leadership development programme. He jumped at the chance,
and spent four months in Washington DC with a team of 11 PwC professionals from seven
countries, working on a global strategic project that is sponsored by a member of our Network
Executive Team.
“Genesis Park was a transformative experience, both personally and professionally,” recalls Vivek. “One of the biggest
impacts was that it really scaled up my appreciation of PwC as a global network with a global strategy and capabilities.”
So great was his appreciation that in 2011 he returned to the US on secondment, spending a year in New York working on
Financial Services technology issues – including FATCA.
Vivek still has a taste for international mobility. “I’m certainly hungry for more,” he says. “It’s a fantastic way to break out
of your comfort zone, take something new to clients in other countries, and bring something new back home. For me,
international mobility is not just important – it’s essential.”

PwC Forensics: blending
a range of technical skills
When PwC’s clients in Central and Eastern Europe (CEE) find
themselves facing crises related to corruption, cybercrime,
fraud, litigation, insurance claims, or regulatory investigations,
our Forensics team is on hand to help. “We take pride in
working with our clients to counter economic crime,” says
Marcin Klimczak, Forensics Director from PwC Poland. “We
can play many roles, such as acting as their expert witness,
investigator or representative in mediation and arbitration.”
Given this wide scope, the Forensics team needs professionals
with a variety of skills – including accountants, financial
analysts, technology experts, economists, engineers, fraud
examiners and even former police officers. “One of the critical
factors behind our success is the diversity of our team,”
explains Inna Fokina, Forensics Director from PwC Russia.
This diversity is demonstrated by the varied expertise of
our three Forensics directors in CEE. They have all been
working in Forensics for several years, but each brings
unique competencies to the table from their past experience.
“With my law enforcement background, I bring our clients
investigative expertise in dealing with regulatory
investigations and fraud issues,” explains Marcin.
Michal Kohoutek, Director from PwC Czech Republic,
comments: “I started my career in Assurance, and so my
accounting background comes in handy when investigating
financial fraud. I have also worked for several years on
complex litigation matters.” Inna adds: “I combine audit skills
with experience in deals and due diligence. This background
is especially useful in disputes related to the purchase or
sale of a business.”
While each of these professionals has much to offer individually,
the real value comes from collaborating. “We work closely
together as a CEE Forensics team, complementing each
other and delivering complex expertise to our clients across
the entire region,” says Michal. “Close co-operation with
other parts of the business is a must so that we can bring
our clients the best that PwC has to offer.”
Marcin Klimczak
Forensics Director
from PwC Poland
Inna Fokina
Forensics Director
from PwC Russia
Michal Kohoutek
Director from PwC
Czech Republic
Making a difference
through education in Belize
The Central American country of Belize is beset by deep and
enduring economic disparities, with over half of the population
living below the poverty line.
Project Belize, a PwC US programme, sets out to help reduce
this disparity, using student teaching, education training and
pro-bono engagements to affect positive change and inspire
the next generation of leaders to break the poverty cycle.
PwC US Manager Angelique Robateau – based in Florida,
but born and raised in Belize City – is one of over 1,500 PwC
professionals actively involved in Project Belize. Collectively,
Angelique and her colleagues have educated over 7,000
students, teachers, administrators, parents and leaders
about business and entrepreneurship since the programme
started in 2008.
During the past year, Angelique has applied her professional
skills to help 550 students participate in a competition to
develop better financial solutions for local waste management.
The students adopted the role of subject matter experts,
articulating points of view and tangible solutions.
“Through our efforts, student learning has taken root,”
comments Angelique. “Project Belize is much more than
a programme. It’s an incubator for leadership, and a model
for transformational employee engagement.”
Committed to acting on the plans developed by the students,
Judge Simeon Alvaraz of Belize City Council Waste
Management said: “I was amazed and delighted to hear
these young, brilliant students willing to be leaders to make
a difference for a better environment.”
Angelique Robateau
PwC US Manager
Kimberly Goldberg (left) and Cam-Van Nguyen from PwC US enjoy
a break with the children during financial literacy workshops.

PwC people FY14 FY13 FY12
Partners 10,002 9,597 9,359
Client service staff 153,051 143,111 139,723
Practice support staff 32,380 31,527 31,447
Total 195,433 184,235 180,529
Figure 11: PwC firms’ people
Figure 12: Headcount by region
PwC people FY14 FY13 Growth
Asia 43,370 38,863 12%
Australasia and Pacific Islands 6,967 6,760 3%
Central and Eastern Europe 7,746 7,490 3%
Western Europe 62,061 60,441 3%
Middle East and Africa 12,486 11,578 8%
North America and the Caribbean 49,375 46,608 6%
South and Central America 13,428 12,495 7%
Total 195,433 184,235 6%
Figure 13: PwC people by region
North America and
the Caribbean
25%
Central and
Eastern Europe
4%
Asia
22%
Western Europe
32%
Middle East
and Africa
6%
South and
Central America
7%
Australasia and
Pacific Islands
4%
Figure 14: PwC people by line of service
Support staff
12%
Advisory
24%
Tax
20%
Assurance
44%
Unlocking our potential
To be the number one professional services
network, PwC needs the best talent. In FY 2014,
our talent population grew 6% to more than
195,000 people. The largest percentage increase
was in Asia, followed by the Middle East and
Africa and South and Central America (figure 12).
Of the 44,700 people who joined PwC, around
20,500 were experienced professionals and
20,000 were graduates. This is the first time
since 2011 that we’ve hired more professionals
than graduates.
We welcomed a record number of people to PwC,
which is a testament to our reputation of offering
exceptional opportunities for development and
advancement.
PwC’s global presence remains strong with
local service offerings in 758 locations across
157 countries.
Our people

Figure 16: New joiners in FY 2014 and FY 2013
Figure 15: PwC’s global footprint
FY14 FY13
Graduates 20,030 19,622
Experienced professionals 20,507 14,640
Support staff 4,184 3,190
Total 44,721 37,452
Number of countries where
PwC has a presence
FY14
FY11
FY04
PwC global headcount
FY14 157
FY04 144
195,433
168,710
122,471
Graduate recruits
Over 20,000 graduates joined PwC in FY 2014,
which makes us among the largest recruiters of
graduates in the world (figure 16). We are committed
to attracting the best people to PwC and offering
them first-class training and the best opportunity
to develop their careers.
PwC is one of the most attractive organisations for
graduates, as is demonstrated by student surveys
around the world. We hold the top position in a
number of key countries as the most attractive
employer (figure 17).
In 2014, we were
named the third most
attractive employer
in the world for
business students
by Universum.
Rank in Big Four Rank among all employers
FY14 FY13 FY14 FY13
Asia 3 2 7 10
Brazil 1 2 45 22
China 1 1 11 9
Germany 1 2 11 13
Global 2 2 3 4
Nordic 2 2 2 2
Pan-European 1 2 4 4
Russia 1 1 15 9
Spain 2 3 17 15
Sweden 2 2 5 5
Switzerland 1 2 5 7
UK 1 1 1 1
US 3 3 7 8
Sources: Asia (Universum Graduate Survey), Brazil (Universum Graduate Survey), China (Universum Graduate
Survey), Germany (Trendence Survey), Global (Universum Graduate Survey), Nordic (Universum Graduate
Survey), Pan-European (Trendence Survey), Russia (Universum Graduate Survey), Spain (Universum Graduate
Survey), Sweden (Universum Graduate Survey), Switzerland (Universum Graduate Survey), United Kingdom
(High Fliers), United States (Universum Graduate Survey).
Figure 17: PwC ranking in student surveys
Alaa Alaeddin from PwC United Arab Emirates

International mobility
With offices in 157 countries and a strong
international mobility programme, we are able
to pull together teams of diverse skills and
backgrounds to solve important problems for
clients, while developing our people through
these experiences.
At 30 June 2014, a total of 2,420 PwC people
were on long-term international assignments,
with increased participation from 112 countries.
For our overall programme, the total number
of new international assignments was up 12%
from last year (see figure 19), mostly driven by
improved economic conditions and increased
talent needs in a number of our larger firms.
We continue to enhance the strategic vision
of our international mobility programme:
to invest in immediate and future mobility
experiences that inspire and enable our people
to deliver quality services to our clients and
each other – as a seamless network.
We expect to see a greater evolution of the
different forms of international mobility
opportunities for our people, whether assignees,
commuters or travellers – creating flexibility in
how we can meet the needs of our clients and
enable the development of our PwC professionals
across the world.
FY14 FY13 FY12
Long-term assignments 1,113 1,086 1,213
Short-term assignments 1,306 1,074 1,282
Total 2,419 2,160 2,495
Figure 19: International mobility programme – number of new assignment starts
Figure 18: Global People Survey results (% agreeing)
68
69
76
77
75
78
78
61
62
66
66
67
71
71
80
81
%
I would recommend PwC
as a great place to work
When I do a good job I know
that it is appreciated
The people I work for are considerate
of my life outside of work
I have the opportunity to work on
challenging assignments that contribute
to my development
I am satisfied with the actions PwC is taking
to be socially responsible (e.g. supporting
community events, organisations and charities)
I am satisfied that PwC is responding
appropriately to address the impact of our
business activities on the environment
I am proud to work at PwC
2014
2013
72
74
PwC is an inclusive work environment
where individual differences are
respected and valued
Global People Survey
This year, a record 76% of our people took part
in our global survey – up from 73% last year.
We conduct this survey every year to help us find
out how our people feel about working at PwC
and take the appropriate action.
The vast majority of the 145,417 people who
completed the survey told us they are proud to
work at PwC (81%) and would recommend PwC
as a great place to work (71%).
78% said they have the opportunity to work on
challenging assignments that contribute to their
development.
We continue to see a positive response in the area
of corporate responsibility. 75% of our people said
that PwC is an inclusive work environment where
individual differences are respected, and 77%
that PwC is taking the appropriate action to be
socially responsible.
The percentage who feel that the people they work
for are considerate of their life outside work has
increased by just one point to 62%. This is an area
we will continue to work on in the year ahead.
Our people

A council consisting of some of our most senior
network leaders around the world drives diversity
change management at PwC. FY 2014 saw the launch
of an intensive data exercise across our network
aimed at accelerating the pace of change and helping
each of our firms to focus on their own set of priorities.
The first ever global long-leave policy was launched
to further support our talent across our network in
returning to their careers after an absence from work.
In FY 2014 we launched our inaugural Global Diversity
Week. Running from 24 March 2014, it kicked off
with a message from our Global Chairman Dennis
Nally to every PwC professional across the globe.
The aims of the initiative were to help create wider
and deeper awareness of diversity as a PwC priority,
help our people understand the business case for
diversity, and embrace differences as we foster the
behavioural change that will create an even more
inclusive PwC workplace. During the week, we rolled
out our first diversity communications campaign,
created with input directly from our own people.
Diversity and
inclusion
More than 50,000 of our people from over
70 countries engaged in Global Diversity Week,
which included the launch of leadership videos,
self-assessment tools and a global e-learning, all
hosted on the Global Open Minds Portal. On our
internal social network, PwC people engaged
directly in conversations with our most senior
leaders on the topic of inclusion.
Diversity in numbers
PwC strives constantly to accelerate the pace of
change and maximise the diverse talents of our
whole workforce. The following examples illustrate
the progress we are making:
• Diversity leaders appointed in all of our firms
• Globally, 18% of our partners are female in
FY 2014, up from 13% in 2006. The China, Hong
Kong, Singapore and Taiwan region led the way,
with 32% female partners
• 141 (25%) of our internal partner admissions
were female this year, an increase of 2% from
last year
• Olga Grygier-Siddons appointed as Senior
Partner of our Central and Eastern Europe region
• Nora Wu appointed to our Network Executive
Team as Global Human Capital Leader
• 50% of global graduate hires this year were women
• 75% (up 8% since 2011) of our people believe
PwC is an inclusive work environment
• During FY 2014, 37% of participants in our
global leadership development programme –
Genesis Park – were women
• Female leaders consistently cite a mobility
experience as one of their top-three developmental
milestones. Globally, 35% of our talent deployed
on long-term international assignments were
women.
To solve important problems we need
diverse talent. So at PwC we employ
people with a vast array of backgrounds
and experiences – meaning they think
differently from one another and apply
varying approaches to problem solving.
And we’re committed to helping every
one of them build a rewarding career
and achieve their full potential.
Agnès Hussherr
Global Diversity and
Inclusion Leader
Creating value through
diversity
Be yourself. Be different.
Lais Ferros, Alexandre Victorino and Naoe Yoshimoto from PwC Brazil

Diversity and inclusion
Diversity: a positive driver of business
growth and sustainability
Karen Loon’s career has taught her a lot about workplace diversity. A third-generation Australian born
Chinese, Karen spent four years with PwC Australia in Sydney before a one-week training course
in the Netherlands opened her eyes to the global opportunities available to her. So she took a
two-year secondment to PwC Singapore – and has stayed there 20 years, including a two-year
secondment back to Sydney.
So what does diversity mean to Karen today? “Creating a diverse workforce in terms of ethnicity,
culture and gender is clearly the right thing to do,” she says. “Having people with different
perspectives and backgrounds makes for better-informed, more multi-faceted and more culturally-aware
business decisions. But my experience has also confirmed there are hard-headed business
reasons for diversity. In an era when cross-border opportunities are growing exponentially,
especially with Asia, businesses need people who understand and are attuned with different
cultures and ways of thinking. In my view, this is vital for businesses to grow and be sustainable.”
PwC Australia accelerates its diversity journey
Many PwC firms around the world are fast-tracking their efforts around diversity. One example is PwC
Australia, which has appointed Marcus Laithwaite – a partner from the Sydney Financial Assurance
team – to the newly-created role of Chief Diversity and Inclusion Officer. Marcus is passionate
about supporting an inclusive culture in the Australian firm, and has seen the multitude of benefits
– both internal and external – that are generated when PwC teams attract and retain diverse talent.
Marcus says his first actions in his new role will include reviewing how the Australian firm currently
addresses diversity and appointing an external advisory body. He adds: “My core focus is on
ensuring that diversity and inclusion form the backbone of the firm’s broader business strategy and
planning – and that this is led from the top.” Reinforcing the commitment at senior levels, Marcus’s
role as Chief Diversity and Inclusion Officer means he joins the PwC Australia’s Executive Board.
Diversity is a business imperative for PwC
As Markets Leader and Diversity Leader for PwC’s German firm, Petra Justenhoven knows how
vital PwC’s diverse workforce is to our clients – and therefore to our own ongoing success.
“Diversity is a business imperative for us in Germany: it has become increasingly important to
our clients, our business and our government,” she says. “Clients expect the world’s number
one professional services organisation to bring them diverse talents and people. To meet that
expectation, we must embrace and promote inclusivity at all levels – and demonstrate our
commitment through visible results.”
Petra’s client-facing role with PwC has enabled her to experience at first hand the benefits of
diversity. “I’ve seen the tremendous collaborative energy that’s created when talented people from
different industries and backgrounds come together, and are empowered to contribute their best
ideas,” she comments. “To stay ahead of the competition, PwC must remain attractive to clients
and to the next generation of talent. Diversity is vital in both respects.”
Diversity drives better results –
and cross-cultural friendships
Genesis Park, PwC’s global leadership development programme, provides our people with
opportunities to work in hugely diverse teams on important strategic projects. Adriano Vargas,
a director in PwC Brazil’s Advisory group, is attending Genesis Park this year. And while Adriano
already has extensive experience of working internationally, he feels Genesis Park has further
reinforced the power and importance of diversity.
“I’ve always thought diversity is the key source of innovation – and Genesis Park has confirmed
this,” says Adriano. “When we bring together different perspectives, we think outside our comfort
zone and approach issues from different angles, which leads to a better result. At Genesis Park,
this experience has come to life as I’ve been working with colleagues from four different countries
on a project focused on the development of a cultural diversity strategy for PwC. At first it was
quite challenging, but as we got to know each other and became friends, we began to see the
value of the different ‘lenses’ we each brought to the table.”

Solving important problems:
Rebuilding trust and confidence in business
By Richard Sexton
Reducing the trust deficit
So, following the initial decline in trust, what is
driving this further shift? To a degree, trust in
business is recovering from the low point reached
during and immediately after the financial crisis.
However, a significant ‘trust deficit’ persists due
to the differing perspectives held by business and
society on trust: while business has focused more
on process and operations, society places more
emphasis on behavioural measures.
The question remains as to what can be done to
reduce this trust deficit and narrow the gap between
business and society. In PwC’s view, business needs
to refocus its efforts on the behavioural elements
that create or destroy trust. But, critically, this
change must consolidate the progress already
made in processes, controls and reporting – not
detract from it.
Business needs to address
behaviours and delivery
This is not a straightforward task. While the degree
and balance of trust in the system – between society,
business and government – is still shifting, it’s clear
that the loss of trust has been neither a straight-line
decline, nor evenly spread.
Since the financial crisis, a blend of intensifying
regulation and increased business investment has led
initially to a rise, and now a levelling-off, of trust in
businesses. Interestingly, the opposite is true for
governments, with trust in state institutions having been
in global decline since 2011, and now at historic lows.
Richard Sexton
PwC Vice Chairman,
Global Assurance
Twelve months ago, organisations across
the world were still adjusting to the
sharp decline in public trust. Today, this
seismic shift remains an active item on
the agenda in boardrooms, and indeed
at all levels throughout companies.
However, with trust in business having come under
intense scrutiny from society, the media and industry
itself, the past year has seen the development of a
deeper understanding of the underlying issues around
trust and their root causes. As a result, the definition
of trust and its impact on the corporate world are
being fundamentally reframed.
This redefinition is taking place against a background
in which society as a whole is more mistrusting than
ever before, and the perception of measures being
taken to bring about change is sceptical at best. This
widespread scepticism raises inherent challenges,
and points to a shift in the way companies monitor
and assess the impacts of their actions – both tangible
and intangible – on a more cynical audience.

Assurance
Low levels of
trust in the
system create
issues for us all.
1 Source: http://www.edelman.com/news/trust-in-government-plunges-to-historic-low/
According to the 2014 Edelman Trust Barometer1,
this combination of trends has opened up the largest
ever trust gap between business and government
since the annual barometer launched in 2001.
However, business cannot afford to be complacent. Low
levels of trust in the system create issues for us all
– and rebuilding that trust, as well as closing the
deficit, is something to which we must all aspire.
To restore trust, business needs to address both
behaviours and delivery. The case for investing
in behavioural elements is harder to define and
justify than the more tangible economic gains from
investment in products, assets and efficiency. To
justify investments in behavioural elements, the
benefits need to be defined in terms of the dangers
of not investing; the risks that become all too clear
when a crisis strikes.
Subscribing to the broad trust agenda means doing
more to engage with, and contribute to, society. This
includes taking more of a leadership role. As trust in
government continues to decline, business can step
up to bridge this gap. These steps don’t need to be
self-serving. Perhaps surprisingly, a further finding
of the Edelman Trust Barometer is that 84% of
respondents believe businesses do good for society
while also pursuing their own interests.
What do we need to do to earn back the trust
that has been lost? I would point to a number of
key actions.
Most important, both industry as a whole and
individual businesses must engage at a more
personal level with a greater breadth and depth of
stakeholders. And they must do this on issues and
risks that society deems relevant when it comes to
exhibiting integrity and cultivating a credible voice
in the market. These issues could involve taking
responsibility for impacts along the entire supply
chain, the transparency of decision-making metrics,
or other areas that society regards as being linked
with specific activities and outputs.
Businesses must also communicate their strategy with
clarity, honesty and simplicity, and be explicit about
the resulting impacts both on society and on their own
bottom line. This requires recognition of the constraints
and trade-offs to be navigated, and an acceptance that
winners and losers will emerge. It also demands an
acknowledgement that this is a journey towards trust,
and measures and outcomes will not be perfect at any
one point in time. What matters is communicating
openly across all the criteria reflecting the business’s
contribution to wealth, both societal and financial.
It would be helpful for businesses to provide forward-looking
perspectives that facilitate planning and
provide transparency for the market. This doesn’t
mean predicting the future – but it does mean
understanding and describing the business’s likely
impacts in their widest sense.
PwC’s role in rebuilding
trust and confidence
But we can’t just set out our vision for addressing
the trust deficit and rebuilding trust in business
and then stand aside for others to make it happen.
So what is PwC’s own role in rebuilding trust?
As part of the business community – and part of
the collective system – we need to participate in the
behaviours outlined above. We also have a duty to
take action in areas where we can make the greatest
or most relevant contribution.
One area where we can play a broad role is in
rebuilding trust in the system, not only between
society and business but also between society and
government. Activities to achieve this range from
leveraging our established role in the capital markets
in providing assurance over financial and non-financial
performance, to helping influence change
in the system with a view to increasing overall trust
and confidence. One example is the way we report
our audit conclusions, which is changing to become
more discursive and insightful, helping users better
understand the information they are using to make
critical business decisions.

The background to the scandal over alleged manipulation of the London
Interbank Offered Rate – or ‘Libor’ – benchmark has been well documented.
However, the activity stemmed from a lack of integrity on the part of a handful of
individuals working in financial services companies.
These actions led to a substantial loss of trust in the integrity of the published
Libor rate and added further to distrust in the role of bankers and in the banking
system as a whole. So regulators – including the Financial Conduct Authority in
the UK, the Commodity Futures Trading Commission in the US, the European
Banking Authority and the International Organization of Securities Commissions
(IOSCO), as well as the benchmark administrators themselves – asked PwC to
help rebuild that trust by providing assurance over the rates submitted to the
Libor administrator.
In undertaking this role, the PwC team worked closely with the banks on the
Libor panel to help them respond to regulatory demands and improve their
processes and controls in this area. The team also engaged with broader
industry forums, including the Institute of Chartered Accountants in England
and Wales, in developing guidance to support the assurance opinions provided
to our clients and the regulators over the Libor submissions.
“Our role in the project has meant that, with banks, regulators and industry
bodies, we have been able to help rebuild trust in Libor and provide much-needed
support and integrity to the benchmarking process,” says Carl Sizer,
PwC UK Partner, Banking & Capital Markets.
“We have worked across a number of countries using a broad range of our skills
in our response, involving PwC people from within the audit practice, performance
assurance team, and those with forensics and consulting expertise,” he adds.
Since helping to provide assurance around Libor, the PwC UK firm has worked
on a number of projects to assure other benchmarks, such as Euro Interbank
Offered Rate (EURIBOR), and provided assurance opinions to the price reporting
agencies and index providers over the control frameworks and environments
that they have in place.
Better information
informs choices
The need to rebuild trust also has wider implications.
At one end of the spectrum, we play our part by
validating metrics and numbers across a broad range
of companies operating in all sectors and in all four
corners of the world. Some of these organisations
are involved in addressing significant societal issues,
and we work alongside these organisations to provide
assurance over the financial information used.
Examples include the Programa Bolsa Floresta, a
project in a part of the Amazon that aims to structure
the economy around activities that do not contribute
to deforestation.
We not only assess and verify the information used
internally by management and employees, but also
give our insights so that they can have full confidence
in the data available to them when making decisions.
This applies equally to material that is accessible
externally, which is paramount to building trust among
the complex landscape of stakeholders impacted by
those decisions.
As businesses expand their footprint in society,
leading to greater complexity of decisions and a more
diverse range of risks, we work with them to give a
broader perspective on the impact of their activities
by providing wider-ranging, more relevant, reliable
and timely information to inform their choices.
In terms of supporting companies in building
confidence in some of the operational aspects of
running the business, we provide assurance over
systems and processes to protect against, for
example, cyber risks.
The Libor scandal: engaging with
industry groups to rebuild trust

Assurance
Solving the real issues
Our role in building trust across industries has never
been more crucial, or more long term. We recognise
that repairing the damage will take many years.
Today’s unquenchable thirst for information on
a real-time basis with ever more accessible data
creates challenges, but – more importantly – it also
opens up the opportunity to address the gaps and
provide knowledge and insights to begin to reduce
the trust deficit.
In the UK, we are working with the funds market,
including fund administrators, trustees and trade
bodies, to provide assurance over fund data using
our intelligent data auditing software, ‘Halo’. The
financial markets are under scrutiny from society
as a whole, and will remain so. By working together,
we can strengthen belief in the industry and begin
to underpin the stability of the markets in the eyes
of the public.
This opportunity is exemplified by our work with
the Libor panel in the UK. The public lost even more
faith in the banking system with the much-publicised
Libor scandal. Our help in shaping the processes
and controls needed in the systems for the banking
industry ensured the sector could respond to
regulatory demands and provide assurance around
other benchmarks, helping to re-establish the
integrity of the published Libor rate.
But we, of course, work beyond any single sector or
geography. China has named food safety as one of
the country’s top three priorities, with a clear need
to repair the damage caused to public trust by recent
scandals. Working with AsureQuality, we are assessing
the operational processes in China’s food industry
against those in New Zealand, not only to identify
gaps, but also to create plans for improvements
(see page 38). When we support government and
industry to work together, the benefits are
unquestionable and make a real difference to solving
the issues that matter to society.
Everyone needs to
play a part
Whatever the scale of the need for building trust,
or the size of the contribution made by participants
in ‘the system’, all of us need to acknowledge that
we have a part to play. This might be a business’s
need to address its behaviours or understand the
views and requirements of its increasingly diverse
range of stakeholders; or it might be advisers such as
PwC understanding how to best support industries,
governments and business in building trust.
But for all of us, this is a challenge that we must
continue to address in every way we can. By working
more collaboratively with less self-interest, and
engaging directly with society, we can begin
to restore trust across the whole system – for the
good of all.
In essence, there is a void to be filled to address the
behaviour changes society demands of us collectively
going forward. PwC has a vital role to play in
rebalancing trust between business, governments
and the wider community. But the world is more
connected than ever, and organisations of every type
are being forced to be more transparent, accountable
and responsible than ever before. These challenges
may change shape or shift direction over time, but
either way, they’re here to stay.
The complexity of the financial and information
systems that bear collective responsibility for
rebuilding and sustaining public trust cannot be
underestimated – and we are committed to leading
the way where we can. But, more importantly,
we are determined that we will always be part
of the discussion, helping to inspire a movement
of trust that creates lasting confidence in business
and beyond.
Evandro Carreras
from PwC Brazil

A combined PwC
New Zealand,
PwC China and
AsureQuality team
has been reviewing
the dairy operations
on Chinese farms
and comparing
these with leading
practices across
the world and
those applied in
New Zealand.
Assuring food safety on Chinese dairy farms
Among the complex problems that PwC strives to
solve, one of the most challenging is building public
trust in business and society. In some cases, we
have the opportunity to provide services to improve
and build the trustworthiness of an entire industry.
A great example of this is the work that our China
and New Zealand firms have been leading through
a Co-operation Framework Agreement with COFCO
Group, one of China’s largest food companies.
COFCO, a China state-owned enterprise, is the
largest shareholder in the leading Chinese dairy
company, Mengniu. In the past few years, the
Chinese dairy industry has been hit by a number
of scandals which have damaged public trust.
Among the most high profile, was a scare over
high levels of the industrial chemical melamine in
dairy products, including powdered baby milk –
an incident recently cited by Chinese Premier
Li Keqiang who has named food safety as one
of the country’s top three priorities.
In 2013, a formalised initiative to enhance
agricultural practices in China, based on the
New Zealand agriculture model and international
industry good practice, was established between
China’s Ministry of Agriculture and New Zealand’s
Ministry of Primary Industries.
Core to achieving this objective is developing
standards for dairy operations and farming
practices across China, in line with leading industry
procedures internationally, as well as applying best
practice to food safety systems within the business.
To support the review of current practices and
development of industry best practice for the China
dairy sector, COFCO and Mengniu turned to the
support of PwC and AsureQuality (AQ), the New
Zealand state-owned global experts in food quality
and safety.
Under an agreement signed between COFCO,
Mengniu, PwC New Zealand and AQ, and
witnessed by the New Zealand Prime Minister and
Chinese Premier, a combined PwC New Zealand,
PwC China and AQ team has been reviewing the
dairy operations on Chinese farms and comparing
these with leading practices across the world and
those applied in New Zealand.
This work continues in China and has extended
to an understanding with COFCO to work on
other food safety-related matters. This important
relationship delivers benefits for all parties involved
and provides a tangible demonstration of our
combined ability to build trust in food quality
practices within China.

Communicating the full impact of a new
power transmission line
Assurance We all want to flick on a switch and have instant
energy. So it’s plain common sense that energy
companies should develop and maintain the
transmission infrastructure that helps get the
electricity to our socket. But when transmission
lines are constructed, how can we make sure
that negative impacts are minimised and positive
impacts are maximised, both for the environment
and for society?
In the past, approaches to cost-benefit analysis
have focused on measuring only a few limited
impacts. So, in most cases, the impacts on the
economy, environment and communities aren’t
fully measured and taken into consideration.
Not having the full picture can lead to ineffective
decision making and stakeholder communication
based on little factual evidence.
In 2013, and after years of development, a solution
to this problem emerged with the launch of PwC’s
Total Impact Measurement & Management (TIMM)
framework. Using this framework, PwC UK has
been able to help the UK-based energy provider
SSE to measure and value all the significant social,
economic, environmental and fiscal impacts in the
UK and internationally resulting from the construction
of the transmission line between the towns of
Beauly and Denny in Scotland.
SSE and PwC UK are now valuing the wider
construction impacts of the transmission project
on areas such as visual amenity, cultural heritage,
traffic, land use and waste, as well as considering
the total tax contribution and the contribution to
local and national employment and GDP. This is
a groundbreaking project, as only a few of the
impacts have been measured, monetised and
compared in this context before.
A goal of the current project was for SSE to further
develop its ability to communicate more effectively
with stakeholders about how planning choices and
consent conditions affect the impact of transmission
line projects, including the trade-offs required during
planning. Says PwC UK lead engagement partner
Alan McGill: “SSE’s leadership immediately saw
the value in the TIMM wheel image, which conveys
the trade-offs with objectivity and simplicity. It’s a
chart that requires little explanation and boils down
thousands of pages of traditional impact statements
into something instantly meaningful.”
With PwC’s help, SSE will be able to use TIMM
to revolutionise the way social, economic and
environmental impacts are considered when
planning, appraising, implementing and monitoring
projects. In the future, the TIMM analysis will
provide SSE with an important tool that will help
them consider all the impacts, from major
infrastructure investment in their decision making
to communication.
Gregor Alexander, SSE’s Finance Director, says:
“This type of analysis will add value to society,
our customers and our business, by helping us to
pinpoint ways to maximise positive contributions like
employment and up-skilling, and manage negative
impacts such as health and safety, and reductions
in visual amenity. The TIMM-based approach could
save our customers, the energy bill payers, money
by helping to better inform the different stages of
the planning process.”
Communities
Shareholders
Governments
Customers
Economic Tax impact
ntal impact
Financial
performance
$
Employees
Suppliers
Social impact
c impact
Tax impact
Environmental Business activities
Financial
performance
$
Community
cohesion
Health
People
taxes
Property
taxes
GHGs and other
air emissions
Waste and
water pollution
Non-GHG
air emissions
Freshwater
use
Land use
Production
taxes
Environmental
taxes
Profit
taxes
Intangibles
Exports
Investment
Profits
Payroll
Livelihoods
Education Empowerment
PwC’s Total Impact Measurement and Management (TIMM)
Framework
For more information, visit www.pwc.com/totalimpact

Mapping out the growth path
for clients:
Advisory creating a ‘category of one’
By Juan Pujadas
The revolution we have been seeing
in the strategies and needs of
organisations across the private and
public sectors continues apace. With
the global outlook remaining unsettled,
businesses are increasingly looking to
turn uncertainty into opportunity and
resilience. As a result, the needs of the
global advisory market are continuing
to evolve, bringing major implications
and opportunities.
Opportunities,
uncertainties and risks
In the past year in particular, the dramatic shift
in the global economic balance from developed
to developing countries has created new growth
opportunities for businesses. Add to this the
resurgence in M&A and capital markets activity,
and the result is a reshaping of the competitive
environment as organisations refocus their growth
strategies into emerging markets.
In parallel, rapid advances in technology and
innovation are triggering changes to business models
and providing greater opportunities to generate
higher value, especially from analytics. Equally,
these same drivers present risks of disruption and
competitive displacement to businesses that fail to
respond quickly and effectively.
Cyber security and the growing importance of data
and analytics are great examples of the disruptive
shifts under way. With cyber threats escalating
relentlessly, no business anywhere in the world can
afford to ignore them. And with the opportunities
and challenges around data rising up board agendas
globally, differentiation through data is ever more
important – and achievable.
Meanwhile, as the reverberations from the financial
crisis continue to play out, public policy makers and
regulators are intensifying their oversight of markets,
seeking to avoid a repeat of the turmoil. This expansion
in regulation is taking place against a background
of rising systemic risks, as global business becomes
increasingly interconnected. And with talent remaining
a key competitive differentiator, business leaders
worldwide are concerned that a shortage of skills
will limit growth.
Resilience is vital
The global forces at play – and the resulting
uncertainty – are impacting all of our clients:
mid-sized organisations are no longer shielded
from global trends, because they now operate in
the same complex international environment as
multinationals. And, with market instability and
uncertainty expected to continue, our clients
know that any sustained advantage is elusive or
challenging at best – making resilience, and the
ability to seize opportunities, increasingly vital.
Juan Pujadas
PwC Vice Chairman,
Global Advisory

Helping Southern Company drive innovation
Southern Company is one of the largest utilities in the United
States, with 4.4 million customers across four states. Like other
power companies, Southern is facing a need to evolve its business
model to keep pace with advances in technology and customer
preferences. To help prepare for these changes, Southern’s CEO
decided to tap into the innovation potential of the business’s 26,000
employees through a contest and obtain structured engagement
and collaboration. This idea was a first both for Southern and the
whole US utility industry.
Both Strategy& and PwC US had been working with Southern
for some years, with Strategy& active at the C-Suite level and
PwC US engaged on several of the company’s most important
capital investments. In two short weeks, Strategy& and PwC US
helped to shape the design of the contest by applying leading
innovation practices. As a result, Southern’s initial concept of a
one-way flow of ideas evolved into a crowd-sourced collaborative
contest – the ‘So-Prize’ – with employees generating ideas,
reshaping each other’s, and crowd-voting on the best ones.
Our team then helped Southern put the plan into effect, with
a focus on generating transformative ideas and stimulating
wide employee participation. This also involved assisting with
the selection and implementation of the technology backbone
for the So-Prize.
Since the competition kicked off, a PwC US and Strategy&
team have continued to support Southern on a variety of
activities, including screening almost 1,000 ideas submitted
by employees to create a shortlist, and developing a framework
for evaluating them. The next step is helping the client team
prepare for the contest’s final stages, which will result in the
‘Top 20’ ideas being down-selected to a ‘Top 5’ for team
presentation to the CEO and selected senior team members.
Advisory
“With Strategy& and PwC working hand-in-hand
with the client to solve complex problems, this
assignment is a great example of the ‘power of one’ –
blending our senior-level relationships and successful
track record with deep subject matter expertise.”
Tom Flaherty, Senior Vice President, Strategy&.
New drivers of competition
These shifts are changing the drivers of competition
in the advisory industry.
First, the rising complexity generated by the
megatrends (see pages 6-10) is impacting the full
breadth of our clients’ organisations. As a result,
their demand for projects is becoming increasingly
multi-disciplinary.
Second, with growth expected to be faster in emerging
markets, businesses are looking to those firms with a
global footprint to help them navigate new markets.
Third, the rising sophistication of procurement
and increasing use of ‘preferred supplier’ lists has
consolidated businesses’ spending. The expectation
of a consistent global experience and a desire for
the efficiencies to be gained by using one supplier is
rapidly becoming a global trend.

In April, we completed the acquisition of Booz & Company and renamed it PwC Strategy&, bringing
over 2,700 professionals into the global PwC network.
Organisations are navigating unprecedented change. More than half of senior executives who took part
in our 17th Annual Global CEO Survey said they don’t think they have a winning strategy. Two thirds
admit that they don’t have the capabilities to create value in the marketplace. And while over 70% of
CEOs believe they need to transform their organisations, only 30% believe they have the ability to
execute strategic change.
Clients now want both the right strategy and the ability to execute it. Together, PwC and Strategy&
meet this need. We are helping businesses around the world build their capabilities on a global scale
and delivering superior value to clients.
The combination of two great consulting teams, together with PwC’s leading deals business and our
other capabilities, establishes us as the leading ‘strategy through execution’ organisation in the market
and leads the way in transforming the consulting marketplace. It is also proving a strong platform for
us to continue to attract the best talent.
“Consulting firms
need to field an
increasingly wide
range of resources,
from strategy
through to
technology....
This (acquisition)
essentially propels
PwC into the
strategy space
with Booz’s huge
credibility.”
Fiona Czerniawska,
Source for Consulting
Todd Schweitzer and Seham Alhusaini from Strategy& in the PwC US office in New York.
Strategy&
The right strategy and
ability to execute it
Societies themselves are also being challenged
by the megatrends. We will continue to work on
the implications of these trends and help our clients
tackle their toughest problems. This process of
defining our future relevance needs to be driven by
a clear purpose: to build trust in society and solve
important problems.
On these pages last year, I highlighted how we’d
responded to shifts in the marketplace by delivering
‘strategy through execution’. This is a multi-specialist
model, under which we integrate deep competency
and sector expertise across PwC’s global network to
address clients’ needs across their full value chain.
A new value proposition
In response to these shifts, the value proposition
of our Advisory businesses has evolved towards
a higher emphasis on global reach and end-to-end
capabilities. This, in turn, is pushing the industry
towards further consolidation, reflecting the
widespread acceptance that those firms that can
deliver strategy through execution – and at a global
scale – can bring improved value to clients.
While scale itself is not the differentiator, it does matter.
Why? Because it helps to provide the investment in
relationships, diversification and investment capacity
to do things that are differentiating – like building
relationships, recruiting capabilities in anticipation
of demand, and accepting performance risk. In other
words, being able to bring together all the tools
needed to solve complex problems.

Advisory
Working together to plan and execute EPM’s unique
growth journey
The establishment of Strategy& was completed as
recently as April 2014. But there are already more and
more projects around the world where joint PwC and
Strategy& teams are collaborating to solve complex
problems and deliver great results for clients.
A good example is our work for Empresas Publicas de
Medellin (EPM). Owned by the municipality of Medellín in
Colombia, EPM was originally created in the 1950s as a
residential public utilities company for the inhabitants of
Medellín. From that base it has grown to become a major
South American multi-utility provider.
In the past five years alone, EPM has expanded its
customer base from one million to six million households
across six countries, taking its total annual revenues
to US$7 billion. But EPM thinks that’s just the start.
By 2022, the company plans to more than double its
revenues to US$16 billion – an achievement that would
make it a top-50 company in Latin America, while
retaining its uniquely important social role in supporting
the regeneration of Medellín.
To help plan out and execute its very successful growth
strategy, EPM has turned to Strategy& and PwC US.
Since 2011, Booz & Company – now Strategy& – has been
enabling and supporting EPM’s transformation
into a business ‘fit for growth’, through a sweeping
enterprise-wide change programme. Now, with PwC on
the team, the combined proposition is generating even
greater value for EPM, with Strategy&’s strengths in
strategic and operational improvement supplemented by
PwC’s large local presence and world-leading expertise
in areas like shared services.
Today, Strategy& and PwC US are helping EPM embark
on the next phase of its expansion. “Together, Strategy&
and PwC have an unequalled offering from strategy to
implementation – and this combination can help EPM
achieve its ambitions,” says Eduardo Alvarez, the head
of Strategy&’s global operations practice and one of
the leaders making an impact at EPM. “It’s a fantastic
journey, and we’ve been with EPM at every stage. Taking
them to the next level is the most exciting step yet.”
“We are very happy with our selection of Strategy&
and PwC as our consulting partners. Their strategic,
operational and change management capabilities
have made us feel well accompanied in this challenging
transformational journey.”
Juan Esteban Calle Restrepo, EPM CEO
Put simply, today’s clients want the right strategy
and the ability to execute it. ‘Strategy through
execution’ enables us to deliver on both fronts,
by providing strategic advice based on an
understanding of the risks and opportunities in
implementation. ‘Strategy through execution’
is equally relevant to Deals, where our vision is
to be recognised as the undisputed leading
global transactions and crisis adviser. While our
global Deals business is already market-leading,
we still foresee major potential for further
profitable growth.
This potential was increased even further by
our purchase earlier this year of Strategy&.
It’s an exciting and transformational acquisition –
disruptive in the market and equipping us to meet
clients’ needs and deliver the value they’re looking
for. The results to date confirm that adding
Strategy& has made our already compelling
client offering even stronger.

Roche builds in quality
A pioneer in healthcare for nearly 120 years, the global
pharmaceuticals company Roche creates innovative
medicines and diagnostic tests that help millions of patients
globally. One of the first companies to bring targeted
treatments to patients, Roche is the world’s largest biotech
business, with 14 biopharmaceuticals on the market and a
workforce of 85,000 people across more than 150 countries.
It’s also the world’s leading provider of cancer treatments.
In early 2012, Roche faced a business-critical challenge.
As a pioneer and leader in its chosen fields, the company
knew that an effective compliance and quality environment
was vital for maintaining patient safety and data integrity,
as well as to safeguard its reputation and licence to operate.
So Roche decided it needed to build quality into all its clinical
development and pharmacovigilance (drug safety) activities
through a consistent and comprehensive quality management
system (QMS).
To create such a system, Roche launched a project called
QUDOS – ‘Quality Management and Document Overhaul
Strategy’ – encompassing global processes and procedures;
mechanisms for reviewing and managing quality; clear roles
focused on quality across the organisation; and associated
records of outputs and training. The initiative also aimed to
establish a new mindset towards quality across the workforce.
To help it design, plan and implement the programme, Roche
turned to PwC.
A PwC team drawn from the Swiss, UK and US firms began
work in October 2012, applying deep industry insight and
expertise to assess Roche’s existing QMS and documentation
landscape, and help create a clear case for change.
This paved the way for the project’s second phase throughout
2013, in which we helped design the new QMS together with
the associated global processes, documentation and training
for clinical trials. Phase three, due to finish at the end of
2014, added support from our Chinese firm, where we have
implemented QMS and developed safety-related processes
and procedures as part of the ongoing document overhaul.
Clive Bellingham, PwC Switzerland partner and regional
Pharmaceuticals and Life Sciences Industry Leader, explains:
“To achieve the required business transformation, we needed
to assemble a team of PwC specialists from Switzerland, the
UK, US and China so we could offer the global support that a
programme of this scale requires. The team, led by PwC UK
partner Kate Moss, had the right blend of pharmaceutical
knowledge, including quality management and compliance,
business transformation, systems technology, training,
communications and change management.”
Today, PwC’s efforts mean Roche’s business is underpinned
by the embedded global compliance and quality environment
it needs – and that its patients across the world deserve.
The client has paid testament to PwC’s role in making this
happen. Peter Yribar, Global Head, Product Development
Quality (PDQ) at Roche, comments: “The PwC team has
worked in a partnership with my team, sharing their skills
and knowledge and challenging us, so we help Roche make
quality part of their thinking. We have tried something
similar twice before without success so I’ve been delighted
with the collaborative approach and sheer hard work to
make this happen.”
© Roche
Staying one step ahead
By bringing Strategy& on board, we’ve moved to
meet – and get ahead of – the evolution of our
marketplace. The unique blend of our combined
Consulting, Deals and crisis capabilities, together
with our proposition to deliver from ‘strategy
through execution’, makes sure we continue to
deliver and support our clients with their business
issues, no matter where they are situated.
Put simply, today’s clients
want the right strategy and
the ability to execute it.

Advisory
As recently as 2009, the electricity supply industry in the
state of Madhya Pradesh in central India was facing a range
of apparently insurmountable problems. With a shortfall of
some 15% between power supply and demand, widespread
rationing in rural areas resulted in less than 12 hours’ supply
per day. At the same time, overloaded equipment and
underinvested systems meant technical and commercial
losses of 37%, and the industry’s ageing organisational
structures were ill-equipped for change.
To improve the lives of people across Madhya Pradesh and
enable businesses to thrive, these serious problems needed
to be solved. Fast forward to 2014, and the progress made
in just five years is truly remarkable.
Today, Madhya Pradesh enjoys 24 hours’ supply across
the state – including rural areas – and has provided access
to electricity to 1.42 million new consumers. Private sector
generation accounts for 32% of total capacity, and the
state transmission utility has one of the best availability
ratings and lowest loss levels in the whole of India.
Meanwhile, in distribution, private suppliers have been
selected for retail supply in three cities on a public-private
partnership basis.
What’s more, the electricity sector reforms are already
beginning to boost the local economy and improve quality of
life. For example, they contributed to the state’s agriculture
sector achieving nearly 25% revenue growth in 2013-14.
Acting as advisers to the power entities, and working closely
with a wide array of public, private and international
development sector stakeholders, PwC India has played a
pivotal role in this dramatic transformation. Initially engaged
by the UK Department for International Development –
which initiated the reform programme – PwC India is now
working directly for the power companies. The government’s
aggressive electrification programme was funded by the
Asian Development Bank. Among other actions, the state
government’s role has included undertaking structural and
institutional reforms, hiring over 5,000 young engineers,
and developing a detailed strategy for ensuring 24-hour
power supply to all consumers.
The success of the reforms reflects a number of factors.
One of the most important was the state government’s clear
vision and strong commitment to achieving this dramatic
turnaround, backed up by the support of international
development agencies in providing technical assistance and
loans. Equally vital were the efforts of the power company
staff and PwC India consultants in defining and implementing
the necessary actions, including financial restructuring,
loss reduction, organisational change, enhancements to
procurement processes and manuals, regulatory and
commercial responses, and programme management.
Mohammed Suleman, Principal Secretary Energy,
Government of Madhya Pradesh, says: “Distribution is
the backbone of the power sector, and improvement in
the financial position of distribution companies in Madhya
Pradesh is very remarkable. PwC India played a significant
role as an adviser to the power sector – not only in
distribution but more in the entire planning process.”
Kameswara Rao, PwC India Industry Leader for Energy,
Utilities and Mining, says: “Speed was of the essence, and
we were able to leverage our strong industry knowledge,
bring in our experience of reform life-cycle, and deploy
dedicated onsite teams in three cities in the state to make
this happen.”
Enhancing people’s everyday lives in Madhya Pradesh
Mr J Dixit of the Government of Madhya Pradesh (second from the right) discusses the project with PwC India team members (from left)
Ambuj Tiwari, Amit Sharma and Aaron Cherian at a sub-station.

Rebuilding trust in tax
systems globally:
The road ahead
By Rick Stamm
Across the world, public interest in
the tax affairs of international
corporations has never been greater
than it is today. And this unprecedented
scrutiny is mirrored by an ongoing –
and often heated – debate among
the media, politicians and non-governmental
organisations (NGOs).
At the same time, governments are seeking – quite
rightly – to ensure their tax systems generate the
revenues they expect. But equally they want to
remain competitive internationally. In combination,
these developments have fuelled a widespread
perception that large corporations are not paying
their ‘fair share’ of tax, in turn contributing to a loss
of trust in tax systems themselves.
It would be useful to look at some elements of the
current debate from a different perspective. All too
often, we hear people call for ‘fairness’ or ‘morality’
in tax policies without defining what these terms
actually mean. The discussion also tends to focus
almost exclusively on corporation tax, which makes
up only a small proportion of a company’s Total Tax
Contribution (TTC) – a more complete and useful
measure of taxes paid as it takes into consideration
value added tax (VAT), goods and service tax (GST)
and employment taxes.
However, a more fundamental problem is that the
debate as currently framed confuses two components.
The first is the tax system itself; are the rules by which
people pay tax fit for today’s world? The second
component is the way taxpayers behave within that
system; for instance, how are taxpayers complying
with the rules? Though both issues are related, they
need separate responses.
Striking the right balance
There’s no question that taxation has become an
increasingly important focus of attention in our
clients’ boardrooms. As our 17th Global CEO Survey
confirms, the need to manage the total costs of tax –
both tax payments themselves and the cost of
compliance – is seen as an increasing challenge:
70% of CEOs cite the impact of tax and its potential
to affect growth as a concern, up from 62% in the
previous year.
Rick Stamm
PwC Vice Chairman,
Global Tax

As tax advisers,
our role is to help
our clients navigate
through the
complexity of the
applicable rules
and make informed
decisions with
respect to the tax
risks they face.
Tax
PwC Hong Kong tax professionals Simon Kam and Deborah Li
70%
of CEOs are now worried
that the tax burden is affecting
their ability to grow
65%
of CEOs feel that the international
tax system is in need of reform
This shift reflects the fact that our clients are
dealing with a growing range of issues and risks
in the tax arena. Addressing these issues requires
not only proficiency in the technical aspects of
tax, but also a solid understanding of the business
context – and the commercial and reputational
impacts – of any decision they take. Clients know
their tax affairs can affect their brand as well as
their reputation, and are being closely watched
by an expanding array of stakeholders – from
shareholders, to NGOs, to the public and the media.
As tax advisers, our role is to help our clients
navigate through the complexity of the applicable
rules and make informed decisions with respect to
the tax risks they face. And to do this while balancing
their diverse responsibilities to multiple stakeholders
both within and outside their organisations.
Businesses need to think through how their tax
profile would be perceived by all stakeholders if
the glare of the media were to be turned on it. This
test should not shape a client’s tax policy – but if a
company cannot articulate clearly why it’s taking
a particular approach, then it’s a sign that the
approach itself may be the wrong one.
Figure 20: PwC’s 17th Annual Global CEO Survey

In the wake of the global financial crisis and recent media criticism of
some companies’ tax policies, scrutiny of international corporations’ tax
contributions to governments has intensified to unprecedented levels. Yet,
all too often, the public debate over tax focuses narrowly on corporation
tax – which actually makes up a relatively small proportion of the total taxes
paid by a large international business.
As one of the world’s largest telecommunications companies – with a significant
presence in 24 countries and over 313 million customers worldwide – Telefónica
found it needed to explain to the different societies what was the real
contribution/value provided to the economies where it operated. So in 2013
Telefónica decided that it should publish a detailed and transparent account
of its total tax payments of every type in every country – thus providing all
stakeholders with a clear view of its approach to taxation across the world.
To help it meet this daunting challenge, Telefónica engaged PwC. Applying
our proven Total Tax Contribution (TTC) methodology, we worked with the
client’s Head of Tax – and other senior stakeholders in areas like social
responsibility and communications – to pull together tax data from across
the global group, including not just corporation tax but also other taxes such
as sales, payroll and telecommunications levies. We then continued to work
with the client teams to develop a clear storyline around the company’s overall
tax payments.
The result of the TTC study was broadly included in Telefónica’s 2013 annual
report. When the findings were announced with the company’s annual results,
Telefónica’s CEO César Alierta showed that 24.6 out of every 100 euros of
company turnover were dedicated to the payment of taxes; 8.4 to taxes borne
by the company and 16.2 to taxes collected (VAT, payroll taxes etc), clearly
underlining the company’s commitment to paying taxes and generating jobs
everywhere it does business.
“PwC’s TTC analysis provided real value in helping us demonstrate that
we’re doing the right thing on taxation,” commented Telefónica’s Head of Tax,
Ángel Martín. “It’s also enabled us to support the move to greater tax
transparency in Spain and worldwide – and we would encourage other
companies to join us in enhancing their tax disclosures.”
Demonstrating good corporate
citizenship on taxation
Supporting governments
Drawing on – and enhancing – the insights and
experience we build up through our client work,
a further vital aspect of our role in the tax arena
is supporting governments in the developing
world as they endeavour to create and manage
tax regimes and operations that are fit for today’s
world. Particularly in emerging economies, this role
includes advising on the development of tax policy
and the efficient administration of tax systems.
In developed economies, our role with governments
focuses more on helping to provide policymakers
with insights on the potential impacts of decisions
they may take. This activity takes many forms in
different countries. In Australia, for example, the
PwC Australia tax reform site has proven to be very
popular. A related video – highlighting the country’s
ageing population, growing government debt and
threat to the provision of benefits, and which calls
for improvements to the tax system – has had more
than 104,000 hits on YouTube. This all underlines
the Australian firm’s leading role in the public and
government debate on reforming the country’s
tax system.
Another good example is in the UK, where our ‘Paying
for Tomorrow’ initiative is contributing to the debate
on how the UK tax system needs to change for the
modern and future economy. This is about undertaking
a fundamental review of the tax system and how it
will sustain future government revenues. The
initiative was launched in June 2014 with a ‘Citizens’
Jury’, at which 22 representative members of the
British public spent two days considering the shape
and structure of the UK tax system, bringing to bear
their own perspectives on tax ‘morality’ and ‘fairness’.
The findings from the Jury – such as its call for the
integration of income tax and national insurance,
a radical shake-up of value added tax (VAT) and the
setting up of a new independent advisory body to
reduce the influence of political short-termism – have
been reported across UK print, online and social
media. This has given a voice to people who wouldn’t
normally be heard in a debate on public policy.
Other aspects of the ‘Paying for Tomorrow’ initiative
include a business forum and a student competition.
For its part, PwC UK ultimately produced a paper
bringing together its collective thinking on tax reform.

Tax
The Business and Industry Advisory Committee (BIAC)
is an independent association of major businesses that
advises the Organisation for Economic Co-operation and
Development (OECD) on key issues around globalisation
and the world economy.
In the tax area, a key focus for BIAC is ‘base erosion and
profit shifting’ (BEPS) – a term that refers to tax planning
strategies that exploit gaps and mismatches in international
tax rules to make profits ‘disappear’ for tax purposes, or
to shift profits to locations where there is little or no real
business activity but taxes are low.
Given BIAC’s global remit and scope, it is keen to share
its views and influence the taxation agenda in markets
worldwide – including in China. In early 2014, BIAC decided
it would like to send a delegation of its members on a formal
visit to China’s State Administration of Taxation (SAT) to
discuss erosion and profit shifting issues with key Chinese
Government policymakers. To help organise and manage
this groundbreaking visit, BIAC turned to PwC China’s tax
team in Beijing.
PwC China sprang into action, and in February 2014 a
delegation of 10 BIAC members spent half a day with China
Tax officials in Beijing. PwC China tax partner Matthew Mui,
who organised and attended the sessions, said the discussions
were very interactive and highly productive – and that both
sides welcomed the opportunity to listen and to share
perspectives. “That PwC China was chosen to organise
this event underlines our role as a trusted adviser to SAT,”
comments Matthew. “It also represents a recognition by
BIAC of our standing in the Chinese market.”
The event was rated a big success by the participants.
Mr Will Morris, chairman of the BIAC Tax Committee, says:
“The visit was hugely valuable to both parties, and we
very much appreciate PwC China’s efforts in setting it up.”
Mr Wang Wenqin, Deputy Director General of International
Tax Department of the SAT, adds: “Direct communication
with global business groups on international tax issues is
very important to us – and with the visit from BIAC, PwC
China was instrumental in helping us to achieve this type
of dialogue.”
BIAC and Chinese tax policy makers engage
on global tax issues
PwC China tax partner Matthew Mui organised and attended the sessions bringing together BIAC members and China tax officials in Beijing.

With more than 155,000 clients throughout North America, South
America, Europe and Asia, Iron Mountain is a global leader in helping
organisations of all kinds to store, protect and manage their
information. Headquartered in the US, the company looks after some
of the world’s most valuable historical artefacts, cultural treasures,
business documents and medical records. To protect and render this
information, Iron Mountain employs more than 19,500 professionals
and boasts an infrastructure that includes more than 1,000 facilities
and 3,600 vehicles.
On 25 June 2014, the company announced it had received a
‘favourable private letter ruling’ from the Internal Revenue Service,
the US government agency responsible for tax collection and tax
law enforcement. Iron Mountain was converting to a Real Estate
Investment Trust, or ‘REIT’ – a tax status that allows a business that
owns and operates real estate to offer higher returns to its investors.
It was back in mid-2012 that the company decided it would seek to
convert to a REIT. To choose its main adviser for the process, it held a
competitive tender among multiple bidders. And it selected PwC US –
a decision that reflected our successful work on previous projects for
Iron Mountain over nearly a decade, and our proven track record of
advising other companies on their conversion to REIT status.
Having won the mandate, we pulled together teams in more than
10 countries to handle the project’s high complexity and wide
geographical spread. By the nature of a REIT conversion, the core
of the work focused on tax structuring and compliance. However,
we also advised Iron Mountain on a broad range of related issues
both in the US and internationally, including legal entities, IT systems,
project management, and managing and embedding organisational
and cultural change.
“The REIT structure fits well with our business and will enhance
value for our stockholders through increased payouts,” said Iron
Mountain’s CEO, William L. Meaney, announcing the conversion.
“PwC has been a key adviser to our business, and their coordinated
global teams and approach helped us achieve significant milestones
throughout the REIT conversion process. I am grateful for both their
expertise and efforts.”
Iron Mountain unlocks the value of its large real estate holdings

Working with multilateral
organisations
The third major strand of our tax work globally is
collaborating with multilateral organisations in their
efforts to help build a new and better international
tax system. An important development in this context
is our involvement in the review by the Organisation
for Economic Co-operation and Development (OECD)
of ‘base erosion and profit shifting’ (BEPS) – a term
referring to the reduction of a company’s tax liabilities
through the interaction of different countries’ tax rules.
We’re closely monitoring the OECD on BEPS and
other initiatives. We want to see changes that will
rebuild public trust in the tax system while enabling
global trade and business to thrive. While the BEPS
review is ongoing, and the findings are only now
beginning to emerge, our clients are already taking
its potential impacts into account when making
business decisions for the medium term.
We are helping clients prepare for these outcomes.
In our view, the changes that business will face
post-BEPS will come from three different places:
first, international rules, such as tax treaties; second,
changes to national tax laws; and third, behavioural
change among tax authorities, such as greater
information-sharing and a more robust approach
to where value, risks and profit are actually located.
We’re helping our clients plan ahead for all these
types of change.
A further aspect of our work with multilaterals
is enabling better communication with national
tax authorities. This role is showcased in the
accompanying case study about the meeting we
facilitated between the OECD’s Business and
Industry Advisory Committee and China’s State
Administration of Taxation (see page 49).
Ultimately, our vision
for tax globally is to
have a system that
builds public trust
while encouraging
– not hampering –
global trade.
Keeping up the momentum
for change
The efforts to build momentum for the reform
of tax systems globally are gathering pace.
If we’re to help sustain this progress, it’s vital
that we’re seen as acting fairly, openly and
consistently with all stakeholders, and are
therefore trusted by all parties. An important
enabler of this trust is the way we, as a global
network of firms, hold ourselves consistently
to account through our Global Tax Code of
Conduct, originally implemented in 2005
and revised in 2013.
Ultimately, our vision for tax globally is to
have a system that builds public trust while
encouraging – not hampering – global trade.
Turning this vision into reality will demand
unwavering commitment from all participants,
and difficult trade-offs in every country.
But clear progress is being made – and we’re
determined to play our part in helping tax
systems globally complete the journey.
Tax
Reshma Gondal from PwC Netherlands

Committed to transparency
We are constantly seeking ways to
provide greater clarity about who we
are, what we do and how we do it.
We recognise the impact our business
has on our stakeholders, the capital
markets and the communities in which
we live and work. And it matters to
us that we engender confidence in the
entire PwC network by putting the
principle of transparency into practice.
We believe that the key factors that differentiate
PwC among the world’s leading professional services
organisations are the talent of our people, the
breadth of the PwC network and the standards
with which PwC firms comply.
These standards cover important areas such as service
quality, governance arrangements, independence,
risk management, people and culture, and brand and
communications. PwC firms agree to follow network
standards and their compliance with these standards
is monitored regularly.
Legal structure, ownership
and network arrangements
Network arrangements and
member firms
In most parts of the world, the right to practise audit
and accountancy is granted only to firms that are
majority-owned by locally qualified professionals.
PwC is a global network of separate firms, operating
locally in countries around the world.
PwC firms are members of PricewaterhouseCoopers
International Limited and have the right to use the
PricewaterhouseCoopers name.
As members of the PwC network, PwC firms share
knowledge, skills and resources. This membership
enables PwC firms to work together to provide high-quality
services on a global scale to international and
local clients, while retaining the advantages of being
local businesses – including being knowledgeable
about local laws, regulations, standards and practices.
PricewaterhouseCoopers
International Limited
PricewaterhouseCoopers International Limited
(PwCIL) is a UK private company limited by
guarantee in which PwC firms are members. PwCIL
acts as a coordinating entity for PwC firms and
does not practise accountancy or provide services
to clients. PwCIL works to develop and implement
policies and initiatives to create a common and
coordinated approach for PwC firms in key areas
such as strategy, brand, and risk and quality.
PwC firms can use the PwC name and draw on the
resources and methodologies of the PwC network.
In return, member firms are required to comply
with certain common policies and the standards
of the PwC network.
Standards and internal
quality control systems
Every PwC firm is responsible for its own risk and
quality performance and, where necessary, for driving
improvements. Each PwC firm is also exclusively
responsible for the delivery of services to its clients.
To support transparency and consistency, each
PwC firm’s Territory Senior Partner signs an annual
confirmation of compliance with certain standards.
These cover a range of areas, including independence,
ethics and business conduct, Assurance, Advisory
and Tax risk management, governance, anti-bribery
and data protection and privacy.
These confirmations are reviewed by others who
are independent from the PwC firm in question.
Member firms are required to develop an action
plan to address specific matters where they are not
in compliance. The action plans are reviewed and
their execution monitored.
Javier Rubinstein
PwC Vice Chairman,
Global General Counsel

Transparency
There are some common principles and processes to
guide PwC firms in applying the network standards.
Major elements include:
The way we do business
PwC firms undertake their business activities within
the framework of applicable professional standards,
laws, regulations and internal policies. These are
supplemented by a PwC Code of Ethics and Business
Conduct for their partners and staff.
Sustainable culture
To promote continuing business success, PwC firms
nurture a culture that supports and encourages
PwC people to behave appropriately and ethically,
especially when they have to make tough decisions.
PwC people have ready access to a wide array of
support networks within their respective firms –
both formal and informal – and technical specialists
to help them reach appropriate solutions. The
foundations of PwC’s culture are objectivity,
professional scepticism, cooperation between
PwC firms and consultation.
Policies and processes
Each PwC firm has its own policies, based on the
common standards and policies of the PwC network.
PwC firms also have access to common
methodologies, technologies and supporting
materials for many services.
These methodologies, technologies and content are
designed to help a member firm’s partners and staff
perform their work more consistently, and support
their compliance with the way PwC does business.
Quality reviews
Each PwC firm is responsible for monitoring the
effectiveness of its own quality control systems. This
includes performing a self-assessment of its systems
and procedures and carrying out, or arranging to have
carried out on its behalf, an independent review.
In addition, the network monitors PwC firms’
compliance. This includes monitoring not only
whether each PwC firm conducts objective quality
control reviews of all of its services, but also includes
consideration of a member firm’s processes to
identify and respond to significant risks.
In accordance with applicable regulatory requirements,
each firm may also be reviewed periodically, in some
cases annually, by national and international regulators
and/or professional bodies.
For Assurance work, there is a specific quality review
programme based on relevant professional standards
relating to quality controls including International
Standard on Quality Control 1: ‘Quality Control for
Firms that Perform Audits and Reviews of Financial
Statements, and Other Assurance and Related Services
Engagements’ (‘ISQC1’) and where applicable, the
PCAOB Quality Control Standards.
The overriding objective of the assurance quality
review programme is to assess for each PwC firm that:
• quality management systems are appropriately
designed, are operating effectively and comply
with applicable network standards and policies
• engagements selected for review were performed
in compliance with applicable professional
standards and PwC Audit requirements, and
• significant risks are identified and managed
appropriately.
A member firm’s assurance quality review
programme is monitored, as is the status and
effectiveness of any quality improvement plans
a PwC firm puts in place.
Abiel Tuoane and Runga Bhebhe from PwC South Africa
Each PwC firm
conducts objective
quality control
reviews of all of
its services.

Safeguarding our
independence
Policy and resourcing
Objectivity is the hallmark of our profession, at the
heart of our culture and fundamental to everything
we do. Independence underpins objectivity and
has two elements: independence of mind and
independence in appearance.
PwC firms reinforce both of these elements through
a combination of setting the right tone from the top,
independent consultation on judgemental issues,
detailed policy requirements including prescribed
processes to safeguard independence, training, and
careful observance of independence requirements.
PwC’s Global Independence Policy – based on the
International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants –
contains minimum standards with which PwC firms
have agreed to comply. The policy is supported by
detailed guidance on the rules and principles to be
applied in evaluating the provision of non-audit
services to audit clients.
PwC firms impose supplementary independence
restrictions and processes by reference to local
regulatory and ethical requirements, when necessary.
These may have cross-border effect.
Each PwC firm is required to have a partner
responsible for independence matters, supported
by adequate and trained resources.
Training
Each PwC firm is responsible for developing and
implementing an appropriate independence training
plan for its partners and practice staff, including
the requirements around personal interests and
relationships, services that may and may not be
provided to audit clients, and business relationships.
The network provides illustrative materials for use
by PwC firms.
The Assurance, Tax and Advisory lines of service
also provide training and other materials dealing
with independence considerations related to the
provision of non-assurance services.
Compliance processes
Our compliance processes rely on a combination of
business activities, controls and monitoring systems.
Our network has detailed policies and processes to
evaluate the potential impact of a proposed non-audit
service on the reporting PwC firm’s independence.
PwC firms are required to obtain authorisation
from the group audit engagement partner regarding
the provision of non-audit services to entities on
the ‘Independence List’. Authorisation is only given
after careful analysis of whether the service could
impair the reporting firm’s independence by
reference to policy requirements and external
regulatory requirements, including an evaluation of
threats to independence and available safeguards.
Partners and client-facing managers in all PwC
firms are also required to record the details of their
investment portfolios on a confidential database that
provides real-time monitoring of the permissibility
of investments held against an ‘Independence List’
of prohibited securities.
Joint business relationships are evaluated for
compliance with any relevant regulatory requirements
and for any threats to independence, and are required
to be approved, recorded and regularly monitored
for changes that may impact the independence
assessment. Similarly, any independence implications
raised by proposed acquisitions by PwC firms are
evaluated and addressed to maintain compliance
with any relevant regulatory requirements.
As well as these and other independence compliance-monitoring
systems, PwC firms operate a number of
confirmation and verification processes that provide
information relevant to independence compliance,
such as:
• annual compliance confirmations by partners
and practice staff, and
• inspection and compliance-testing programmes
at firm and engagement levels. Such inspections
look at, among other things, compliance with the
requirements relating to partner rotation and
partner evaluation and compensation.
Each PwC firm is
required to have a
partner responsible
for independence
matters, supported
by adequate and
trained resources.
Jennifer Lovrics and James Temple from PwC Canada

Transparency
PwC firms are required to have disciplinary policies
and mechanisms that promote compliance with
independence policies and processes, and to report
and address any breaches of independence
requirements which, even with the control processes
outlined above, may occasionally occur.
This would include, where appropriate, discussion
with the client’s audit committee regarding an
evaluation of the impact of the breach on the
independence of the firm and the need for safeguards
to maintain objectivity. Although most breaches are
minor and attributable to an oversight, all breaches
are taken seriously and investigated as appropriate.
Those charged with governance
PwC firms recognise the importance that those charged
with governance – including audit committees – play
in overseeing the auditor’s independence, including
overseeing the nature of other services that they
provide and the fees payable. PwC audit teams work
closely with those charged with governance on public
company audits and have regular dialogue on matters
that may be seen to influence independence, including
the provision of other services.
Partner remuneration
An essential element of PwC’s ethos is a set of
common principles for remuneration of partners
in PwC firms, based on partner performance and
quality of work.
The underlying premise of the partner income
philosophy is to encourage, recognise and reward
partners, both as individuals and as members of
teams. Reward is based on their contribution to
their respective firms and, where relevant, to the
wider network. Quality is the most important
measure in assessing a partner’s contribution.
Continuing education
With some 86,000 Assurance people across the firms
in the PwC network, the task of providing continuing
education throughout each professional’s career is
a major challenge. Mechanisms are in place at the
network level to support PwC firms in achieving
this goal.
The PwC approach to Assurance learning and
education (L&E) is to provide access to a formal
curriculum of technical courses, while also providing
support for PwC firms’ L&E leadership and fostering
personal accountability for continuing education.
PwC firms are committed to delivering quality audits
around the world. To support them and to maximise
consistency in the network, the formal curriculum
provides access to courses covering:
• the PwC Audit approach and tools
• updates on auditing standards and their
implications, and
• areas of audit risk and engagement quality.
This formal learning is delivered in various formats
– including webcasts presented by specialists,
computer-based e-learning using videos and avatars,
and classroom courses. All of these programmes
support PwC’s focus on audit quality and provide
practitioners with the opportunity to sharpen their
professional judgement, scepticism, and technical
and professional skills.
PwC firms provide additional formal training on
professional skills and informal training in the way
of guidance, tools, engagement team workshops and
forums for staff to share their experiences in order to
support them on the job. The informal training is
supplemented with learning from others, whether by
receiving and discussing feedback, or by observing
and working with others.
All of these programmes support
PwC’s focus on audit quality and provide
practitioners with the opportunity
to sharpen their professional judgement,
scepticism, and technical and
professional skills.

PwCIL governance bodies
Network Leadership Team
The Network Leadership Team (NLT) sets the overall
strategy for the PwC network and the standards to
which PwC firms agree to adhere.
The NLT is made up of the Chairman of the PwC
network; the senior partners of the US, the UK and
China member firms; and a fifth member appointed
by the Board, currently the senior partner of PwC
Germany. The Chairman of the PwC network and the
fifth member may serve on the NLT for a maximum
of two terms of four years each in their respective
capacities. The terms of the other NLT members are
limited by the arrangements in their respective firms.
The NLT typically meets monthly and on further
occasions as required.
Strategy Council
The Strategy Council, which is made up of senior
partners of the largest PwC firms and regions, agrees
the strategic direction of the network and facilitates
alignment for the execution of strategy. The Strategy
Council meets on average four times a year.
Network leadership
Network Executive Team
The Network Executive Team is appointed by,
and reports to, the Network Leadership Team.
Its members are responsible for leading teams
drawn from network firms to coordinate our
activities across all areas of our business.
Global Board
The Board, which consists of 18 elected members,
is responsible for the governance of PwCIL, oversight
of the Network Leadership Team and approval of
network standards. The Board does not have an
external role. Board members are elected every four
years by partners from all PwC firms. The current
board, with members from 13 countries, took up
office in April 2013.
Board members may serve a maximum of two terms
of four years each. The Board meets four times a year
and on further occasions as required.

Network Leadership Team
Dennis Nally ................................ Chairman
Bob Moritz ................................... United States
Ian Powell..................................... United Kingdom
Norbert Winkeljohann ................. Germany
Silas Yang ..................................... China
Strategy Council Members
Dennis Nally................................. Chairman
Kyung-Tae Ahn ............................. Korea
Fernando Alves ............................ Brazil
Hani Ashkar.................................. Middle East
Ezio Bassi...................................... Italy
Bernard Gainnier.......................... France
Olga Grygier-Siddons.................... Central and
Eastern Europe
Urs Honegger ............................... Switzerland
Suresh Kana ................................. Africa Central and
Southern Africa
Deepak Kapoor ............................. India
Carlos Mas ................................... Spain
Bill McFarland .............................. Canada
Carlos Mendez ............................. Mexico
Bob Moritz ................................... United States
Peter Nyllinge .............................. Sweden
Ian Powell .................................... United Kingdom
Luke Sayers .................................. Australia
Hiroyuki Suzuki ........................... Japan
Peter van Mierlo ........................... Netherlands
Norbert Winkeljohann ................. Germany
Silas Yang ..................................... China
Yeoh Oon Jin ................................ Singapore
PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 195,000 people who are committed
to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
© 2014 PwC. All rights reserved.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
The Design Group 21752 (09/14)
The 2014 PwC Global Annual Review has been printed using Forest Stewardship Council (FSC) accredited paper stock.
Network Executive Team
Richard Collier-Keywood.............. Vice Chairman
Mike Burwell................................ Transformation
Colm Kelly.................................... Operations
Juan Pujadas................................. Advisory
Javier Rubinstein.......................... General Counsel
Richard Sexton............................. Assurance
Rick Stamm.................................. Tax
Robert Swaak................................ Clients and Markets
Nora Wu........................................Human Capital
PwCIL Board (Global Board)
John Maxwell ............................... Chairman
Håvard Abrahamsen .................... Norway
Noël Albertus ............................... France
Tom Archer .................................. United States
Clive Bellingham .......................... Switzerland
Hein Boegman ............................. Africa Central and
Southern Africa
Brian Cullinan .............................. United States
Ruud Dekkers ............................... Netherlands
John Farina .................................. United States
Simon Friend ................................ United Kingdom
Patricia Gonzalez ......................... Mexico
Michael Happell ........................... Australia
Paul Kepple .................................. United States
Gerry Lagerberg ........................... United Kingdom
Gino Scapillati .............................. Canada
Christoph Schreiber ..................... Germany
Richard Sun.................................. China
Matt Wyborn ................................ Japan

Rapport annuel PwC 2014

More Related Content

Viewers also liked (7)

Similar to Rapport annuel PwC 2014 (20)

More from PwC France (20)

Recently uploaded (20)

Rapport annuel PwC 2014