Regulators have warned they want to see better reporting of outcomes from action on corporate culture rather than simply reproducing policy statements.

Watchdogs at the Financial Reporting Council (FRC) used a new podcast to call for improvements after a report early this year highlighted “very low” quality disclosures among companies on promoting their desired cultures.

Lauren Tynen, senior corporate governance policy associate at the FRC, said the regulator did not want “empty words” in reporting, it wants to see “action”.

“We want what decisions did the board make during the year, what were the impact of these decisions and even reporting on milestones. What the board might do next year, why do they want to do this?

“We really want this focus on outcomes based reporting rather than just a list of policies and procedures that the companies or audit firm might have.”

Tynen said companies should consider a “culture framework” to offer “greater clarity”.

In January the FRC’s annual report highlighted problems with culture reporting. “Disclosure in governance reports around how boards are promoting the desired culture is generally very low. More thorough reporting in this area and better signposting in the strategic report, where most of culture reporting is usually placed, is urged.”

Last year the FRC updated the UK Corporate Governance Code to tackle culture with Principle B stating: “The board should establish the company’s purpose, values and strategy, and satisfy itself that these and its culture are all aligned.” Tynen stressed the addition of “all aligned” in the principle.

The podcast also addressed issues in audit firm culture reporting.

Anneke Thordsen, audit market supervision project director, warned firms that their culture should serve the “public interest”.

“One other important thing not many companies or audit firms consider in their reporting actually how they asses the risk of behavioural aspects within the culture and how that would lead them to achieving their success, or would prevent success in achieving their purpose.”

The UK is still awaiting government action to reform the audit sector. The FRC itself is waiting to become the Audit, Reporting and Governance Authority (ARGA) with strengthened powers, possibly to sanction directors for their failure on audit.

The reforms could also launch the start of a “managed shared audit” — two audit firms, a major firm partnered with a smaller auditor, working on the same mandate. However, though a bill was included on a list of legislative measures in the King’s Speech last year, the reforms have yet to be made public.

Government statement’s so far indicate they may not be as ambitious as previously expected.