Johnson and Scholes suggested that there is a cultural web within an organization.

Required:

a. Discuss the idea of the cultural web and its interrelated elements in a way that would assist a new employee to understand this concept in a business organization. (15 Marks)

b. As a professional accountant, explain any TWO ethical principles or requirements you would consider in deciding whether or not to keep a promise to maintain confidentiality with regards to information acquired from a client in the ordinary course of business. (5 Marks)

  • a. The Cultural Web and Its Elements:

    The cultural web of an organization affects or determines the way individuals understand the organization in which they work. It consists of several interrelated elements:

    • Routines and Rituals: Convey the ways things are done in the organization, establishing norms that employees become accustomed to.
    • Stories and Myths: These describe the organization’s history, emphasizing important individuals or events that highlight its values and achievements.
    • Symbols: Represent the nature of the organization through logos, office decor, or company colors, and they influence the organizational identity.
    • Power Structure: Defines who holds authority and power within the organization, often seen through management positions or influential individuals.
    • Control Systems: These include performance metrics and reward systems that show what the organization values most.
    • Organizational Structure: Refers to how teams and reporting lines are organized, impacting the culture and operational flow of the organization
  • b. Ethical Principles for Confidentiality:

    When considering whether to maintain confidentiality, two critical ethical principles are:

    • Confidentiality: As professional accountants, maintaining confidentiality is essential unless there is a legal or professional duty to disclose.
    • Public Interest: Disclosure may be warranted if it serves to protect the public interest or prevent harm, but only when legally permissible​