- 20 Marks
Question
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)
Answer
- 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
- Tags: Confidentiality, Cultural Web, Ethics, Johnson and Scholes, Organizational Culture
- Level: Level 2
- Topic: Corporate Culture and Strategy
- Series: MAY 2017
- Uploader: Theophilus