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ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture

Rennick Pharma's new chair wants to build an ethical culture. Which action is most likely to embed ethical behaviour, according to the cultural web approach of Johnson, Scholes and Whittington?

Aligning control systems, rewards and stories with the ethical values is best, because the cultural web shows culture is embedded in many reinforcing elements, and changing only a code or symbols leaves real behaviour untouched.

  1. AAlign control systems, reward structures and stories with the ethical values, not just issue a codeCorrect
  2. BPublish a new code of ethics and leave other routines unchanged
  3. CRewrite the logo and mission statement only
  4. DAppoint an ethics officer without changing power structures

Explanation

The cultural web shows culture is sustained by stories, symbols, rituals, power structures, control systems and organisational structure. Changing only the paper code or logo leaves the reinforcing elements intact, so behaviour is unlikely to alter. Aligning rewards, controls and stories changes what is actually valued.

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