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ACCA Applied Knowledge · Business and Technology · Organisational culture

Which of the following is most likely to be a factor shaping the culture of an organisation?

The values and behaviour of the founder and senior leaders are a major influence on culture, because people copy what leaders reward and do. Reporting currency, ledger structure and year-end date are administrative details that do not create shared beliefs or norms of behaviour.

  1. AThe values and behaviour of its founder and senior leadersCorrect
  2. BThe currency in which it reports its results
  3. CThe number of ledger accounts in its accounting system
  4. DThe date of its financial year end

Explanation

Culture is strongly influenced by the history, founder and leadership of an organisation, whose values and behaviour set examples for others. Reporting currency, number of ledger accounts and year-end date are administrative matters that do not shape shared values and beliefs.

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