ABSTRACT
This study is intended to assess the impacts of employees ethical conducts to organization performance. For quite some time now, public organizations have been viewed as a liability to the tax payers rather than an asset. This is because of low productivity, erosion of work ethics, indiscipline, blatant violation of rules, regulations and procedures, weak control and corruption have been observed as common features in their services rendering activities. Statistically Emzor Pharmaceutical Industries has failed to comply with 81% of the set performance targets. Major failures were observed in the areas of water losses, collection efficiency, and water pressure to customers. This unstable performance of public organizations in Nigeria particularly Emzor Pharmaceutical Industries and the increased reports on unethical conducts by respective employees create a question as to whether the two have any related impact on each other. Researcher collected data by using a questionnaire as well as the survey monkey software, also employed semi-structured Interviews, and documentary analysis which were flexible as well as sensitive to the social context. Data were quantitatively analyzed using computer software, Statistical Package for Software System (SPSS) version 16. The study revealed that there was a significant relationship between employees’ ethical conducts and organization performance. The relationship was significant in unethical conducts which results into poor performance of the organization. The assessment concludes that, organization performance is interplay of variables and that employee’s ethical conduct plays a role in organization performance but is not the major role. On the basis of the findings, it is argued that organizational performance is a function of variables and not only employee’s ethical conducts.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Problem
Employees’ ethical conducts in organizations are not new concepts issues and makes most of the newspaper headlines over and over again. Steinberg (1994) argued that ethics in the world of organisation’s business involve “ordinary decency” which encompasses such areas as integrity, honesty and fairness. Behaving in an ethical manner is seen as part of the social responsibility of individuals in any organization so as to ensure its stability and survival, Adenubi (2000).
Geetu (2003) reveals that organization cannot ignore ethics. Indeed for some ethics has been added to their corporate values. But help is needed by organization to integrate ethical practices and competencies, but initially this requires an increased and shared understanding of ethics in organizations. Numerous researchers suggest that organizational ethics is a major influence in ensuring the attainment of organization objectives.
This has influenced the formulation of formal code of ethics which regulate employee’s ethical conducts, Peters and Waterman (1982) as cited by Lok (1999). It has been observed that more than 85 percent of organizations have developed and distributed organizational codes of conduct so as to significantly affect ethical conducts of their respective employees, Rossy (2011). Suggestions show that the existence of formal code of ethics will generally ensure the highest standards of
behavior and inhibit unethical conducts amongst organizational members. However, experience shows that these formal codes are often undermined by the adherence to informal codes known as norms which are characterized mainly by isolation and solidarity, Chye (2004).
The increased pressure from stakeholders such as consumers, investors and the community for organizations to behave ethically and in a socially responsible way can no longer be ignored. Today investors’ concern on ethical conducts of those who run organizations has greatly increased. Regular disclosures that directors and executives behave unethical reflect badly on the corporate sector as a vehicle for investors’ funds, Hian (2004).
Reports of scandals, questionable business and political behavior in many organizations are extremely increasing their frequency. Anand et al. (2004) stipulates organizational Scandals involving multinationals like Enron, WorldCom, Global Crossing, Parmalat and how they height attention to the urgent need for corporate governance, corporate social responsibility and organizational ethics.
However, ethics programs are done to stimulate ethical conducts in organizations and assist employees to act in a morally responsible way, McDonald (1999). Interest in this study has been stimulated first by the magnitude of the widespread criticisms from stakeholders due to unethical conducts and unfriendly behavior of employees in different public organizations which brought the need for behavior change.
1.2 Statement of the Problem
For quite some time now public organizations have been viewed as a liability to the tax payers rather than an asset. This is because of low productivity, erosion of work ethics, indiscipline, blatant violation of rules, regulations and procedures, weak control and corruption have been observed as common features in their services, President’s Office (1999). Kleinhempel (2009) argued that Unethical behavior causes massive costs to organization. Several studies have shown that organization with illegal records have not only been forced to pay for investigations and fines but have also suffered significant stock price decline and report, on average, lower profitability rates than their law-abiding counterparts. In fact, many have experienced sharp sales drops, higher equity costs and severe damage to their reputation among customers and other stakeholders.
Taking Emzor Pharmaceutical Industries as a case study, unethical conducts and unstable performance in public organizations are speedily reported to increase recently. According to The Water Utilities Performance Report (2010/11) Emzor Pharmaceutical Industries has failed to comply with 81% of the set performance targets. Major failures were observed in the areas of water losses, collection efficiency, and water pressure to customers. For the targets that are not subjected to financial penalty upon non-compliance, Emzor Pharmaceutical Industries complied by 53% and the major failure was on increasing the number of service hours.
Emzor Pharmaceutical Industries Technical Report (2010) explores how most of illegal and unethical practices which affect the organization operations appear to be performed by Emzor Pharmaceutical Industries employees themselves. This unstable performance of public organizations in Nigeria particularly Emzor Pharmaceutical Industries and the increased reports on unethical conducts by respective employees create a question as to whether the two have any related impact on each other despite the provision of the necessary facilities, and training on ethical conducts employees has not yet raises awareness of its existence among individuals. Outside its implementers, very little is known about its availability and capabilities even in reputable organizations where it has been set up. Although all the efforts in enhancing ethical behavior has been done very little is known.
This study therefore intends to assess the ethical conducts of employees and its impacts on organization performance.
1.3 General Objectives
The objective of this research was to investigate on the impacts of employees ethical conducts to organization performance.
1.4 Specific Objectives of the Research
In this study, specific objectives were;-
i. To examine the awareness of employees ethical conducts on the organization performance.
ii. To examine employees adherence towards ethical conducts as a parameter of organization performance.
iii. To examine dissemination of skills and knowledge on ethical conducts by the organization.
1.5 Research Hypotheses and Questions
1.5.1 Research Hypotheses
This study used the alternative hypothesis where by the researcher predicted that, there was a significant association between employees’ unethical conducts and poor organization performance. The researcher believed that, social disorder stress facilitation and employees risk would have motivated employees to be unethical.
1.5.2 Research Questions
In this study the research questions were;
i. Are the employees aware and being able to describe organization ethical behavior?
ii. What factors will improve employees ethical conducts to the service delivery?
iii. How would employees describe ethical conducts application?
1.6 Significant of the Study
This study is vital and useful to the government, private and public organizations in Nigeria to evaluate their organizational performance within the context of their institutions and see how they are affected by employees’ ethical conducts. The study also helps organization authorities such as Emzor Pharmaceutical Industries to review their organization performances and trace how they are affected by employees’ ethical conducts. However, this study will be another reference to scholars and researcher who intends to explore the same phenomena in more details.
1.7 Limitation of the Study
There are few limitations that were experienced during gathering of data and information:
First, the researcher faced the problem of inadequate and unreliable data. In some case data obtained were highly exaggerated due to reasons well known by the source while in others there was no access to data as everything was treated as a confidential.
Another problem was that some of the respondents were not ready to cooperate especially in filling in the questionnaires; they feared that their information would be disclosed to other people. Also the researcher did not get back all the questionnaires that were distributed to the respondents. However, the responses received were sufficient to accomplish the purpose of this study.
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