EFFECT OF ETHICAL BEHAVIOUR ON ORGANIZATIONAL PERFORMANCE IN AQUA RAPHA INVESTMENT NIGERIA LIMITED
ABSTRACT
This research work examined Effect of Ethical Behaviour on Organizational Performance in Aqua Rapha Investment Nigeria Limited as a case study. The objectives of the study include to find out the extent, ethical behaviour has affected the competitive advantage of Aqua Rapha Investment Nigeria Limited, to investigate how ethical behaviour affects sales turnover of Aqua Rapha Investment Nigeria Limited, to examine the relationship between ethical behaviour and profitability of the organization and to evaluate how ethical behaviour affects labour turnover of Aqua Rapha Investment Nigeria Limited. The research method adopted was the survey research method. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources of data. The population of the study was 556 while the sample size of 207 was arrived at using Taro Yamane. The hypotheses were tested using the chi-square distribution formular. The data collected were presented in tables, using frequencies and percentages and analyzed using inferential statistics. The findings include that ethical behaviour affects the competitive advantage of Aqua Rapha Investment Nigeria Limited to a large extent, ethical behaviour reduces the labour turnover of Aqua Rapha Investment Nigeria Limited and it was also found that one of the strategies of improving ethical behaviour of an organization is to constantly educate the employees. The research concludes that ethical behaviour is an important issue to consider for the success and growth of any business. The recommendations include that businessmen must be educated on the importance of using business ethics, the government should try to enforce laws necessary for the adoption of ethical bevaiour in business.           
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1    Background of the study                        
1.2    Statement of the Problem                            
1.3    Objectives of the Study                        
1.4    Research Questions                            
1.5    Hypothesis of the Study                                            
1.6    Significance of the Study                        
1.7    Scope of the Study                            
1.8    Limitations of the Study                        
1.9    Operational Definition of Terms                     
References                                
CHAPTER TWO  
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.1.1 Concept of business ethics                    
2.1.2 Features of business ethics                     
2.1.3 Concept of ethical behaviour                     
2.1.4 Strategies to promote business ethic            
2.1.5 Form of unethical behaviour  in organization        
2.1.6 Element of an ethical organization                 
2.1.7 Effective of ethical behavior  uncoputative
advantage  of business                        
2.1.8 Relationship between ethical behavior
and profitability of organization         
2.1.9 the effect of ethical behaviour on labour turnover    
2.1.10 the effect of ethical behavior on sales turnover             
2.2    Theoretical framework of the study                
2.2.1 Rule based or utilitarian ethical theory             
2.2.2 Virtue base ethical theory                     
2.2.3 Rights based ethical theory                    
2.2.4 Justice based ethical theory                     
2.3    Historical background of Aqua Rapha Investment
Nigeria Limited                                
2.4    The Effect of ethical behavior on competitive
advantage of business                        
25    Summary of literature review                     
References                                
CHAPTER THREE
RESEARCH METHODOLOGY
3.1    Research Design                            
3.2    Area of the study                            
3.3    Sources of data                                
3.3.1 Primary Data                                
3.3.2 Secondary Source                            
3.4    Population of the Study                        
3.5     Sample Size Determination                    
3.6    Sampling Procedure                            
3.7    Sample Size Distribution                         
3.8    Methods of Data Collection/Instrumentation        
3.9    Validity of the research instrument                
3.10 Reliability of the research instrument            
3.11     Techniques of Data Analysis                     
References                                 
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                     
4.2    Testing of hypotheses                         
4.3    Discussion of Findings                         
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2    Conclusion                                
5.3    Recommendations                            
5.4    Suggestions for Further Research                 
Bibliography                                     
Questionnaire                                    
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND OF THE STUDY
Over the years, many organizations have neglected or underestimated the importance of adopting good ethical behaviour. This has led to management and employees operating their activities, without keen interest on whether their actions were right or wrong. There were no moral principles used by the organizations and employees in all their business activities, both internally and externally. Indeed, corporate organizations were characterized by bribery, corruption, facilitation payments and discrimination issues among others. These and many other reasons, made the recognition of ethical behaviour in an organization, very important for the promotion of organizational performance.
The term ethics in organizational performance has long been associated with management scholars and business leaders around the world (Schneider, 2013). There is a broad agreement around the world that as a matter of corporate policy, every organization should strive to be committed in a manner that is ethically transparent. It is often argued
in many instances that, it is in the interest of an organization to behave in a way that recognizes the need for moral and ethical content in managerial decision as this will benefit the organization especially in the long run.
According to Legan (2012), ethical behaviour is characterized by honesty, fairness and equity in interpersonal professional and academic relationship and it respects the dignity, diversity and the right of individuals and groups of people. Therefore, for an organization to move forward in the aspect of performance, it is important for such an organization to have a good understanding of ethics and also take it seriously as this can undermine the competitive strength of the organization and the society at large. Morals, spring virtually from every survival depends on the consistency of quality of ethical decision made by managers (Oladunni, 2010).
In recent times, most organizations have come up with codes of ethics in dealing with ethical issues challenging them (Akinbayo, 2011). Code of ethics means the moral principles used by the organization to conduct the employees and the organization itself, in all their business activities. According to Cole (2006), codes of ethics an opposed to straight forward policy, have the advantage of providing
explicit guidance on key moral issues that might arise during the course of organization activities.
According to Bower (2007), ethics must begin at the top. Leaders cannot shy away from their obligations to set a moral example for their followers; formal ethical codes and ethic training have little chance of success, unless the ethical actions and behaviour of top management are consistent with what they teach. Management, should encourage employees by leading by examples; they have the responsibility to define organization norms and values, live up to expectations and encourage their followers to adopt same.
    Ethics in the world of business organizations, involve decency, which encompasses such areas as integrity, honesty and fairness. Behaving in an ethical manner is seen as part of the social responsibility of organization, which itself depends on the philosophy that organization, ought to impact on the society, in ways that go beyond the usual profit maximization objective. It is the unavoidable benefits of ethical practices in sustaining organizational growth and profitability that prompted the researchers interest in this topic: “Effect of Ethical behaviour on organizational performance in Nigeria.
1.2    Statement of the Problem
The consequences of not adopting good ethical behaviour have led to decline in the profitability of some organizations. This is because illegal and unethical behaviour, like bribery and corruption have a negative consequences on the profitability of an organization. Moreso, another effect of not adopting good ethical behaviour is a decline in sales turnover of the organization. This is as a result of the poor image portrayed by such organization. It has equally led to increase in employee or labour turnover, as some workers may not be comfortable with such negative and unethical behaviour. The effect of not adopting good and ethical behaviour has also put the organization in a less competitive position.
1.3    Objectives of the Study
The general objective of the study is to examine effect of ethical behaviour on organizational performance in Nigeria. However, the specific objectives are to:
1.    Find out the extent, ethical behaviour has affected the competitive advantage of Aqua Rapha, Nigeria Limited.
2.    Investigate how ethical behaviour, affects sales turnover of Aqua Rapha, Nigeria Limited.
3.      Examine the relationship between ethical behaviour and profitability of the organization.
4.    Evaluate how ethical behaviour affects labour turnover of Aqua Rapha, Nigeria Limited.
1.4    Research Questions
Based on the objectives of the study, the following research questions were raised.
1.     To what extent has ethical behaviour affected the competitive advantage of Aqua Rapha?
2.    How does ethical behaviour affect the sales turnover of Aqua Rapha, Nigeria Limited?
3.    What is the relationship between ethical behaviour and profitability of the organization?
4.    How does ethical behaviour affect the labour turnover of Aqua Rapha, Nigeria Limited?
1.5    Research Hypotheses
The following hypotheses were formulated in with the research questions.
Hypothesis One
Ho:     Ethical behaviour does not affect the competitive advantage of Aqua Rapha, Nigeria Limited.
H1:     Ethical behaviour  affects the competitive advantage of Aqua Rapha, Nigeria Limited.
Hypothesis Two
Ho:     Ethical behaviour does not affect the sales turnover of Aqua Rapha, Nigeria Limited.
H1:     Ethical behaviour affects the sales turnover of Aqua Rapha, Nigeria Limited.
Hypothesis Three
Ho: There is no relationship between ethical behaviour and profitability of the organization.
H1: There is a relationship between ethical behaviour and profitability of the organization.
Hypothesis Four
Ho:    Ethical behaviour does not affect the labour turnover of Aqua Rapha, Nigeria Limited.
H1:    Ethical behaviour affects the labour  turnover of Aqua Rapha, Nigeria Limited.
1.6    Significance of the Study
This research work will be beneficial to various organizations, the researcher, government and the general public. The management of various organizations will benefit from this research work as they will be more exposed on how ethical behaviour, affects the performance of the organization. The research of this nature is very important to the government of this country that has been recording high level of corruption, at least to know the negative consequences of corrupt behaviour. The researcher will benefit from this study as it is a partial requirement for the award of a Bachelor of Science (B.Sc) in Business Administration. The general public will benefit from the study because they will be aware of the expectations of an organization in relation with the host community.  The research, also serves as a reference material for further research.
1.7    Scope of the Study
This research work covered the effect of ethical behaviour on organizational performance in Nigeria. The aspect of ethics covered by this research is business ethics.  The organization covered by this study is Aqua Rapha Investment, Nigeria Limited  located at Ninth Mile Corner Ngwo. The research work was carried out between 2015 – 2016.   
1.8    Limitations of the Study
The researcher encountered some constraints in the process of carrying out this research work. Among them, were finance, time and uncooperative attitude of the respondents.
Finance: The researcher spent some money on transportation to Aqua Rapha, Investment Nigeria Limited and in printing out relevant materials, related to the research work.
Time: The researcher carried out part of this research work during the lecture time and this made the researcher to miss some lectures.
1.9    Operational Definition of Terms
Ethics: Ethics involve systematizing, defending and recommending concepts of right and wrong. As a branch of philosophy, ethics investigates what actions are right or wrong in a particular circumstance.
Behaviour: This is the manner in which one conducts him or herself.
Organization: An organization is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment. It is also an organized group of people with a particular purpose.
Performance: It is the accomplishment of a given task measured against preset known standards of accuracy and completeness.
REFERENCES
Akinbayo, S. (2011), Business Ethics: Managing Corporate Citizenship and sustainability in the age of Globalization. (2nd Ed)  New York: Oxford University Press.
Bower, F. (2007), Designing Ethical Organizations for Superior Performance: An Organization Systems Approach. Journal of Management Science.  7(2):84.
Cole, A. (2006). Company Philosophy: The Way we do things Around here.  The Mckinsey Quarterly. 2 (5):28.
Legan, P. (2012).  Professional Code of Ethics and Management Excellence. Journal for Management Science.  3 (7): 63.
Oladunni, O. (2010). Ethical Behaviour in Nigerian Organization. International Journal of Management Science.  8 (9): 44.
Schneider, A. (2013). Corporate Ethical Identity as a determinant of firm performance. Journal of Business Ethics. 76(1):78.