BLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT iv

LIST OF TABLES

LIST OF ACRONYMS vi

TABLE OF CONTENTS vii

ABSTRACT xi

ChAPTER ONE 1

INTRODUCTION 1

1 .0 Introduction 1

1.1 Background ofthe study 1

1. 1 .1 Historical background Perspective 1

1. 1 .2 Theoretical perspective 6

1.1.3 Conceptual perspective 6

1.1.4 Contextual perspective 7

1.2 Statement of the Problem 8

1 .3 Purpose of the study 8

1 .4 Specific objectives 8

1.5 Research Question 9

1.6 Scope ofthe Study 9

1 .6.1 Geographical scope 9

1.6.2 Time scope 9

1.7 Significance of the Study 9

VII

1 .8 Conceptual frame work .10

CHAPTER TWO ii

LITERATURE REVIEW 11

2.0 Introduction 11

2.1 Relationship between respect and financial performance 11

2.2 Relationship between integrity on financial performance 12

2.3 Relationship between customer focus and financial performance 15

2.3.1 Basic Attributes of customer focus in the Banking Sector 16

CHAPTER THREE 19

METFIODOLOGY 19

3.0 Introduction 19

3.1 Research Design 19

3.2 Population ofthe Study 19

3.3 Sample Size 19

3.4 Sampling Technique 20

3.5 Sources of data 21

3.5.1 Primary Data collection 21

3.6 Data Collection Methods 21

3.6.1 Questionnaire Method 21

3.6.2 Response rate 21

3.7 Measurement of Variables 22

3.7,1 Validity of Instruments 22

3.7.2 Reliability of Instruments 22

3.7.3 Data Validity 22

3.8 Data Analysis 23

VIII

3.8.1 Analytical Model .23

3.9 Ethical issues 24

3. 10 Limitation of the study 24

CHAPTER FOUR 26

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 26

4.0 Introduction 26

4.1 Response rate 26

4.2 Background Information of Respondents 27

4.2.1 Gender of respondents 27

4.2.2 Marital status of the respondents 30

4.3 To determine the relationship between respect and financial performance of centenary

bank Mukono branch 30

4.4 To determine the relationship between integrity on financial performance of centenary

bank in Mukono branch 33

4.5 To examine the relationship between customer focus and financial performance of

centenary bank in Mukono branch 36

4.6 The dependent variables 38

4,6.1 Regression analysis 40

4.7 Interpretation of Findings 42

ChAPTER FIVE 43

SUMMARY, CONCLUSION AND RECOMMENDATIONS 43

5.1 Introduction 43

5.2 Summary of findings and interpretation 43

5.3 Conclusion 45

5.4 Recommendations 46

5.5 Limitation of the study 47

ix

5.6 Areas for further research .48

REFERENCES 49

APPENDICES 55

APPENDIX I: QUESTIONNAIRE 55

APPENDIX II: LETTER OF INTRODUCTION

ABSTRACT

The purpose of the study was to establish the relationship between ethical standards and financial performance of banking institutions in Mukono District. The study was based on three specific objectives; to determine the relationship between respect and financial performance of centenary bank in Mukono branch, to determine the relationship between integrity on financial performance of centenary bank in Mukono branch and to examine the relationship between customer focus and financial performance of centenary bank in Mukono branch. It was based on a descriptive survey design basing on the use of qualitative and quantitative approaches that was adopted to establish the relationship between ethical standards and financial performance of banking institutions in Mukono District. Simple random sampling and purposive sampling techniques were used in the study. Questionnaires were used to collect primary and secondary sources of data from 60 out of 72 respondents using random sampling. Therefore, here, data analysis, procedures and response rate are focused on. Then the findings conclusions and recommendations are presented. Data analysis was done using computerization use of graphs, frequencies and cross tabulation. Finally the report looked at the study results and gave the discussion of each finding. According to objective one, it was noted that respect to each member of the staff in the bank was valued with the percentage of 67% and customer respect is given the first priority in the financial performance of centenary bank with the percentage of 65% who strongly agreed. The second research objective it indicated that, there was a positive effect that integrity helps in the growth of centenary bank to perform its services with the respondents who strongly agreed 69% and those who agreed with the response of 17% indicates that honesty in the banking sector of centenary bank, Mukono branch as a result, experiences high output, and productivity hence leading to effectiveness of service delivery. According to objective three, summary findings also revealed that, customer focus affects the profitability of financial performance of centenary bank which have helped to achieve the set goals and objectives with the percentage of 69% which in return helps in attracting potential and customer focus is limited by the borrower’s from borrowing with the percentage of 58% who strongly agreed. I obtained the findings and analyzed the data by use of tables and charts which helped to present data and arrive at conclusion and recommendations. Conclusion, constructing appropriate indicators and setting appropriate ethical standards for financial market was challenging. It required extensive analysis of profit margins that satisfied customers is very important for current and future performance of commercial banks. On the other hand, if the ethical standards are poor, financial perlormance of centenary bank will be unsatisfactory. Based on the data analysis in this study, financial performance of banking institutions should rely heavily on the guarantor as the main factor of mitigating ethical standards. Recommendation, as a way of discussion of ethical issues in staff meetings should be practiced in the various banks. When this is done, the staff or workers of the bank are generally abreast with the ethical standards needed by the bank and will adhere to it. The tendency to forget about the standards is there so constant reminders thorough staff meetings will do the workers a lot of good.