Ethical Practices and Organizational Performance: Understanding Linkages from Deposit-Taking SACCOs in Kenya
- September 8, 2021
- Posted by: rsispostadmin
- Categories: Business Management, IJRSI, Management
International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue VIII, August 2021 | ISSN 2321–2705
Jackline Akoth Odero, PhD
Lecturer PhD School of Business and Economics, Masinde Muliro University of Science and Technology, Kenya
Abstract: As employees understand what amounts to acceptable behavior within an organization, their ethical choices can be moulded and this gives leaders an opportunity to actually shape the ethical climate. Strategic leaders have a role to emphasize on ethical practices. The main objective of the study was to establish the influence of ethical practices on performance of Deposit-Taking SACCO’s in Kenya. The study adopted positivism paradigm and descriptive correlational design. The study focused on all 42 Deposit -Taking SACCOs in Nairobi County. Structured Questionnaires were administered on 126 senior managers. For data analysis both descriptive and inferential statistics was utilized. Descriptive analysis entailed mean and standard deviation. As for inferential statistics, correlation and regression analysis were conducted. The article unveiled that ethical practices had a positive and significant influence on performance. The research provides insights into the perception of ethical practices in the Kenyan SACCO context, specifically in the Deposit-Taking SACCOs, a service- oriented sector where ethical practices become a must for a better performance. The results of this study seem to allude to an ethical practices performance paradigm. Further research should be conducted on other factors that can influence performance of Deposit-Taking SACCOs other than ethical practices.
Keywords: Deposit-Taking SACCO’s, Ethical Practices, Performance.
I.INTRODUCTION
Over the years ethics in performance of organizations has been associated with management scholars and business leaders around the world. According to Bello (2012) ethical issues are a worldwide phenomenon that require the attention of leaders in organizations as well as in businesses. According to Athar, Shahzad, Ahmad and Ijaz (2016) the word ethics which means moral character, customs and also habit originated from a Greek. Ethical practices are actions meant to enhance moral standards or right behaviors. A key role of a leader is to nurture a culture of excellence and ethical behavior (Dess, Lumpkin & Eisner, 2010). Strategic leaders should emphasize on ethical practices. An ethical culture can be embedded in an
