Ethical Sensitivity and Sustainable Performance of SMEs: Empirical Evidence from Nigeria
- August 22, 2020
- Posted by: RSIS
- Categories: IJRISS, Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VIII, August 2020 | ISSN 2454–6186
Ethical Sensitivity and Sustainable Performance of SMEs: Empirical Evidence from Nigeria
Amina Asabe Adamu, Chong Yen Wan, Abdullahi Hassan Gorondutse
School of Business Management, Universitity Utara Malaysia
Abstract: Regardless of the relevance of sustainability practices to business organisation, literature indicates very few studies have attempted to investigate the effect of ethical sensitivity on the sustainability of small and medium enterprise (SMEs), mainly the relationship between ethical sensitivity and sustainable performance of SMEs. The literature suggests that there is not only limited information on the Sustainable Performance of SMEs in Nigeria but also little research in this important area of study. By using structural questionnaires, the data for the study were collected from 288 SMEs in Nigeria. The findings of the study indicate a significant positive relationship between ethical sensitivity and sustainable performance of SMEs. The result of the study seems to demonstrate that the practice of ethical sensitivity in SMEs will not only be to improve their economic performance but also to increase both environment and social performance as well.
Keywords: SMEs, Ethical sensitivity, Sustainable Performance, Nigeria
I. INTRODUCTION
Sustainability has become a very sensitive issue for the public wellbeing (Bwise 2018; Lin, Chang, Chang, 2014). It is important because it checkmates incidents that harm the business image and value. For example, the discovering of inhuman work conditions in global operations such as high carbon emissions and unsustainable farming of raw materials can significantly damage business credibility (Xia, Chen, & Zheng, 2015). Modern investors that show ethical concerns would not want to be accused of destroying environment with excessive pollution from their business activities (Feridun, 2006).
Accordingly, SMEs now need to be more concerned with sustainability. This is because businesses are not stand alone in society. Every decision a business makes, affects the surrounding community and stakeholders. Bhandarker (2014) reported that business is an agent of world benefit whilst sustainability, including corporate social, financial and environmental responsibility as the over aching umbrella and the new challenge would be how to make a business remain profitable and sustainable.
