EFFECT OF ETHICS ON ORGANIZATIONAL PERFORMANCE A STUDY OF COCA-COLA COMPANY PLC ENUGU BRANCH NIGERIA

ABSTRACT

This project is a review of Effect of Ethics on Organizational Performance; A Study of

Coca-Cola Company Plc Enugu Branch, Nigeria

The Statement of Problem identified were unethical behaviour such as poor attitude to work, poor customer service, poor corporate social responsibility and poor morale value

To meet the general objective, the study will focus on the following specific objectives: to prove that poor attitude to work affects the organization performance of an organization, how poor customer service affects the performance of an organization, to ascertain whether poor corporate social responsibility affects the performance of an organization, to show how poor morale value can lead to low performance of an organization.

The  descriptive  survey  method  was  used  and  the  research  tool  was  questionnaire.  680 respondents  answered  the  questionnaire.   Data  analysis  using  Chi-square   formula  and presentation was done by the use of tables.

The findings from the study showed mainly that there is evidence to prove that poor morale value can affect the performance of an organization.

Finally, solutions and recommendations were proffered on how the poor morale value of the staffs should be improved to help their productivity by setting company policy. The write up is duly summarized.

CHAPTER ONE INTRODUCTION

1.1 BACKGROUND OF THE STUDY

As the world is a global village, businesses are becoming more competive; and more business organizations are adapting to practices, that will give them an edge over their competitions. Organizations strive to adopt business ethics/code of conduct that will not only be responsive to the internal  business  environment,  external business  environment  which is beyond  the organization’s control.

These organizational controls can be seen as the factors that help improve the growth and development of the organization.  These controls are in view of ethics which is a  measure against misconduct in an organization.

A popular and simple of view of ethics is “how things are done around here “. For example, Atkinson explains organizational ethics as reflecting the underlying  assumptions about the way work is performed;  what is acceptable  and not acceptable,  and what behaviour  and actions are encouraged and discouraged. The ethics of an organization is also often likened to the personality of an individual.

Maddux and Maddux (1989:5) observe, “Ethics is the name we give to our concern for good behaviours. We feel an obligation to consider not only our own personal wellbeing, but also of others and human society as a whole”.

The performance of many organizations has been impaired due to non-adherence to ethics in the course of their operations. Such ethical issue have bordered on factors such as:

The timely and positive effort in handling human problems at the executive level will make for good ethics or reconciliation of the organizational and employee goals. poor attitude to work,  poor  customer  appreciation,  lack  of  respect  to  constituted  authority,  stealing  or conversion  and  failure  to  accept  responsibility  are  major  ethical  issues  in  managing  an organization.

The result of this poor attitude to work in an organization is the reason for constant dwindling of management and poor performance in organizations (Onodugo, 2008). It is sad to note that the typical work attitude of an average Nigerian worker is largely anything near what will turn around the organization.

An attitude can broadly be defined as a settled mode of thinking. Attitudes are evaluative. As described by Makin et al (1996), ‘Any attitude contains an assessment of whether the object to which it refers is liked or disliked.’ Attitudes are developed through experience but

they are less stable than traits and can change as new experiences are gained or influences absorbed. Within organizations they are affected by cultural factors (values and norms), the behaviour of management (management style), policies such as those concerned with pay, recognition, promotion and the quality of working life, and the influence of the ‘reference group’ (the group with whom people identify).

Williams et al (1989) is of the opinion that an organization exists primarily to serve the needs of its  members   and  customer.   This  objective  which   helps  in  improving   organizational performance is defeated when the customers are badly served.

Corporate  Social  Responsibility  according  to  Trevino  and  Nelson  (1996:30)  “has  been conceptualized as a pyramid constituting four kinds of responsibility that must be considered simultaneously economic, legal, ethical, and philanthropic”. It is within the realm of ethical responsibilities  that  we  are treating  the  issue  of business  ethics/code  of conduct  and  its influence on employees, motivation, job satisfaction and professional attitude to work. Many schools of thoughts have considered CSR a distraction to business. They held the view that the sole purpose of a business is to make profit and  live up to its responsibility of paying taxes and levies to government of the day. The question may be asked why an organization and its employees behave ethically. Does it mean that unethical organizations and employees do not progress? Definitely evidence abounds about unethical organizations that perform well but  in the short run.  Many  reasons  abound  on why the adaptation  of a sound  business ethics/code of conduct by an organization will benefit it on the long run and by extension its performance and profit.

Schiffman and Kanuk (1994) state that: ‘Values help to determine what we think is right or wrong, what is important and what is desirable.’

Values are beliefs in what is best or good for the organization and what should or ought to happen. The ‘value set’ of an organization may only be recognized at top level, or it may be shared throughout the business, in which case it could be described as value driven.

The stronger the moral values, the more they will influence behaviour. Moral value is defined as relating to principles of right and wrong.

This does not depend upon their having been articulated.  Implicit  values that are  deeply embedded   in  the  ethics  of  an  organization  and  are  reinforced  by  the   behaviour  of management can be highly influential, while espoused values that are idealistic and are not reflected in managerial behaviour may have little or no effect. It is ‘values in use’, values that drive desirable behaviour that are important.

The  values  and  belief  of an organization  are manifestation  of the  kind  of good  that  its members should strive to meet, as well as ideas about the standard of behaviour  members should utilize in achieving these goals. From these organizational values, management will develop guidelines and expectations, prescribing the kind of behaviour deemed appropriate for  employees  to  demonstrate  in  particular  situations,  thus  guiding  and  controlling  the interaction of all members of the organization. The effects of this will be to give an overall corporate “feel” to the internal and external interactions. This corporate feel forms the basis for the establishment of an organization.

Organizations  exist  in  various  sectors  of  the  Nigerian  economy.  These  sectors  include Agriculture, Manufacturing, Building, Construction and petroleum etc. There are also many subsectors such as Foods and Beverages, Tobacco, Solid Minerals etc.

The Nigeria Bottling Company “Coca-Cola” is one of the organizations operating within the food  and  beverages  subsector.  Factors  affecting  its performance  are  varied.  How  ethics affects this performance is relevant in this study.

1.2 STATEMENT OF THE PROBLEM

Many organizations have failed as their operations are laden with unethical behaviours.

Such unethical behaviour are: poor attitude to work, poor customer service, poor corporate social responsibility and poor morale value

OBJECTIVES OF THE STUDY

1.2.1    General objective of the study

To  show  that  ethics  can  affect  the  organizational  performance  using  Coca-Cola

Company Plc as a study.

1.2.2    Main objective of the study

1.   To  prove  that  poor  attitude  to  work  affects  the  organization  performance  of  an organization.

2.   To show that poor customer service affects the performance of an organization.

3.   To ascertain whether poor corporate social responsibility affects the performance of an organization.

4.   To show how poor morale value can lead to low performance of an organization.

1.3 RESEARCH QUESTIONS

1.   To  what  extend  does  poor  attitude  to  work  which  is  an  ethical  problem  affect organizational performance?

2.   How does poor customer service affect organizational performance?

3.   To what extend  does poor  corporate  social responsibility  influence  organizational performance?

4.   To  what  extend  does  poor  morale  value  which  is  an  ethical  problem   affect organizational performance?

1.4 RESEARCH HYPOTHESIS

Ho1   There  is evidence  to  show  that  poor  attitude  to  work can  affect  the  organizational performance of an organization.

Ho2  There is proof to show that poor customer service is an ethical problem and can affect the performance of an organization.

Ho3 There is evidence to proof that poor corporate social responsibility is an ethical problem and can affect the performance of an organization.

Ho4  There is evidence to show that poor morale value can affect the performance  of  an organization.

1.5 SIGNIFICANCE OF THE STUDY

This study will be relevant to the following:

I.     The findings of this study will enable management of organizations to appreciate the need of proper ethics as a means of improving their organizational performance.

II.      This study reveals how ethics affects organizational performance.

III.      It will also enhance government, private sector and general public participation and contribution in addressing ethics and its effect on organizational performance.

IV.      This study will help to boost the economy of the country by encouraging proper work and business ethics among employers and employees of an organization.

V.      The study will help me contribute my own views and idea on effects of ethics on organizational performance.

VI.      The study will be of immense help to other people and students who wish to cary out other research in the field or related field.

1.7 SCOPE OF THE STUDY

This study shall cover the effect  of ethics on organizational  performance  as it relates  to management, of Nigeria Bottling Company (NBC) “Coca-Cola” 9th mile corner Enugu.

1.8 LIMITATIONS OF STUDY

Financial constraint. Time constraint.

Poor attitude of the respondents.

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