CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
Over the years the term ethical practices in organizational performance has been associated with management scholars and business headers around the world. There is a broad agreement around the word that as a matter of corporate policy, every organization strives to be committed in a manner that is ethically transparent. Stember of (200) argue that ethical practices in the world of organization’s business involve ordinary decency, which encompasses such are as are integrity, honesty and fairness. Behaving in an ethical manner is seem as part of social responsibility of organization which itself depends on the philosophy that organization aught to impact the society in ways that goes beyond the usual profit maximization objective (Adenubi, 2000). 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. 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 individual and group of people (legan, 2000).
Therefore for an organization to move forward in to the aspect of performance, it is however important for such as organization to have a good understanding of ethical practices and also take it serious as this can undermine the competitive strength of the organization and the society at large.
Morals spring virtually from every decision thus organization stability and survival depends on the consistently of quality of ethical decision made by managers. managers and challenged and encouraged to have obligation on organization performance and society at large, to support and assist the society to imbibe the ethical culture in which there was the interest of everyone (coladunni 2000).
In recent times, most organizations have come up with codes of ethics in dealing with ethical issues challenging them. Institute of the management is a set of moral principle used by organization to steer conduct of the organization itself and the employee in all their business activities both internally and externally. According to cole (2001) codes are opposed to straight forward policy, have advantage of provide explicitly audience on key moral issues that might arise during the course of organization activities. Business climate refers to general economic environment comprising of attitude of government and lending institutions forwards business and business activity attitude of labour union toward employees the climate of business is ever changing and ever evolving such that the on permanent thing about the business climate or environment is change (Okafor 2002). By business climate or environment, we refer to all the persons groups, forces, actions or their agents whose actions directly or indirectly affect the operation of any organization (Okafor 2002). Environment is very important when dong business since business is not operated in vacuum. The business and environment affect each other. This could be positive or negative. No matter the direction in which the organization is effected the environment of business should not be neglected if the organization wants to succeed. Moreover, the environment of business is dynamic in nature and this dynamism will put the business management to be on the lookout in order to checkmate the movement
1.2 Statement of the problem
Many modern organizations are faced with numerous challenges such as illegal and unethical behavior in a number of business transactions. Managers are also faced with the challenge of evaluating the effect of this critical behavior on the performance of their organization. Again many business manager operate their activities today, without been interest of bothering weather their actions are right or wrong and the extent of employees understanding of the term ethical practices while the level of compliance is highly infinitesimal, (Oladunni, 2002). The ways Nigerian society cares little about the source of wealth tend to makes some of these business operators to begin to wonder about the necessity of ethical practices in an organization.
1.3 OBJECTIVES OF THE STUDY
The objective of this study is to investigate the importance of ethical practices and social responsibility in organization for effective business climate in Rivers State. Specially, the study in design to find out:
- To determine whether organization are ethically and society responsible
- To identify if unethical behaviour has effect on organizational performance.
- To determine organization benefits from being ethically and social responsible.
