Business Ethics and Organisational Performance of Selected Manufacturing Small and Medium Enterprises in South-West States, Nigeria

Abstract

The study focused on the effect of Business Ethics on organisational Performance of Selected Manufacturing Small and medium Entreprises in South-West States, Nigeria. The specific objectives were to examine the effect of Integrity, accountability and fairness on organisational performance of selected manufacturing small and medium enterprises in South-West States, Nigeria. The study utilised primary data through structured questionnaire. The study adopted a descriptive survey research design. The population of the study comprises all registered manufacturing SMEs in selected South-West States of Nigeria (Lagos, Ogun, and Oyo States). The sample size was determined using Taro Yamane’s statistical formula to arrive at 384 respondents. Stratified sampling was used to draw the sample. Items are measured using a five point Likert scale ranging from strongly agree to strongly disagree. Content and face validity was utilized to measure the research instrument. The reliability of the instrument was tested using Cronbach’s Alpha coefficient. Data was tested using multiple regression analysis to determine the effect of business ethics on organizational performance of SMEs. It was revealed that integrity, accountability, fairness has significant effect on organizational performance of selected manufacturing small and medium enterprises in South-West States, Nigeria. The study concluded based on the findings. The study recommended as follows: Manufacturing SMEs should establish and enforce ethical codes of conduct that promote integrity, honesty, and transparency in all business operations to improve organizational trust and reputation. SME managers should strengthen accountability through effective internal control systems, regular auditing, and proper monitoring mechanisms to reduce fraud and improve operational efficiency. Organizations should ensure fairness in employee treatment, promotion, compensation, and customer relations to enhance employee commitment, customer satisfaction, and organizationalproductivity.