Code of Ethics Project
Code of Ethics Project
CERTIFICATION
The undersigned certifies that he read and hereby recommended for acceptance by
The Open University of Uasin Gishu this research titled; “An Assessment on the
…………………………………
(Supervisor)
……………………………….
Date
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COPYRIGHT
recording or otherwise without prior written permission of the author or the Ol’lessos
DECLARATION
I, do hereby declare that this Research report paper is my own original work where
cited and that has never been submitted for a similar higher degree award in any
other College
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Signature
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Date
v
DEDICATION
to accomplish this level of education. May the Almighty God bless them forever and
ever, Amen!
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ABSTRACT
organization performance. For quite some time now, public organizations have been
viewed as a liability to the tax payers rather than an asset. This is because of low
regulations and procedures, weak control and corruption have been observed as
failed to comply with 81% of the set performance targets. Major failures were
observed in the areas of water losses, collection efficiency, and water pressure to
employees create a question as to whether the two have any related impact on each
analysis which were flexible as well as sensitive to the social context. Data were
System (SPSS) version 16. The study revealed that there was a significant
relationship was significant in unCode of ethics which results into poor performance
interplay of variables and that employee’s Code of ethics conduct plays a role in
organization performance but is not the major role. On the basis of the findings, it is
ACKNOWLEDGEMENTS
I thank the Almighty God for enabling me to finish this study. I am greatly indebted
dissertation at their organization. I sincerely thank all workers for their support to me
always keep encouraging and offering their supports the whole time of my study.
These thanks should also go to my wife Neema Mmari, my father Samson Msanze
research.
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TABLE OF CONTENTS
CERTIFICATION.......................................................................................................ii
COPYRIGHT..............................................................................................................iii
DECLARATION........................................................................................................iv
DEDICATION..............................................................................................................v
ABSTRACT................................................................................................................ vi
AKNOWLEDMENTS.........................................................................................................vii
LIST OF TABLES.....................................................................................................xii
LIST OF FIGURES..................................................................................................xiii
CHAPTER ONE.......................................................................................................... 1
1.0 INTRODUCTION.............................................................................................1
CHAPTER TWO......................................................................................................... 6
2.1 Introduction.........................................................................................................6
2.2.1 Ethics...................................................................................................................6
CHAPTER THREE...................................................................................................21
3.1 Introduction.......................................................................................................21
3.4.2. Interview............................................................................................................ 27
CHAPTER FOUR......................................................................................................33
4.1 Introduction.......................................................................................................33
Other Variables................................................................................................. 40
Other Variables................................................................................................. 41
Other Variables................................................................................................. 41
variables............................................................................................................ 42
Performance...................................................................................................... 43
Organizational Performance............................................................................. 44
4.5 Discussion......................................................................................................... 46
CHAPTER FIVE....................................................................................................... 51
5.1 Introduction.......................................................................................................51
Performance...................................................................................................... 52
Organization......................................................................................................52
5.3 Conclusion.........................................................................................................53
5.4 Recommendations............................................................................................. 54
REFERENCES...........................................................................................................58
APPENDIX.................................................................................................................58
xii
LIST OF TABLES
Performance 44
LIST OF FIGURES
HQ - Headquarters
CHAPTER ONE
1.0 INTRODUCTION
Employees’ Code of ethics in organizations are not new concepts issues and makes
most of the newspaper headlines over and over again. Steinberg (1994) argued that
Geetu (2003) reveals that organization cannot ignore ethics. Indeed for some ethics
has been added to their corporate values. But help is needed by organization to
integrate Code of ethics practices and competencies, but initially this requires an
organization objectives.
This has influenced the formulation of formal code of ethics which regulate
employee’s Code of ethics , Peters and Waterman (1982) as cited by Lok (1999). It
has been observed that more than 85 percent of organizations have developed and
of their respective employees, Rossy (2011). Suggestions show that the existence of
experience shows that these formal codes are often undermined by the adherence to
informal codes known as norms which are characterized mainly by isolation and
The increased pressure from stakeholders such as consumers, investors and the
way can no longer be ignored. Today investors’ concern on Code of ethics of those
who run organizations has greatly increased. Regular disclosures that directors and
executives behave unCode of ethics reflect badly on the corporate sector as a vehicle
organizations are extremely increasing their frequency. Anand et al. (2004) stipulates
Crossing, Parmalat and how they height attention to the urgent need for corporate
However, ethics programs are done to stimulate Code of ethics in organizations and
this study has been stimulated first by the magnitude of the widespread criticisms
different public organizations which brought the need for behavior change.
3
For quite some time now public organizations have been viewed as a liability to the
tax payers rather than an asset. This is because of low productivity, erosion of work
control and corruption have been observed as common features in their services,
behavior causes massive costs to organization. Several studies have shown that
organization with illegal records have not only been forced to pay for investigations
and fines but have also suffered significant stock price decline and report, on
average, lower profitability rates than their law-abiding counterparts. In fact, many
have experienced sharp sales drops, higher equity costs and severe damage to their
Water Utilities Performance Report (2010/11) ELWASCO has failed to comply with
81% of the set performance targets. Major failures were observed in the areas of
water losses, collection efficiency, and water pressure to customers. For the targets
complied by 53% and the major failure was on increasing the number of service
hours.
ELWASCO Technical Report (2010) explores how most of illegal and unethical of
Code of ethics by respective employees create a question as to whether the two have
any related impact on each other despite the provision of the necessary facilities, and
training on Code of ethics employees has not yet raises awareness of its existence
among individuals. Outside its implementers, very little is known about its
availability and capabilities even in reputable organizations where it has been set up.
Although all the efforts in enhancing Code of ethics behavior has been done very
little is known.
This study therefore intends to assess the Code of ethics of employees and its
The objective of this research was to investigate on the Effects of employees Code of
performance.
organization performance.
organization.
5
This study used the alternative hypothesis where by the researcher predicted that,
there was a significant association between employees’ unCode of ethics and poor
ethics.
i. Are the employees aware and being able to describe organization Code of
ethics behavior?
ii. What factors will improve employees Code of ethics to the service delivery?
This study is vital and useful to the government, private and public organizations in
Uasin Gishu to evaluate their organizational performance within the context of their
institutions and see how they are affected by employees’ Code of ethics . The study
performances and trace how they are affected by employees’ Code of ethics .
However, this study will be another reference to scholars and researcher who intends
CHAPTER TWO
2.1 Introduction
This chapter attempts to bring out other researches which are directly or generally
literature review, empirical review, policy review, research gap and conceptual and
2.2.1 Ethics
Ethics can be defined as the art and discipline of applying principles and frameworks
According to Trevino (2001) ethics are moral principles that explain what is right or
Candy (2005) defines ethics as the system of rules that govern the ordering of values.
To sum-up the above definitions, ethics can be defined as standards of morality that
dealing with each other. Ethics involves some hard features, like duties and rights
(most of them legal), that are mandatory for all and soft components, like values,
aspirations or best practices that are desirable but not compulsory and can vary from
This comprises the actual output or results of an organization as measured against its
achieve those outcomes, carrying out those plans, and determining whether the
Three psychosocial theories of human behavior support the notion that external and
themselves in unCode of ethics , Baehr et al. (1993).The theories reviewed are: (a)
the Employee Risk Triangle Theory, (b) the Stress Facilitation Theory, and (c) the
performance and the risk of unCode of ethics employee were discussed below.
8
This model identifies three forces which act on an employee’s propensity to engage
in unCode of ethics . The three forces are Need, Opportunity, and Attitude.
Report (2010), this theory has greatly contribution to this study and provides a
components and does not provide as to whether there are other forces apart from
these attitudinal forces that may affects employee’s Code of ethics in the
organization.
This theory traces on the influence of social stress as a catalyst for employees to
response. Employees who endorse dishonest attitudes toward theft are reliably more
likely to steal at work than job candidates and employees who endorse intolerant and
punitive attitudes toward theft Travers and Cooper (1996). Moreover, distressed
9
stressed employees. Therefore, organizations that screened their workforces with pre-
employment ethics and integrity tests should be more immune from the impact of the
stress caused by a tough economy compared to organizations that did not screen their
employees for integrity and ethics attitudes. This theory has the relating goals but this
study.
neighborhood can, in a causal fashion, lead to other broken social norms and
resultant delinquent behaviors Keizer, and Lindenberg (2008). This theory relate to
this study on the facts that it assess the social forces that may affects the Code of
ethics of employees as they interact with one another in the course of providing their
services.
However, the theory does not provide the resultant of the affected Code of ethics
and how they relate to the performance of an organization. This study will critical
make an assessment as to how the external and internal social phenomenon can
Many organizations in Uasin Gishu operate under Code of ethics behavior whether
formally or informally, many of these aspire to comply with externally enforced for
ethics but actually endeavor to make ethics as a part of business as usual. More often
than not the aim of Code of ethics behavior is to integrate ethics in all aspects of
seconds, while great efforts, consistency and time are required to build it up again.
The message comes across quite clearly, Code of ethics values play significance role
for organization. They can account for true competitive advantages, and their
absence can threaten organizational growth and impair its survival whether an
Organizations should set ethics programs which are set of activities, policies and
procedures intended to support employees to understand and comply with the Code
of ethics standards and policies set by the organization. Programs comprise various
elements designed to prevent misconduct, defined as “behavior that violates the law
strong ethics programs report improvements in Code of ethics conduct, and programs
have a positive effect on employee behavior, Code of ethics attitudes and corporate
It is likely that each element has certain impact on employees' attitudes and conduct,
but the manner and extent of this impact may vary. Proenca (2004) suggested
11
audit system, and dedicated ethics telephone hotlines. Ethics programme begins with
viewed as Code of ethics behavior. Schwartz (2004) found that ethics codes
understand the Code of ethics goals and values of the organization, increase their
ability to deal with Code of ethics issues Proenca, (2004), and encourage Code of
coordinate ethics and compliance policies and oversee the Code of ethics conduct of
reporting workplace mis Schwartz (2004). The fifth element disciplining of violators
and is linked with the last element, evaluation of an employee's Code of ethics
performance.
behavior Baucus and Beck-Dudley (2005), and many organizations include ethics in
their performance appraisals Petry and Tietz, (1992). One way of improving
Targets and deadlines are a normal part of performance setting for managers at all
12
achievement of goals set, the temptation to ‘cut corners’ can be difficult to resist.
Problems arise when management sets targets for cost cutting, output expansion and
sales that are not discussed with those responsible for achieving them. This focus on
the short term can severely undermine Code of ethics behavior. The pressure on
listed companies to report results on a quarterly basis tends to irritate the problem.
More often than not, discussions about ethics in any organizations reflect mostly on
responsible for his or her own behavior, and any efforts to change that behavior
The Water Utilities Performance Report 2011/12 vividly stipulates how individual
employees and many of those retrenched in 2007 are thought to be earning money
this way today. Water bill embezzlement and excessive charging also continue to be
reported.
the corporate moral responsibility. Here individuals are viewed not in isolation, but
as members of communities that are partially responsible for the behavior of their
This can be assessed by reflecting society perception over ELWASCO Code of ethics
complaints that are being issued in public. According to the Water Utilities
offer adequate salaries and more motivating working conditions fuels is another
Code of ethics standard by both individuals and the corporate at large. It is the
intention of this study to come out with findings as to whether Code of ethics of
The performance of ELWASCO has not been such encouraging for the past three
consecutive years. The Water Utilities Performance Report 2011/12 gives details on
how ELWASCO has failed to comply with 81% of the targets subjected to financial
penalties for noncompliance. Major failures were observed in the areas of water
For the targets that are not subjected to financial penalty upon non-compliance,
ELWASCO complied by 53% and the major failure was on increasing the number of
service hours.
14
It is the intention of this research to come out with findings as to whether this poor
In the research done by McManus and White (2011) which dealt with the challenges
processes, the research was based on a survey of issues and the literature published in
Europe, North America and Asia the finding indicated a definite gap between the
corporations. Given the decline in business ethics and recent corporate scandals it is
proposed that ethics be brought back to the forefront of strategic management and
integrated
into the strategic management process. The recommendation of the study was that,
the strategic decisions of any large scale economic enterprise in a competitive global
managers to distribute benefits and allocate those harms among stakeholders of their
company.
Some firms do this arbitrary when or if done in a more thoughtful manner the Code
of ethics principle offer the only form of analysis that is capable. From academic
perspective evidence that suggest commitment to the future of a firm will ensure
efforts that are both cooperative and innovative. Looking to the future one can see
In the study done in Singapore by Chye (2004) titled “Organizational Ethics and
ethics and organizational outcomes based on justice theory and re-cognitive and
dissonance theory. The sample data were delivered from questionnaire survey of 237
managers in Singapore. The results obtained from decision trees indicate that
organizational outcomes.
Further the results indicate there is significant and positive links between Code of
ethics behavior and career success within the organization and job satisfaction also
the findings reveal that there is association between ethics and organizational
ethics behavior and the association between Code of ethics behavior and career
working on these variables, top management can enhance job satisfaction and
organizational commitment among employees and in the work place. The current
findings suggest that organizational ethics can help enhance job satisfaction and
organizational commitment.
The above implication of the findings is that organizational ethics can be expected to
be associated with organizational performance. This study has also the relating goals
but this phenomenon was tested in public organizations whereby ELWASCO was the
case study. In the paper done in Nigeria by Kehinde (2010) titled, "Effects of Code of
modern organizations are today faced with numerous challenges such as illegal and
how Code of ethics may affect the of employees when they are properly set and
adhered. The paper uses a quantitative method with two hypotheses stated in the null
form. Findings revealed that Code of ethics behavior has effects on the operations of
an organization and that good Code of ethics behavior has a positive correlation with
highly useful. This paper reflects the theme of this study on the facts that it explores
In the study done in Korea by Yang and Grunig (2005) which titled “Decomposing
indirect effect via the mediation of cognitive representations of the organization. The
validate the model across different types of organizations. The findings of this study
have their own motives which can be changed through the executive function to
match the goals of the organization. If the individual and organization goals match
accept orders from authority without questioning if the following conditions were
with personal interest and mental and physical ability to comply. Bernard also
promote the securing of essential personal efforts and to formulate and define the
The decisions of managers have great impact in the society, so they have to make
decisions that shape the economy, the society, and the lives of individuals within it
In the study done in London by Rita (1995), which based on detailed observation and
development of employee involvement programs. The study revealed that 85 per cent
felt that quality was a high priority for their firm. The participating population is
therefore in firms which had already introduced quality programs. There was
therefore a useful differentiation between mature quality programs, those which were
develop Total quality management (TQM). It was the focus of this study to reflect
organizations in Uasin Gishu particularly ELWASCO and to come out with findings.
and a small, family-owned engineering firm) and see to what extent they had
developed a culture that was both Code of ethicsly and socially responsive. The
organizations and by detailed analysis of the documents which related to this study.
The findings revealed that the Navy has a set of values which overlap with the more
general values of the Department of Defence. The Western Australian Police Service
has an approach to developing an Code of ethics corporate culture which includes the
establishment of a dedicated unit, and running discussion groups and seminars. The
Three conditions were essential for developing an Code of ethics corporate culture,
these are; CEOs were ultimately responsible for the Code of ethicsity of their
There are numerous recent researchers who suggest on the relationship between
continued illegal behavior. And this study therefore intends to study whether the
same relationship exist in Uasin Gishu and how these two variables affects each
study.
The figure below was developed to attempt to explain the impact of employees Code
INDEPENDENT
VARIABLES
In inputs the organization has expectations from each individuals basing on the set
performance indicators and targets, and predicts the that will advance its operations.
The employee Code of ethics means adhered to integrity of the human conduct and
this will facilitate organization to realize positive performance. Under this scenario
there is the direct link between Code of ethics behavior and the performance of
organization. If the employee is unCode of ethics it means does not follow standards
In actions corporate leaderships are impacted upon by the general environment of the
organization in which they operate. Each culture is a product of its unique values,
beliefs and rules of behaviors and has a particular leadership culture and a set of
In output the interaction of societal expectations and the way that a corporate
If the individual and organization goals match and corporation is achieved the system
with purpose of organization, compatibility with personal interest and mental and
CHAPTER THREE
3.1 Introduction
Researchers have different beliefs and ways of viewing and interacting with the
surroundings which makes research studies to vary. However, there are certain
common standards and rules that guide a researcher’s actions and beliefs. Such
about the ways and methods that a researcher used to collect data, processing and
approach, strategies and time line), the survey population, area of the research, the
sampling and design and variable measurement. It discussed the research design and
activities undertaken during this study, the data collection activities and associated
and Roberts (2007). These are patterns of beliefs and practices that regulate inquiry
investigation is accomplished.
beliefs that there was direct link between employees’ Code of ethics conduct and
Organization performance.
Due to the complex nature of the research study, there was no single paradigm that
could satisfactorily deal with all of the required methodological aspects. Therefore,
provided the researcher with the ability to statistically analyze the scientific data
whilst also recognizing the complex psychosocial and emotional factors that
This study utilized a triangulation approach to explore and guide the development
both the qualitative and quantitative methodologies was necessary to encompass the
different aspects of Code of ethics and unCode of ethics behavior. In order to address
the diversity and complexity of such employee’s behavior a mixed methodology was
necessary.
The qualitative methodology shares its philosophical foundation with the interpretive
paradigm which supports the view that there are many truths and multiple realities.
approaches that provide an opportunity for the voice, concerns and practices of
In order to gain different perspectives and draw attention to different factors that
words, descriptive research deals with questions that look to explain what things are
like and describe relationships but do not predict relationships between variables or
the direction of the relationship. In this descriptive study, qualitative and quantitative
data collection techniques were used including; semi-structured interviews, pre and
In this study, semi-structured interviews were incorporated into the study design
because the researcher believed that open ended questions would be the most
efficient way to collect data from stakeholder participants. The researcher also
This study was conducted in one of the public organization located in Dar-es- Salaam
at ELWASCO (Magomeni branch). The choice of this study area was due to major
failures which were observed in the areas of water losses, collection efficiency, and
24
water pressure to customers. Also I selected the place because it was easy to access
some data which were relevant to my area of research. Also Magomeni branch is
located at the city center so it provides useful data for the study since it act as a hub
The population was heterogeneous, there were senior, junior and other employees,
and their Code of ethics behaviors differ across. In addition their education status
was good and reasonable and thus proved their ability to understand and respond to
The population for this study was the employees at ELWASCO Magomeni branch
in which systematic sampling was involved. After identified the desired participants,
25
flexible as well as sensitive to the social content. Relevant data for this study was
from two major sources namely primary and secondary sources of data.
Apart from socio-economic characteristics of the survey participants the primary data
variables of interest include direct information from ELWASCO employees and this
The questionnaire used structured questions, consisting six questions and all
questions were structured (close-ended) type and respondents were asked to mark the
appropriate box matching the correct answer. I issued questionnaires to all senior,
junior and other employees so as to avoid any kind of bias in conducting this study
In order to ensure accuracy in the findings the researcher also employed the use of
other secondary sources such as journals, reports, books and other authorized
materials that are supportive to this study so as to enhance the researcher to get right
information.
3.4.2.1 Questionnaire
The questionnaires were to be used to assess the impact of employee’s Code of ethics
a way that the respondent answered the questions with a better guide that the data
obtained was easy to process and analyze. Also I used one open ended question to
3.4.2. Interview
Interviews are set of questions that are normally asked to the responded and are
subject to change depending on the comfort of the responded. Saunders et al. (2012).
The interviews took place at a location within the work place of the participants and
respected the participant’s wishes and took plentiful shorthand notes instead.
Occasionally the researcher was required to ask the participant to repeat some
information as the researcher did not want to write down information erroneously.
collection efficiency, and water pressure to customers what do you think was
Data analysis was based on respondent’s answers. Data analysis involved coding,
quantitative data were collected. Uses of tables and charts were employed for
information in this research also was organized according to the way they emerged.
present the respondents views and opinions. The use of the computer software known
The analysis was guided by the study objectives and it involved the use of
quantitative methods of data analysis due to the nature of the data that was collected
(Kombo and Tromp 2006). The quantitative analysis in this study was conducted
correlation and chart bar was used to obtain the variability and central tendencies of
to the degree that the instrument measures what it claims to measure DeVaus (2002).
29
There are three basic ways in which to assess the validity of an instrument; criterion,
content and construct validity. The most concern was on was whether the
employee’s Code of ethics knowledge which was what the researcher intended to
assess. To tackle the issues of content validity, the researcher approached experts to
In order to address the reliability of data, the test re-test method of reliability testing
was used. Researcher issued six questionnaires to experienced participants after four
weeks again. The respond from both questionnaires were evaluated and the tool
assessed for consistency and reliability of answers, only one participant loosed
test scores is expressed by a Pearson correlation coefficient (r) and the value which
provided support regarding the tool’s stability as an “r” equal or greater than 0.7 is
variety of topics involving scientific research. There were many Code of ethics issues
to be taken into serious consideration for research. There was a duty to protect the
rights of people in the study as well as their privacy and sensitivity. In this research
ethics was highly considered in constructing interview questions and during the time
to
30
was conducted. That means the researcher was open by introducing the aim of this
research to the respondents before they started to fill the questionnaires and before
of respondents was respected this is because the researcher assured the respondents
when they provided the information for this research, that the information they
The participants involved in a voluntary way, free from any coercion. This was
because they were given time to respond to questions free. Moreover, the dignity of
The design of the study was casual/effect. This is because it dealt with the study of
performance) in which one variable cause effect on another. In this study the
independent variable was employees’ Code of ethics and dependent variable was
organizational performances.
It was necessary for the researcher to review policy and procedure manual review
because employees are accountable for, practicing under all items discussed within
31
individual area policy and procedure manuals as well as the more general
organization wide policies. The focus of each review was to evaluate the policy and
procedure manuals for any Code of ethics related issues. Each Code of ethics related
policy was examined for the inclusion of conduct guidelines and legal implications of
guidelines. Some of the guides during the policy and procedure review were
mandatory reporting laws, evidence storage and the chain of custody and
documentation guidelines.
From 1990s to date the government of Uasin Gishu has been implementing different
the reforms are public service reform programs (PSRP) I and II, establishment of the
code of ethics and conduct for public service of 2005, and the enactment of the public
management in Uasin Gishu still faces a number of challenges, such as: ethics is
perceived as a personal, ineffective, religious stuff, which could not be enforced and
it is not pertinent to work, information asymmetry, whereby the public is not well
informed on Code of ethics issues, and lack of mechanism at the goodness of making
development and public administration” a case study of Uasin Gishu. The modern
democratic state in all its forms is the current bedrock of public leadership. The
32
attributes of such leadership can only be grasped by understanding the design of the
modern state. However in Uasin Gishu ethics management was aimed in enhancing
CHAPTER FOUR
4.1 Introduction
This chapter presents research findings as analyzed from the data collected. For the
purpose of simplifying the analysis and presentation of the findings, the analysis
have been done take into account the research questions that were to be answered to
meet the need of each research objective, and the results of the findings have been
presented in the manner that is logical and based on research objectives. Finally the
results have been used for discussion and recommend what needs to be done as the
way forward.
On the basis of the results control, age and sex variables were treated as covariate to
I decided to group age into three groups, group one was the age below 30 who I
believed to be newly employees with different views as well as fresh blood from
schools (graduates). The second group was between 31 -45 years who were
employees with a lot of expectations, experience and highly need to achieve from job
and employees above 40 years who were participants with a lot of experience with
job satisfaction and highly committed to the job, in order to evaluate perception
according to the age factor also age and sex was necessary to see how people of
different age and sex responded in terms of ethics and their result were as follows;
34
The figure 4:1 (Below) summarized the demographic profile of the respondents. It
revealed that employees with the age below 30 were eight male and 17 female which
make a total of 25. At the age range 31 – 45 years there were eight male and nine
female which make a total number of 17 employees. Those with the age of above 45
were only eight female. This makes the total of 16 male and 34 female. The useful
these two variables show that respondent’s opinion varies with age and sex as 95
percent of the respondents who were above 45 years suggested that the organization
should revise organization ethics policy in order to enhance its performance. Also the
From the figure 4:2 below, 25 employees (50%) of the total population, with the age
below 30 agreed that organization treat Code of ethics conduct as a serious matter,
eight employees (16%) between (31 - 45) years strong agreed and nine employees
(18%) agreed that they are aware on Code of ethics behavior. And eight employees
On the other side nine employees (18%) with the age below 30 agreed that
other side eight employees (16%) were not able to describe it at all and another eight
36
employees (16%) disagreed. Eight employees (16%) with the age range (31 - 45)
strong agreed and nine employees (18%) agreed on that organization gives positive
support on Code of ethics policies adherence. And eight employees (16%) agreed on
that organization gives positive support on Code of ethics policies adherence (Figure
4.4) below.
Nine employees (18%) with the age below 30 agreed that changes of employees’
Code of ethics conduct will affect organization performance, on the other side eight
employees (16%) agreed and another eight (16%) were not able to describe it at all.
Also 17 employees (34%) with the age range (31 - 45) agreed and eight employees
(16%) with the age above 45 years agreed that changes of employees’ Code of ethics
Figure 4:5 (below) reveals that 17 employees (34%) with the age below 30 agreed
that Code of ethics has impact on organization performance, and eight employees
(16%) disagreed on that. Eight employees (16%) with the age between 31-45 agreed,
and nine (18%) disagreed. Eight employees (16%) with the age above 40 were not
There are several methods of determining the relationship between variables, the
following were analyzed; does there exist association or correlation between the two
or more variables? If yes of what degree? another is if there is any cause and effect
relationship between the two variables in case of the bivariate population or between
one variable on one side and two or more variable on the other in case of multivariate
Karl Pearson's coefficient of correlation (r) was used to measure the degree of
relationship between the variable. The value of r lies between ±1. Positive value of r
39
association between the two variables. Where r = (+) 1, it indicates perfect positive
Table 4:1 reveals that there was a significant positive relationship between age and
correlation coefficient (r ) was = 0.383 and positive relation between age and the
Extending the relationship to other variable apart from above, the results show that
there was a slightly weaker positive relationship between age and gender since r =
0.149, but a bit stronger than that of age and employees Code of ethics behavior in
Table 4:2 reveals that there was a significant strong positive relationship between
as the correlation coefficient (r ) was = 0.606 and positive relation between age and
coefficient (r ) was = 0.541, the relationship was, however weak (negative) between
as the correlation coefficient (r ) was = -0.133, but a bit stronger than that of gender
furthermore, correlating was observed that r= -0.024 which is still a weak negative
relationship. Extending the relationship to other variable apart from above variables,
the results show that there is a slightly weaker positive relationship between gender
The research question tried to examine the level of awareness on employee Code of
ethics conduct to organization performance and the results reveals that (Table 4:3),
coefficient (r) was = 0.606 and positive relation with age as the correlation
awareness and age, the results show that there was a slightly positive relationship
between the
41
ethics conduct description, since r = 0.305. On the other hand there was no
Table 4:1 reveals that there was a positive relationship between the adequacy of
employee’s Code of ethics conduct as the correlation coefficient (r) was = 0.308 and
slight positive relation with awareness on Code of ethics conduct as the correlation
coefficient (r) was = 0.305, the relationship was, however, significant negative with
Table 4:1 reveals that there was a significant positive relationship between
impact on Code of ethics conduct as the correlation coefficient (r) was = 0.690 and
positive relation with organization gives positive support on Code of ethics policies
as the correlation coefficient (r) was = 0.308 On the other hand there was no
other variables
Table 4.1 reveals that there was a significant positive relationship between the
employees’ Code of ethics as the correlation coefficient (r ) was = 0.690 and also the
correlation was significant positive with gender as the correlation coefficient (r) was
= 0.541, however the relationship was, positive with age which was = 374.
Performance
The information obtained from the data gathered reveal that eight employees (16%)
were strongly agreed that they are aware on the relationship between employees
On the other hand eight employees (16%) were not able to describe it at all. (Table
Valid Cumulative
Frequency Percent
Percent Percent
Strong agree 8 16 16 16
Agree 34 68 68 84
Valid Neither agree
8 16 16 100
nor Disagree
Performance
Since the information obtained shows that there are eight employees (16%) who
strongly agreed that organization give positive support in enhancing the awareness of
its Code of ethics policies to its employees, 26 employees (52%) agreed on that. On
the other side eight employees (16%) were neither agreed nor disagreed while
another
44
eight employees (16%) disagreed, this suggests that, such knowledge and skills have
Performance
Valid Cumulative
Frequency Percent
Percent Percent
Strong
8 16 16 16
agree
Agree 26 52 52 68
Neither
Valid agree nor 8 16 16 84
Disagree
Disagree 8 16 16 100
Table 4:4 below shows that nine respondents (18%) strong agreed and 33
respondents (66%) agreed if efforts are made to change employee’s Code of ethics it
will affect the performance of organization. Only eight respondents (16%) were not
able to describe it at all. This implies that a total number of respondents suggested
Apart from the situation revealed respondents suggested the strategies to be taken in
Valid Cumulative
Frequency Percent
Percent Percent
Strong agree 9 18 18 18
Agree 33 66 66 84
Table 4.5 below shows that 34 % of the respondents strong agreed that Code of
agreed on that. On the other side 16% were not able to describe it at all, while 34%
disagreed. While others have different views on this, such different view could also
be attributed to lack of knowledge and skills that challenge their perception of the
Valid Cumulative
Frequency Percent
Percent Percent
Strong agree 17 34 34 34
Agree 8 16 16 50
Neither agree nor
Valid 8 16 16 66
Disagree
Disagree 17 34 34 100
Total 50 100 100
Source: Researcher (2013)
46
4.5 Discussion
This Study intended to ascertain whether employees Code of ethics has Effects to
organization performance. It has been found that there was a significant positive
performance and a positive weak relationship in other variables. In contrast, when the
relationship was narrowed down to the streams that make up the studied group the
relationship was realized to be greater in unCode of ethics behavior stream than Code
of ethics behavior Research revealed that there was a weak positive relationship
between employee’s Code of ethics and organization performance and that this weak
relationship cannot be ignored in Code of ethics for it is significant at 0.01 levels and
other stakeholders.
The same result was obtained in the study done in Singapore by Chye (2004) the
results indicated there was significant and positive links between Code of ethics
behavior and career success within the organization and job satisfaction also the
commitment.
It is evident from the study that employees’ Code of ethics plays a role but not a
major and dominant role in organization success, and if management would improve
successful in its performance. The same results obtained in the research which was
done in Australia by Michael, (2005) that three conditions were essential for
CEOs were ultimately responsible for the Code of ethicsity of their organizations;
formal training programs were necessary to impart the required knowledge; and
Nevertheless, the positive relationship observed from the study means that the
increase of one variable leads to an increase in the other. In a way, it is like saying
because of the realized connection between these variables, although the connection
is not strong because the non-Code of ethics factors seem to relate or to correlate
Data from interviewed participant revealed that 85 percent said that major failure
were result of poor ethics management strategy and 12 percent said failure in
In addition, the results from interviewed participants revealed that there is a positive
most of the interviewee blamed that individuals are unCode of ethics because the
management has failed to enhance proper system of manage Code of ethics . Also
interviewee revealed some of the senior leaders have been involved in corruption
scandal which resulted to that failure to comply with 81% of the set performance
targets. This implies that if organizations will put serious efforts to improve Code of
ethics
48
when dealing with each other better performance would be expected from the
organization. On the other hand, a weak positive relationship revealed from the study
shows that employees are unCode of ethics because of their weaknesses in ethics.
This is to say, the government should devote itself seriously to improve organization
reliable service provider, otherwise employee’s Code of ethics conduct will not be
remember that, even where the analysis would have shown a strong perfect
organization performance this would not justify, ELWASCO has revealed that
The findings of this study confirm previous research done in some other parts of the
world: USA, Europe, and West Africa to a little extent. The studies generally found a
positive correlation Chye, (2004); Kehinde, (2010) and in others a weak positive
correlation.
By and large, with regard to the developed assumption the findings of the study can
it has been realized that there is more positive correlation between Code of ethics
According to these findings, one could be made to believe that poor performance in
isolation and solidarity. Chye , (2004). Thus, unCode of ethics conduct was only one
several factors and not as how the public sees it, and a large number blame on Code
Basing on the study we can realize that organization performance can largely be
explained basing on factors other than unCode of ethics factors like governing
policy, economic factor and other control agencies. This implies that if organization
will put serious efforts to improve Code of ethics of employees’ better performance
would be expected.
It is obviously known that there is no way organization can deny that Code of ethics
that are taking place in the organization. The world for many years and Uasin Gishu
Basing on the study we can realize that poor performance of organization can largely
be explained basing on factors other than unCode of ethics behavior; factors like
weak foundations from recruitment, poor training and external factors. These
shortages,
50
together with many others help in explaining the prevailing poor performance in
CHAPTER FIVE
5.1 Introduction
this study report and experienced elements as recommendation for others who will be
ethics conduct and organization performance (r=0.308), but significant at 0.01 level.
Performance
The information obtained from the data gathered reveal that only 16 percent strongly
agreed that they were aware on the relationship between employees Code of ethics to
organization performance, and 68 percent agreed on that. Also the other hand 16
percent were not able to describe it at all. On the other hand during interview some
respondents (18 percent) shown that they were not aware on Code of ethics . This
reveals that some employees misbehaved because they lack awareness on Code of
ethics conduct, the organization should sensitize the awareness of Code of ethics in
Performance
From the data it shows that 18 percent strong agreed that changes in employee’s
attitude will fever organization performance, 66 percent agreed if efforts are made to
Only 16 percent were not able to describe it at all. This implies that a total number of
The results show that employee’s Code of ethics is in line with the organization’s
Organization
The findings shows that there were 16 percent who strongly agreed that organization
give positive support in enhancing the skills and knowledge on Code of ethics
conduct to its employees, while 52 percent agreed on that. On the other side 16
percent were neither agreed nor disagreed while another 16 percent disagreed, this
suggests that, such knowledge and skills have not been widely enhanced in the
organization.
From interviewed participants’ researcher found that some (32 percent) were not able
to describe organization Code of ethics policy, this shows that the management has
not well implement ethics policy skills among individuals. It is necessary to enhance
and
53
review Code of ethics skills and knowledge for better organization performance. On
the basis of the results and discussion, it is recommended that public organization
should adopt Code of ethics so that cultivated among the employees from the initial
5.3 Conclusion
the crucial part for the success of the organization to achieve its goals and objectives.
The study revealed that organization has great challenge concerning with Code of
ethics issues.
several variables and that employee’s Code of ethics conduct plays a role in
performance but not the major role. Employees thus may agree to be co-operative
and participate in Code of ethics conduct improvement programs. They may at some
stage become involved in these disciplines, thus giving more of themselves in terms
involvement.
Therefore, the study of employees’ Code of ethics contributes to the effort which in
one way or the other makes organization success. The strong relationship between
employees’ Code of ethics and organization performance are critical to achieve and
5.4 Recommendations
makers should set use of Code of ethics as priority towards improving organization
ethics so that the graduate professionals can acquire adequate knowledge, skills and
demonstrate the provision of the necessary facilities present and hence impart
knowledge to employees.
public institutions dealing with public services should also take a forefront role in
organization performance.
Basing on the study researcher can realize that organization performance can largely
be explained basing on factors other than Code of ethics factors, these are like
governing policy, economic factor and other control agencies. The field of
organization ethics
55
for ethics case consultation. Organization policies have the potential to influence the
rendered ineffective if the ethics code is inadequately designed. First, a code might
only encompass a narrow set of issues such as conflicts of interest, gifts and
compliance-based, simply consisting of a set of rules that the employees are expected
to follow, rather than values-based and providing guidance on how to handle Code of
ethics dilemmas. Lastly, the code might address employee behavior but not the
behavior of directors, and thus exclude the most important decision makers in the
organization.
Organizations should engage all employees, from the CEO down, in initial and
periodical update Code of Conduct training sessions that review internal and external
well advised to include these training contents as part of their regular executive
education programs, drive to ensure quality must expand to include all ethics
blower programs in the organization. Whistle blower programs have been central to
Despite significant whistle blowing incentives, few individuals blow the whistle
when presented with the opportunity. Instead individuals often remain fallaciously
control of their employers, to person or organization that may be able to affect action.
In recent years whistleblowers have been responsible for ending some of the largest
frauds such as WorldCom and Enron. Being Code of ethics sometimes requires
There are few limitations that were experienced during gathering of data and
information:
First, the researcher faced the problem of inadequate and unreliable data. In some
case data obtained were highly exaggerated due to reasons well known by the source
confidential.
Another problem was that some of the respondents were not ready to cooperate
especially in filling in the questionnaires; they feared that their information would be
disclosed to other people. Also the researcher did not get back all the questionnaires
that were distributed to the respondents. However, the responses received were
Although this study has shown the importance of employees Code of ethics for
organizational performance, it does have its limitations. Firstly this study has been
branch only; hence the findings and conclusions drawn from this research are
include more than one branch. Secondly it would be a fruitful research contribution
to compare the private and public sectors in terms of the incidence. Lastly, this study
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APPENDIX: Questionnaires
I am a student from The Open University of Uasin Gishu (OUT) pursuing a Master
making the study successful. Assurance is given that your personal information will
be handled confidentially.
Questions;
A. Between(18 -30)
B. Between(31-45)
C. 46 and Above
Male Female
1 2
3. Please read each statement or question carefully and circle one number which
best describes how does your organization regulates Code of ethics questions.
ethics ?
Strong Agree Agree Neither Agree Nor Disagree Disagree Strong Disagree
1 2 3 4 5
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organization performance?
Strong Agree Agree Neither Agree Nor Disagree Disagree Strong Disagree
1 2 3 4 5
Strong Agree Agree Neither Agree Nor Disagree Disagree Strong Disagree
1 2 3 4 5
organization performance..................................................................................
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