Academic Journal
Business Ethics and Organisational Performance: The Mediating Role of Working Conditions.
| Title: | Business Ethics and Organisational Performance: The Mediating Role of Working Conditions. |
|---|---|
| Authors: | Gorfie, Girma Tadesse1 geremewscholar2014@gmail.com, Wube, Mulugeta Chane2 mulechane2003@gmail.com |
| Source: | African Journal of Business & Economic Research. Dec2023, Vol. 18 Issue 4, p391-413. 23p. |
| Abstract: | Purpose: This study is intended to explain the relationship between business ethics and organizational performance in the manufacturing sectors of the Amhara region and Ethiopia. Design/methodology/approach -- Smart PLS has been used for handling reflective-formative second-order constructs using a disjoint two-stage approach in which first- and second-order constructs were assessed independently in two different stages. Findings: Business ethics have a significant effect on the business performance and working conditions of an organization. However, working conditions not have a significant impact on business performance. Business ethics has only a direct impact on business performance, and the indirect effect of the inclusion of working conditions as a mediator was found to be insignificant. Research limitations: Dimensions of business ethics other than compensation, workplace ethics, environmental protection, and collective bargaining were not included in the study. Moreover, only the inputs of employees were taken as a source of data collected from four sectors in the manufacturing industries; the other sectors and the whole industrial sector are not addressed in the study. Practical implications: The study is significantly important in prioritizing business ethics as a key ingredient for improving business performance. Practicing and applying ethical principles in the workplace will, in turn, create a conducive working environment. Therefore, business ethics should be given equal attention to the economic profits of the organization. However, the paradox that working conditions do not have a significant impact on the business performance of manufacturing industries should be tested in other sectors. Originality/value -- The fact that a disjoint, two-stage approach has been applied in testing the relationships among the constructs of business ethics is a new trend, as most of the previous studies used first-generation software. Furthermore, the application of PLS-SEM in the areas of business ethics literature is not well developed, and this can be taken as a starting point for other researchers. [ABSTRACT FROM AUTHOR] |
| Subject Terms: | *Business ethics, *Business literature, *Organizational performance, Organizational ethics, Research personnel |
| Geographic Terms: | Ethiopia |
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| ISSN: | 17504554 |
| DOI: | 10.31920/1750-4562/2023/v18n4a19 |
| Database: | Business Source Complete |
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