Business practices influencing ethical conduct of small and medium-sized enterprises in Uganda
Although small- and medium businesses (SMEs) significant economic contributions are globally acknowledged, many SMEs in Uganda have not fully adopted and integrated ethics into their business strategies. This study explores the business practices that influence SME’s ethical conduct in Uganda. Primary data was collected using a self-administered questionnaire. A sample of 384 SME owner/managers was surveyed employing convenience sampling. The data was analysed using descriptive and inferential statistics. The empirical findings show that the business practices of SMEs significantly influence their ethical business conduct in Uganda. It was suggested that SME business owners/managers pay attention to their management practices and ensure that all employees are knowledgeable on what ethical business conduct entails or how to apply it in the workplace.
Abor, J. & Quartey, P. 2010. Issues in SMEs in Ghana and South Africa. International Research Journal of Finance and Economics, 39(6): 218-228.
Addai-Minkah, M. 2011. The importance of customer service in the banking industry: The case of Ecobank Ghana Limited. Unpublished Masters of Business Administration, Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.
Alder, G.S., Schminke, M., Noel, T.W. & Kuenzi, M. 2008. Employee reactions to internet monitoring: The moderating role of ethical orientation. Journal of business ethics, 80(3): 481-498.
Allameh, S.M. & Abbas, S.K. 2011. The relationship between knowledge management practices and innovation level in organizations: Case study of sub-companies of selected corporations in the city of Esfahan. Journal of Business Case Studies, 6(1): 89-98.
Allen, F., Chakrabarti, R., De, S. Qian, J. & Qian, M. 2012. Financing firms in India. Journal of Financial Intermediation, 21(3): 409-445.
Ashridge Centre for Business and Society. 2005. Catalogue of CSR activities: A broad overview. Available: https://www.ashridge.org.uk/Media-Library/Ashridge/PDFs/ Publications/CSR Activities.pdf. (Last accessed 6 January 2016).
Banerjee, S., Dutta, S., & Mukherjee, S. (2007). Ethical Practices in Small Business: A Cross Country Comparison. Vidyasagar. University Journal of Commerce, 12: 1-63.
Baumann-Pauly, D., Wickert, C., Spence, L.J. & Scherer, A. G. 2013. Organizing corporate social responsibility in small and large firms: Size matters. Journal of Business Ethics, 115(4): 693-705.
Belak, J. & Milfelner, B. 2011. Informal and formal institutional measures of business ethics implementation at different stages of enterprise life cycle. Acta Polytechnica Hungarica, 8(1): 105-122.
Bencsik, A. 2011. Ethical labyrinth in the period of knowledge acquisition and sharing of knowledge management systems. Problems and Perspectives in Management, 9(3): 93-99.
Bishara, N.D. 2011. Governance and completion constraints in the Middle East overcoming the business ethics glass ceiling. Business Law Journal, 48(2): 227-283.
Bloom, N., Genakos, C., Sadun, R. & Van Reenen, J. 2012. Management practices across firms and countries. The Academy of Management Perspectives, 26(1): 12-33.
Boateng, D. 2012. The role of Small and Medium Enterprises in the economic development of Ghana: A Study in the Greater Accra Region. Unpublished Bachelor’s Thesis, Laurea University of Applied Sciences, Espoo, Finland.
Business Dictionary.com. 2016. Organisational capability. Available: http://www.businessdictionary.com/definition/organizational-capability.html. (Last accessed 6 January 2016).
Cambra-Fierro, J., Hart, S. & Polo-Redondo, Y. 2008. Environmental respect, ethics or simply business: A study in the small and medium enterprise (SME) context. Journal of Business Ethics, 82(3): 645-656.
Cant, C.M., Wiid, J.A. & Kallier, M.S. 2013. Small business owners’ perceptions of moral behaviour and employee theft in the small business sector of Nigeria. Gender & Behaviour, 11(2): 5775-5787.
Carroll, A. & Buchholtz, A. 2014. Business and society: Ethics, sustainability, and stakeholder management. 9th Edition. Connecticut: Southern Western Cengage Learning.
Chodokufa, K. 2009. An analysis of the business relationship between SMEs and insurance businesses in the Nelson Mandela Metropolitan area. Unpublished Masters dissertation, University of Fort Hare, South Africa.
Cicek, V. 2012. Towards global business ethics: A Comparative review on converging business ethics theories and practices. 7th Silk Road International Conference, 24-26 May, Batumi, Georgia. Available: http://silkroad.ibsu.edu.ge/silkroad/index.php/ silkroad/silkroad7th/paper/ viewFile/132/130. (Last accessed 6 January 2016).
Cohen, L., Manion, L. & Morrison, K. 2007. Research methods in education. 6th edition. New York: Routledge.
Cole, J.R. Oliver, A. & Blaviesciunaite, A. 2014. The changing nature of workplace culture. Facilities, 32(13/14): 786-800.
Costello, A.B. & Osborne, J.W. 2005. Exploratory Factor Analysis: Four recommendations for getting the most from your analysis. Practical Assessment, Research, and Evaluation, 10(7): 1-9.
Edwards, J. 2009. Understanding management. Available: http://www.docfoc.com/ understanding-management-first-canadian-edition-slides-prepared-by-janice-edwards. (Last accessed 6 January 2016).
Ethics and compliance risk management report. 2007. The LRN ethics and compliance risk management practices report. Available: http://erc.webair.com/files/u5/LRNRisk ManagementSurvey.pdf. (Last accessed 8 January 2016).
Ethics Resource Center. 2013. National business ethics survey of the U.S. workplace. Available: https://www.ethics.org/newsite/research/eci-research/nbes/nbes-reports/ nbes-2013. (Last accessed 8 January 2016).
Farnum, C.M., Baird, C. & Ball, K. 2011. Can I make a suggestion: Your library suggestion box as an assessment tool. Partnership: the Canadian Journal of Library and Information Practice and Research, 6(1): 1-21.
Fatoki, O.O. & Asah, F. 2011. The impact of firm and entrepreneurial characteristics on access to debt finance by SMEs in King Williams’ Town, South Africa. International Journal of Business and Management, 6(8): 170:179.
Fernando, A.C.2009. Business Ethics: An Indian Perspective. New Dehli: Pearson Education.
Ferrell, L. & Ferrell, O.C. 2009. An enterprise-wide strategic stakeholder approach to sales ethics. Journal of Strategic Marketing, 17(3-4): 257–270.
Field, A.P. 2009. Discovering statistics using SPSS. 5th edition. London: Sage.
Finn, O.B. and Torgeir, D. 2008. Knowledge management in software engineering: A systematic review of studied concepts, findings and research methods used. Information and Software Technology, 50(11): 1055-1068.
Garthson, J. 2007. Ethics reporting for compliance and beyond. Available: http://garthsonleadership.ca/wp-content/uploads/2012/09/Ethics-Reporting-for-Compliance-and-Beyond.pdf. (Last accessed 6 January 2016).
Hair, J.F., Black, W.C., Babin, J.B., Anderson, R.E. & Tatham, R.L. 2006. Multivariate data analysis. 6th Edition. Upper Saddle River: Pearson Prentice Hall.
Huhtala, M. Feldt, T., Hyvönen, K. & Mauno, S. 2013. Ethical organisational culture as a context for managers’ personal work goals. Journal of Business Ethics, 114(2): 265-282.
Inyang, B. J. 2013. Defining the role engagement of small and medium-sized enterprises (SMEs) in corporate social responsibility (CSR). International Business Research, 6(5): 123-132.
Khademfar, M. & Amiri, S.A. 2013. The Relationship between ethical leadership and organizational performance: Small review on Malaysian studies. International Journal of Business and Social Science, 4(1): 114-119.
Kleinig, J. 2009. The ethical perils of knowledge acquisition. Criminal Justice Ethics, 28(2): 201-222.
Kuryn, J.L. 2014. Creation of an ethical business: The implementation of virtuous behavior and shared values and goals. Available: http://rebirthofreason.com/Articles/Kuryn/ Creation_of_an_Ethical_Business_The_ Implementation_of_Virtuous_Behavior_and_Shared_Values_and_Goals.shtml. (Last accessed 6 January 2016).
Lahdesmak, M. 2005. When ethics matters–interpreting the ethical discourse of small nature-based entrepreneurs. Journal of Business Ethics, 61(1): 55-68.
Lee, S.T. & Cheng, I.H. 2012. Ethics management in public relations: Practitioner conceptualizations of ethical leadership, knowledge, training and compliance. Journal of Mass Media Ethics, 27(2): 80-96.
Lluka, V. 2010. Business ethics: Some theoretical issues Munich personal. Available: http://mpra.ub.uni-muenchen.de/26716/. (Last accessed 6 January 2016).
Ma’an, J. & Kalaldeh, T. 2010. The relationships among organizational knowledge sharing practices, employees’ learning commitments, employees’ adaptability, and employees’ job satisfaction: An empirical investigation of the listed manufacturing companies in Jordan. Interdisciplinary Journal of Information, Knowledge, and Management, (5): 327-356.
Mahmood, S. 2008. Corporate governance and business ethics for SMEs in developing countries: Challenges and way forward. Paper presented at the International Society of Business, Economics and Ethics World Congress, 15-18 July, Cape Town, South Africa. Available: http://www.kantakji.com/media/3334/w111.pdf. (Last accessed 6 January 2016).
Málovics, G. 2009. The social role and responsibility of small and medium-sized enterprises: Results of an empirical investigation applying the social capital approach. Regional Competitiveness, Innovation and Environment, pp. 222-236.
Mbabazi, A. 2012. The Uganda’s top 100 mid-size companies. Available: http://opm.go.ug/assets/media/resources/445/Top%20100%20SMEs%20Gala%20 Dinner%20Speech.pdf. (Last accessed 6 January 2016).
McCain, C.S.L., Tsai, H. & Bellino, N. 2010. Organizational justice, employees' ethical behavior, and job satisfaction in the casino industry. International Journal of Contemporary Hospitality Management, 22(7): 992-1009.
Mehalu, K.G. 2011 Social responsibility and managerial ethics: A focus on MNCs. Available: http://essay.druckerchallenge.org/fileadmin/user_upload/essays_pdf/kidus mehalu.pdf. (Last accessed 6 January 2016).
Miller, R. & Cross, F. 2012. The legal environment of business: Text and cases, ethical, regulatory, global, and corporate issues. Ohio: Southern-Western Cengage Learning.
Ministry of Finance, Planning and Economic Development. 2011. The national micro, small and medium enterprises policy draft. Available: http://www.ugandainvest.go.ug/index.php/casestudies/docdownload/63-msme-poli cy. (Last accessed 8 January 2016).
Ntayi, J.M. 2012. Emotional outcomes of Ugandan SME buyer-supplier contractual conflicts. International Journal of Social Economics, 39(1/2):125-141.
Ntayi, M., Eyaa, S. & Semukono, F.J. 2012. Perceived enforcement of informal buyer-supplier contractual arrangements in Ugandan Small and Medium Enterprises (SMEs). Global Journal of Management and Business Research, 12(8): 42-59.
Nyabwanga, R.N., Ojera, P., Simeyo, O. & Nyanyuki, N.F. 2013. An empirical analysis of the liquidity, solvency and financial health of Small and medium sized enterprises in Kisii Municipality, Kenya. European Journal of Business and Management, 5(8): 1-15.
Ogundele, O.J.K., Hassan, A.R., Idris, A.A. & Aliu, A.A. 2013. Ethical problems affecting SMEs in Nigeria, and their impact on E-Business development. International Journal of Economics and Management Science, 2(10): 1-15.
Omolewu, G. 2008. Strategies for improving ethical behaviors in organizations. Available: http://forumonpublicpolicy.com/archivespring08/omolewu.pdf. (Last accessed 6 January 2016).
Ordóñez, L. D., Schweitzer, M. E., Galinsky, A. D., & Bazerman, M. H. 2009. Goals gone wild: The systematic side effects of overprescribing goal setting. The Academy of Management Perspectives, 23(1): 6-16.
Perks, S. 2012. Ethics and corporate social responsibility. In Hellriegel, D., Slocum, J., Jackson, S., Louw, L., Staude, G., Amos, T. & Klopper, H.B. 2012. Management. 4th South African Edition. Cape Town: Oxford University Press.
Rhode, D.L. & Packel, A.K. 2009. Ethics and nonprofits. Stanford Social Innovation Review, 7(3): 28-35.
Rune, A. 2011. Corruption and SMEs: Exploring the business case for western SMEs to counter involvement in administrative corruption in developing countries. Unpublished Master thesis, Coperhagen Business School, Frederiksberg, Denmark.
Schaefer, A., Williams, S. & Blundel, R. 2011. SMEs’ construction of climate change risks: the role of networks and values. SMEs Moving Towards Sustainable Development International Conference, 20-22 October, Montreal, Canada. Available: http://oro.open.ac.uk/29330/1/Schaefer-Willams-Blundel_full_paper%5B1%5D.pdf. (Last accessed 6 January 2016).
Shakeel, M., Khan, M.M. & Khan, M.A. 2011. Impact of culture on business ethics. Far East Journal of Psychology and Business, 3(2): 59-70.
Singh, L.A. 2009. Measuring the ethical quotient of corporations: The case of small and medium enterprises in India. Journal of the Oxford Round Table, 5(1): 1-27.
Sinha A.K. & Mishra S.K. 2011. Factors affecting ethical decision making in corporate setting. Journal of Management Ethics and Spirituality, 4(1): 135-154.
Srinivasan, V. 2009. CSR and ethics in MSMEs in India. Africa Journal of Business, 4(2): 32-36.
Stefanescu, C. & Doval, E. 2010. Implications of ethical values on management. Review of General Management, 11(1): 36-41.
Suhr, D. & Shay, M. 2009. Guidelines for reliability, confirmatory and exploratory factor analysis. Available: http://www.wuss.org/proceedings09/09WUSSProceedings/ papers/anl/ ANL-SuhrShay.pdf. (Last accessed 6 January 2016).
Tan, K.M., Flack, F.S., Bear, N.L. & Allen, J.A. 2015. An evaluation of a data linkage training workshop for research ethics committees. Bio Med Central Medical Ethics, 16(1): 13-16.
Tarus, D.K. & Nganga, S.I. 2013. Small and medium size manufacturing enterprises growth and work ethics in Kenya. Developing Country Studies, 3(2): 51-59.
Thousand Oaks: Sage.
Treviño, L.K. & Nelson, K.A. 2011. Managing business ethics. 5th edition. New York: John Wiley.
Treviño, L.K. & Nelson, K.A. 2010. Managing business ethics. New York: John Wiley & Sons.
Tyler, B.B. & Gnyawali, D.R. 2009. Managerial collective cognitions: An examination of similarities and differences of cultural orientations. Journal of Management Studies, 46(1): 93-126.
Vitell, S. J., & Hidalgo, E.R. 2006. The impact of corporate ethical values and enforcement of ethical codes on the perceived importance of ethics in business: A comparison of US and Spanish managers. Journal of Business Ethics, 64(1): 31-43.
Wisegeek. 2015. What is knowledge acquisition. Available: http://www.wisegeek. com/what-is-knowledge-acquisition.htm. (Last accessed 6 January 2016).
Younkins, E.W. 2011. Morality, success, and individual happiness in business: The virtuous pursuit of values and goals. Libertarian Papers, 3: 1-26.
Yves, F. 2005. The reasons behind non-ethical behaviour in business and entrepreneurship. Journal of Business Ethics, 60(3): 265-279.
Zikmund, W., Babin, B., Carr, J. & Griffin, M. 2012. Business research methods. Connecticut: Southern Western Cengage Learning.
- There are currently no refbacks.
ISSN 0976-3600 (on-line) ; ISSN 1817-7417 (print)
|Powered by OJS and hosted by Stellenbosch University Library and Information Service since 2014.|
This journal is hosted by the SU LIS on request of the journal owner/editor. The SU LIS takes no responsibility for the content published within this journal, and disclaim all liability arising out of the use of or inability to use the information contained herein. We assume no responsibility, and shall not be liable for any breaches of agreement with other publishers/hosts.