BUSINESS ETHICS AND MARKET SHARE OF TIER ONE DEPOSIT TAKING SACCOS IN NAIROBI COUNTY, KENYA
Abstract
The purpose of this study was to ascertain the influence of business ethics on market share of tier one deposit taking Savings and Credit Co-Operative Societies (SACCOs) in Nairobi County Kenya. The study was guided by four objectives: to establish the influence of ethical policies on market share of deposit taking SACCOs; to examine how ethics programmes influence market share of deposit taking SACCOs; to investigate the influence of code of conduct on market share of deposit taking SACCOs; and to determine the influence of discrepancy measures on market share of deposit taking SACCOs. Using descriptive research design, the study targeted 294 management staff from various functional areas from which a sample size of 147 respondents (equivalent to 50% of the population) drawn from the 12 Tier 1 SACCOs operating in Nairobi was reached. Data was collected using a questionnaire and was analyzed using descriptive analysis and multiple regression analysis to test the strength of the predictor variables on the dependent variables. The study revealed that ethical policies had the largest influence on market share, with a direct strong and statistically significant effect, followed by discrepancy measures. Ethics programmes and code of conduct had the least influence on market share although the relationship with market share were statistically significant for each variable. It was recommended that SACCOs should commit to being truthful, honest and timely in all their disclosures and external reporting. They should commit to not tolerating activities that are illegal such as corruption, theft, fraud and uncompetitive behavior or in direct contravention of the laid down organizational policies and monitoring any such activities. Steps need to be identified and assess risks to the business from non-compliance with law and regulations. Annual audits result need to be made public and punishment should be instituted to officials found culpable of unethical conduct.
Key Words: Ethical Policies, Programmes, Code of Conduct, Discrepancy Measures, Market Share
CITATION: Muriuki, E. N., & Fr. Mathenge, P. (2019). Business ethics and market share of tier one deposit taking SACCOs in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 6 (3), 746 – 761.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1353
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