An Ethical Evaluation of Savings and Cooperative Societies in Ukum and Katsina-Ala Local Government Areas of Benue State

Abstract

There a number of thrifts cooperative societies in Ukum and Katsina-Ala Local Government Areas which provides informal savings and investment avenues for the rural dwellers. However, there are a number of factors that affect the effectiveness of these thrifts and cooperatives such as poor and non-repayment of loans and misappropriation of funds. These challenges border on lack of ethical principles in business. Thus, one of the basic problems confronting business practice among the people of Ukum and Katsina-Ala Local Government is poor ethical principles in business practice. This paper therefore evaluates the ethics of savings and investment of selected thrifts and cooperative societies in Ukum and Katsina-Ala Local Government Area of Benue State. The paper adopts both primary and secondary sources of data collection and employed the descriptive and analytic methods of data analysis. Two thrifts and cooperative societies in Ukum and Katsina-Ala LGAs were sampled for the study. The analysis revealed that thrifts and cooperative societies have positive impact on business practice among the people. It is evident that cooperative societies exist in Ukum and Katsina-Ala LGAs where people save and invest monies in different businesses including farming, trading, purchase of commercial vehicles, motorcycles and in meeting other household needs. However, it was found that there are ethical challenges in managing thrifts and cooperative in Ukum and Katsina-Ala LGAs. These challenges are a result of poor ethical principles which are shown in the conduct of those who take loans without paying back and financial misappropriation on the part of those who own and manage such thrifts and cooperatives. The paper recommends among others that there is need to strengthen the ethical principles of integrity, financial accountability and transparency in Ukum and Katsina-Ala LGAs of Benue State for more effective business activities in the area. People borrowing money should do that with good reason and in a manner that they can repay the loans. Traditional and religious leaders should encourage people in the area to join thrifts and cooperatives, bams and adashi as ways of raising capital to start new businesses in the area.