Ethics in Financial Service Industry as Panacea for Organizational Performance in Osogbo and Iree Metropolis, Osun State, Nigeria

Abstract

The study investigates the argument and counterargument within the scientific discussion on ethics as the panacea to organizational performance in the financial service industry using ethical leadership, organizational ethical culture and public perception on ethics to measure organizational performance. The objective of this study is to examine the relationship between ethical leadership and organizational performance in Osogbo and Iree United Bank of Africa. Secondly, this study aimed at determining the relationship between organizational ethical culture and organizational performance in Osogbo and Iree United Bank of Africa. Thirdly, the study intends to establish the relationship between public perception of organizational ethics and organizational performance in Osogbo and Iree United Bank of Africa. The research questions formulated to guide this study are: What is the effect of ethical leadership on organizational performance in Osogbo and Iree United Bank of Africa; How does organizational ethical culture impacts organizational performance in Osogbo and Iree United Bank of Africa? What is the relationship between public perception of organizational ethics and organizational performance in Osogbo and Iree United Bank of Africa? This study adopted the survey research design and obtained its data from primary sources. The primary data were obtained through a questionnaire administered on 100 respondents of United Bank for Africa Plc, Iree and Osogbo branches. A simple random sampling technique was also used to conduct a personal interview on 50 customers of the bank. Regression analysis was used to test the hypotheses at a 0.05 level of significance. The study showed a positive and significant relationship between ethical leadership and organizational performance, organizational ethical culture and organizational performance, and public perception of ethics and organizational performance. The study, therefore, recommends that management should not only communicate organizational ethical values to employees in words but also in action; they should lead by example, proper attention should be placed on organization’s culture to ensure that it is ethical as employees are willing to do more in an organization with ethical culture and also, service industries in Nigeria must ensure that their organizations are managed in a way that will enhance a positive public perception.