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Business Ethics and Organizational Sustainability: A Study of Micro, Small and Medium Scale Enterprises in Enugu Urban, Nigeria

Ilochi, Onyebuchi., Aduba Paul Nnamdi, Uma, Idika Kalu, Agu Esmond Uchenna, Okwor Emmanuel Ejimnkonye

Abstract

The study examined the effect of business ethics and organizational sustainability of micro, small, and medium scale enterprises in Enugu Urban. Organizational ethics are the values, principles, and standards that guide the individual and the group behavior in an organization. Business ethics refers to the practice of managing a company in a way that considers the long- term impacts on the environment, society, and the economy. There is an increasing number of issues around non-sustainability of MSMEs and these issues could be traced to poor maintenance culture. MSMEs push their waste products into the waterways, thus damaging the aquatic life and invariably the source of livelihood. The study used the pilot survey on manufacturing outfit (Innoson plastic) in Emene Industrial layout, Eastern shopping complex Ogui road and Roban Stores. The choice of selection was based on MSMEs that engaged at least 15 employees in a particular shift. The main objective of the study was to assess the effect of business ethics on organizational sustainability of micro, small, and medium scale enterprises in Enugu Urban. The Specific objectives were to: (i) determine the relationship between business ethical training and organizational sustainability, (ii) examine the relationship between Ethical training and MSMEs financial performance. Most of the existing literature on business ethics focused on larger corporations or MSMEs in developed countries. There is a limited body of research examining the unique challenges and opportunities that MSMEs in developing economies like Enugu. The study explored local norms, market conditions, and assessed their impact on business sustainability (ethical practices) in these settings. The study revealed that: (i) business ethical training had a positive and non-significant impact on organizational sustainability. (ii) ethical training had a positive and non-significant impact on MSMEs financial performance. The study recommends creating a corporate culture that rewards ethical behavior and ensures accountability.

References

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