ORGANIZATIONAL ETHICS AND CORPORATE RESILIENCE OF OIL/GAS FIRMS IN RIVERS STATE.

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Abstract

The study has examined the relationship between organizational ethics and corporate resilience. The objectives of the study is to determine the relationship between integrity and corporate resilience in selected oil/gas firms Rivers State, to determine the relationship between self-discipline and corporate resilience in selected oil/gas firms Rivers State and to determine the relationship between work attitude and corporate resilience in selected oil/gas firms Rivers State. The survey research design was adopted for the study. The population of the study is made up of 216 senior and junior staff of selected oil/gas firms in Rivers State. The Taro yemen’s formula was used to determined the sample size of 140. Data collection was done using a structured questionnaire. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. The chi-square statistical test was employed this test was used due to the nature of the questionnaire designed for the hypothesis testing with the SPSS version 22. Based on the findings of the study, it was recommended that administrators and managers in the organizations of higher education. Therefore, the decisions they make directly impact the perception of the existing ethical climate. Administrators should work to build an ethical climate of benevolence focusing on teamwork, social responsibility, and concern for the greater good, on the part of the Nigerian   worker, for ethical conducts   to have been   properly   observed, there   is the need to align wage demands and increase in productivity and performance and a stable pattern of rising productivity will naturally improve and sustain wages  and  favourable conditions  of employment   relationship   in Nigeria.

Table of Contents

Title Page    i

Title Page    ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      vii

Table of Contents viii

List of Tables       x

List of Figures      xi

CHAPTER ONE  1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problems      3

1.3 Objectives of the Study     5

1.4 ResearchQuestions  5

1.5 Research Hypotheses        5

1.6 Significance of the Study   6

1.7 Scope/Limitation of the Study    7

1.8 Definition of Terms 8

CHAPTER TWO 9

LITERATURE REVIEW        9

2.1     Conceptual Framework 9

2.1.1  Concept of Workplace Ethics 9

2.1.2  Dimensions of Workplace Ethics     11

2.1.2  Concept of Corporate Resilience      14

2.1.3  Influences Shaping Contemporary Workplace Ethics   20

2.2     Theoretical Framework 22

2.2.1  Action Research Model 22

2.2.2  Kotter’s Model    22

2.3     Empirical Framework   24

CHAPTER 3        26

RESEARCH METHODOLOGY      26

3.1 Research Design      26

3.2 Population of the Study    26

3.3 Sample and Sampling Techniques        27

3.4 Methods of Data Collection        28

3.5 Method of Data Analysis  29

3.6 Questionnaire Design        29

3.7 Data Analytical Techniques        29

3.8 Reliability and Validity     30

CHAPTER 4        32

DATA PRESENTATION AND ANALYSIS       32

4.1 Data Collection and Presentation         32

4.2 Discussion of Findings      42

CHAPTER 5        44

SUMMARY, CONCLUSION AND RECOMMENDATIONS         44

5.1 Summary       44

5.2 Conclusion     45

5.3 Recommendations   45

References  47

List of Tables

Table 4.1: Questionnaire Administration and Retrieval 32

List of Figures

Fig. 2.1: A Conceptual Framework Showing the Relationship between Organizational ethics and Corporate Resilience………………………………9 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

An organization with strong ethical beliefs promotes a stronger commitment within that organization (Valentine and Barnett, 2003). There is no perfect world. However, most organizations perceive ethics and core values as fundamental to the organization’s reputation due to its direct influence on the overall success of the company. (Rogers, 1994). Therefore, an organization is obliged to disburse values, standards, and expectations in their code of ethics. Ethics within an organization goes beyond abiding by rules and obeying orders. It also deals with adding meaning, purpose, and a strong sense of community within the organization.

On the other hand, employee level of productivity is one of the many possible outcomes of ethical issues in an organization.  Studies and researches undertaken on the measures to increase employee productivity reveal the significant role played by the leadership, culture, and motivational levels of employees within an organization. Increasing attrition rates, grievances among employees, high levels of stress and burnouts, low employee morale, absenteeism and the like are the major indicators and consequences of degrading employee level of productivity (Mheta and Joshi, 2010).  These causes are sometimes attributed to the nature of leadership style, motivational tools, organizational culture, and personal factors of employees such as their role conflicts, values, beliefs, feelings, attitudes, perceptions, and goals.

Work (organizational) ethic is a cultural norm that argues in favour of being personally accountable and responsible for the work that one does and is based on a belief that work has intrinsic value (Brauchle and Azam, 2004).  The term is applied to characteristics of people, both at work and at play (Brauchle and Azam, 2004). Private universities in Nigeria have peculiar methods of conducting work in order to ensure the accomplishment of goals and objectives in an educational environment.

Like other organizations, in general have their own ethical norms to guide employees in their duties. For example, most private universities in Nigeria have core values that guide the conduct of their staff and students. Consequently, employees are rewarded based on how they comply with the set organizational ethics.   Some employees often want to get rewarded for carrying out their duties without applying the set organizational ethics such as hard work and punctuality.  These employees end up missing their rewards.  The effect of rewarding positive work ethics and punishing negative work ethics of peers at work has improved levels of ethical expectancies and ethical decisions (Kurland, 1995). Since rewards may be viewed as moral or material, compliance with moral rules enables employers to judge employees work ethics and as such motivate them through rewards. Thus, the need to understand the extent of the relationship between organizational ethics and corporate productivity is inevitable for better performance.

Resilience is conceptualized as a response in circumstances where an individual: 1) has been exposed to subjectively significant threat, risk or harm; 2) adapts positively; and 3) does not lose normal functioning (Bonanno 2004). According to Youssef and Luthans (2007), resilient individuals react to adverse circumstances by recognizing and acknowledging the impact, and investing the time, energy and resources needed to ‘bounce back’ to equilibrium. Further, resilience allows the individual to use setbacks as ‘springboards’ (Youssef and Luthans 2007, 780), or opportunities to grow.  Relatedly, Luthans et al. (2008) suggest that resilience plays a significant role in managing ‘positive stress’ and that resilience might be characterized as a coping response to both adverse and positive events, such as a promotion or new work responsibilities. The notion of psychological capital implies a sequencing of efforts to promote resilience and the results of those efforts: the initial efforts can be viewed as investments, with returns accruing in the future, akin to investments in and returns to human capital. Luthans et al. (2006) label relevant resilience practices as ‘proactive’ such that, for example, organizations investing in human resource management (HRM)  like training, staffing, recruitment etc practices to enhance psychological capital (and particularly resilience) prior to the GFC should have reaped the rewards of those investments during the GFC. Luthans et al. (2006) also identify ‘reactive’ practices that promote resilience. An example of a reactive resilience-enhancing HRM practice might involve employee voice programs and grief counseling for the loss of a loved one, which is of no obvious value if provided years in advance of the relevant event.

1.2     Statement of Problems

In the past decade, there has been a great deal of attention placed on the ethical failures of business and industry in Nigeria.  Widespread Internet and television coverage has damaged the reputations of many businesses and eroded the trust of stakeholders.  Almost every day in business and industry, there is unsettling news about the abuse of power, disregard for human welfare, sexual misconduct, embezzlement, discrimination, etc.  There are renewed interest among contemporary researchers on ethical issues and behaviours of corporate leaders and the extent to which these issues and behaviours affect the level of employee productivity. Ethics is the study of systems, norms, or values that distinguish between good and bad or right and wrong. Its primary focus is on conduct and policies within the context of commercial enterprise (Mote, Jordan, and Hage, 2007).

The term work ethics describe an area of applied ethics.  It consists of applying moral right and wrong to technologies, transactions, activities, and ventures to commerce or business. Fairness, transparency, and individual ambitions all play major roles in business (organizational) ethics, with profit being the primary goal (Velasquez, 2006).

It has been observed that average workers generally prefer less number of work hours. As a result of this, employees take excessive breaks or sick leaves just to get away from spending long hours working. This is described as having poor work ethics. Similar characteristics are found in Nigerian private universities.  It is observed that employees would prefer to spend more hours on leisure activities such as spending time with families and engaging in other social activities other than work. Effective employees on the other hand would rather prefer longer hours of work, in the form of overtime and can be said to have strong work ethics. These employees believe that spending more hours on work would enable them get additional pay for possible leisure activities in the future (Pozen, 2008).  Consequently,  managing  employees’  work  ethics  has  become  a  major  problem for  organization.

1.3     Objectives of the Study

The main objective of this study is to examine the relationship between organizational ethics and corporate resilience. The specific objective of the study includes;

1.       To determine the relationship between integrity and corporate resilience in selected oil/gas firms Rivers State.

2.       To determine the relationship between self-discipline and corporate resilience in selected oil/gas firms Rivers State.

3.       To determine the relationship between work attitude and corporate resilience in selected oil/gas firms Rivers State.

1.4     Research Questions

In other to achieve the objectives of this study, the following research questions are employed to guide the researcher.

(1)     To what extent does integrity influence corporate resilience in selected oil/gas firms Rivers State?

(2)     To what extent does self-discipline influence corporate resilience in selected oil/gas firms Rivers State?

(3)     To what extent does work attitude influence corporate resilience in selected oil/gas firms Rivers State?

1.5     Research Hypotheses

H01: There is no significant relationship between the integrity influence corporate resilience in Rivers State.

H02: There is no significant relationship between self-discipline influence corporate resilience in selected oil/gas firms Rivers State.

H03: There is no significant relationship between work attitude influence corporate resilience in selected oil/gas firms Rivers State.

1.6     Significance of the Study

The research study is designed to benefit the society and the respective corporate organizations. Through active practices of resilience as well as other organizations will see the research study more useful in controlling the productiveness and adaptative behavior of the organizations.

An added benefit of employee resilience concerns the positive spillover effects resilient employees will also be better equipped to handle challenges outside or work, and by facilitating employee resilience, organisations can support community resilience. We integrate employee-level information with specific organisational initiatives to create a deeper understanding of whether the processes currently in place effectively support resilience among employees. In addition, we identify areas of intervention to address and facilitate employee resilience. The goal of our research and collaboration with practitioner is to contribute to resilient employees, who are healthy and active contributors in their organisation, as well as in their community. Resilience in organizations and among employees is relevant in any context which introduces challenges and change, and transcends a post-disaster context. We therefore couple rigorous scientific methodologies with practitioner expertise to encourage organizations to capitalize on employee resilience, and guide the process of increasing organizational resilience and performance through staff capabilities.

The primary benefit of this study was to provide employees, with the research findings, in order to objectively unravel the complexity that change and change management presents. Often the managerial jargon associated with change and the implementations of change blur the underlying intentions of those involved, thereby creating uncertainty, fear and complacency among employees. Thus, it was envisioned that the findings of this study would provide an evidence-based framework of employees’ views on change and change management that might be beneficial to the employees.

1.7     Scope/Limitation of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between organizational ethics and corporate Reliance. The dependent variable is corporate resilience. While independent variable is organizational ethics measure by integrity, self-discipline and work attitude.

Geographical Scope: This study is delimited in Rivers State Metropolis with special reference to some selected firms.

In course of carrying out this research, the researcher met with a lot of constraints. Among these constraints is: Time frame which this research was expected to be completed which was too short.

Secondly, the cost in carrying out this research work act as a barrier as we were not financially buoyant to carry out all investigation.

Finally, assembling the relevant materials needed for this work was a problem. It is difficult due to the fact that some of the respondents were not willing to give us the required corporation.

1.8     Definition of Terms

Ethics: Ethics is a cultural norm that argues in favour of being personally accountable and responsible for the work that one does and is based on a belief that work has intrinsic value (Brauchle and Azam, 2004).

Organizational Adaptability: Organizational adaptability refers to modifications and alterations in the organization or its components in order to adjust to changes in the external environment. Its purpose is to restore equilibrium to an imbalanced condition.

Organizational Culture: This is the general social characteristics and business activities that are developed or practiced in corporate organizations to realize basic organizational objectives.

Resilience: The Employee Resilience Research group defines employee resilience as an ability to thrive in a changing environment.

Integrity:  Integrity is the practice of being honest and showing a consistent and uncompromising adherence to strong moral and ethical principles and values. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one’s actions.

Self discipline: Self discipline means self control, which is a sign of inner strength and control of yourself, your actions, and your reactions.

Work attitude: An attitude refers to our opinions, beliefs, and feelings about aspects of our environment. We have attitudes toward the food we eat, people we meet, courses we take, and things we do. At work, two job attitudes have the greatest potential to influence how we behave.

Workplace Ethics: It is a set of principles relating to morals, especially as they apply to human conduct.

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