CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

        Business ethics also refer to as corporate ethics is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations (Ferrell, 2016). These ethics originate from individuals, organizational statements or from the legal system. These norms, values, ethical, and unethical practices are the principles that guide a business. They help those businesses maintain a better connection with their stakeholders (Ferrell, 2016).

        Societal ethics provide the bases on which a civilized state exists. Without these ethics civilization collapses. The same is true of business ethics to the business organization. It provides the footprint on which organizational culture and structure is founded (Dombin, 2012). Ethics are code of values and principles that governs the action of a person, or a group of people regarding what is right versus what is wrong (Levine, 2011). Business ethics is the behaviour that a business adheres to in its daily dealings with the world. They apply not only to how the business interacts with the world at large, but also to their dealings with customers (Dombin, 2012).

        The growth of business organization relies on its sound ethical code of conduct set to guide both management and employee in its daily activities. The importance of business ethics in this modern day business organization have been brought to light by corporate fraud unethical issue that span the corporate world in the last 12 to 15 years, which have led many regulatory authority to stipulate rules, law and standard which businesses must adhere to in their day-to-day governance (Ponemon & Michaelson, 2000; Steve, Steensma, Harrison & Cochran, 2005).

        Some developing economy is still struggling to come out of the economic meltdown. As noted by Primeaux and Stieber, (1994) “ the business enterprise is besieged by popular misconceptions as well as by legal, religious and academic theorists anxious to prove that business seeks only self serving aggrandizement, i.e. to maximize its profits and to do so at any cost to the consumer, the community and the environment”. Business encounters many ethical dilemma in their daily business activities, some are significant while others are not. There is high conflict between ethics and business.

        Dombin 2012 states that some individuals and business are tempted to act unethically, particularly in the short run, where there is a one-short opportunity to “make a killing”. He further states that in such case, the unethical individuals or organization gains while other individuals, companies, societies or future generation lose. Where business ethics code of conduct is lacking, there seem to be crisis, corporate fraud, oppression and falsification or misrepresentation of financial records which may lead to adverse effect on the state of the economy. Therefore, business ethics is a panacea for organization growth. If well formulated and directed to the core value of the business entities will lead to economic growth.

1.2   Statement of the Problem

        Even where business ethics are available to guide the activities of business management, there are still situations where these business ethics are not followed or adhered to by business manager. In such a case there are bound to be business collapse, fraud and misrepresentation which negate corporate growth. Business ethics being already a major issue in contemporary organization life, one can certainly argue that the fundamental question of whether the codes are actually put into practice (Hiironen, 2004) or whether they are just decorative documents needs to be assessed. Therefore, this study is to investigate business ethics and organizational growth and efficiency in Anchor Insurance Plc, Uyo.

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