Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Customers Perception towards Principles of Organizational Ethics as a Determinant of Organizational Productivity

Author(s): Idjawe Oghenefejiro Peace, Mayowa Agboola

The extent with which organizations adhere to ethical standards, largely, determines the well-being of all the stakeholders, the organization’s productivity and the subsequent profitability, as well as the macroeconomic growth and development of the nation. It is in this light that this study examines customer’s perception towards organization’s disposition to ethical principles and how it goes to affect organizational productivity among pharmaceutical companies in Nigeria. Questionnaires were administered online to389 respondents categorized as stakeholders in the pharmaceutical sector. The study employed regression technique to investigate the significance, strength of relationship among the variables. Findings from the study reveal that ill-driven performance management stunts on ethical practice. Also, customer’s ethical perception on transformational leadership and organizational commitment to ethics positively influence the productivity. The study concludes that customer’s perception towards the organizational ethics (through loyalty intentions) significantly influence the productivity of Pharmaceutical companies in Nigeria. Based on the finings drom the study, recommendations were made.

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