Purpose: Over the years, small businesses have been the backbone of economic growth in many low-middle-income settings. Thus, small firms/small businesses have attempted to develop codes of conduct, which can be used to guide managers when making decisions. This study, therefore, explored business ethics, repurchase and corporate social responsibility within Wa Township.
Design/Methodology/Approach: The study employed the case study approach of both qualitative and quantitative methods. A total of 358 smallholder shop owners were randomly selected to participate in face-to-face interviews. The data were keyed into a Microsoft Excel sheet and cleaned. The data set was then imported into SPSS and analysed using frequencies, proportions and chi-square test of independence.
Findings: The results have shown a strong statistical relationship between business ethics and repurchase (p=0.000). In addition, the findings have shown a strong statistical relationship between business ethics and corporate social responsibility (p=0.000).
Practical implications: This study therefore recommends investment in growing smallholder business owners’ knowledge about the necessity of business ethics and business success.
Original value: This research provides some valuable insights to both industry players and small shop owners who recognise the central place of ethical behaviours and repurchase and corporate social responsibility in driving business expansion through higher sales.
The importance of business ethics has grown significantly in recent years. Company ethics has emerged as a crucial business function, similar to finance and marketing. Businesses construct business ethics to encourage moral behaviour among their workforce and win over important constituencies like investors and end-users (consumers) of their goods and services. Moral principles are based on ideas of what is good, wrong, and fair for the conduct of business. Most businesses rely on their conscience when making decisions, using their moral upbringing as a reference point. Many organizations and businesses have tried to create codes of conduct over the years that managers can use as guidance when making choices. Due to the numerous scandals that have previously resulted from ethical problems in business practices, many companies and organizations in today's globalized society have finally realized the importance of portraying ethical behaviour in business practices. It is also getting harder to ignore the unethical behaviours of employees within an organization. Businesses became more conscious of a consumer- based culture that was on the rise and expressed concerns about the environment, social issues, and corporate responsibility in the 1960s, which is when the idea of business ethics first emerged. The decade is distinguished by an increased attention on "social issues. "When it comes to what is right and wrong, a person's or a group of people's behaviour is governed by codes of values and principles called ethics (Sexty, 2011). Ethics therefore establishes guidelines for what is morally right or wrong in organizational behavior and decision-making (Sexty, 2011). It addresses internal principles that makeup company culture and influences choices about social responsibility in light of the surrounding environment. Ethics and values are distinct concepts (Mitchell, 2001). Whereas ethics is concerned with how a moral person should behave; values are the inner judgments that determine how a person actually behaves. Values concern ethics when they pertain to beliefs about what is right and wrong. In the business setting, being ethical means applying principles of honesty and fairness to relationships with co-workers and customers (Daft, 2001).
Examining moral or ethical issues that arise in a business setting is done through the study of business ethics, often known as corporate ethics or applied ethics (Stanwick and Stanwick, 2009). It is a catch-all phrase that refers to all ethical concerns that arise when conducting business. Business ethics are guidelines for ethically upright behaviour in managerial decisions pertaining to the operations of the firm and its corporate interactions with society. These guidelines might take the form of rules, conventions, codes, or principles (Sexty, 2011).
It is crucial to both individual and organizational behaviour and applies to all elements of business conduct (Mitchell, 2001). Research in the fields of ethical purchasing and effective purchasing strategies is becoming increasingly important (Liere and Mont, 2010). Suppliers are essential in ensuring that the employees they hire have a comfortable workplace. However, their clients' spending patterns—often the same retailers—could undermine their efforts by pressing them to comply with their standards of labour behaviour.
Short lead times and last-minute order modifications are two examples of practices that can lead to unapproved subcontracting, excessive overtime, and greater usage of casual labour. Additionally, it may be challenging for suppliers to give workers a fair wage due to demand from retailers to lower prices.
The ability of suppliers to offer fair wages and working conditions for their employees is something that many businesses are already beginning to consider methods to promote rather than hinder. For instance, several have started ambitious training programs to raise awareness among commercial personnel and consumers of the effects of their choices on employees.
Making "ethical champions" in-store commercial teams who serve as the "go-to" person for ethical trade is another step in the right direction. Some businesses are already rewarding their purchasing personnel for considering labour standards when placing orders with vendors.
There is insufficient information available despite the significance of business ethics and corporate responsibility purchasing practices in businesses. Furthermore, there is little comprehensive study highlighting the significance of corporate responsibility in purchasing patterns and company ethics. Regarding the subject under investigation, a gap in the body of knowledge is found. Businesses have begun integrating business ethics and corporate responsibility into their purchasing procedures, but it is also important to consider how well and frequently these practices are implemented in the companies themselves (Liere and Mont, 2010). These are companies that once conducted their business operations in accordance with moral principles. Whereas a company's economic duties are to generate goods and services that society needs and wants at a price that can perpetuate the continuing existence of the business, and also satisfy its obligations to investors; ethical responsibilities are those behaviours or activities expected of businesses by society and other stakeholders such as employees (Mitchell, 2001).
Business ethics and social responsibility are very important for organisational growth and success. Specifically, they consider business ethics to lead to positive employee, customer and community relations. Not only has that but also, bettered public image/reputation, greater customer loyalty, and strong and healthier community relations can inure to the benefit of socially responsible corporations.
The benefits that can be derived from effective purchasing have long been recognised in the management literature. Better Work, in collaboration with brands and other industry stakeholders, including the Better Buying Institute, has developed an interactive foundational training applicable to brand staff at different levels and across departments. According to research, supplier compliance with corporate codes of conduct can be prevented by buyer purchasing practices, endangering the lives and dignity of supply chain workers. While bad purchasing habits have caused a variety of issues, such as child labour and employee layoffs, many of their detrimental repercussions fall into four categories. Legal and financial compliance, business ethics, corporate social responsibility, public and community affairs, investor relations, stakeholder communications, brand management, environmental affairs, sustainability, socially responsible investment, and corporate philanthropy are among the professional disciplines included in the corporate responsibility field. Knowing the significance of organizations' business ethics and corporate responsibility of purchasing practices, as well as the advantages of business ethics and corporate responsibility of purchasing is relevant to this study. The main research question is as follows: What are the effects of business ethics and corporate social responsibility on business success?
The specific objectives of the research are two:
Companies are viewed as entities with economic, legal, ethical, and charitable responsibilities from an ethical standpoint. According to this theory, companies should incorporate ethical issues into their day-to-day operations in addition to focusing only on making a profit (Jones, 2005; Nassè, 2018;2021; Tarí, 2011; Treviño et al., 2004) or providing services and undertaking initiatives that further social causes and fulfill their commitment to corporate social responsibility (Kotler and Lee, 2008). Furthermore, Ullah et al. (2022) claim that corporate social responsibility is significantly impacted by organizational leadership cultures that place a strong emphasis on intellectual capital aspects, style, and ethics. According to Roy et al. (2024), organizational cultures and leadership philosophies play a significant role in determining ethical behaviors in newly established businesses. The current research aligns with the business ethics theory of corporate social responsibility, as it demonstrates the substantial and noteworthy impact that ethical business practices have on corporate social responsibility.
This section of the report reviews relevant literature on business ethics, repurchase and corporate responsibility among businesses.
When it comes to what is right and wrong, a person's or a group of people's behaviour is governed by codes of values and principles called ethics (Sexty, 2011). Therefore, ethics sets standards for good or bad corporate behaviour and decision-making (Sexty, 2011). It covers internal values that are a part of company culture and affects decisions about how to behave in terms of social responsibility toward others (Mitchell, 2001). Ethics is concerned with how a moral person should behave; values are the internal judgments that guide how a person actually behaves. In order to do business ethically, one must be honest and fair with both consumers and employees (Daft, 2001). Business or corporate ethics, a branch of applied ethics, deals with moral or ethical conundrums that arise in a business environment (Stanwick and Stanwick, 2009). All ethical concerns in the context of conducting business are collectively referred to as business ethics. Corporate ethics are the guidelines for morally right behaviour in managerial choices pertaining to the organization's operations and its business relationships with society (Sexty, 2011). It applies to every facet of business behaviour and affects how both individuals and the entire organization behave (Mitchell, 2001).
Additionally, a company's daily behaviour is governed by its corporate ethics. The integrity of a company's code of ethics, which helps to guide management and employees in day-to-day activities, is essential to that company's success (Nassè, 2021). The justification for ethics as a good practice is that moral environments produce a climate that encourages the development of moral human resource practices. The result is a shared set of values that direct, shape, and direct conduct at work.
In order to generate revenue for businesses, ethics is regarded to be a set of moral standards that encourages sincere and modest methods of doing so while prohibiting acts of self-gain (Ghosh et al., 2011). Since ethics forms the foundation of a company's guiding principles, it is crucial to consider ethics while creating a strategy plan for a corporation. The goal of the business is to provide services and goods while generating revenue from operations and sales (Ethics Resource Center, 2009; Kalshoven et al., 2011).
The company's strategies must uphold moral and ethical standards for its stakeholders despite its goal to maximize profit and return on investment (Lewis, 2002).
These guidelines apply to all of their stakeholders, including their workers, the community in which they operate, the authorities, and the media (Elango et al., 2010; Johnson, 2004).
Though traditional business practice dictates that ethics and corporate social responsibility be overlooked, this is because the company's goals are to increase sales and money (Ghosh et al., 2011). To effectively sell their goods and services, marketing campaigns and sales promotions must adhere to moral standards that guarantee the stakeholders' safety without jeopardizing the company's operations (Ferrell and Ferrell, 2011; Lewis, 2002). Businesses are a sort of human activity, thus in addition to assessing them from an economic standpoint, one must also take their moral commitments into account (Georgescu, 2012). Understanding and recognizing the shared values and priorities of the workforce helps determine the organization's current culture (Koonmee et al., 2010). Due to this idea, businesses have concentrated on educating staff members about the company's code of conduct so that they can gradually become used to the workplace (Arnaudov and Koseska, 2012).
Profitability is what motivates businesses (Ghosh et al., 2011). According to a 2002 study by Crea, a company's principal responsibility is to maximize its revenues. He continued by emphasizing that all environmental barriers must be removed in order to accomplish this. The most common tactics employed by firms to achieve these outcomes include making employees work longer hours, setting high market prices, or even downplaying the importance of environmental safety (Boddy, 2011; Ferrell and Ferrell, 2011).
In the contemporary business environment, both a company's internal and external activities evolve swiftly (Lewis, 2002; Maignan et al., 2011). According to Crea (2002), for a business to succeed in a given environment, it must be accountable to both the greater community and to itself. In order to guarantee consumer and environmentally friendly practices, the business must be accountable to its workers, middlemen, customers, and other stakeholders in addition to the products it generates and promotes (Maignan et al., 2011). The economy would benefit from an increase in firm profitability, according to Ferrell (2011), because the latter would be dependent on the former to prosper in the long run.
According to Ferrell (2011), the economy would gain from an increase in company profitability because the latter would be dependent on the former to flourish in the long run.
Businesses should strive to increase revenues while preserving transparency for fair competition and avoiding any kind of fraud in the process (Ferrell, 2011; Maignan et al., 2011). Unfortunately, in their pursuit of financial success, new companies and organizations in the corporate sector frequently break moral and ethical laws (Harris et al., 2009).
This unethical business culture is likely due to the widely held industry belief that respecting social responsibility would lead to a decline in company earnings and a deterioration of the firm's competitive edge (Ethisphere, 2010). The complete disclosure of a company's product's elements and effects is required of them (Elango et al., 2010; Mish and Scammon, 2010).
The notion of incorporating ethics into an organization's goal statement is not a novel one (Boddy, 2011). The aim of ethics, according to philosophers like Aristotle, Mill, and Hobbes, is to establish an environment that enables people to live more formally and satisfactorily than in the absence of ethics (Ethisphere, 2010; Maignan et al., 2011).
In order for a business to grow, it must have a solid code of ethics that serves as a guide for management and staff members. The argument for ethics as a good practice is that ethical environments will promote a climate that will support the development of ethical human resource practices. The result is a set of shared values that governs and influences how people behave at work. Having a strong ethical practice has advantages, such as customer satisfaction, customer loyalty and employee loyalty (Nassè, 2021).
One of the three layers of ethical standards is the law, followed by rules and procedures, as well as employee morals. The law spells down for society as a whole what actions are permitted and prohibited. Only the bare minimum of behaviour is permissible under the law. Legal actions, however, are not usually moral. As a result, simply abiding by the law is insufficient to act as a moral code of conduct. The moral stance that employees take when they are in a situation that is not governed by the law or those policies and procedures are also elements that contribute to ethical behaviour. Organizational policies and procedures also give people or employees specific direction as they make daily decisions. A company‘s culture can serve to either support or undermine its employees’ conception of what constitutes ethical behaviour.
The company's culture or moral behaviour can determine the ethics of the firm. Choosing to conduct business ethically is a moral choice. For their activities to be consistent with their ethical beliefs, all businesses must make judgments about what to do and how to do it. An organization has an ethical framework when ethics are prioritized across all aspects of its operations. To effectively handle the many ethical decisions they may face, businesses, enterprises, or entrepreneurs need to develop a practical ethical framework that will serve as a manual for both the company and the individuals within it. Such a framework ensures that moral issues are not disregarded because they are unimportant, unconnected, or inconsequential. Recognize the moral dilemmas that the option or issue raises. Before making a wise ethical decision, it is essential to recognize an ethical dilemma. This enables the identification of the specific ethical issues at hand. In order to have a complete view of judgments concerning ethics and to avoid ethical quagmires, it is essential to consider the ethical variables at play in every scenario, notably honesty, justice, respect for the community, concern for the environment, and trust. Identify the key players and how your decision will affect them. Several stakeholders can both influence and have an impact on the firm (e.g., employees, customers, and community needs). Conflicts between the interests of persons with substantial stakes in the issue can be resolved by identifying
These stakeholders' demands could contradict one another, forcing a company to decide whether to appease certain groups or not. Managers must identify those stakeholders who have significant stakes in the outcome of the decision in order to resolve the competing interests of the various stakeholders. Identify alternative possibilities and draw a distinction between morally righteous and sinful behaviour. When considering alternative solutions and the consequences of each, By asking and responding to questions, weighing the available options, and keeping open communication, everyone involved can make sure they are aware of the ethical ramifications of the situation. Choose the moral course of action, and follow it through.
Managers will probably have a variety of moral options to select from at this point. Putting these possibilities up against the ideal ethical outcome may help you make your ultimate decision. The final choice must be consistent with the goals, culture, and values of the company as well as the decision-makers themselves. Although acting ethically isn't always advantageous, it almost always causes substantial losses, especially in the long run (Nassè, 2019). Therefore, businesses must understand that, regardless of the specifics of some unethical consequences and the reporting horizon to which they pertain, they will ultimately result in high costs. In contrast to business ethics, which is more concerned with the role and responsibilities of managers and employees as business agents, corporate social responsibility (CSR) is more focused on the corporation (or organization) and its obligations and behaviours to other stakeholders in the larger social system (Daft, 2001).
What conduct is appropriate in business is influenced by customers, rivals, government officials, interest groups, the general public, as well as each person's own personal moral principles and ideals. In today's dynamic and competitive business environment, a company will face numerous obstacles if its business plan is not based on business ethics. Business ethics deals with decisions made by a person or a team that the public perceives as morally good or poor. According to Aleksi, business ethics are a collection of core values that guide how people act in relation to their personal, professional, and social goals. The use of ethical judgment in business actions and situations is another definition of business ethics. Customers and consumers unconsciously and consciously judge whether a company is ethical or unethical, which makes business ethics crucial in the first place. This reality should be more than enough to encourage businesses to start operating ethically. Theoretically, moral norms should address matters that we believe have the potential to substantially damage or seriously benefit persons. Kim (1999), contends that morality works to limit selfish actions that harm other people, but moral judgments serve to condemn human objectives or behaviours that make other people's lives intolerable. By definition, stakeholders are the parties that a firm could benefit from or hurt (Elango et al., 2010; Johnson, 2004).
For the purposes of this study, stakeholders included the company's workers, clients, partners in the supply chain, stockholders (as a special group), and the communities in which it does business.
According to Ferrell (2009) study, humans are considerably more likely to abuse their power than animals living in the jungle on a regular basis because of their higher intelligence.
He selected a sample of 50 multinational corporations based in the US that employ people of various racial and ethnic backgrounds. In essence, ethics seeks to mitigate the negative impacts of chance and abusive power use in people's day-to-day lives (Ferrell and Ferrell, 2011; Kalshoven et al., 2011). In the "human jungle," which exists organically, improving stakeholder circumstances is a good indicator of business ethics (Ethisphere, 2010; Mish and Scammon, 2010). Ferrell (2009), was interested in what actions a moral society might take to increase its inhabitants' quality of life. He thought that such a society would unquestionably strive to establish a successful and effective economic system. For the people living in that society to be able to live well-ordered, meaningful lives, it is essential to have a system that increases the possibility of greater economic welfare (Ethisphere, 2010; Navran, 2002). The study's findings made it quite clear that a moral society would give business and business ethics more attention. But as few human social systems are flawless, a moral society would also strive to preserve the creativity, efficacy, and efficiency of the selected imperfect economic system while reducing its abuses (Maignan et al., 2011; Mish and Scammon, 2010). This society would also assume that companies operating in that system would behave in a manner that lessens the abuse of power and ostensibly aids their stakeholders in coping with the negative consequences of chance (Carlson et al., 2011). Stephen Howard, the CEO of Business in The Community, learned through his research that marketing consists only of gaining a competitive advantage for a product over those of competitors, establishing a relationship with clients, and making money from doing business (Howard, 2011). For this study, a sample of 715 marketing executives from various racial and cultural origins was taken. However, by interacting with people, the study gave participants the chance to evaluate social and environmental issues through the values reflected in the items and services that consumers choose to buy (Howard, 2011). The findings of this study demonstrate that companies have distinct cultures that are rooted in but distinct from the greater community. Beliefs, values, customs, and symbols are some of the elements that make up a culture. Organizations with similar views, values, and formal and informal norms as well as controls for policing member behavior, punishing non-compliance, and rewarding compliance with norms include business associations (Elango et al., 2010; Johnson, 2004). Business associations were viewed in this study from an ethical perspective as organizations of organizations, each of which has a culture that, according to our hypothesis, affects member businesses' social performance through isomorphic processes typical of relationships between organizations in organizational fields (Navran, 2002; Tarí, 2011).
Organizations have cultures, yet they are distinct from the greater community in which they are rooted (Tarí, 2011). Culture is made up of beliefs (agreements about the passage of time), values (agreements about what is morally acceptable and important), norms (behavioural expectations and patterns), symbols, activities, and tangible objects (Kalshoven et al., 2011; Mish and Scammon, 2010). Business associations are like other organizations in that their members abide by a set of formal and informal standards in addition to having common beliefs, values, and methods for enforcing norms and keeping track of member behaviour. In our approach, business associations are seen as groups of organizations, each of which has a culture that, in accordance with our hypothesis, influences the performance of members in the social and commercial spheres through isomorphic interactions typical of relationships between groups of organizations in organizational fields (Jones, 2005). Businesses should be held responsible for giving their consumers and customers accurate and reliable information, claims Howard (2011). When doing this, businesses frequently take into account their own interests, which is unethical if it harms their firm (Maignan et al., 2011; Tseng and Fan, 2011). An organization's main goal is to uphold proper business ethics and give its clients satisfying and honest services, as doing so will encourage employee loyalty and trust (McMurrian and Matulich, 2006). While acknowledging that the company's competitiveness goal is crucial for ensuring that business ethics and guidelines are followed and adhered to, it is frequently observed that different points of view often only have relative rather than absolute values when it comes to how they should be used in terms of morality and ethics (Boddy, 2011; Mish and Scammon, 2010). The study concludes that good deeds typically result in beneficial outcomes, supporting the utilitarianism concept in general. If the business's economic requirements involve maximizing shareholder profits through the selling of goods and services that are in demand in the market, its discretionary duties would take the form of doing good deeds for society as a whole. This might involve charitable contributions or efforts to protect the environment (Jones, 2005; Tarí, 2011).
Corporate ethics are becoming one of the key traits dividing successful from unsuccessful business investments. Working within the confines of the law, finishing projects on time, and placing customers and clients first are all instances of conducting business ethically. Corporate ethics must be applied while keeping future generations and other people in mind. Prior to now, organizations that upheld corporate ethics had established long-term goals and plans. Business ethics offer a sense of stability and the potential for future progress. Without fail, every corporate environment must emphasize the value of business ethics. Ethical businesses will forsake short-term financial benefits in order to retain a positive public reputation over time. By operating in this way, the company creates a positive climate, growing confidence and the possibility of constant progress. These kinds of companies have a great advantage over the non-ethical ones.
A corporation can draw in investors, maintain a high share price, and thwart takeover efforts by following business ethics. When investing in a particular stock, a person or an organization takes a number of things into account. In addition to the quantitative considerations related to a company's profit margin and prospects, qualitative considerations related to a company's reputation and the products it sells are also taken into account. All of these aspects are taken into account before making the final investment. Therefore, a company with a strong sense of business ethics would like to encourage additional corporate investment. Responsibility to the investor is a component of business ethics, and as a result, businesses with a solid reputation for ethical business practices tend to draw more investment from newcomers to the market. Investment is unquestionably crucial to success. Financial matters also place a premium on business ethics. When the company interacts with real people, including shareholders and vendors, this becomes obvious. A company that lacks integrity may find it difficult to operate because shareholders may stop investing their money and vendors that provide the company with the materials it requires may refuse to give credit. Although the early revenues may be substantial, there are now apparent ethical issues within the company. While the initial profits might be high, the appearance of ethical problems within the business can make investors uncomfortable risking their money.
It is impossible to study business ethics as a branch of academics without looking at how public perception relates to business ethics. Every organization has a unique public image that reflects how the general public perceives the organization. The factors that have the biggest impact on how the public views a corporation are its overall behaviours, which include its environmental policies, employee treatment procedures, and community relations policies. The fact that Wal-Mart still has a negative reputation while offering things of excellent quality and amazingly low prices is proof of this. Because they influence behaviour and because the public image is primarily the result of firm behaviour, business ethics are important in determining public image. Public perception is another factor supporting the importance of business ethics to a company's overall performance. A company that makes an effort to conduct itself ethically is also less likely to be penalized for improper conduct and to violate any of the many rules controlling proper conduct, such as rules governing payments to corrupt officials or environmental policies. The corporation as a whole, the directors, and the specific employees may all face consequences if an employee is found to be responsible for an offence. A company's reputation is one of its most important assets, as well as one of the most difficult to recover if lost. Corporate responsibility is crucial for keeping the commitments it has made to uphold that reputation.
In a study involving 58 U.S.-based enterprises, (Jones, 2005) showed that managers need to understand that customers have a moral right to be aware of the drawbacks of utilizing a company's products. On the other side, by keeping any detrimental effects of its products a secret, the business would be defending the rights of the other firm stakeholders (Jones, 2005).
The study's conclusions showed that management was not particularly interested in alerting the board of directors to corporate wrongdoing. To maintain their employment was the only motivation. It did this while selling its products to clients in flagrant disregard for all morality and the good of the world (Jones, 2005). During the research, employees of organizations with decision-making authority were tasked with developing swift corrective actions that would ensure the maintenance of moral and ethical principles. They had to explain the entire scenario to the persons involved, including both pros and cons. The persons concerned were made aware of their moral obligations and assisted in understanding the causes of and environmental elements affecting a particular conduct (Jones, 2005). Kaptein (2010), developed a model to assess the ethical environment of company cultures. The aforementioned mode employed the consequential ethics, deontological ethics, and virtue ethics theories of corporate ethics. Intentions, deeds, and effects are represented, respectively, by the three ethical theories. Kaptein (2010), looked at how managers' and workers' opinions of these three concepts related to one another to gauge the degree of ethical culture prevalent in a firm. Conclusion: The more popular these notions are in the workplace, the more ethically sound an organization is (Kaptein, 2010). The data gathered from the sampled businesses made it clear that each one has a responsibility to consider the interests of all parties involved, not just its own (Jones, 2005). Essentially, society supplies all enterprises with the inputs they require to survive (Lewis, 2002). It is necessary to execute a socially acceptable action to maintain this relationship. The company's business actions had an immediate effect on the community in which it works (Tarí, 2011). In essence, the business needs to uphold its social obligations as restitution for damaging the legitimate interests of society. The ironic law of responsibility, which holds that gaining power necessitates gaining societal responsibility, is what drives the need for an innovative business ethics strategy (Carlson et al., 2011). A business's commitment to social responsibility validates and supports its financial objectives. When social life is enhanced, the company can have contented clients, devoted employees, and a welcoming neighbourhood (Lewis, 2002). The management's lack of interest in alerting the board of directors to the company's wrongdoings was observed. Even employees are forced to misrepresent the product specs of the business to clients to conceal issues. In addition, it provided customers with its products without regard for morality or conscience (Tarí, 2011). Now that you have decision-making authority within your company, you must choose the immediate corrective measures that will ensure that moral and ethical standards are respected. Informing the persons involved of the entire picture, including advantages and disadvantages, is another duty (Navran, 2002; Pulliam, 2003). Organizations have cultures, yet they are distinct from the greater community in which they are rooted (Tarí, 2011). Culture is made up of beliefs (agreements about the passage of time), values (agreements about what is morally acceptable and important), norms (behavioural expectations and patterns), symbols, activities, and tangible objects (Kalshoven et al., 2011; Mish and Scammon, 2010). Business associations are like other organizations in that their members abide by a set of formal and informal standards in addition to having common beliefs, values, and methods for enforcing norms and policing member behaviour. In our approach, business associations are seen as groups of organizations, each of which has a culture that, in accordance with our hypothesis, influences the performance of members in the social and commercial spheres through isomorphic interactions typical of relationships between groups of organizations in organizational fields (Jones, 2005).
Corporate social responsibility is a complicated idea. It is reasonable that corporate responsibility has many different definitions and is thought to take many different forms. Corporate social responsibility is a concept that assumes that businesses have obligations that require them to take acts beyond their immediate financial interests and the legally mandated regulations, according to the literature on the subject (Carroll, 1979; McWilliams et al., 2006; Windsor, 2006). In addition to this general idea, there are several interpretations. Contrary to popular belief, even this definition from a textbook—which appears in most academic research on corporate social responsibility— is not self-evident. The bulk of corporate social responsibility research and writing, as well as the majority of corporate responsibility concepts, come from North America, Europe, or Australia, according to Jamali and Mirshak (2007). The concept was therefore developed while the writer kept those continents and their institutional contexts in the back of his or her mind. It is not immediately evident if this general description applies to all national conditions, including many emerging and developing countries, as we will address later in this essay. It may be preferable to think of the corporate responsibility concept as reflecting the idea that business is accountable for some of the greater society good because more exact definitions differ depending on national settings. Corporate responsibility encompasses a broad range of programs and rules that reflect the variety of industries and how they engage with society. Corporate responsibility covers a wide range of issues, including human rights defence, worker safety, and community development. Numerous interpretations are possible. Corporate sustainability, business in society, and corporate citizenship are all terms that are frequently used as synonyms for "corporate responsibility" and have given names to modern handbooks (Matten and Moon, 2008). The term "corporate responsibility" is used in this context to highlight the significance of a corporation's social, environmental, and financial obligations. As was previously argued, institutional contexts and contextual factors have an impact on corporate responsibility norms and practices. Recently, efforts have been undertaken to look into some of these disparities (Chapple and Moon 2005). The first article in this issue, written by Maria Gjolberg in 2009, looks at the CSR policies and practices of companies in 20 different countries, including various Western European countries, Canada, the US, and Japan. Gjolberg develops two indices: one that assesses corporate responsibility practices and the other that assesses performance. The Business Responsibility Practices Index includes a range of practices, such as certification practices, membership in networks and organizations devoted to corporate responsibility, and rankings of corporate responsibility performance along many aspects. Rankings of corporate responsibility performance in relation to the triple bottom line are also included. The corporate responsibility Performance Index, on the other hand, only includes those corporate responsibility instruments or items that impose performance obligations. Gjolberg contends that while the corporate responsibility practices index includes process-oriented "soft" requirements, the performance index is more concerned with "hard" performance-oriented norms. Based on the comparison of the indexes, Gjolberg deduces that a country of origin affects a company's corporate responsibility practices. In the "hard" performance index, for instance, Nordic and Swiss companies perform well, whereas Spanish and French companies score highly in the "soft" process-oriented index. The top two business clusters for corporate responsibility, according to Gjolberg, are. Due to their relative economic power and significant concentration of multinational corporations, the UK, Switzerland, and the Netherlands are among the countries in the first cluster of corporate responsibility leaders. This, in Gjolberg's view, is due to the fact that watchdog NGOs target companies in these countries and may quickly damage their reputation and brand value. In some circumstances, there is a strong commercial case for corporate accountability. The second cluster consists of businesses from the Nordic region that have certain political- economical traits in common. They have strong consensual-corporatist traditions, extensive social and environmental policies, and political cultures that emphasize equality and participation. They live in socialist countries. Corporate responsibility demands that companies put the interests of the society in which they operate ahead of their interests (Broomhill, 2007). Since ancient times, people have believed that corporations have duties to society in addition to achieving shareholder returns (Carroll, & Shabana, 2010). This is true because businesses exist inside society, and society anticipates that businesses will be accountable for some aspects of their operations. It is no longer acceptable for a firm or organization to achieve economic success separate from the stakeholders in both its immediate environment and the greater society, according to D‘Amato et al. (2009). In light of this, the effectiveness of a company's interactions with its clients, customers, and other critical stakeholders (e.g., customers, investors, suppliers, public and governmental officials, activists, and communities) is a corporate social responsibility crucial to its success.
According to Meffert and Münstermann (2005), corporate responsibility is an integrated management concept that establishes ethical behaviour within an organization while also advancing stakeholders' interests and the organization's objectives, values, and competencies. It depicts a corporate structure that integrates ethical standards with sustainable business practices to enable the creation and distribution of wealth for the benefit of all stakeholders. The obligation for corporations to take into account their effects on society, as well as the repercussions of incorporating social, environmental, ethical, and consumer issues into business operations and core strategy in close collaboration with stakeholders, is known as corporate responsibility. Social responsibility is frequently defined as the assumption of voluntary commitments that go above and beyond a company's just economic and legal obligations (Henry and Henry, 1972; Joseph, 1963). It also denotes the efforts or programs that businesses or other organizations do voluntarily in an effort to advance social change and environmental sustainability (Aguilera et al., 2007). Corporate responsibility more specifically refers to the selection of institutional objectives and evaluation of results based on moral criteria or social desirability standards in addition to corporate responsibility metrics like profitability and organizational welfare. In this view, the exercise of social responsibility must be consistent with the corporate goal of earning a satisfactory level of benefits, but also implies a willingness to relinquish some degree of benefit, in order to achieve non-economic objectives (John, 2003).
The concept of corporate responsibility has also generated a lot of controversy in recent decades. According to one argument, profit is the only objective of business. The money set aside for corporate responsibility is put to greater use from a social perspective, according to Friedman (1970), if it increases business productivity. According to Carson (1993), the idea of corporate social responsibility has gained a lot of popularity because when managers practice corporate responsibility, they effectively take the place of unelected authorities. Since businesses are an inherent part of society, they have a responsibility to help resolve social challenges, and this responsibility starts with making corporate activities visible to the general public. This viewpoint was supported and the stakeholder theory was established by Freeman (1984). According to the author, businesses engage with a wide range of stakeholders who both affect and are affected by the actions made by the organization. Additionally, an organization demonstrates corporate responsibility when it goes above and beyond the bounds of the law and engages in "activities that appear to serve some societal good, beyond the interests of the organization and what is required by law, to the organization's relevant stakeholders" (McWilliams et al., 2006). As a result, the corporate social responsibility model gave the stakeholder concept top billing (McWilliams and Siegel, 2001). Businesses interact with a wide range of stakeholders, according to the author, who have an impact on and are impacted by the organization's decisions. Furthermore, a company acts with corporate responsibility when it goes above and beyond the letter of the law and engages in "actions that appear to serve some societal benefit, beyond the interests of the company and what is required by law, to the company's important stakeholders" (McWilliams et al., 2006). As a result, the stakeholder notion received major billing in the corporate social responsibility paradigm (McWilliams and Siegel, 2001).
The concept of repurchase refers to the act of a customer purchasing a good, service, or item for at least the second time is referred to as repurchase (Nassè, 2015;2022). For businesses, this is encouraging since it shows that their customers are happy and loyal. Companies frequently concentrate on techniques like loyalty programs, customized incentives, and top-notch customer support to promote recurring business. Repurchases are interpreted by certain scholars, like Curtis et al. (2011), as a sign of customer pleasure and brand or corporate loyalty. Additionally, Nassè (2022) have shown that consumer happiness leads to repurchases. Repurchases are therefore tangible evidence that customers valued the prior product or service. The act of repeatedly buying the same product from a certain business is referred to as repurchase (Nassè, 2016; 2019).
A conceptual framework also serves as a representation of the synthesis of the literature on how to explain a phenomenon. It lays out the procedures that must be done during the duration of the study given prior knowledge of other researchers' points of view and observations on the subject of inquiry. Stated differently, the conceptual framework delineates the relationships among the specific variables and is grounded in the researchers' personal theories and comprehension of the subject matter, drawing on insights from extant literature. As a result, it indicates the elements needed for the research. It serves as the "map" the researcher uses to conduct the investigation. Below is the conceptual framework of the research.
Figure-1. Conceptual framework (Source: Authors‘ construct, 2022)
After the literature review, the different hypotheses are:
H1: There is a relationship between business ethics and repurchase. H0: There is no relationship between business ethics and repurchase.
H2: There is a relationship between business ethics and corporate social responsibility. H0: There is no relationship between business ethics and corporate social responsibility.
Figure-2. Hypotheses and Research Model (Source: Authors’ construct)
One of the Upper West Region's nine districts is the Wa Municipality. It shares a border with the Wa East District to the East, the Wa West District to the West, the Wa East District to the South, and the Nadowli West District to the North. It has an area of roughly 1,180 square kilometres, or about 32% and 2.56% of the region and the country, respectively, and is located between latitudes 1° 40'N to 2° 45'N and longitudes 9° 32'W to 10° 20'W.
The Wa Municipality is located in the Savannah high plains and has an average elevation of 180–300 meters above sea level. It is generally gently undulating. Due to its gently rolling slope, the area is suited for agricultural and other physical improvements. Singbakpong and its tributaries to the south and Billi and its tributaries to the north make up the municipality's two primary drainage systems. However, these streams are seasonal and disappear during the prolonged dry season, which has a detrimental effect on the municipality's agricultural output.
The majority of the Wa Municipality is made up of Guinea Savanna grassland with luxuriant small trees and bushes of various heights (Ghana Statistical Service, 2000). The municipality's climate is changing, and the vegetation is poor and dwindling. Some of the more prevalent trees in the area include shea nuts, dawadawa, kapok, and baobab. Mango and cashew are two alien species that do exceptionally well there. However, it is crucial to note that certain areas of the natural tree vegetation are rapidly vanishing as a result of human activities like farming, construction, overgrazing, bushfires, and charcoal burning, particularly in the Municipality's outskirts. The wet and dry seasons are well-defined in the Wa Municipality. While the North-easterly harmattan from the Sahara Desert brings the long dry season between October and April, the South-westerly Monsoon winds from the Atlantic Ocean bring rains between May and September. Between 840mm and 140mm of rainfall occurs on average each year. The majority of the rain falls between June and September, and it typically falls infrequently and at unpredictable times. Run-off is encouraged by the region's frequent torrential rainfall. The average monthly maximum temperature during the dry season is 38.5"C, although the day high of 45°C occurs in March. Temperatures are relatively low in the early dry season (December to January) and quite high in the latter half (March to April) (Ghana Statistical Service, 2000).
For the pragmatist, reality is continually renegotiated, discussed, and evaluated in light of its applicability in dealing with unforeseen circumstances (Onwuegbuzie et al., 2009). As a result, problem-solving is its main objective. It leverages the advantages of both the post-positivist and constructivist perspectives to accomplish this main objective in order to pinpoint the frequently many sources of an issue (Teddlie and Tashakkori, 2009). The interdisciplinary viewpoints provided by pragmatics allow for in-depth and comprehensive studies to be conducted within a single study (Creswell et al., 2011). The paradigm is frequently criticized for favouring expensive, overly ambitious, and complex designs that are not appropriate for early career researchers (Johnson, 2004), but this study has chosen a hybrid approach that combines more quantitative and less qualitative methods to get around these limitations. Due to this, a Case Study approach is used in the research design, along with quantitative research techniques. The case study methodology was chosen because it is appropriate for addressing the study's research issues. The case study is normally preferred for a study ‘when’ ‗‘how’ and ‗‘why’ questions are asked, when the investigator has little or no control over the events, and also when the focus of the study is contemporary, within its real-life context. The researcher wants to understand why businesses need or want to include corporate responsibility into their purchasing habits in light of this tactic. The case study is also taken into account because it is an empirical investigation that includes methodical approaches to viewing occurrences, the gathering of data, analysis of the data, and objective presentation of the results. The investigators gained a greater grasp of the problem at hand, the reasons why it occurred, and what can be thoroughly examined in the event of additional investigations. The case study research method is suited for studies that need in-depth information about a phenomenon within a constrained time frame because a large-scale survey might not yield genuine results. Due to the short research period, the case study is a better fit for this study. The use of a quantitative method has many benefits, including the ability to quantify the results and gather participant experiences to bolster the findings. Therefore, the benefits of such an all-encompassing research method cannot be overstated (Bryman, 2012). With this strategy, the researchers can use the advantages of both methodologies to produce a thorough and in-depth study.
The Wa Kejetia Market's small business owners were the research's participants. Both men and women between the ages of 19 and 70 years were considered for the research.
Sampling can be defined as the deliberate selection of a limited number of elements (people, things, or events) from a population of elements that is theoretically specified. A straightforward random sampling technique was used to choose small business owners for the quantitative research in this investigation. The Wa Kejetia Market's licensed small business owners were all located and registered in the researcher's field notebook. Every shop owner received a special identifying number.
Research requires sampling since it is virtually impossible for the researcher to include every member of the study's target population. In other words, for the purpose of estimating population proportions, a sample needs to be chosen in a way that is representative of the research population and that yields a 95% confidence level when utilizing a standard normal variate based on the coefficient. Within the Municipality, there are 3290 registered small shop owners, according to data from the Wa Municipal Assembly. The formula for determining sample size at 95% confidence level (Yamane, 1973) was used to determine the sample size for the investigation.
n = N/[1+N(e)2]
Where n = the sample size,
N = the population size of 3225, e = the margin of error 0.05
n=3290/[1+3290(0.05)2] n=3290/9.2
n=357.6
n=358
Therefore, 358 small business owners made up the sample size.
After the sample was decided upon, cardboard sheets were cut out, given individual identification numbers, and put within a container. A young child was asked to select 358 sheets at random. Subsequently, each of the 358 participants was contacted at their stores, and individual appointments were set up with them to gather data.
The researchers have obtained the respondents’ consent to participate to the research and they followed the ethical standards by keeping participants on board until the study is finished (Nassè, 2021). The respondents’ identity is kept confidential and their responses are used for the purpose of this research. These theoretical tenets served as the foundation for the recruitment of research participants.
Data was gathered by using the answers provided by small business owners to structured and semi-structured questionnaires. A questionnaire is a research document that contains questions and multiple choice answers designed to extract data that may be analyzed for a specific study goal (Babbie, 2020). The research questions were designed to gather data regarding business ethics, repurchase and corporate social responsibility. Questions were developed using data from the corpus of literature and firsthand experience.
The quantitative instruments used by the participants underwent pilot testing (Brislin, 1986; Nassè, 2018). A random sample of people from two different rural Upper West Region areas—which were not the research locations—was used to evaluate the survey questions. This exercise helped participants better understand how much time could be allotted to complete each questionnaire without making them feel uncomfortable, in addition to identifying the range of possible answers to multiple-choice questions and refining the wording and ordering of the questions (Brislin, 1986; Van Teijlingen & Hundley, 2002). Van Teijlingen and Hundley (2002) conducted an analysis of participant replies and ambiguities to the multiple-choice questions prior to giving the instruments to the sample group. Practical concerns including recently identified cultural diversity in the study sites that may have an impact on collecting data from women were also evaluated during the pilot test phase.
The data were gathered by a procedure called individual face-to-face interviews. There are numerous literary definitions of the word "interviews." For this study, an interview is a research method or approach in which one person (the researcher) asks the respondent questions (Teddlie and Tashakkori, 2009). Each interview was performed one-on-one with the subject, giving the chance to get more specific answers to questions that were left open-ended and to observe social cues. The researcher was alerted to social signs including the interviewee's intonation and body language, which led her to take notice and further investigate ambiguous responses. The use of this technique was appropriate for obtaining relevant information from the structured survey and semi-structured interview guides used, for the data collection.
Data collection was conducted at the participant‘s shops and homes (for those that chose to respond to questions there) with their verbal consent. Voluntary participation and their ability to withdraw from continuing the participation in the study were guaranteed. Each survey lasted for about ten minutes. During data collection, field notes were taken to augment the completed survey questionnaires. The notes were checked daily on every return place to correct incompleteness in notes and to make ethnographic observations and documentation.
Data collected were first keyed into Microsoft Excel and cleaned to ensure rigour. The final dataset was then imported into SPSS version 21 for analysis. Frequencies and percentages were generated to determine the prevalence of the various variables. Subsequently, a chi-square test of independence was conducted to determine the strength and significance of the association of socio-demographic variables with business ethics, repurchase, and customer satisfaction. Confidence level was set at 95%. Further statistical analysis because collinearity statistics showed high significance which could compromise the validity of the conclusions. Finally, some qualitative quotes were used to support the quantitative findings.
Both primary and secondary data sources were used in the investigation. To get their opinions on corporate ethics and CSR, managers and students were given online surveys with questionnaires. The data was examined for precision and comprehensiveness. Because it expresses quantitative analysis between variables clearly, the IBM Statistical Package for the Social Sciences (SPSS) program was utilized to obtain frequency distributions. The goal of this Research was to investigate the connections between participant socio-demographic traits and company ethics, spending, and customer happiness. The findings are presented in three broad themes: business ethics, repurchase and customer satisfaction. Participants were asked to respond to the survey questionnaire in order to measure the perspectives of participants on business ethics.
Out of the 358 participants, there were 232 male participants (64.8%) and 126 female participants (35.2%). In terms of age, participants were classified based on three broad age cohorts; 20-40, 41-60, ≥61. The majority (49.4%) of the participants were within the ages 20-40, followed by those within 41 to 60 years (25.7%, n=92) and 61 plus years were only 24.9% of the 358 participants.
Information on some basic socio-demographic characteristics of participants was obtained. Out of the 358 study participants, a few participants (21.5%) had never been to a formal school setting at the time of the survey. Participants within the age brackets of 21 to 40 were the majority constituting 49.4%, followed by those within the ages of 41-60 of about 25.7%. Approximately, 27.9% had attained primary level education, 25.7% had completed senior high or vocational/technical level education, and another 24.9% had attained tertiary level education. Males were the majority (64.8%). In terms of marriage, 74.3% of the participants were single whilst 25.7% were married. In terms of ethnic groups, Waala and Ashanti were the majority shop owners among the survey participants constituting 33.2% and 38.5%, respectively (Table 4.1).
Table-4.1. Socio-demographic characteristics of participants
Variable |
Frequency (N* =358) |
Percentage (%) |
Age of participants
21-40 41-60 ≥61 |
177 92 89 |
49.4 25.7 24.9 |
Gender Male Female |
232 126 |
64.8 35.2 |
Marital status Married Single (divorced, widowed, separated, never married) |
92 266 |
25.7 74.3 |
Educational attainment None Primary JHS/SHS/TVET Tertiary |
77 100 92 89 |
21.5 27.9 25.7 24.9 |
Ethnicity Dagarti Waala Ashanti Sissala Dagomba |
44 119 138 42 15 |
12.3 33.2 38.5 11.7 4.2 |
Religion Christians Muslims |
70 288 |
19.6 80.4 |
Source: Field survey, 2022 * Total frequency is 358 for all variables
A reliability test or internal consistency among the various was analysed. It was found that business ethics (α=0.736), corporate social responsibility (α=0.735), repurchase (α=0.727), had a Cronbach alpha value of greater than 0.7 (Table 4.2).
Table-4.2. Cronbach alpha for variables
Variable |
Number of items |
Cronbach alpha value* |
Business ethics |
4 |
α=0.736 |
Repurchase |
3 |
α=0.727 |
Corporate social responsibility |
5 |
α=0.735 |
*reliable at α=0.7
Source: Field survey, 2022
Table-4.3. Analysis of business ethics, repurchase, corporate social responsibility
Variable crossing |
Chi-square value, degree of freedom, and p-value* |
Conclusion |
a. Business ethics and repurchase |
χ²=358.000, df=1, p=0.000 |
Reject the null hypothesis |
b. Business ethics and corporate social responsibility |
χ²=106.344, df=1, p=0.000 |
Reject the null hypothesis |
*p≤0.05
Source: Field survey, 2022
The results from Table 4. 3. show that there is a significant relationship between business ethics and repurchase because χ²=358.000, df=1, and p=0.000. The null hypothesis which states that there is no relationship among these variables is being rejected because there is indeed a very strong and statistically significant relationship among them.
H1: There is a relationship between business ethics and repurchase.
The results from Table 4. 3. show that there is a significant relationship between business ethics and corporate social responsibility because χ²=106.344, df=1, and p=0.000. Therefore, the null hypothesis is rejected and H2 is accepted.
H2: There is a relationship between business ethics and corporate social responsibility.
Some previous studies have shown the connection between customer satisfaction and repurchase (Nassè, 2016; 2021). However, this research finds a clear correlation between business ethics and repurchase. Repurchase which is also a key component of the study was assessed to know its relevance to business success. From the participants, repurchase has a relationship with business ethics. Practising good ethical business behaviours is not only a recognized conduit for a good business image or a good reputation. Demonstrating good moral principles, rules and attitudes in business conduct and dealings goes a long way to increase the repurchase level of the business.
From the socio-demographic characteristics, the majority of the participants find business ethics very important to the success of business. It also gives the business a good image or a good reputation. From the qualitative data that was gathered, educated respondents who had some relevant business background attested to the fact that business ethics provide rules and regulations that prevent them from indulging in some unlawful business practices. The findings show that business ethics was significantly related to corporate social responsibility. These results agree with the body of research. A greater sense of responsibility on the part of enterprises can be used to justify their acts of giving back to society in recent years. This, in turn, can be related to the fact that they are dependent on society for their survival, as well as to their subsequent determination to fulfil their societal commitments. Companies that disregard their social duty will inevitably lose the support of society, it goes without saying (Development of Business Ethics, 2010). The organization's managers must, in turn, act fairly, particularly when it comes to recruitment, selection, and training (Boddy, 2011). Since there have been more and more concerns about business ethics in the corporate sector, this topic has been debated (Ghosh et al., 2011). The most well-known problem is that small enterprises are so motivated by profit that they violate their corporate ethics (Georgescu, 2012). The post- COVID-19 survey found that small businesses provide most of the job opportunities for the teeming youth in sub- Saharan Africa, South Asia, Latin America and the Caribbean. This calls for continued positive relationships with customers to achieve greater impact and expansion. Since participants noted that business ethics and recognizing that they owe their existence to continued customer patronage of their services and items, it is incumbent that they explicitly adhere to their obligation to society
Although a representative sample was obtained for the study, it must be noted that the qualitative component was minor, which would have provided the lived explanations of the response categories reported. The design of the survey instruments, especially the response categories of very important, somewhat important, not important at all and none of the above could allow for statistical modelling to determine the exact influence of socio-demographic characteristics and business ethics, purchase and customer satisfaction. However, it is believed that the findings as presented provide new insights into the necessity of ethical behaviours consideration, because business ethics has a significant influence on repurchase and corporate social responsibility. As discussed, the findings have shown that these elements are relevant for business growth and survival. Efforts must therefore be focused on growing these elements in small businesses. Stakeholders in small firms/businesses support business owners with basic knowledge of ethical behaviours and customer satisfaction.