Authors:
Ledibabari Paago, Barisua Akpeekon

Addresses:
Department of Accountancy, Ignitus Ajuru University of Education, Port Harcourt, Rivers State, Nigeria. Department of Accountancy, School of Management Sciences, Ken Saro-Wiwa Polytechnic, Bori, Rivers State, Nigeria.

Abstract:

This study examines the impact of business ethics on the performance of listed manufacturing companies in Nigeria, focusing on the relationship between ethical practices and return on assets (ROA). Specifically, the study examines how corporate social responsibility (CSR), tax compliance, and operational effectiveness (OPE) affect ROA. A descriptive and exploratory research design was adopted that used time series data from five selected manufacturing companies in Nigeria over a defined period of time. The study analyzes the extent to which ethical compliance in areas such as CSR and taxation, as well as internal operational practices, affects financial performance. Empirical results reveal a significant negative correlation between CSR and ROA, indicating that CSR activities can incur short-term costs that affect profitability. Conversely, operational efficiency shows a significant positive correlation with ROA, suggesting that ethical improvements in internal processes improve performance. Although a positive correlation was observed between tax compliance and ROA, it was not statistically significant. The study concludes that ethical practices, especially those that promote efficiency and accountability, can play a crucial role in the performance of companies. It recommends that the Nigerian government implement clear and enforceable policies to promote ethical business conduct, particularly in the areas of CSR and tax compliance, to improve the long-term sustainability and stakeholder value of businesses.

Keywords: Corporate Performance; Business Ethics; Operating Efficiency; Corporate Social Responsibility; Business Operation; Business Organizations; Management Practices; Business Behaviour.

Received on: 27/03/2024, Revised on: 03/06/2024, Accepted on: 12/08/2024, Published on: 12/12/2024

DOI: 10.69888/FTSML.2024.000313

FMDB Transactions on Sustainable Management Letters, 2024 Vol. 2 No. 4, Pages: 145-152

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