EFFECT OF ORGANIZATIONAL ETHICS ON SERVICE

DELIVERY

BY
JOE MUGAMBI OROTE

A RESEARCH PROJECT SUBMITED TO THE KENYA INSTITUTE

OF PRO STUDIES IN PARTIAL FULFILMENT OF REQUIREMENT
FOR THE AWARD OF DIPLOMA IN BUSINESS MANAGEMENT

SEPTEMBER 2012

DECLARATION
This research project is my original work and has not been presented to any other institution
for the award of Diploma or Degree.

Name : Signature:
Admission number Date

Supervisor

This Research Project has been presented for defense by my permission as a supervisor of the
Kenya

Institute Of Management.

Signature :

Date :

Lecturer : Kenya Institute Of Management-Kericho Branch.

Management
This research project has been
of the Kenya

submitted with my approval as the administrative representative

Institute Of Management .

Name : MR . JOSPHAT TANA

Signature :

Branch Executive manager

Date :

: Kericho

ii

DEDICATION
I dedicate this research project to my parents Mr. and Mrs. Mathew Soi for their full support in my
upbringing as

well as in my academic support . I will also not forget my sisters , brothers ,

relatives and my friends for their moral support throughout my research period .

iii

ACKNOWLEDGEMENT
I wish to thank my almighty God for His divine enablement through the entire course .
Special thanks also go to my supervisor Mr. Musiko for his guidance and support throughout
the research process.
I wish also to gratefully thank the entire staff of Kipsigis County Council for
given to me while collecting data for analysis of my project .

MAY GOD BLESS YOU ALL.

iv

their assistance

ABSTRACT
The study was on effect of Organizational Ethics on service delivery , a case study of Kipsigis
County Council . The objective of the study was to identify the role of Organizational Ethics
on service delivery , to determine

how ethical practice in an organization influences decision

making , to determine ways of establishing a strong ethical culture in an organization and

lastly to examine

the relationship

between organizational ethics and service delivery . The

study will offer valuable insight to county council of Kipsigis

service delivery . It will also help the management in

in achieving a better

determining the acceptable and

unacceptable behaviors in the various departments . The study targeted 100 respondents of
County Council

of Kipsigis but 60 respondents were willing to answer the questionnaires . the

analysis revealed that Organizational ethics contributes much to service delivery . It has a
lot of benefits in creating an environment of a better service delivery .Subsequently to the
foregoing findings it was recommended that the government

organizations

should put in

place appropriate training programs regarding establishment of Organizational Ethics .

TABLE OF CONTENTS
Declaration...ii
Dedication....iii
Acknowledgementiv
Abstract....v
List of figures..ix
List of tablesx
Abbreviationxi
Definition of termsxii
CHAPTER ONE
PAGES
1.0 Introduction....1
1.1 Background of the study1
1.2 Statement of the problem....3
1.3 Objective of the study....3
1.4 Research Questions....4
1.5 Significance of the study...4
1.6 Limitation of the study..4
1.7 Scope of the study.......................................................................................................... 5
1.8 Delimitation... 5
CHAPTER TWO
2.0 Literature Review ..7
2.1 Introduction ...7
2.2 Main Review ..7
vi

2.3 Critical Review .22

2.4 Conceptual framework...........23
2.5 Summary ...24
CHAPTER THREE
3.0 Research Design and Methodology ..25
3.1 Introduction ......25
3.2 Research design.....25
3.3 Target population...25
3.4 Sampling Design...26
3.5 Data Collection Instruments. 26
3.6 Data Collection Instruments. 27
3.7 Validity and Reliability 27
3.8 Data Analysis... 27
CHAPTER FOUR
4.0 Data Analysis and Presentation.28
4.1 Introduction....28
4.2 Presentation of data....28
4.2.1 Gender of respondents ...28
4.2.2 Age..29
4.2.3 Level of education of employees30
4.2.4 Length of service.32
4.2.5 Benefits of organizational Ethics....32
4.2.6 Relation between organizational Ethics and Service Delivery...33
4.2.7 Practice of Organizational ethics on service delivery in the organization. 34
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4.2.8 Ways of establishing a strong ethical culture..... 35

CHAPTER FIVE
5.0 Summary of findings, conclusion Recommendations and suggestions for further studies37
5.1 Introduction37
5.2 Summary of Major findings37
5.3 Conclusion.. 38
5.4 Recommendations...39
5.5 Room for further studies..39
Reference...40
Appendices.....................................................................................................................................44

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viii
viii

LIST OF FIGURES
PAGES
Figure 2.1 Sources of organizations code of ethics......................................................................... 10
Figure 2.2 Moral management and Ethics Centre of gravity............................................................15
Figure 2.3. Conceptual framework.....................................................................................................23
Figure 3.1 Sample sizes of respondents. .............................................................................................26
Figure 4.1 Gender of respondents....................................................................................................... 29
Figure 4.2. Age brackets of the respondents........................................................................................ 30
Figure 4.3 Level of education of employees..........................................................................................31
Figure 4.4 Response rate on the relation between Organizational ethics .......................................... 33
Figure 4.5 Response rate on the relation between ethics and service delivery...................................... 34
Figure 4.6 Response on practice of Organizational ethics on service delivery..................................... 35
Figure 4.7 Response on the ways of establishing a strong ethical culture ............................................ 36

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LIST OF TABLES
PAGES

Table 3.1 Target population..............................................................................................................25

Table 3.2 Sample size ..................................................................................................................26
Table 4.1 Gender of respondents..................................................................................................... 28
Table 4.2 Age brackets of the respondents....................................................................................... 28
Table 4.3 Level of education .............................................................................................................30
Table 4.4 Level of service of employees ......................................................................................... 32
Table 4.5 Responsive rate on the benefits of Organizational Ethics..................................................32
Table 4.6 Response on relation between organizational ethics and service....................................... 33
Table 4.7 Response rate on practice of Organizational Ethics on service...........................................34
delivery in the organization
Table 4.8 Response on ways of establishing a strong ethical culture.................................................35

ABBREVIATION
C.P.D County Planning Departments
K.C.C Kipsigis County Council

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DEFINITION OF TERMS
Organizational Ethics- It is the ethics of an organization and it is how an organization ethically
responds to an internal or external stimulus
Service- Is to do work or perform duties for a person, an organization or a community.
Ethics set of principles that people use to decide what is right and what is wrong.

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CHAPTER ONE
1.0 INTRODUCTION
1.0

Introduction

This chapter comprises of background of the study, statement of the problem, objectives of the
study, research questions, and significance of the study, limitations and scope of the study.
1.1 Background of the study
Kericho is undergoing unprecedented rate of urbanization that is characterized by a systematic
crisis of deteriorating urban conditions. The growth and development of Kericho is managed by
the Kipsigis County council in accordance with the local government Act cap 265 of the laws of
Kenya. Local authorities are empowered by the Act cap 265 to carry out the basic municipal
functions and services. It is guided and supervised by the ministry of local government. The
council composed of elected leaders called councilors was established to provide and manage
basic social and infrastructure facilities and services to the residents of Kericho. The council is
headed by his worship the mayor who is elected by councilors. The administration and running
of the council is headed by the town clerk assisted by chief officers who are heads of various
department of the council. The council has been empowered to make and enforce laws and by
laws and raises revenue by charging fees on the services provided to the residents and their
properties (smoke 1994).
County planning department (CPD) is among the sectors or department of the Kipsigis County
Council. It is headed by a director and consist of nine sections namely:- policy implementation
services, development control, forward planning, central administration, urban design and
development, enforcement of section, land surveys, land management and research and
information technology. Thee sections specialize in sectoral functions.
The mandates of the departments consist of preparation of plans for the future of Kericho town,
preparation of specific action and policy area for intervention and guidance of development. It is
also charged with the responsibility of regularity outdoor advertising building activities ad entire
by laws on development regulation changes in use of land and buildings, regulation of schools,
regulation of subdivisions of land and certification for documentation.
1

Good services are vital to peoples quality of life. Over the last decade, the councils financial
management position and its ability to deliver services to Kericho residents have deteriorated
gradually to levels that are very worrying. The inability of the council to provide basic services
and facilities needed to sustain the rapidly growing population as well as expansion of
commercial and industrial activities which has led to overcrowding, inadequate sanitation,
population and lack of recreational facilities. As a result Kericho town is experiencing increased
cases of crime, mushrooming of slums, construction of illegal structures and rapid decline in the
living in the living standards of Kericho residents.
Organization ethics
Organization ethics is the ethics of organization and it is how an organization ethically responds
to an internal or external stimulus. It expresses the values of an organization to its employees and
other entities irrespective of governmental or regulatory laws. There are at least four elements
which exist in an organization that makes ethical behavior within an organization. These
elements are;i)

Written code of ethics and standards

ii)

Ethics training to executive managers and employees

iii)

Availability of advice on ethical situations i.e. advice or offices

iv)

Systems for confidential reporting.

Ethical values shape the search for opportunities, the design of organization systems and the
making process used by individuals and groups. They provide a common frame of reference and
serve as a unifying force across different functions, lines of business and employee groups. It
helps define what a company is and what it stands for.
An ethical culture underpinning purpose - driven leadership is viewed as an effective approach
that will promote the broader interest of society in respect of public service delivery. It can also
be stated that the possession of a personal sense of ethical behavior is imperative for the
implementation of service delivery excellence. According to Lynn Sharp Paine many managers
think of ethics as a question of personal scruples, a confidential matter between individuals and
2

their consciences. Managers must acknowledge their role in shaping organizational ethics and
seize their opportunity to create a climate that can strengthen the relationships and reputation on
which their companys success depends. Executions that ignore ethics run the risk of personal
and corporate liability in todays increasingly tough legal environment.
In addition they deprive their organizations of the benefit available under new alliance union
guidelines for sentencing organizations convicted of wrongdoing.
1.2 Statement of the problem
Kipsigis County Council plays a major role in making Kericho to be recognized country wide. It
is responsible for collecting various taxes and in return, after services like running health centres,
water, nursery and primary schools, maintenance of roads and infrastructure, markets and social
services such as public halls for recreational activities. Unethical behavior has significantly
affected the service delivery level both in effectiveness and efficiency. The result has been low
service delivery in operation of the work of the council like loss of good reputation,
misplacement of materials, theft and pilferage and poor management. This has been due to lack
of respect, dishonesty, favourism less responsibility and lack of fairness in treating employees
equally. It is for these reasons that my research sought to find out the effect of organizational
ethics on service delivery.
1.3 Objectives of the study
The purpose of carrying out this research was to achieve the following objectives:General objectives
The purpose of this study is to determine the effect of organizational ethics on service delivery at
the county council.
Specific objectives were to:
i)

Identify the role of organizational ethics on service delivery.

ii)

Determine how ethical practice in an organization influences decision making.

iii)

Determine ways of establishing a strong ethical culture in an organizational.

iv)

Examine the relationship between organization ethics and service delivery.

1.4 RESEARCH QUESTIONS

i)

Does organizational ethics play a role in service delivery?

ii)

Does organization ethics influence decision making?

iii)

What are the ways of establishing a strong ethical culture in an organization?

iv)

What are the relationships between organization ethics and service delivery?

1.5 SIGNIFICANCE OF THE STUDY

The result of the study will offer valuable insights to county council of Kipsigis in achieving
better service delivery. It will also help the management in determining the acceptable and
unacceptable behavior in the various determents.
To other researchers
The study may help other researchers in the same area of study who may wish to refer to for data
collection.
To the researcher
The study will help the researcher to achieve academic qualifications for the award of diploma in
Business management and also he will acquire new skills and experience in the field of research.
1.6 LIMITATION OF THE STUDY
There might be several challenges faced during the study including the following:
a) Financial Constraints funds for carrying out the research may be limited thus minimizing
information to be used under the study.
b) Weather Kericho County is ever raining therefore the weather may not allow easy
4

traveling to and from the case study region.

c) Time- Time might be the most limiting factor in administering filling and collection of
questionnaires.
d) Lack of co-operation- Respondents might be busy with the routine assignment hence not
willing to give up much of the time. This attitude may lead to less information being obtained
to be able to provide a real picture of the problem.
1.7 SCOPE OF THE STUDY
The study will be conducted at Kipsigis County Council which is located within the town
Council of Kericho, targeting employees in their different departments. The research would
be carried out from the month of June.
1.8 DELIMITATION
1. Financial Constraints
Even though the whole exercise being expensive. The researcher was able to acquire funds from
friends and family members. These friends enabled the researcher to carry out the whole exercise
without any difficulty.
2. Weather
Even though Kericho being rainy, the researcher was able to carry along with an umbrella, rain
coat and sweaters.
3. Time
The researcher came up with a time frame which enabled him to plan well and avoid wastage of
time.

4. Cooperation
The problem of lack of cooperation from respondent was anticipated by the researcher and this
was countered by assuring the management that this was purely academic study and the
information needed was useful.

CHAPTER TWO
2.0

LITERATURE REVIEW

2.1 INTRODUCTION
This chapter focuses on previous research studies conducted on the topic under discussion. It
entails review of literature in terms of introduction, main review, critical review, conceptual
framework, summary and conclusions.
2.2 Main Review
According to Joseph (2003) organization ethics refers to clear standards and norms that help
employees to distinguish right from wrong behavior at work.
According to McGraw Irwin (2007), he defines organizational ethics as the principles and
standards that determine acceptable conduct in business organizations. Organizations have
recognized the need to treat employees in an ethical fashion and responding to a variety of
programmes to ensure a high standard of ethical performance by managers and employees have
established codes of ethics , published statements of ethical values, provides ethics training
reward employees for notable ethical behavior, published positive role models and set up
internal procedures to handle misconduct.
According to J.H Westing,I.V Fine and Cary J.Lenz, organizational ethics may be defined as self
generating system of moral standards in the realm of business to which a substantial majority of
organization executives gives voluntarily assent. It is a force within business that leads to
industry wide acceptable of certain standards of practical conduct. Here the standard is a
relative one. It is a composite or a sort of an average of what the group accepts and practices.
The ethical issue of an organization development turn on the power relationships among the
participants in the change efforts. Organization development is inherently unethical because it
restricts the range of values that can legitimately be considered in bringing about change.
According to Philip Lesley (2002) the pressure that creates ethical dilemmas in government,
business, universities, family relations and all other spheres are bearing on this field. Emphasis
7

on immediate and extreme monetary benefits; lowering of all standards resulting from
overzealous desires to benefit the underclass; emphasis on hedonism and self gratification.
Another factor is the doctrine of Management By Objectives (MBO) which makes the end result
the overwhelming consideration in making all decisions.
All conditions must be taken in the context of the universe the organization is in- and over a long
period. That also applies to the individuals working within the organization. Here are some
principles to apply when considering questions of ethics or principles:
1. Each case is separate- No formulas should be relied on.
2. Experience, judgments and objectivity are vital, to weigh all considering consequences and
time periods.
3. Sober judgements must be made-not based on emotion or panic.
4. Long term consequences must be perceived and weighed.
5. The purpose of the action taken must be clear, and consistent with the organizations total
posture.
6. The reasons for the decision must be communicated effectively in many ways- to all
members concerned
7. The issue must not be considered finished when things have been done in response, but must
be viewed constantly in light of new developments and trends.
2.2.1 SCOPE OF ETHICS
Ethics is also concerned with values. According to John E. Richardson business ethics refers to
clear standards and norms that help employees to distinguish right from wrong behavior at work.
(Joseph 2003), Ethical decision-making in an organization does not occur in a vacuum. As
individuals and as managers, we formulate our ethics. When we make ethical decisions within
the organizational context, many a times there are situational factors and potential conflicts of
interest that further complicate the process.

Decisions do not only have personal ramifications they also have social consequences. Social
responsibility is rally ethics at the organizational level, since it refers to the obligation that an
organization has to make choices and to take actions that will contribute to the good of society as
well as the good of the organization.
Individual behavior will differ according to whether we base our ethical decision on the five
approaches to values which includes:i)

The utilitarian approach

It was conceived in the 19th century by Jeremy Bentham and John Stuat Mill to help legislation
determine which laws were morally best. They suggested that ethical actions are those provide
the greatest balance of good over evil.
ii)

The rights of approach

It has its roots in the philosophy of the 18th century thinker Immanuel Kant and others like him,
who focused on the individuals right to choose for herself or himself.
iii)

The fairness or justice approach It has roots in the teaching of the ancient Greek
philosopher Aristotle who said that equal should be treated equally and unequally.

iv)

The common good approach

This approach to ethics presents a vision of society as a community whose members are joined in
the shared pursuit of values and goals they hold in common. In this approach, we focus on
ensuring hat the social policies, social systems, institutions and environments on which depend
are beneficial to all.
v)

The virtue approach

This approach assumes that there are certain ideals towards which we should strive, which
provide for the full development of our humanity. Virtues are like habits; that is once acquired,
they become characteristic of a person.

Sources of organizations code of ethics

Social ethics
The values and standards embodied in a
societys laws, customs, practices and
norms and values.

Organizations code of ethics

Revives from

Professional ethics
The values and standards that groups of
managers and workers use to decide
how to behave appropriately

Individual ethics
Personal values and standards the result
from he influence of family, peers,
upbringing and involvement in
significant social institutions.

Figure 2.1:Sources of organizations code of ethics

Source : Researcher, (2012)

10

2.2.2 Establishing a strong ethical culture

Business leaders who wish to take proactive measure to establish and maintain corporate cultures
that emphasize strong moral leadership are advised t take the following steps:-

i)

Conduct social audit

Most organizations are familiar with financial audits. This concept can be employed in the
context of ethics and corporate responsibility as well.
ii)

Be proactive

Organizations wishing to establish a reputation for ethically and good corporate citizenships in
the community will often organize and support programs intended to give something back to he
community.
iii)

Protect whistle blowers

A whistle blower is a person within the firm who points out ethically questionable actions taken
by other employees or even by managers within the organizations.
iv)

Correct ethical behavior

Through consistent and firm application of sanctions to correct unethical behavior, the manager
will signal to all employees that sustained moral behavior will not be tolerated.
v)

Hire and promote ethical people

It is probably the best defense against putting the business at risk through ethical lapses by
employees. When making human resources decisions it is critical to reward ethical behavior and
punish unethical behavior.

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vi)

Provide ethics training

At an interval of time, a leader in any organization should conduct ethics training sessions and
these may be led by experts in organizational ethics.
vii)

Adopt a code of ethics

Identify the commonly held moral beliefs around values of the members of the firm and codify
them into a written document all can understand and support. Post the code of ethics in
prominent places around the worksite. Make certain that all employees subscribe to it by asking
them to sign it. (Kuchar, 2003)
viii)

Empower the guardians of integrity

The organization leaders chief task is to lead by example and to empower every member of the
organization to demonstrate the firms commitment to ethics in its relationships with suppliers,
customers, employees and shareholders. Turn each employee of the firm, no mater what that
individuals position into a guarding of the firms integrity.
2.2.3 Importance of organizational ethics
Karp et al (2002) suggests that both professional and organizational codes are of importance
since it provide a basis or working together because most codes require that people treat other
with respect. Setting boundaries as to what constitutes ethical behavior as determined by
organizational human rights and professional values. Providing a commonly held set of
guidelines enabling that what is right and wrong in a given situation to be judged on a consistent
basis so they help to dispel ambiguity. According to Johnston and Johnston Annual report (04),
an organizations code of ethics guides in decision making when ethical questions arise; but
managers must go one step further by ensuring that important ethical values and norms are key
features of an organizations culture.
Organizational ethics also encourage organizational members to behave in a socially responsible
manner.
For some organizations which have an organization wide ethics committee, it helps provide
12

guidance an ethical issues and help write and update the company code of ethics. Ethical conduct
in an organization builds trust among individuals and in business relationships, which validates
and promotes confidence in business relationships.
2.2.4 A checklist for making good ethical decisions
A business leader of an organization who takes seriously the challenges of creating a strong
ethical culture for the firm must, of course make good decisions when faced personally with
ethical dilemmas. Here is a checklist a manager might wish to follow:
1. Recognize the ethical dilemma
2. Get the facts
3. Identify your options
4. Test each option, it legal right beneficial?
5. Decide which option to follow
6. Double check your decision
7. Take action
8. Follow up and monitor decision implementation.
Ethical dilemma- Is a situation where a potential course of action offers potential benefit or gain
but is unethical, in hat it violates one or more of the standards just described.
2.2.5 Effects of organizational ethics to an organization
Effects on company officials
In government, several politicians and some high ranking officials have been forced to resign in
disgrace over ethical indiscretions.

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Effect on sales growth

The announcement of a companys conviction for illegal activity has been shown to diminish
sales growth for many years. Most people today prefer of its ethics.
Effect on company efficiency
Organizational ethics tend s to have a great influence on the efficiency of an organization since it
deals with honesty and fairness. For example, vault.com found that 67 % of employees have
taken office supplies from work to use for matters unrelated to job. Most employees do not view
taking office supplies as stealing or dishonest, with 97% saying they have never gotten caught
and it would not matter if they were found to perform their work and to deliver services to their
customers.
Effects on firms revenue
Unethical behavior in the form of employee fraud costs. US organizations use around $652
billion a year according to the association of certified fraud examiners. Employee fraud, which is
twice as common as consumer fraud costs employees about 30% of every dollar earned.
Effects on employees actions
Manager for example can influence employees to use pirated computer software to save costs.
The use of illegal software puts the employee and the company at legal risk, but employee may
feel pressured to do so by their superiors authority. The National Business Ethics survey found
that employees who feel pressure to compromise ethical standards view top and middle
managers as the greatest source of such pressure.
2.2.6 Ethics training
Ethics training takes the form of structured programs to help participants understand the ethical
aspect of decision making. It is designed to help people incorporate high ethical standards into
their daily behaviors.
There are lots of options in ethics training. College curriculum includes course work on ethics

14

and seminars on the topic are popular in the corporate world. But regardless of where or how the
ethics training is conducted, it is important to keep things in perspective. Training is an ethics
development aid; it isnt a guarantee of ethical behavior. Lots of organization provides some of
the ethics training for employees. The assumption in ethics training is that such exercises will
raise ethical awareness and confidence, creating a more ethical workplace.
2.2.7 MORAL MANAGEMENT
According to Management Scholar Archie Carroll a moral manager considers ethical behavior as
a personal goal. In Kohlbergs terms, this manager is operating at the post conventional or
principled level of moral development.
Carroll considers that there exist three managers who are the following: - an immoral who
chooses to behave ethically and a moral manager who fails to consider the ethics of her or his
behavior and a moral manager who makes ethical behavior a personal goal. Carroll suggests that
most of us act a morally. Although well mentioned, we remain mostly uniformed or
undisciplined in considering the ethical aspects of our behavior.
Management morality can influence organization and figure 2 shows hoe it can affect the ethics
center of gravity for the organization as a whole. The key is ethics mindfulness a state of
enriched awareness that causes a person to behave ethically from one situation to the next moral
managers are leaders with ethics mindfulness. By communicating ethical values and serving as
ethics role models they help more the ethics center of gravity of the whole organization in a
positive direction, contributing virtuous shift.

A moral leadership
Negative shift

Leadership impact
on ethics
mindfulness

Moral leadership
Virtuous shift

Figure 2.2 Moral Management and Ethics center of gravity in organization.

Source: Research (2012)
15

SOCIAL RESPONSIBILITY AS SOCIAL RESPONSIVENESS According

to this view, socially responsible behaviors are anticipatory and preventive, rather than
reactive and restorative. The term social responsiveness has become widely used in recent
years to refer to actions that exceed social obligation and social reaction.
These characteristics of socially responsive behavior include taking stands on public issues,
accounting willingly for actions to any group , anticipating societys future needs and
moving toward satisfying them and communicating with the government about existing
and potential legislation thats socially desirable.
A socially responsive corporation actively seeks solutions to social problems . Progressive
managers , according to this view , apply corporate skills and resources to every problem
from run-down housing to youth employment and from local schools to small- business
job creation. Such endeavors are likely to receive substantial public approval.
The social responsiveness view is the broadest meaning of social responsibility. It
removes managers and their organizations from the traditional position of singular
concern with economic means and ends . This views rest on two premises: (1)
organizations should be involved in preventing , as well as solving social problems and (2)
firms are perhaps the most effective problem solving organization in a capitalist society.
These three viewpoints of social responsibility still leaves managers with an abstract set of
guidelines. Those who define social responsibility determine what is considered responsible
. The importance of the concept of social responsibility has increased the attention paid
to ethics and ethical dilemmas . The concept of social responsibility deals primarily with
eternal environment , while ethics deals with both the external and internal environment of
the organization . Somebody , presumably Groucho Marx , once offered the following advice
: The secret of success is honesty and fair dealing. If you can fake those , youve got
made.
What is and isnt ethical behavior on the job is often in the eye of the beholder, it
seems. And while most people consider themselves highly principled , theyre beholding
their co- workers most suspiciously .
According to Michael R. et al Firms in the New Ezra of Marketing emphasize social
profit as well as economic profit . This means that New Era companies practice business
ethics: that is , they behave according to basic values , respond to consumerism issues ,
16

and respect the rights of consumer in order to avoid both financial and reputation costs.
Ethical marketing means making products safe , pricing products fairly , promoting products
honestly and treating channel members fairly.

SOCIAL RESPONSIBILITY AS SOCIAL REACTION

A second view of social responsibility is behavior that is in reaction to currently
prevailing social norms , values and performance expectations. This pervasive view
emphasizes that society is entitled to more than the mere provision of goods and
services . At a minimum , business must be accountable for the ecological ,
environmental and social costs incurred by its actions. At a maximum , business must
react and contribute to solving societys problems . Thus according to this viewpoint,
corporate contribution to charity is socially responsible .
A somewhat restrictive interpretation of social responsibility as social reaction is that
it involves only voluntary actions.
This narrower view implies that a corporation pursuing only socially obligated behavior
is not socially responsible because its behavior is required , not voluntary. Whether the
firm action is voluntary or not ,a broader interpretation of the social reaction view identifies
action that exceed legal requirement as socially responsible. Typically, these action are reaction
to expectation of specific group-for example unions, stockholders ,social activists and
consumerists. Because those group expect more than legal minimums, firms can simply decide
not to react . Favorable reaction, however is considered the socially responsible response.
The essence of this view, social responsibility is that firms are reactive. Certain groups make
demands for them, and forms are socially responsible when they react voluntarily or
involuntarily, to satisfy these demands.

SOCIAL RESPONSIBILITY AS SOCIAL OBLIGATION

This view hold that a corporation engages in socially responsible behavior when it pursues profit
only within the constraints of law. Because society support business by allowing it to repay
society by making profits .Thus ,according to this view ,legal behavior in pursuit of profit is
socially responsible behavior ,and any behavior that is illegal or is not in pursuit of profit is

17

socially irresponsible.
This view is particularly associated with economist Milton Friedman and others who believe
that society creates firms to pursue two primary purpose to produce goods and services
efficiently and to maximize profits.
Proponents of social responsibility as social obligation offer four primary arguments in
support of their views. First they assert , businesses are accountable to their shareholders ,
the owners of corporation . Thus , managements sole responsibility is to serve the
shareholders interests by managing the company to produce profits from which
shareholders benefit.
Secondly , socially responsible activities such as social improvements programs should be
determined by law , by public policy and the actions and contribution of private
individuals . As representatives of the people, the government is best equipped to
determine the nature of social improvements in society . Businesses contribute in this
regard by paying taxes to the government which rightfully determines how they
should be spent.
Third, if management allocates profits to social improvement activities , its abusing its
authority. Management is taxing the shareholders by taking their profits and spending
them on activities that have no immediate profitable return to the company . Because
managers are not elected public officials , they are also taking action that affect society
without being accountable to society .Further , this type of non-profit seeking activity
may be both unwise and unworkable because managers arent trained to make noneconomic decisions.
Fourth , these actions by management may hurt society . In this sense , the financial costs
of social activities may over time , cause the price of the companys goods and services
to increase , and customers must pay the bill . Thus , managers have acted in a manner
contrary to the interest of the customers and ultimately , the shareholders .

COMPARING PUBLIC AND PRIVATE ORGANIZATIONS

This distinction between

public

and private organization is important in this study of

organizational ethics . Bozeman in Rainey (1991) uses two dimensions , political authority
and economics authority to draw a distinction . These dimensions, are continuums rather
18

than dichotomies , and thus move from private organizations with maximum economic
authority and little political authority . Gawthrop in Denhardt (1993) suggest that the
purpose of public organization and public management is the facilitation of
integration and convergence of social values . Gortner Mahler et al(1997) define public
organization as Organizations created to be agents of some unit of government .
Denhardt (1993) suggests that public organizations should be concerned with the pursuit
of publicly defined social values as the most important goal . Organization that are
agents of some governmental unit operate in a landscape different from their private
sector counterparts .This landscape concerns organizations goals involving public trust
equality and equity, fairness and due process and operating in the public interest . This
provides the value distinction from private organization and their pursuit of economic
goals . Harmon and Mayor in Denhardt (1993) argue that the greatest impact of studying
organization is on what

clarifies the moral dimension of the organization and

understanding what is valued and what should

be valued.

The law creates public organizations to implement policy and administer the law . Where
managers in private organizations act unless a law or rule prescribe otherwise , compliance
with , laws in public organization is mandatory . Public managers ability to plan ,
organize, lead and control is possible only if authority is granted . The political process
often controls changes attempted by public managers . In countless ways , the structure ,
control and resources provided to

public organizations is fragmented . This

fragmentation process and ultimate priority on abiding by laws and the political process
create emphasis on internal structures and processes. This power and political
organizational theory overlaps into the organizational culture and climate.
The organizational culture is a system of organizational symbols , beliefs , values and
shared assumptions and is a social force that controls patterns of organizational
behavior by shaping members cognition and perceptions of meanings and realities Ott
(1989) and is an anthropological construct . In public organizations , the focus is to be
on a values based ethic that considers the public interest through the implementation of
policy and law . This affect varies between public organizations based on their
mission and structure . It is therefore logical to posit that differing organizational ethics
are to some extent a product of different

organizational cultures .

19

SERVICE DELIVERY
According to Barney , service delivery is all about people first , process and procedure
second . People will deliver the work required to time and quality . People will engage
with the customer and

enable them feel appreciated . People make the project work or

fail .Processes and procedures simply enable projects and

according to a particular standard and

services to be delivered

with consistency provided the people are

up to the task at hand.

Service delivery of any nature is all about capability

Capability of the team that will be in place.
Capability of your business to deliver on the promises that were made .
Capability of being able to stand over any key performance indicators or service
level agreements .

Service delivery is about the customer

The customer needs to appreciate what is being delivered .
The customer is the one that will give you a reference next time that you are
looking for one .
The customer is the person that pays you once the job is done .
Without a satisfied customer this time and every time , you have no service delivery
business .

Service delivery is internal organization

Service delivery is about having the right infrastructure to deliver those services
correctly .
Service delivery is not about skimping on investment to save now you will get
burned in the future .
Service delivery is about being able to measure and improve your offerings .
The key word in service delivery is service
Service implies that something is going to be delivered in a certain way .
Service implies a degree of excellence . Deliver it and the sky is the limit.
20

While price obviously defines that level of service , there is nothing to stop anyone
delivering that service excellently for the price that is paid for it .

Customer relationship management

An organization builds customer loyalty by developing trust, communicating with customers,
and effectively managing the interactions and relationships with customers through approaches
and its people.
In services, customers satisfaction or dissatisfaction takes place during moments of truth every
instance in which a customer comes in contact with an employee of the company.

Excellent customers relationship management depends on five aspects

1. accessibility and commitment
2. selecting and developing customer contact employees.
3. relevant customer contact requirement.
4. effective complaint management.
5. strategic partnerships and alliances.

Accessibility and commitment

Customer focused organizations provide customers easy access to their employees.
Companies that truly believe in the quality of their products make strong commitments to
their customers. Effective commitment address the principal concerns of customers ,are free
from conditions that might weaken customers trust and confidence, and are communicated
clearly and simply to customers.

Selecting and developing customer contact employees

Customer contact employees are particularly important, they are the people where main
responsibilities bring them into regular contact with customers in person, by telephone, or
through other means. Companies must carefully select customer contact employees, train
them well and empower them to meet and exceed customer expectations.
Many companies begin with the recruiting process, selecting those employees who show the
ability and desire to develop a good customer relationships.

21

Customer contact requirements

Front line personnel who come in daily contact with customers have a significant amount of
responsibility for customer satisfaction.
Customer contact requirement are measurable performance levels of expectations that define
the quality of customer contact with representatives of an organization. These expectations
might include technical requirements (using a customers name whenever possible)
Companies need to communicate these requirements to all customer contact employees. This
communication normally take place during new employees orientations. However, to
maintain the consistency and effectiveness of these standards, companies must continually
reinforce their standards.
Finally, a company should implement a process for tracking adherence to the requirements
and providing feedback to the employees to improve their performance. Information
technology supplies the data for effectively tracking conformance to customer contact
requirements.
To improve products and processes effectively, companies must do more than simply fix the
immediate problem. They need a systematic process for collecting and analyzing complaint
data and them using that information for improvements.

2.3 Critical review

The past researchers for example Lysons (2006) have always emphasized the effects of ethics
on organization but in any case he did not address specifically which ethics between the
business ethics an organizational ethics but have never addressed how ethics affect
organization service delivery and how it can hinder achievement of past writers objective.
Too much pressure at work, too much supervision among others in result makes employees to
behave unethically. Various gaps have not been addressed including how these organizational
ethics affect service delivery. The internal as a factor of technology also breads unethical
behaviors on activities of an organization that is creating a new environment in which
unethical behavior has far greater implications for companies than was previously the case in
particular the issue of trust access, identify security privacy property and confidentiality takes
on new dimensions.
22

In conclusion the researcher want to say that the County Council of Kipsigis needs to look
into collective responsibility through enhancement of development, planning, ethical training,
Ethics Management Program and Moral Management concerning literature of indicators of
unethical practices and types of unethical behaviors. It was not dealt with and so more needs
to be reviewed.
2.4 Conceptual framework
Independent variables

Dependent variables

Organizational ethics
Confidentiality

Service delivery
High service delivery
Customer satisfaction

Social responsibility
Openness and honesty

Effects

Teamwork
Good Reputation

Ethical standards

Co-operation
Reliability

Figure 2.3 : Conceptual Framework

Source: (Researcher, 2012)

EXPLANATION OF INDEPENDENT VARIABLES

Confidentiality
Whenever there is confidentiality in an organization the service delivery is enhanced and hence
organizational ethics is one of the causes of confidentiality.
Social responsibility
Social responsibility enhances teamwork respect and cooperation in the institution which in turn
leads to good service delivery. A company can show how socially responsible it is through the
ethical respect it accords its shareholders in treating all its constituents fairly. An organization
23

can be socially responsible through its economic profitability in being a going concern providing
goods and employment and paying taxes ad creditors.
Openness and honesty
Being honest is one of the organizational ethics, the result in good accountability and
transparency among the staff and hence this will enable the institution to achieve its target.
Ethical standards
Most organizations prefer to employ two sets of ethical standards, a personal set and business set
and may well have stricter personal than business standards. These standards enhance good
service delivery in any given organization.
2.5 Summary
From the literature review it is apparent that the effect of organizational ethics is important and
that every organization cant do without. It is a fact that activities may face various critical issues
and is therefore the people concern on service delivery (County Council of Kipsigis staff) should
see and practice in management and conflicts to be well dealt with.

24

CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter comprises of proposed research design, target population, sampling design, data
collection instrument and procedures, validity and reliability data analysis.
3.2 Research design
The research design to be used is a case study since the research involves an in-depth
investigation of effects of organization ethics delivery in Kipsigis County Council. The design
was valuable in determining whether the intended outcomes are achieved.
3.3 Target population
The study targeted selected departments of County Council of Kipsigis. The respondents consist
of heads of departments and the staff. The targeted population will be 100 respondents. These
include 30 respondents from Procurement, 10 from Management, 15 from Revenue and
Marketing, 5 from Engineering and Survey and 40 from Social Services. This is shown in table
3.1 below.
Table 3.1 Target population
Department

Population

Percentage

Social services

40

40 %

Engineering survey

5%

Revenue and marketing

15

15 %

Procurement

30

30 %

Management

10

10 %

Total

100

100

Source: Researcher (2012)

25

3.4 Sampling design

Simple random sampling design will be used in the study.
Table 3.2 shows the sample size.
Table 3.2 Sample size
Department

Respondents

Sample size

Percentage

Social services

40

25

41.7 %

Engineering survey

3.3%

Revenue and marketing

15

14

23.3 %

Procurement

30

15

25 %

Management

10

6.7 %

Total

100

60

100%

Source: Research 2012

Figure 3.1 Sample sizes of employees

Source: Researcher ,(2012 )

3.5 Data collection instruments

This refers to the method or tool used to collect the necessary information. Data collected will be
both primary and secondary data using questionnaires and interviews. The questionnaires

26

included closed ended question which will be used to offer alternative quick response and open
ended questions which will be used to provide room for in-depth discovery of issues that was
studied.

3.6 Data collection procedures

The researcher personally will administer the research instrument after prior visits that assisted in
defining, timing and distributing questionnaires. The researcher will agree with the respondents
when the research instruments were to be collected. Adequate time will be given to the
respondents to respond to the questionnaires.

3.7 Validity and Reliability

3.7.1 Validity
It refers to the accuracy and meaningfulness of inference which are based on research obtained
from the analysis of data representing the phenomena under study. (Mugenda, Mugenda 1999).
3.7.2 Reliability
It was by presenting part of questionnaires to the employees who have not part of the sample in
the same company. The test retest technique will be used to test the reliability of the research
instrument at the County Council of Kipsigis. It involves administering the same instruments
twice to the same group of subjects with time interval of about one week. The questionnaire must
be stable over time to be reliable and this means that it offers consistent results after repeated
trials and hence the researcher finds this method to be more reliable.

3.8 Data analysis

Data analysis is the process of inspecting, clearing, modeling and transforming data with the goal
of highlighting useful information suggesting conclusions and supporting decision making. Data
will be analyzed using descriptive statistics which includes tabulation and percentages. The
analyzed data will be given in the form of pie chart and bar graphs.

27

CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION

4.1 INTRODUCTION
This chapter deals with the analysis of data collected using questionnaires. It gives
the analysis , interpretation and presentation of findings.
Out of 100 questionnaires distributed 60 were returned giving 60% response rate.

4.2 Presentation of Data

4.2.1 Gender
The following results were obtained about their gender.

Table 4.1 Gender of respondents

Gender

Number of respondents

Percentage

Male

40

66.67

Female

20

33.33

Total

60

100

Source: Researcher (2012)

From the table of 4.2 above, most of the respondents were men 66.67% in number `
while the rest 33.33% were female. Majority of the male counterparts, dominate most
of the activities in the organization.
Figure 4.1 below shows clearly the percentage rate of both genders.

28

`
Male
Female

Figure 4.1 Gender of respondents

Source : Researcher (2012)

4.3 Age brackets of the respondents

Table 4.2 Age brackets of the respondents
Age bracket

Response Rate

Percentage

18-30 years

10

16.67

31-40 years

20

33.33

41-50 years

25

41.67

51 years and above

8.33

Total

60

100

Source :Researcher (2012)

From the research finding it is clear that, most of the employees are mature and old and hence
they are capable to act accordingly .The age bracket of 41-50 years is the leading followed by
the age bracket of 31-40 years by a percentage of 33.33 and these are the people who are mature
in terms of making decisions .The age bracket of 18-30 years is the third and these are employees
who are energetic and eager to do work themselves . The last group is between the age bracket
of 51 years and above .This is the age bracket which consist of employees who are aged and
29

have less time to work in the organization.

The following bar graph in figure 4.2 shows the trend of the age brackets.
45
40
35
30
25
Age bra cket

20
15
10
5
0
18-30 years31

31-40 years

41-50 years

51 and above

Figure 4.2 Age Brackets of Respondents

Source : Researcher (2012)

4.2.4 Level of education

Table 4.3 Level of education
Level

Frequency

Percentage

Primary school

1.67

Secondary graduate

10

16.67

College graduate

40

66.67

University graduate

15

Total

60

100

Source : Researcher (2012)

The research finding reveals that 66.67% of the respondents are college graduates with Diplomas
in their fields of specialization. This shows that the organization has

an

expertise

employees. 16.67 % of the respondents are secondary school leavers ; this comprises of the
30

support staff.15% of the population are university graduates with Bachelors Degree in various
fields ;this group assists the management in

arriving at good

decisions, effective

supervision and quality management through interpretation of basic knowledge into practice.
Lastly, the other respondents are
trained on

various

primary school leavers with a percentage of 1.67. They are

technical courses like masonry, tailoring , mechanics, plumbing, carpentry

and other

technical courses .To analyze the level of education very well, the researcher

plotted

a bar graph to represent the information clearly.

70
60
50
40
Level

30
20
10
0
Primary school

Secondary graduate

College graduate

Figure 4.3 Level of Education of employees

Source : Researcher (2012)

31

University graduate

4.2.5 Length of Service

Table 4.4: Level of service of employees
Length

Frequency

Percentage

Less than 5 years

30

50

6-10 years

25

41.67

11-15 years

8.33

16 years and above

Total

60

100

Source : Researcher (2012)

From the data collected it is perceived that 50 % of the total respondents issued with
questionnaires indicated that they have been working in the organization for more
than 5 years , a period good enough to establish good operations of the company.
The research further reveals that only 41.67 % of the respondents had served for a
period of 6-10 years . Only 8.33 % of the remaining respondents showed the skills
well gained and experience

by indicating that they have been working in

the organization for a period of 11- 15 years

and normally they are on
a period of 16 years

.They have served for a long time

permanent basis. None of the

respondents had worked for

and above.

4.2.6 Benefits of Organizational Ethics

Table 4. 5 Response rate on the benefits of organizational ethics
Response

Frequency

Percentage

Yes

50

83.33

No

10

16.67

Total

60

100

Source: Researcher (2012)

The research findings show that 83.33% of the population agreed that there are
benefits of organizational ethics of which few respondents of 16.67% of the
remaining population disagreed with the opinion .
The above can be further explained by the use of the pie chart in figure 4.4 below.

32

Yes
No

Figure 4.4 : Response rate on the benefits of Organizational Ethics

Source: Researcher (2012)

4.2.7 Relation between Organizational Ethics and Service delivery

Table 4.6: Response on relation between Organizational ethics and service

delivery
Relation

Frequency

Percentage

Positive

45

75

Negative

15

25

Total

60

100

Source: Researcher (2012)

The findings reveal that majority of the respondents indicated that the relation
between organizational ethics and service delivery exists and it is positive of which
they were 75 % while the other remaining 25 % of the respondents said a
and it is negative.
This is further explained by the use of the pie chart in figure 4.5 below.

33

relation exist

Positive
Negative

Figure 4.5 Response rate on relation between organizational ethics and service delivery
Source: Researcher (2012)

4.2.8 Practice of organizational ethics on service delivery in the

organization
Table 4.7 Response rate
Response

Frequency

Percentage

Yes

55

91.67

No

8.33

Total

60

100

Source : Researcher (2012)

From the findings the research study reveals that 91.67% of the total respondents
agreed that the organization observe their ethics when it comes to service delivery
while 8.33 % of the respondents disagreed .This shows that most employees in this
organization value organizational ethics in response to service delivery.
The above can be further explained by the use of the pie chart in figure 4.6 .

34

Yes
No

Figure 4.6 : Response rate on Practice of organizational ethics on service

delivery in the organization
Source : Researcher (2012)

4.2.9 Ways of establishing a strong ethical culture

Table 4.8 Response on ways establishing a strong ethical culture
Ways

Frequency

Percentage

Training of staff

30

50

Law and regulation

11.67

10

16.67

10

16.67

60

100

Act
Encouraging
teamwork
Motivation
Programs
Adopting a code of
conduct
Total

Source :Researcher (2012)

35

The findings reveal that 50 % of the total population suggested that training of staff
on organizational ethics from time to time was the way of building a strong ethical
culture . 11.67 % of the respondents opted for law and regulation Act, 16.67 % chose
encouraging of teamwork , 5 % chose motivation programs for example support
programs intended to give something back to the community . The final respondents
16.67 % chose to Adopt a code of ethics as a way of establishing a strong ethical
culture .
The above has been further explained by the use of a bar graph in figure 4.7

50
45
40
35
30
25
Wa ys

20
15
10
5
0
Training of staff

Law and
regulation act

Encouraging
teamwork

Motivation Adopting a code

programmes
of conduct

Figure 4.7: Response on the ways of establishing a strong ethical culture

Source : Researcher (2012)

36

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS , CONCLUSION ,
RECOMMENDATIONS AND
SUGGESTIONS FOR FURTHER STUDIES

5.1

Introduction
This chapter presents the summary of findings, its conclusion , the recommendation
and finally the suggestions for further studies.

5.2

Summary of major findings

Gender
It was found out that majority of the employees in the organization are male .It is
clear that most issues of organizational ethics are dealt with by men or reason enough

to attain higher response rate from male respondents.

Age Bracket
From the findings it is clear that those who formed the majority of the employees
fall in the age bracket of 41-50 years, mature people who are capable of adopting
and enforcing organizational ethics.

Length of service
From the findings it is clear that the majority of the employees have worked for
less than 5 years while there is none who has worked for over 16 years . This
shows that most employees are on contractual basis.

Benefits of Organizational Ethics

It was found out that most employees belief that there exist benefits of
organizational ethics and they said some of the benefits include:

i)

Better service delivery

ii)

Improvement in organization reputation

iii)

Organizational effectiveness

iv)

Cost savings associated with minimizing ethical mistakes

37

v)

Employee recruitment and retention

vi)

Stakeholders good will

Relationship between organizational ethics and service delivery

From the findings it is clear that , there exists a positive relationship between
organizational ethics and service delivery which includes transparency , good
service delivery , accounting , honesty among others.

Practice of organizational ethics on service delivery

From the findings it is clear that , majority of the employees agreed that the
organization puts into practice organizational ethics when it comes to service
delivery.

Ways of establishing a strong ethical Culture

From the findings the respondents gave their different ways of establishing a strong
ethical culture and it included the following:
i)

Training of staff

ii)

Laws and regulation Act

iii)

Encouraging teamwork

iv)

Motivation programs

v)

Adopting a code of conduct

From the above ways , the researcher analyzed the results and found out that the
best way to be adopted is through training of staff.

5.3

Conclusion
From the summary of the findings, the researcher concluded that the best way of
establishing organizational ethics on service delivery should be through training
of staff and so the organization should gather its resources and get an expert
to train the employees on the importance of organizational ethics and how it
should be maintained
It is also clear that organizational ethics is very useful and has a lot of
benefits in creating an environment that support ethically sound behavior and it

38

instill a sense of shared accountability among employees. The need to obey the
law is viewed as a positive aspect of organizational life, rather than unwelcome
constraint imposed by external authorities . Most employees prefer being trained
and through doing this it help reduce the incidence of misconduct and hence
lead to achievement of good and quick service delivery .

5.4

Recommendation
The government should provide enough funds and equipments of training
employees on importance of organizational ethics so that in the end it can help
the organization achieve a good service delivery. The organization , (County
Council of Kipsigis ) should put in place appropriate training Programs
regarding establishment of organizational ethics.Finally, the County
Council of Kipsigis should increase the number of employees who are
on permanent basis so that

they could implement laws and code of

conduct which are long lasting.

5.5

Room for further studies

The researcher suggests that the research of organizational ethics is wide and
more research need to be done thoroughly on the following areas :
a) Managing Ethics within a Global sector
b) Ethical leadership and Ethical dilemma
c) Corporate Social

Responsibility

39

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John E.R. (2008) Business Ethics, Annual Edition (07/08).
John W. (1980) Organizational Behavior (12th Edition) Special Indian Edition University of
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Kothari C.R (2004) Research Methodology 2nd Edition Delhi, India: New Age International.
Mugenda M.O. and Mugenda G.A ( 1999) Research Methods Qualitative and Quantitative
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40