THE JOINT INFLUENCE OF ETHICAL HUMAN RESOURCE PRACTICE, ETHICAL INVESTOR RELATIONS, ETHICAL CONSUMER RELATIONS AND ETHICAL ADVERTISING ON THE FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA.

Authors

  • Manduku Daniel Ogwoka United States International University - Africa
  • Dr. Juliana Namada United States International University - Africa
  • Dr. Damary Sikalieh United States International University - Africa

DOI:

https://doi.org/10.47941/hrlj.137

Keywords:

Ethical consumer relations, Human resource, Investor relations, advertising practices Ethical leadership, financial performance, Listed Firms

Abstract

Purpose: The general objective of this study was to establish the joint influence of ethical human resource practice, ethical investor relations, ethical consumer relations and ethical advertising on the financial performance of listed firms in Kenya.

Methodology: Primary data was collected through a semi-structured questionnaire. Secondary data was collected from both the listed firms in the Nairobi Securities Exchange (NSE), and information from the sector regulator, the Capital Markets Authority (CMA). The target population of this study was 64 companies listed in the Nairobi Securities Exchange (NSE) with consistency being evaluated between the years 2011 to 2015. Data analysis was done using the Statistical Package for Social Scientists (SPSS).

Results: The study did a joint regression test for the combined effects of ethical human resource practices, ethical advertising practices, ethical consumer practices and ethical relation practices. In the regression, it was established that, acting jointly, these practices have a positive relationship with the financial performance of listed firms.

Unique contribution to theory, practice and policy: This study recommends that listed firms need to religiously adhere to conducts of ethical leadership. The departments of human resource should at all times implement their human resource policies with great caution as their mandates, as outlined in the HR policy, influence their organizational performance. The marketing departments should uphold zero tolerance to unethical advertising practices. Also, a feedback platform needs to be included in all advertisements so that profitability is achieved. To the consumers, quality is of priority. Listed firms should formulate ways of always adhering to provision of quality services to consumers. On ethical investor relations, there is need to involve truthful disclosure of information, especially regarding financial statements of the firms. Truthful disclosure of information will uphold investor trust, and subsequently inject more incentives (majorly in the form of financial) for the benefit of the firms. Overally, the study recommends that, by practicing ethical leadership, the firms' financial performance will greatly improve. The study also suggested that ethical leadership practices should be replicated in non-listed firms and in government agencies.

Downloads

Download data is not yet available.

Author Biographies

Manduku Daniel Ogwoka, United States International University - Africa

Post graduate student

Dr. Juliana Namada, United States International University - Africa

Lecturer

Dr. Damary Sikalieh, United States International University - Africa

Lecturer

References

Adeniji, A. A., Osibanjo, A. O., & Abiodun, A. J. (2013). Organizational Change and Human Resource Management Interventions: An Investigation of the Nigerian Banking Industry. Serbian Journal of Management, 8(2), 139-154.

Allan, P., Sienko, S., (1997). A comparison of contingent and core workers' perceptions of their jobs' characteristics and motivational properties. SAM Advanced Management Journal 62, 4-9.

Anderson, E. & Barton W. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, XXIX, (February), 18-34.

Antokanis, J., Avolio, B. J., Sivasubramaniam, N. (2003). Context and Leadership: an examination of the nine-factor full-range leadership theory using the Multifactor Leadership Questionnaire. The Leadership Quarterly, Vol. 14, pp. 261-295.

Avolio, B. J., Gardner, W. L., Walumbwa, F. O., Luthans, F., & May, D. R. (2004). Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviours. The Leadership Quarterly, 15, 801-823.

Avtonomov, V. (2006). Balancing state, market and social justice: The Russian experiences and lessons to learn. Journal of Business Ethics, 66, 3-9.

Bamiduro J. A. (2001). An Analysis of Sales Promotion on Sales Volume in the Beverage Industry: The Case Study Nigeria Bottling Company Plc. J. Intellect. Scient. and Cult. Interest. 10 (1), pp. 11- 19.

Chai, K.H; Ding, Y. & Xing, Y., (2009). Quality and Customer Satisfaction Spill-overs in the Mobile Phone Industry Service Science: 1(2), pp.93 - 106

Cragg, W. (2002). Business Ethics and the Stakeholder Theory, Business Ethics Quarterly 12(2), 113-142.

Deshpande, S. P. (1996). Ethical climate and the link between success and ethical behavior. An empirical investigation of a non-profit organization, Journal of Business Ethics, pp. 315-320.

Gray, R., Owen, D. & Adams. T. (1996.). Accounting and accountability Changes and challenges in corporate social and environmental Reporting. Prentice Hall Europe, Hemel Hempstead.

Oates, V., and Dalmau, T. (2013). Ethical leadership: A legacy for a longer future. Performance, 5(2):20-27.

Olusola, A.J., Olugbenga, O.M., Adeoluwa, Z.O., & Oluwagbemiga, O.E. (2013). Accounting Information on Investment in the Nigerian Poultry Agricultural Sector.Research Journal of Finance and Accounting, Vol. 4(19).

Omboi, B.M. (2011). Reasons for Low Listing by Agricultural Companies in the Bourse: The Case Study of DelMonte Limited Kenya. Research Journal of Finance and Accounting, Vol. 2(3), pp.57-60

Omondi, M. M., & Muturi, W.(2013). The Factors Affecting the Financial Performance of Listed Companies at the Nairobi Securities Exchange in Kenya. Research Journal of Finance and Accounting, Vol. 4(15).

Osemeke, M. (2014). The Impact of Human Resource Management Practices on Organizational Performance: A Study of Guinness Nigeria Plc. AFRREV IJAH: An International Journal of Arts and Humanities, 1(1), 79-94.

Patterson, K. (2003). Servant leadership: A theoretical model. Unpublished doctoral dissertation, Regent University, Virginia Beach, VA.

Shaharudin, M., Elias, S. & Mansor, S. (2009). Factors Affective Customer Satisfaction in after Sale Service of Malaysian Electronic Business market. Canadian Social Science, 5(6), 10-18

Wambua, P. (2013). Influences of agency costs on the financial performance of companies listed on the Nairobi Securities Exchange. The International Journal of Social Sciences and Entrepreneurship, Vol. 1 (5), pp. 587-607.

Downloads

Published

2017-03-15

How to Cite

Ogwoka, M. D., Namada, D. J., & Sikalieh, D. D. (2017). THE JOINT INFLUENCE OF ETHICAL HUMAN RESOURCE PRACTICE, ETHICAL INVESTOR RELATIONS, ETHICAL CONSUMER RELATIONS AND ETHICAL ADVERTISING ON THE FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA. Human Resource and Leadership Journal, 2(2), 65–80. https://doi.org/10.47941/hrlj.137

Issue

Section

Articles