EFFECTS OF BUSINESS ETHICAL PRACTICS ON THE COMPANY’S PERFORMANCE: THE CASE OF HARAR BREWERY SHARE COMPANY, EAST HARARGHE ZONE, HARARI NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

This study aimed at investigating the effects of business ethics practices on the company’s performance, in the case of Harar Brewery Share Company. To attain the aim, survey data were collected from 189 respondents. Questionnaire, semi structured interview and document analysis were used for data collection. The samples were selected through random sampling method. The selection was made randomly from the employees of the company, who are heads of the different units of the company. The study employed descriptive and inferential statistics for data analysis. Qualitative data were presented in terms of mean, frequency and percentages and quantitative data were analyzed using linear regression model. The finding of the study indicated that 76.2% of the variation in company’s performance were due to independent variables, education status, work experience business ethics related factor, employee safety & health, production safety problem and social responsibility. The result also revealed that education status, work experience, business ethics related factor, employee safety and health, production safety problem and social responsibility have significant effects on the performance of company (p<0.05). Among these factors business ethics related factor and production safety problem had negative relationship with the company’s performance. Due to this, the company should care on how to improve business ethical practice on company performance and its product safety should be retained in a good manner for employees to get many users of their products.