THE EFFECTS OF ETHICAL BEHAVIOUR ON MARKETING MANAGERS

(A CASE STUDY OF CADBURY NIGERIA PLC)

 ABSTRACT

Many modern organizations are today faced with numerous challenges such as illegal and unethical business practices in a number of business transactions. Most organizations have come up with codes of ethics in dealing with ethical issues challenging them.

This research project examines the effects of ethical behaviour on marketing managers with special reference to Cadbury Nigeria Plc. A hundred staff of Cadbury Plc. were sampled as a means of garthering data. Sixty were marketing managers and forty marketing executives.  The research uses a quantitative method with three hypotheses stated in the null form. The data gathered were analyzed with the use of Chi-square test statistics. Findings revealed that ethical behaviour of marketing managers has effects on the performance of an organization and that good ethical behaviour has a positive correlation with organizational performance. Suitable policy recommendations were proffered which decision makers in business organizations and government functionaries will find highly useful.

  TABLE OF CONTENT

Cover Page                                                                                          i

Certification                                                                                        ii

Dedication                                                                                          iii

Acknowledgement                                                                              iv

Abstract                                                                                              vi

CHAPTER ONE

INTRODUCTION

1.0       Background of the Study                                                       1

1.1       Statement of Problem                                                             2

1.2       Purpose of the Study                                                              3

1.3       Research Questions                                                                 4

1.4       Statement of Hypotheses                                                        4

1.5       Significance of the Study                                                       5

1.6       Research Methodology                                                           5

1.7       Scope and Limitation of the Study                                        6

1.8       Definition of Terms                                                                7

References

CHAPTER TWO

LITERATURE REVIEW                                                                          

2.1       Introduction                                                                            11

2.2       Culture                                                                                    13

2.2.1 Levels of Culture                                                                       19

2.2.1.1 High Context  Culture                                                                        21

2.2.1.2 Low Context Culture                                                              22

2.2       Cultural Dimensions                                                               23

2.3       Ethics                                                                                      27

2.4       Cultural and Marketers’ Ethical Decision                               32

2.5       Situation Influences                                                                34

2.6       Marketing Ethics to Managers                                                38

2.7       Ethical Behaviours of Marketing Managers                           40

2.7.1    Stages of Ethical Behavioural Changes                                  42

CHAPTER THREE

RESEARCH METHODOLOGY

3.1       Introduction                                                                            48

3.2       Sources of Data                                                                      48

3.3       Population and Sample Size                                                   49

3.4       Sampling Technique                                                                50

3.5       Research Instrument Design                                                   50

3.6       Research Questions                                                                 51

3.7       Re-Statement of Hypotheses                                                  52

5.8       Analysis of Data                                                                     53

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0       Introduction                                                                            54

4.1       Personal Characteristics of the Respondents                          54

4.2       Responses of Respondents to the Problem Areas                  59

4.2.1    Responses from Marketing Managers                                     59

4.2.2    Responses from Marketing Executives and Sales Officers    62

4.3       Testing and Interpretation of the Hypotheses                        66

4.3.2    Hypothesis Two                                                                      69

3.3.      Hypothesis Three                                                                    71

4.4       Summary of Analysis                                                              74

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0       Introduction                                                                            75

5.1       Summary of Findings                                                             75

5.2       Conclusion                                                                              76

5.3       Recommendations                                                                  76

References                                                                              79

CHAPTER ONE

INTRODUCTION

1.0      BACKGROUND OF THE STUDY

Over the years, the term ethics in organizational performance has long been associated with management scholars and business leaders around the world.  There is a broad agreement the world over that as a matter of corporate policy, every organization strives to be committed in a manner that is ethically transparent.  Ethics in the world of organization’s business involve “ordinary decency” which encompasses such areas as integrity, honesty and fairness.  Behaving in an ethical manner is seen as part of the social responsibility of an organization, which itself depends on the philosophy that organizations ought to impact the society in ways that go beyond the usual profit maximization objective.

It is often argued in many instances that, it isin the interest of an organization to behave in a way that recognizes the need for moral and ethical content in managerial decision as this will benefit the organization especially in the long run.

Ethical behaviour is characterized by honesty, fairness and equity in interpersonal, professional and academic relationship and it respects the dignity, diversity and the right of individual and groups of people.  Therefore, for an organization to move forward in the aspect of performance, it is however important for such an organization to have a good understanding of ethics and also take it seriously as this can undermine the competitive strength of the organization and the society at large.

Morals spring virtually from every decision, thus organization stability and survival depend on the consistency of quality of ethical decision made by managers.  Marketing managers are challenged and encouraged to have obligation on organizational performance and society at large, to support and assist the society to imbibe the ethical culture in which there was the interest of every one.

In recent times, most organizations have come up with codes of ethics in dealing with ethical issues challenging them.  Code of ethics is a set of moral principles used by organization to steer conduct of the organization itself and the employees, in all their business activities, both internally and externally.  Codes as opposed to straight forward policy have advantage of providing explicit guidance on key issues that might arise during the course of organization activities.

1.1   STATEMENT OF PROBLEM

Empirically and conceptually, there has been increased research interest on the area of business ethics.  This has been clearly demonstrated in the increased number of journals that focus on business ethics during this period.

This problem becomes more glaring as marketing managers must work in a global setting due to the internationalization of companies and the global economy.  Marketing managers have to work with customers from different ethics in Nigeria each ethic can be very similar in some dimensions and very different in other dimensions when compared with the culture of the marketing manager.  This comparism demonstrates the importance of understanding the roles of culture and behaviour on marketing managers.

Many modern organizations are faced with numerous challenges such as illegal and unethical behaviour in a number of business transactions.  Marketing mangers are also faced with the challenge of evaluating the effect of critical behaviour on the performance of such organizations.  Also, many marketing managers operate their activities today, without keen interest of bothering whether their actions are right or wrong and the extent of employees’ understanding of the term ethics while the level of compliance is highly infinitesimal.  The way Nigerian society cares little about the source of wealth tend to make some of these business operators to begin to wonder about the necessity of ethics in an organization.

1.2      PURPOSE OF THE STUDY

The purpose of this research work is to test if:

i.            There are any differences in the ethical behaviour of marketing managers in Cadbury Nig. Plc

ii.          The ethical behaviour of marketing managers have any relationship with organizational performance

iii.        To show-case the necessity of good ethics to the success and eventual institutionalization of an organization

1.3      RESEARCH QUESTIONS

1.          Is there any differences between marketing managers’ ethical behaviours in Cadbury Nig. Plc?

2.          Does cultural differences influence the ethical behaviours of marketing managers in Cadbury Nig. Plc

3.          Does the ethical behaviours of marketing managers have effects on the productivity of Cadbury Nig. Plc?

4.          Is there any differences in the ethical behaviours of among marketing managers in Cadbury Nig. Plc

1.4      STATEMENTS OF HYPOTHESES

Hypothesis 1:

HO:   There are no differences in the ethical behaviours of marketing managers in Cadbury Nig. Plc

H1:   There are differences in the ethical behaviours of marketing managers in Cadbury Nig. Plc

Hypothesis 2:

HO:   Cultural differences does not influence the ethical behaviours of marketing mangers in Cadbury Nig. Plc

H1:   Cultural differences influences the ethical behaviours of marketing mangers in Cadbury Nig. Plc

Hypothesis 3:

HO:   Ethical behaviours of marketing managers does not have effects on the productivity of Cadbury Nig. Plc

H1:   Ethical behaviours of marketing managers have effects on the productivity of Cadbury Nig. Plc

1.5      SIGNIFICANCE OF THE STUDY

This study serves as a foundation for further research in determining if the contact with people from a contrasting culture can influence and affect the marketing decisions of marketing managers in Cadbury Nig. Plc and other related companies in Nigeria.  The information obtained in this research work maybe very helpful to the marketing department of Cadbury Nig. Plc and others because if these companies do not perceive the effects in their employees, the possibility exists that the marketing managers can be influenced by others, which in turn affects the consumers and possibly the sales of the companies.

1.6   RESEARCH METHODOLOGY

This research project was written with the intention of examining the effects of ethical attitudes of marketing managers in Cadbury Nigeria Plc., and whether the dimensions of power distance, uncertainty avoidance, individualism/collectivism, and masculinity/ femininity influenced those differences.

The survey would be conducted through marketing managersof Cadbury Nigeria Plc.The study used a matched samples technique, a method advocated by cross-culturalresearch methodologists, where the samples of cultural groups to be compared are madeas similar as possible in their demographic characteristics.

The researcher intend sampling sixty (60) out of the one hundred and fourteen (114) marketing managers of Cadbury Nig. Plc Lagos. The sample will cover marketing manager from the respective product brands of Cadbury. Because marketing managers could be bias in giving their true ethical behaviour, forty (40) marketing executives that work directly under the marketing managers would also be sampled.

The researcher would use several statistical tests, mainly distributions of frequency, measures of central tendency, and t-tests for evaluating the dimension of attitudes that could influence the ethical behaviour of marketing managers. Chi-Square analysis would  also be employed to analyze the hypotheses stated for the research work.

1.7      SCOPE AND LIMITATION OF THE STUDY

Due to the multicultural and ethnic diverse nature of Nigeria and the fact that culture influences the behaviour of human beings, the researcher has chosen the marketing managers in Cadbury Nig. Plc as his sample out of the entire population of marketing managers in Nigeria.  Cadbury Nig. Plc is a multi national company which has marketing managers from various regions in Nigeria.This is the essence for it being sampled out as the case study for this research work.

In the course of conducting this research work it is expected that the following will constitute impediments to the effective conduct of the study

a)     Time constraint within which the study must be completed.

b)     Financial constraint

c)     Inaccessible and inadequate data

d)     Also, combining project work with several other activities is another stressful task that may not allow me to cover research materials extensively.

1.8   DEFINITION OF TERMS

In some circumstances, word may carry different meanings. However,according to Thouless, “if our thoughts are to be clearly communicated to other people then we must have a method of fixing the meaning of the words we use”. For purposes of clarity therefore, some of the important terms used in this study are defined as follows:

Effects:    Quite synonymous with impact.  That is the influence a particular thing has on another.  How one issues affects another.

Ethics:    Morally right.  The standards of a culture or tradition of an institution meant to be abided with in order to accomplish a set goal and objective

Behaviour:  The way or manner an individual and (or) an organization does things.  An individual’s or organizations attitude which is mostly influenced by the cultural beliefs of the ethnic group he or she hails from.

Culture:  The institutions, values, beliefs, and behaviours of a society; everything we learn, as opposed to that with which we were born; that part of the environment, domestic or foreign or both, that is shaped by human kind.

Culture and Marketing Ethical Behaviours: Concerned with the various moral or ethical problems that can arise in a marketing setting, and special duties or obligations that apply to persons who are engaged in marketing.

Marketing:  The management process responsible for identifying, anticipating and satisfying customer requirements profitably or otherwise.

Managers:       Members of an organization’s management team saddled with the task of effectively and efficiently utilizing the company’s resources (man inclusive) to achieve the set goals and objectives of the organization

Organization: A formal institution of management and personnel who ensure that the targeted aims and objectives of the institution are met.

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Thompson, Craig J. (1993), AA Contextualist Proposal for the Conceptualization and Study of Marketing [email protected] Journal of Public Policy and Marketing, 14(2), 177-191.

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