EFFECTS OF ETHICS ON PERFORMANCE OF EMPLOYEES

SYED AHSAN JILLANI FAISAL MUSHTAQ MUHAMMAD SALEEM AHMAD

(L1F07MBEX0033) (L1F07MBEX0026) (L1F07MBEX0005)

(PUNJAB COLLEGE OF BUSINESS ADMINISTRATION)

UNIVERSITY OF CENTRAL PUNJAB, LAHORE

I

RESEARCH COMPLETION CERTIFICATE

Certified that the research work contained in this Project titled Effects of Ethics on Performance of Employees has been carried out and completed by Syed Ahsan Jillani, Roll No. L1F07MBEX0033, Mr. Faisal Mushtaq, Roll No. L1F07MBEX0026 and Mr. Muhammad Saleem Ahmed, Roll No. L1F07MBEX0005 under my supervision. The quantum and quality of the work contained in this work is adequate for the award of Masters of Business Administration.

Supervisor

Prof. Abur Rauf

II

DECLARATION

We, Syed Ahsan Jillani, Roll No. L1F07MBEX0033, Faisal Mushtaq, Roll No. L1F07MBEX0026 and Muhammad Saleem Ahmed, Roll No. L1F07MBEX0005, students of MBA (Executive) session 2007-2009, hereby declare that the matter printed in this project titled Effects of Ethics on Performance of Employees is our own work and has not been published in any form, in any University, research institution etc, in Pakistan or abroad.

Deponents:

Syed Ahsan Jillani (L1F07MBEX0033 )

Faisal Mushtaq (L1F07MBEX0026)

Muhammad Saleem Ahmed (L1F07MBEX0005) Session: 2007-2009 (MBA Executive) University of Central Punjab, Lahore

III

DEDICATED TO OUR PARENTS WHOSE SINCERE PRAYERS ARE ASSETS OF OUR LIVES

IV

ACKNOWLEDGMENT
All words of thanks and gratitude for the Almighty Allah that He with His utmost blessings bestowed us with courage, strength and devotion to prepare this project. It is only due to His blessings that we are able to complete our research work on time. There are several personalities who made their valuable contribution in preparation of this research project by providing their support, assistance and guidance. In this connection we wish to express and extend our hearty gratitude to all of them. First of all, we would like to express our immense thanks to Prof. Abur Rauf, our Research Project Supervisor and Project Advisor of University of Central Punjab, Lahore, for his guidance and teaching. He bore patiently all our negligence and inefficiencies. We are extremely grateful that he is one who suggested us to undertake this new area of investigation and always gave us his precious advice whenever we needed. We are highly indebted to our supporter and facilitator, a generous person Syed Yasir Mahmood Gillani (M.Phil. Economics), Deputy Director, Planning & Development, Government College University, Lahore, for his tremendous assistance and guidance for our research project. He always urged us to work hard and devote whole-heartedly for this project. He provided us as well as facilitated us in getting the relevant materials which were essentially required for writing this project. Without his guidance, support and assistance this research work would have never been possible. There is a huge list of friends and relatives who assisted us with moral support and valuable suggestions. We would like to express our special thanks to all of them. We would pay our special thanks to our family members who pray for our achievement. In the end, we are really indebted to all our sincere well-wishers as their silent prayers are always around us.

ABSTRACT
This thesis focuses upon effects of ethics on employee performance. After the completion of this project we can conclude with full confidence in our command that the ethics play an important part in the positive performance of the employee. Ethics provide an employee with the impetus to devote his physical and spiritual energies to the hilt and this devotion in the longer run helps the organization to grow financially. We visited various organizations and met different employees of every class and grade to make our study more prolific and as much practical as possible. We noticed that there ethics being independent variable is directly correlated with employee performance which is a dependant variable. To be specific it has been noticed that ethics bring these benefits to an organization e.g., increased job satisfaction, honesty, integrity, focus, profits, responsibility, conservation of resources, avoiding law suits, etc. In short ethics play an important part in improving employee performance and a satisfied employee is an asset of an organization because no resource can match the human resource of the organization and if the human resource is perfectly placed and rewarded, the organization is bound to grow and attain sustainable achievements.

VI

TABLE OF CONTENTS
a. Research Completion Certificate b. Declaration c. Dedication d. Acknowledgments e. Abstract 1 Introduction
1.1 What is Ethics? 1.2 What is Business Ethics? 1.3 10 Benefits of Managing Ethics in the Workplace II III IV V VI 1 1 1 2 5 6 8 8 8 8 8 9 10 12 12 12 12 13 13 VII

2 Background of Research and Problem Statement 3 Relationship Between Business and Ethics 4 Overview of Issues in Business Ethics
4.1 General Business Ethics 4.2 Ethics in Human Resource Management 4.3 Ethics in Accounting Information 4.4 Ethics in Sales and Marketing 4.5 Ethics in Production

5 Ethical Issues and Approaches 6 Ethical Values; Employee Should Adopt For Business Success
6.1 Honesty 6.2 Integrity at Work 6.3 Responsibility 6.4 Quality 6.5 Trust

6.6 Respect 6.7 Teamwork 6.8 Leadership

13 13 13 15 17 19 19 19 20 20 21 21 22 22 23 23 23 23 24 24 24 24 24 25

7 Significance of the Study 8 Literature Review 9 Effects of Ethics on Performance of Employees

9.1 Improving Employee Morale 9.1.1 Reward Great Work with Flexible Scheduling 9.1.2 Say Thank You to Keep Employees Happy 9.1.3 Offer Small Rewards 9.2 Increased Customer Satisfaction 9.3 Enhanced Productivity 9.4 Conserving Resources/Avoiding Costs 9.5 Improving Accreditation Reviews 9.6 Reducing Risk of Lawsuits 9.7 Sustaining Corporate Integrity 9.8 Safeguarding the Organizations Future 9.9 Cynicism in Workplace 9.10 Distrust among the team members 9.11 Communication between employer & employee is restricted 9.12 Adversarial Relationship Between Employer & Employee 9.13 Lack of self-respect 9.14 Overlooking difficult employees 9.15 Non encouraging behaviour

VIII

10 Research Question
10.1 Study Design 10.2 Data 10.3 Data collection method 10.4 Variables in the study 10.5 Population and Sample 10.6 A description of how the research findings will be used and/or disseminated 10.7 Questionnaire for Project 10.8 Frequency Tables with Pie Charts & Interpretation 10.9 Descriptive Statistics

26 26 26 26 26 26 26 26 29 67 69 70 71 73 76

11 Theoretical Framework 12 Hypothesis 13 Recommendation 14 References 15 Appendices

IX