Ethical standards and financial performance of banking institutions. a case study of centenary bank Mukono branch:
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Date
2019-08
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Kampala International University, College of Economics and Management.
Abstract
The purpose of the study was to establish the relationship between ethical standards and financial
performance of banking institutions in Mukono District. The study was based on three specific
objectives; to determine the relationship between respect and financial performance of centenary
bank in Mukono branch, to determine the relationship between integrity on financial
performance of centenary bank in Mukono branch and to examine the relationship between
customer focus and financial performance of centenary bank in Mukono branch. It was based on
a descriptive survey design basing on the use of qualitative and quantitative approaches that was
adopted to establish the relationship between ethical standards and financial performance of
banking institutions in Mukono District. Simple random sampling and purposive sampling
techniques were used in the study. Questionnaires were used to collect primary and secondary
sources of data from 60 out of 72 respondents using random sampling. Therefore, here, data
analysis, procedures and response rate are focused on. Then the findings conclusions and
recommendations are presented. Data analysis was done using computerization use of graphs,
frequencies and cross tabulation. Finally the report looked at the study results and gave the
discussion of each finding. According to objective one, it was noted that respect to each member
of the staff in the bank was valued with the percentage of 67% and customer respect is given the
first priority in the financial performance of centenary bank with the percentage of 65% who
strongly agreed. The second research objective it indicated that, there was a positive effect that
integrity helps in the growth of centenary bank to perform its services with the respondents who
strongly agreed 69% and those who agreed with the response of 17% indicates that honesty in
the banking sector of centenary bank, Mukono branch as a result, experiences high output, and
productivity hence leading to effectiveness of service delivery. According to objective three,
summary findings also revealed that, customer focus affects the profitability of financial
performance of centenary bank which have helped to achieve the set goals and objectives with
the percentage of 69% which in return helps in attracting potential and customer focus is limited
by the borrower’s from borrowing with the percentage of 58% who strongly agreed. I obtained
the findings and analyzed the data by use of tables and charts which helped to present data and
arrive at conclusion and recommendations. Conclusion, constructing appropriate indicators and
setting appropriate ethical standards for financial market was challenging. It required extensive
analysis of profit margins that satisfied customers is very important for current and future
performance of commercial banks. On the other hand, if the ethical standards are poor, financial
perlormance of centenary bank will be unsatisfactory. Based on the data analysis in this study,
financial performance of banking institutions should rely heavily on the guarantor as the main
factor of mitigating ethical standards. Recommendation, as a way of discussion of ethical issues
in staff meetings should be practiced in the various banks. When this is done, the staff or workers
of the bank are generally abreast with the ethical standards needed by the bank and will adhere to
it. The tendency to forget about the standards is there so constant reminders thorough staff
meetings will do the workers a lot of good.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of a bachelor’s degree in business administration of Kampala international university
Keywords
Ethical standards, financial performance, banking institutions