Business Ethics and the Challenges of Compliance in Nigeria

Abstract

The necessity of Ethics to a contemporary Nigerian society is indubitable, given the debilitating effects of a fast-expanding culture of corruption and disreputable business conduct, within most African countries, and especially Nigeria and still, the growing awareness of the burden of responsibility and consequence. Even more so, Business Ethics is of great relevance to the Nigerian society, in order to help build a viable economy of accountability and social responsibility. This study is, in this stead, an attempt to answer some of the questions on why a greater number of companies in Nigeria are yet paying lip service to the necessity of Business Ethics. This has led the researcher to carry out a comprehensive study on the challenges of compliance of indigenous Nigerian business enterprises to Business Ethics and the measures that should be adopted in ensuring compliance. Furthermore, in achieving its aim, the study adopts a quantitative field survey methodology with respondents in indigenous companies that have operated in the Nigerian business environment over a period of ten years and are listed on the Nigerian Stock Exchange (NSE) and also those that are not listed on the Nigerian Stock Exchange. In its final analysis, the study reveals that the prevalence of corruption, ‘godfatherism' and difficulties faced when reporting unethical issues are the major challenges of Business Ethics compliance in Nigeria organizations. This study then offers useful suggestions, on managing these compliance challenges, to business managers in Nigeria as they strive to enhance business operations.