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2011

The Role of Business Ethics in the Performance of Small Scale Businesses, A case study of small scale traders in Kisii Town

Author:Erick Nyakundi Onsongo, John Sorana Akama, Charles Momanyi, Sharon Matama Gichaba and Thomas Okioma

Abstract:
The study was carried out to establish The role of business ethics in the performance of small scale business, A case of small scale traders in Kisii town, This is because there have been shortcomings as far as service delivery to customers is concerned, The traders mishandle the customers, hike prices at any time, sell fake products to customers in guise that they are original and genuine, package and repackage some products and hood some essential products in anticipation of higher prices which has been a major problem. On the case of employees working in the small businesses there is lateness when reporting to work, leaves work earlier than the schedule time, The aim of this study is to find out the role of ethical issues in the operations of small scale Businesses in Kenya and their effects on customer and service delivery. The findings of the study will provide a more flexible and improved systems of management styles to meet the needs of the customers, promote customer loyalty to some products and specific traders, to create customer friendly environment to conduct business and provide high order services to customers A cross-sectional survey was used, with the sampling frame comprising 200 small scale and 100 customers. Sets of both pre-tested structured and unstructured questionnaires were used to interview a random sample (300) derived using the formula of Israel (1992) of known target population, N. The data was analyzed with the aid of the SPSS (Version 11.5) computer software and presented in form of descriptive tabular summaries. Generally, ethics contribute positively to the business performance and general employee performance and increased customer loyalty to certain products and traders. Ethics should, therefore, be maintained and strengthened. The findings of this study would be useful as reference material for future research.