BUSINESS ETHICS AND FINANCIAL PERFORMANCE OF siAN KING INSTITUTIONS IN BUTALEJA DISTRIC’~’

ABSTRACT

usiness Ethics and Financial Performance of Banking Institutions in Butaleja District. The

tidy population was all the employees at Butaleja District during the calendar year 2018. The

udyfound out that Business Ethics and Financial Performance ofBanking Institutions Butaleja

istrict. The study was based on three specific objectives; to determine the role of business

h/cs on financial petförmnunce of banking institutions in Butaleja district, to determine the

ti/ct offinancial performance of banking institutions in Butaleja district and to identify the

rategies to improve on business ethics on financial Performance of Banking Institutions in

utaleja District? It was based on descriptive research design basing on the use of qualitative

ad quantitative approaches that was to establish the relationship between Business ethics and

nancial performance of banking institutions in Butaleja district. A purposive sampling method

‘as used in the study. interviews and Questionnaires were used to collect primary and

~coiulary sources of data from 60 out of 72 re,spondents, using simple purposive sampling. Data

nalysis was done using SP8’S ‘s frequencies and percentage means. It was based on purposive

omnpling design basing on the use of qualitative and quantitative approaches that were being

dopted to determine the role of business ethics on financial performance of banking institutions

‘i Butaleja district. Data ‘o’as collected from both primary and secondary sources. Data was

rocessed and analyzed using formal tables, narrative text, and graphs and pie charts to

‘elermflifle the role of business ethics on financial performance of banking institutions in Bu/aleja

tmis/riCt.

~he findings indicated that a customer is always confident because customers Jbel that there is

ctfbty of the clients’ money iii the bank and 54% strongly agreed and 52% strongly agreed that a

ustomers are always respected by the employee ‘s according to the business ethics that a

ustomer is our boss thus a bank is liable to run business books in compliance with the bunking

hart of accounts, preparation of bookkeeping documents, evaluation of assets amid liabilities,

/ra/iing of /inancial staten ments in accordance vith applicable regi 1/at/ui?.; am u / profess ioiml

tandards (‘the Central Bank may prescribe, for the purpose of public anno unce,,ment, a tjpe,

orm and content of statements, method and deadlines for their publication). According to

)bjective t’uo, though there are increased pro/its in banking institutions leads to better

~crforinance of banks with the percentage of 58 who strongly agreed the cf/Oct offinancial

jerformnance of banking institutions have recorded series of ethical behavioral actions like

ourteous behaviour, with the percentage of58% who strongly agreed that illegal charges, poor

Iressing code, unauthorized debit and armed robbery operations that were niasterimminded cit/icr

by a staff or the branch manager of the bank as an accomplice of 1/ic crime. ~~Ioreover, with

?thics and risk management embedded into the organizational culture, it jliriher assures

improved profitability. According to objective three, the summary findings indicated that good

strategies to improve on business ethics on fInancial Petformance of Banking institutions have

increased numbers of customers with the percentage of 58 which in re/urn led to improved

linancialpeiformance of bamiking institutions as well as qualified employee.; ii’ith the percentage

of 54%. The Commission should also consider taking action to such actions would creole

substantial demand based incentives for financial institutions to develop emmv~ronm,e~ial expertise

and products. Finally the report looked at I/ic study results and gave the discussion of each

fInding. Therefore, here, data analysis, procedures and response rate dire focused on. Then the

findings conclusions and recommendations are presented. The report also showed the work plan

fOr the whole research, the budget as distributed right fron2 the topic inception imp to research

presentation, the questionnaire andfinally the observation guide.