Citation :

Ekpenyong E. E, Umoh E. E, "Ethical Issues and Organisational Performance in Nigeria’s Food and Beverage Industry: Evidence from Nestlé Nigeria Plc," International Journal of Economics and Management Studies, vol. 13, no. 8, pp. 9-24, 2026. Crossref, https://doi.org/10.14445/23939125/IJEMS-V13I8P102

Abstract

Business ethics has become an important determinant of organisational competitiveness and long-term sustainability, particularly in manufacturing industries operating within emerging economies. However, empirical evidence on how specific dimensions of organisational ethics influence organisational performance in Nigeria’s food and beverage sector remains limited. This study examines the relationship between ethical practices and organisational performance using Nestlé Nigeria Plc as a case study. Specifically, the study investigates the influence of ethical culture, ethical climate, unethical organisational standards, and employees’ ethical behaviour on organisational effectiveness, competitiveness, productivity, and organisational growth. A quantitative research approach employing a descriptive survey design is adopted for this study. Data is collected from 350 employees selected through stratified random sampling from a population of 2,767 employees. The research instrument demonstrates satisfactory internal consistency (Cronbach’s α ≥ 0.70). Pearson’s Product-Moment Correlation and Analysis of Covariance are employed to analyse the data at the 5% significance level. The findings indicate that ethical culture significantly enhances organisational effectiveness (R² = 0.652, p < 0.05), while ethical climate positively influences organisational competitiveness (R² = 0.675, p < 0.05). Furthermore, unethical organisational standards have a significant effect on organisational productivity (F(2,138) = 18.024, p < 0.05, η² = 0.207), whereas employees’ ethical behaviour significantly contributes to organisational growth and survival (F(2,138) = 3.559, p < 0.05, η² = 0.049). These findings provide empirical evidence that organisational ethics constitutes an important strategic capability for improving organisational performance within multinational manufacturing firms operating in emerging economies. The study contributes to the business ethics literature by providing evidence from Nigeria’s food and beverage manufacturing sector, an empirical context that remains comparatively under-represented in existing research. The findings further suggest that strengthening ethical governance, ethical culture, and responsible employee behaviour enhances organisational effectiveness and sustainable competitive advantage. The study recommends that manufacturing firms institutionalise comprehensive ethics management systems as part of their long-term corporate strategy.

Keywords

Business Ethics, Ethical Behaviour, Ethical Climate, Ethical Culture, Organisational Performance.

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