Analytical Research on Sustainability of Ethical Business in East Africa

This paper focuses on the sustainability of ethical business in East Africa, with a particular emphasis on the impact of corruption on SMEs. The study aims to investigate the level of corruption in businesses in East Africa, the impact of corruption on society, the government's concern regarding corruption in Uganda, policies initiated by the government to tackle corruption in businesses, and the possibility of encountering corruption in SMEs in East Africa. The paper uses both quantitative and qualitative methods to collect and analyze data, including a survey questionnaire and interviews with managers of Kamuli Sugar Limited, Uganda. The study aims to provide insight into how policies may be formed to counter corruption in the business environment and create an atmosphere of overall growth of businesses in Uganda.

ANALYTICAL RESEARCH ON SUSTAINABILITY OF ETHICAL BUSINESS IN EAST
AFRICA
Abstract
The corporate sustainability have become quite an important topic in case of academia. The
topic of this particular paper is sustainability of ethical business in East Africa. The first part
of the paper includes introduction where the main objectives and the aim of the paper had
been discussed. The second chapter of the paper comprised of the literature review which
states the previous work done on this particular topic. The third part of the paper comprises of
the methodology used for carrying out this project. The analysis of the data had been taken
place in the fourth chapter and lastly the conclusion is presented in chapter five.

Table of Contents
Abstract......................................................................................................................................ii
Table of Contents......................................................................................................................iii
List of Figures...........................................................................................................................iv
List of Tables..............................................................................................................................v
CHAPTER ONE: INTRODUCTION........................................................................................1
1.1 Introduction..........................................................................................................................1
1.2 Background of the Study......................................................................................................1
1.3 Research Aims and Objectives.............................................................................................2
1.3.1 Aims of the Study..........................................................................................................2
1.3.2 Problem Statement........................................................................................................2
1.3.3 Objectives of the Study.................................................................................................2
1.4 Research Questions..............................................................................................................3
1.5 Research Methodology.........................................................................................................3
1.6 Rationale of the Study..........................................................................................................3
1.7 Organization of Chapters.....................................................................................................4
References..................................................................................................................................5
2

CHAPTER ONE: INTRODUCTION
1.1 Background to the Research
Africa is a land which is endowed with an abundance of natural resources (Badeeb, Lean
and Clark 2017). It has huge potential for growth through the utilization of these natural
resources. However, the growth of Africa has been hampered due to the large scale presence
of corruption. (Awojobi 2014). The pervasiveness of corruption through the socio-economic
and political environment has been detrimental to the growth of the region (Ewetan and Ese
2014). Corruption inhibits the smooth functioning of business organizations and thus
significantly hampers the growth of the region. The growth of a region is influenced through
the flourishing of SMEs (Painter-Morland and Dobie 2014). SMEs in African region are
facing ethical challenges due to the presence of corruption (Cant and Wiid 2013). Thus it
becomes imperative to understand the level of corruption prevalent in East African region,
and as a corollary investigate viability of businesses.
The prevalence of Corruption “Kamuli Sugar Limited, Uganda” hinders the growth of
the organization. Further, the wellbeing of the employees of the organization is also
hampered as a result of the presence of corruption (Karakas and Sarigollu 2013). The paper
elaborates the impact of corruption acceptability on business and assists in analyzing the
involvement of the government in creating various policies for addressing various unethical
issues. According to Virglerová, Dobeš and Vojtovič (2016) business activities of an
organization is dependent on business environment of the region. In order to achieve its target
business organizations, use specific methods to accomplish their business aims. The socio-
political legal environment of the state plays an important role. A positive environment
creates an atmosphere of sustainability of organizations (Nyberg and Wright 2013).
Corruption in business arena has been a focus of study since last decade. The
increased emphasis is borne out of the fact that development of a region is based on sound
policies of government. Moreover, unsustainable policies signify presence of unsound
knowledge of policies intended to counter corruption. Corruption is viewed as an impediment
to implementation of government policies (Asongu 2013). In the East African region, Uganda
has shown a very high economic growth in the last decade. However, Uganda has the highest
business operational cost amongst the five East African countries (Mayanja and Perks 2017).
3

Moreover, the prevalence of corruption in Uganda is very high. The presence of corruption
results in dwindling financial growth of businesses. SMEs increasing resort to unethical
business practices to sustain themselves.
“Kamuli Sugar Limited” is one of the leading sugar manufacturing company in
Uganda. As such the organization also faces challenges to its growth due to the unethical
practices. The employees of the organization feel that the use of unethical practices impacts
the sustainability of the organization. Thus the paper investigates how corrupt practices in
SMEs can be encountered.
1.2 Research Questions, Aims and Objectives
Research Questions
The research questions for the present research can be stated as:
 What is the level of corruption in businesses in East Africa?
 What is the impact of corruption in society in East Africa?
 Is the government concerned with the level of corruption in Uganda?
 What policies have been formed to tackle the menace of corruption in business?
 How can corruption best be countered in small and medium enterprises of East
Africa?
Aims of the Study
The primary aim of the current research would be to examine the sustainability of
doing ethical business in East Africa with reference to “Kamuli Sugar Limited, Uganda.” The
investigation into the sustainability is carried out by studying different factors which
influence the suitability of doing business. Further, we intend to thus examine the level of
corruption in East Africa.
Objectives of the Study
The objectives of the study are:
 To examine the level of corruption in businesses in East Africa.
 To investigate the impact of corruption in businesses on society in East Africa.
 To examine the concern of the government regarding corruption in Uganda
 To examine the policies initiated by the government to tackle corruption in businesses
 To inspect the possibility of encountering of corruption in SME’s in East Africa
4

1.3 Justification for the Research
The present study aims to investigate aspects necessary for sustaining businesses in
East Africa. Presence of corruption impedes the natural functioning of business houses in
East Africa. Corruption impedes the free growth of business. Based on the present study
governments can form policies relevant for the fight against corruption. The formulation of
the policies by the government can counter the practices of bribes and thus enable businesses
to sustain (Asongu 2013). The current study can provide insight into how policies may be
formed so that corruption in business environment can be encountered. The use of policies
would provide an atmosphere of overall growth of businesses in Uganda. In other words,
reduction in corruption would lead to a situation where businesses can grow. The growth in
business would provide impetus to the economy of the country.
1.4 Research Methodology
In order to undertake the present research, both quantitative as well as qualitative
methods would be used (Creswell and Clark 2017). For the quantitative method, numerical
data would be collected and analysed according to the statistical models. In order to generate
numerical data a survey questionnaire relevant to the understanding of “sustainability of
ethical business in East Africa” would be designed and circulated amongst the targeted
population. The present research contemplates to evaluate hypothesis which are designed to
understand the factors important for sustainability of ethical business in East Africa.
The target population for the quantitative study would be the employees of “Kamuli
Sugar Limited, Uganda.” A simple random sampling would be used to select the employees.
As ethical business impacts the whole of the organization, hence non-probability sampling
would be used to study the whole population of the organization. A sample size of 50 has
been considered to be appropriate for the current study.
For qualitative data analysis interview of 5 five managers of “Kamuli Sugar Limited,
Uganada” would be conducted. Open ended questions would be asked to the managers in
order to understand the perception of sustainability of ethical business in East Africa.
Thematic analysis using keywords, themes of the interview would be used to evaluate the
interview.
1.5 Outline of the Research
In order to undertake the present research has been conveniently divided into five
chapters. The present chapter sets the preamble to the research on Sustainability of Ethical
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Business in East Africa. The chapter also provides the aims and objectives of the present
research. The problem and research questions for the present research is also presented in
first chapter. A review of previous work done on sustainability of ethical business is
presented in chapter two. Through the study of previous work, a conceptual model is
developed which would be used to study the present research. Chapter three presents the
methodology to be used for carrying out the research. The design philosophy and strategy
undertaken for the present research is also presented in the chapter. Chapter four presents
analysis of quantitative and qualitative data collected for undertaking the research. The final
chapter provides a link between collected data and previous work undertaken by researchers.
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Table of Contents
Chapter 2: LITERATURE REVIEW.........................................................................................1
2.1 Corruption in businesses..................................................................................................1
2.2 Impacts of corruptions on businesses...............................................................................6
2.3 Corporate corruption in Africa: Case Study of Uganda...................................................8
2.4 Sustainability in Businesses...........................................................................................12
2.5 Ethics in Business: Relationship with Sustainability.....................................................14
References................................................................................................................................18
7

Chapter 2: LITERATURE REVIEW
The global commercial and business scenario have developed significantly over the
decades, much of which can be attributed to the international phenomena like that of
Globalisation, trade liberalisation as well as technological and infrastructural innovations,
which in turn, have cumulatively contributed in making the international business
environment more integrated, inclusive and interconnected (Wetherly 2014). With more
businesses going global and with the consumption patterns and behaviours of the global
clientele becoming more diverse and frequently changing, the degree of competition among
the businesses in almost all countries and all types of industries has been consistently
increasing, which in turn indicates towards the importance of increasing the level of
efficiency as well as goodwill of the businesses in order to make them profitable,
competitive, prospective as well as sustainable (Harrison 2013).
In this context, there lie several factors in the business environment across the globe,
which have considerable negative implications on the businesses as well as the different
stakeholders attached with the same, the primary one being the presence of corruption
(Verschoor 2014). With the significance and implications of these phenomena on the global
business framework increasing, considerable researches and studies have been carried out
across the world in these aspects and there exist various literary works and empirically
supported scholarly evidences in these fields, which are studied and discussed critically and
elaborately in this section of the thesis (Altbach 2015).
2.1 Corruption in businesses
The word “Corruption”, holds multiple meanings and have been defined variously by
different scholars across the globe. In this context, the most comprehensive and generalised
definition of the notion can be seen to be provided by Bentzen (2012), according to whom,
corruption is an act of dishonestly or illegal activity by an individual or an institution, who
8

are bestowed with some kind of authority and responsibility, often to earn illicit benefit at the
cost of the compromise of welfare of other people related to or affected by their activities.
(Altbach 2015), augments the assertion of the previous author by asserting that corruption
indicates towards the phenomenon of misuse of the power which is entrusted on someone or
on some organization (by election, education, appointment or by other means) for private
gain or gain of the interest group that individual or organization is connected with. According
to (Lessig 2013), corruption can occur in different sectors of a country or region, with the
primary types of corruptions being corruption in politics, corruption in government or public
sectors, corruption in judicial sectors, corruption in education, corruption in religion and
corruption in business (Donchev and Ujhelyi 2014)
One of the most common field in the contemporary global framework, where the
incidents and activities of corruption are most frequently observed, is the corporate field or
the field of business operations (Cuervo-Cazurra 2016). As per the assertions of the author,
corruption in the business activities, in the recent period, is one of the most common
occurrences in the global corporate scenario and the same can have many faces and is not
always blatantly visible to all the stakeholders or participants in the businesses. Eicher
(2016), in this context, argues that in the corporate scenario, the cost of corruptions is often
shifted to the customers. The author also asserts that the presence of a corrupted business
framework, hampers the reputation of the businesses in the long term and the benefits of one
or several individuals or vested interest groups leads to the loss of competitiveness and
profitability as well as long term sustainability of the businesses considerably (Lord 2016).
With the business activities becoming more complex, multidimensional and integrated
in the recent periods, across the globe, the types of corruption activities in the businesses
have also been becoming diversified (Ziemiański 2018). In this context, Dela Rama (2012),
9

in his research paper, highlights the most common forms of corruptions which occur usually
in the contemporary business activities, to be as follows:
As per the arguments put forward by the author, one of the primary forms of corruptions
taking place in the business operations is that of bribery, which involve the actions of getting
undue and unfair advantages from resourceful individuals or organizations in exchange of
provision of monetary or non-monetary benefits to the same (Rose-Ackerman and Palifka
2016). Porter (2012), in this context, argues that bribery in corporate operations occur in
various forms like the employers making payments for receiving grants for employment,
licenses or business permits, employees demanding bribes for approving or accelerating
processes, state grants, contracts, loans and subsidies. Bribes are often paid by small
businesses to larger companies for getting contracts or supports (Hunt and Laszlo 2012).( Liu
2016), highlighting the corporate scenario of the newly developed or developing countries,
asserts that in the developing business scenarios of these counties, the business companies
(especially the small and medium ones), often have to pay additional amounts or favours in
cash or kinds to the local utilities or government officials to receive services necessary to
carry out their business operations in the areas where they venture (Altbach 2015)
As per the assertions of Dyck, Morse and Zingales (2013), another considerably common
form of corruption in businesses, in almost all parts of the global and in all types of industries
is that of the activities of frauds. The fraudulent activities in the businesses, as the authors
highlight, primarily consist of the activities of misutilisation of the official powers as well as
amenities by the officials for their personal gains (Nichols 2012). One of the primary forms
of corporate frauds, in the current global business scenario, is that of money laundering
activities, which take place equally both in the private as well as in the public sectors.
10

With the dynamics and activities in the operations of businesses, in any kind of
industry, across the globe, increasing substantially and multidimensionally, the diversities of
the types of corporate frauds can also be seen to be increasing considerably. (Dyck, Morse
and Zingales 2013), in this context, comprehensively highlights several common and highly
damaging corporate frauds, which can usually be witnesses in the global corporate
framework and which, as per the assertions of the authors, have hugely adverse impacts on
the profitability, sustainability, competitiveness and reputations of the business organizations
(Soltani 2014). The primary types of frauds in businesses, according to the authors are as
follows:
One of the most common forms of frauds inside the operational framework of businesses, is
that of skimming, which refers to the activity of taking the funds of the concerned company,
before the presence of the funds are recorded in the financial tracker or statements of the
same (Comer 2017). However, Cohen et al. (2012), highlights that in most of the cases this
type of corporate fraud is detected as the same can be gauged by monitoring the gross
revenue of a company and its dynamics. If the revenue falls considerably below the expected
level, without the clientele being reduced or any other disturbances cropping up, then there
remains high possibility of the presence of skimming in the concerned company (Bhasin
2013).
Brealey et al. (2012), in this context, highlights one of the most common form of corporate
frauds, occurring in the companies, all across the globe, is that of misappropriation of the
assets and financial aspects of the companies. Elaborating more on this aspect of business
corruptions, Yu (2013), in his paper, argues that this type of corporate fraud mainly takes
place when an employee or employees of a company steal funds of financial assets, thereby
affecting the business negatively.
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In any business organization, there remains an authorised maker who is the person bestowed
with the responsibility as well as the power to create and sign cheques (Cuomo, Mallin and
Zattoni 2016). As Chen and Wang (2014), highlights, often these authorised makers in the
business organizations create payable cheques for themselves or for their personal monetary
interests and change the payee name later in the name of some authentic vendor, to make the
disbursement look authentic and related to the business operations (Pontell, Black and Geis
2014).
As Wadhwa and Pal (2012), opine in their research paper, often the officials in business
organizations engage in fraudulent activities by submitting false invoices, forging payees,
using names of shell companies or multiple times paying a legitimate payee, thereby fulfilling
their own financial interests through false billing schemes (Rose-Ackerman and Palifka
2016).
Holtfreter (2015), discusses about cash larceny, as one of the most blatant and crude form of
corporate fraud, which is also very much existent over the ages of commercial activities. In
this type of corporate fraud, the employees of an organization blatantly steal money from the
accounts of the company even after the amount is entered into the records of the same. Thus,
cash larceny, in corporate world, is equivalent to theft (Glodstein 2015). As rightly opined by
Gottschalk (2013), this form of corporate fraud is one of the easiest forms to detect and also
resolve.
Another type of corporate corruption, which has been becoming increasingly relevant in the
recent periods, is that of kickbacks. As Baer (2014) highlights, the kickbacks include the
payments which are made by different vendors or input or raw material suppliers to the
businesses, for the purpose of singing contracts which overinflate the actual costs of the work
done or the materials provided by the same. This is primarily done to acquire greater and
12

unjustified payments unfairly, from the parties receiving such services (Pontell, Black and
Geis 2014).
Gardiner (2017), defines corporate embezzlement as the fraudulent activities of using or
taking the funds or resources of the companies for the purpose of personal gains. The author
opines that these types of corporate corruptions are usually done by those officials of the
companies, who have access as well as authorities to view and also to redirect the funds of
the companies and also can hide the misutilisation of the funds (Arjoon 2012). In this context,
Burke (2016), argues that embezzlement, in the corporate scenarios, can occur in the
following forms of taking small amounts of fund at intervals of time (Skimming), taking
large amounts of money at a time and then disappearing or evading income tax or false
reporting of own income.
Thus, it can be inferred from the above discussion that corruption in the businesses
across the globe, has become one of the most common evil in the global commercial scenario
and with time different types of corruptive methods have come up in this scenario.
2.2 Impacts of corruptions on businesses
With the frequency as well as magnitude and seriousness of corporate corruptions
increasing worldwide, there have been considerable research and discussions about the
implications which such corruptions have on the business activities and on the sustainability,
profitability and reputation of the same in the markets where they venture. Klinkhammer
(2013), in this context, highlights the primary negative and adverse impacts of corruptions on
business to be as follows:
One of the primary impacts of presence of corruptive activities in the operational framework
of any business, is the loss of efficiency in the overall production and operational domains
(Eicher 2016). The primary reason behind this being the fact that with tampering and
13

improper usage of resources, the same loss their efficiency and effectiveness in running the
business operations and maintaining the same levels of operations.
Nichols (2012), argue that, in the contemporary periods of higher connectivity and social
media communications, the news of corruptions or frauds occurring in a company, at any part
of the globe, spreads rapidly, which in turn leads to a substantial loss in the goodwill of the
company in the market and loss of trusts of the customers, investors and other stakeholders
on the same (Hindess 2012).
Eicher (2016), also highlights that potential mismanagement and loss of resources, which
occur, especially in corporate corruptive activities like that of embezzlements and money
launderings. Often the cost of the same have to be borne by the customers, which also hamper
the competitiveness of the companies, thereby hampering their competitiveness.
Corruptions in businesses and fraudulent activities often lead to creation of legal troubles of
for the companies to solve which and to improve the image of the companies, substantial
amount of effort and monetary resources are utilised, thereby hampering the profitability and
sustainability of the companies significantly (Dutta and Sobel 2016).
Nguyen and Van Dijk (2012), in their research paper, on the aspects of corruptions in the
businesses in Vietnam and their implications, highlights the crucial aspect of stagnation of
development and expansion of the activities and operational frameworks of the businesses as
one of the primary implications of corporate corruptions and fraudulent activities (Hindess
2012). According to the arguments put forward by the authors, the presence of corrupt
officials or activities within the operational and production frameworks of businesses, not
only decrease the reputation of the same in the eyes of the customers, but also leads to the
loss of goodwill of the company in the market and especially in the eyes of the investors, who
become considerably sceptic in the aspects of investing in such companies (Breen and
14

Gillanders 2012). This in turn, hampers the expansion of the business activities of the
companies substantially, thereby stalling their developments.
Assiotis and Sylwester (2014), assert that when corruptions in businesses remain undetected
for a prolonged period of time, then in many instances the same leads to creation of black
market interests and also organized crimes, with more people getting involved in the same
with the confidence of going undetected (Haidar 2012). This in turn fuels the growth of
criminal enterprises in the businesses, which in the long run, not only hampers the concerned
businesses but also the society as a whole, thereby becoming primary concerns for the
governments of the concerned countries (Hindess 2012).
In the contemporary period, Africa as a whole and different African country in
particular, rank high in the aspects of corruption. As per the assertions of Tangri and Mwenda
(2013), corruptions can be found in almost all the aspects of livelihood of the population of
different countries of this continent, economic, political, educational as well as in corporate
domains.
15

Figure 1: Countries across the world with very high levels of corruption
(Source: Jones 2018)
As is evident from the above figure, a number of African countries fall in the list of
the countries across the world with top most corruptions in a generalised framework. Much of
this corruption in the African countries, stem from the presence of highly corrupt public
officers who are bestowed with huge responsibilities as well as power to monitor ethical and
welfare activities of the societies (Tangri and Mwenda 2013).
16

Figure 2: Perceived levels of corruptions in different government institutions in Africa
(Source: Ewn.co.za 2018)
Blundo et al. (2013), in this aspect, argue that the level of corruption in the business
scenarios in Africa as a whole and in different parts of East Africa, in particular is
significantly high and alarmingly disturbing. The authors highlight the primary reasons
behind the presence of high corruption in the corporate domains of these regions, being an
overall underdeveloped structure of the economy, lack of efficiency in the government’s
operational framework (Justesen and Bjørnskov 2014). Other reasons behind the same are
abject poverty and lack of amenities among majority sector of the population, presence of
international companies in the business domains, the primary motive of whom are
maximisation of profits at any cost. Das and DiRienzo (2012) also highlights the other causal
factors to be the presence of considerably corrupt public servants and reluctant government,
presence of vested interest groups and corporate lobbies and the presence of various of
middle-men and intermediaries in any kind of business domains. High bribing activities by
the companies and various stakeholders to relevant and resourceful personnel to get
additional benefits are also plausible reasons behind the same (Luiz and Stewart 2014).
17

Luiz and Stewart (2014), in this context, highlight that in the African countries like
that of Uganda and Rwanda, much of the corporate corruptions occur due to the presence of
Non-African firms. As per the assertions of the authors, nearly 99.5% cases of corporate
corruptions and bribery activities in the business scenario in Africa as a whole, occur due to
the involvements of the Non-African foreign firms (especially multinationals) and their
practices of paying bribes to the host governments of the African countries (Lumumba 2014).
In this context, Uganda can be seen to be falling among the top most corrupt countries in
Africa, in the recent period, as can be seen from the following figure:
Table 1: Top 5 most corrupt African countries over the years
2016 Rank Country 2016
Score
2015
Score
2014
Score
2013
Score
2012
Score
145 Kenya 26 25 25 27 27
151 Uganda 25 25 26 26 29
154 Zimbabwe 22 21 21 21 20
156 Democratic
Republic
of Congo
21 22 22 22 21
159 Burundi 20 21 20 21 19
(Source: Ewn.co.za 2018)
The effects of high corruption and fraudulent activities in the industrial and business
sectors of Uganda can directly be seen in the high unemployment and poverty rates as well as
low development of the industrial and business sectors of the country, over the years, as is
evident from the following figure:
18

Figure 3: Share of manufacturing sector in the GDP of different countries over the
years
(Source: Afdb.org 2018)
As can be seen from the above figure, over the last decade, the contribution of the
manufacturing sector of Uganda (one of the considerably significant industrial sectors in
Uganda) has been significantly and consistently low as compared to other developing
countries and not much improvement can be seen to have occurred in the trend of the same in
the past few years (Rose-Ackerman and Palifka 2016). Much of this can be attributed to the
high levels of corruptions and mismanagement, both in the business sectors as well as in the
government’s operational framework, which have hampered the competitiveness as well as
growth, profitability and sustainability of the businesses in this region (Asiimwe 2013). These
aspects and the evidences put forward by the literary and scholarly sources indicate towards
the fact that the presence of high corruption levels, both in the industrial, business as well as
in the governing frameworks of a country, considerably hampers the sustainability,
19

profitability and growth of the businesses, thereby effecting not only the stakeholders of the
concerned businesses but also the society and the economy of the country as a whole (Doig
and Theobald 2013).
2.4 Sustainability in Businesses
In the contemporary period of increased competition and greater dynamics in the
corporate scenarios, sustainability of the businesses and their long-term profitability and
relevance have become issues of immense concern among the scholars across the globe and
there exist considerable debates and discussions regarding the ways to achieve sustainability,
the factors contributing to the same and the implications of sustainability on the businesses as
well as on the different stakeholders (Boons et al. 2013). As discussed by Porter and Derry
(2012), the concept of sustainable business is derived from the notion of “Sustainable
Development”, according to which, any action or development is said to be sustainable if the
same is able to meet the needs of the present generation, without decreasing the ability as
well as the welfare of the future generations as compared to the present ones (Kopnina 2017).
There exist diverse opinions and perceptions regarding the components of
sustainability of businesses and also regarding the best practices in this domain, in the
contemporary global scenario. Buxel, Esenduran and Griffin (2015), in this context,
highlights the primary aspects contributing to the sustainability of businesses in a generalised
framework to be as follows:
As per the opinions of the authors, the primary way in which a business can ensure
sustainability in its operations, revenue generation and also in its goodwill is by that of higher
engagement of all its stakeholders in its operational framework (Andriof et al. 2014).
Involving the stakeholders help the organizations to know about their perceptions, interests
and demands, thereby incorporating the same in the operational framework, which in turn
20

help in ensuring that the interests of all the groups are met and the business is sustainable
(Andriof et al. 2017).
Schaltegger and Wagner (2017), in this context, argue that sustainability of a business also
largely depends on the incorporation of environment friendliness and environment efficiency
in the overall culture as well as operational frameworks of the businesses.
The authors also argue that for those businesses which intend to expand their operations and
productions, it is of immense importance to analyse systematically the social as well as the
environmental impacts of their operations as well as the products which they use and
produce, as this contributes significantly to the sustainability of these businesses (Bateh et al.
2013).
According to Willard (2012), a business only becomes sustainable when along with
incorporation of the above-mentioned practices in their operational and production
framework, the same also maintains transparency about their finance, activities and agenda
and reports and discloses the same properly and unbiasedly for the better understanding of the
customers, investors, workers and other stakeholders as well as the society as a whole and the
government.
2.5 Ethics in Business: Relationship with Sustainability
The term “Ethics”, in general refers to the moral values and behaviours of an
individual. In this context, Bednarz (2013), define the increasingly popular notion of
“Business Ethics” as those moral guidelines and regulations which ought to be abided by the
businesses in order to behave and operate rightfully in a society, without harming the welfare
or the interests of any of the social groups in the same. Collins (2012), opines that the
presence of an ethical framework in the businesses, ensure that the profits are made by the
21

same only through right channels and proper as well as socially acceptable business activities
(Bednarz 2013).
In this context, )(Minus 2013), highlights that the presence of an ethical framework in
the operations of a business is extremely crucial for the sustainability of the same and the
promotion of the business as sustainable to the different stakeholders of the business as well
as to the society as a whole. The needs of the employees, the increase in their overall welfare
and also the welfare of the community where these companies venture, also become
important for the concerned companies along with the instillation of a sense of appreciation
for the environment as their sole provider (Crane and Matten 2016). The ethical framework in
the companies, thus, help the companies to target both individual profit and overall welfare
maximisation, which in turn earns them immense positive reputation and goodwill, thereby
making their products or services desirable to increasing share of clientele and contributing to
the long-term sustainability of the businesses (Nicolăescu 2013).
Summary
The above discussion and extensive review of the existing scholarly and literary
works, in the contemporary period, can be seen to be highlighting the different aspects of
corruptions which can be seen to be taking place in the business frameworks across the globe
in the recent period of time. In this context, the level of corruption in Africa (both overall and
corporate) as a whole and in Uganda in particular can be seen to be typically high, which can
in turn be seen to be perceived by many scholars as the primary reason behind the
underdevelopment of the industrial and business sectors of the country, thereby leading to
high unemployment and acute poverty in this region.
This in turn, could be seen to be indicating towards the need for implementation of
sustainability in the business operations and considerable literary works can be seen to be
22

present in this domain, discussing about the meaning of sustainable business, the ways to
achieve the same and the pivotal roles which business ethics play in assuring sustainability of
the businesses.
Literature Gaps
Although considerable discussions and debates can be seen to be present in the
contemporary literary scenario, in the aspects of corruptions in businesses, their implications
and impacts, the needs for sustainability of businesses as well as the role which business
ethics play in these aspects, the findings and perceptions are found to be broad and
generalised. In spite of considerable discussions about the high corruptions present in the
contemporary business scenario of Africa as a whole and different African country like
Uganda in particular, not much can be seen to be researched about the impacts of such
corruptions on the businesses of the country and also regarding the ways of introduction of
sustainable businesses in these regions. There also seem to exist a lack in the contemporary
literary framework, regarding the factors which influence the sustainability of businesses in
these regions as well as the impacts of corporate corruptions on the society in East Africa
(Uganda in specific) and the government’s role and policy frameworks designed to address
the concerned issue of corruption in the businesses (especially the Small and Medium ones)
in the concerned region. Keeping this into consideration, the concerned research aims to
address the above-mentioned issues, so as to fill the existing gaps in the existing literary and
scholarly frameworks present in these aspects.
23

Chapter 3: Research Methodology
This chapter provides an overview on the methods adopted for conducting this
specific research that aligns with sustainability of ethical business in East Africa. A
methodological framework had been construed for the thesis that throws light on the research
design, research philosophy, research approach, data collection method and sampling
procedure (Bns and Hv 2013). The primary method had been used for collecting the data for
this specific thesis. The primary data for this study had been gathered via survey
questionnaire procedure.
Research Onion
Research onion exemplifies the phases that are to be covered while developing
research strategy. It aids to execute the whole procedure in much simpler way (Bryman and
Bell 2014). The six phases of research onion relates with research process, philosophy and
time horizon.
Figure 1: Research Onion
Source: (Bryman and Bell 2014)
24

Research Philosophy
The research philosophy helps to classify research principle by using varied aspect of
research study. This is the procedure where data relating to thesis is collected, used and
analyzed in the study. Research philosophy is majorly of three kinds that include- positivism,
interpretivism and realism. Positivism relates to scientific data collection procedure that is
mainly attained through observation (Novikov and Novikov 2013). The positivism
philosophy also allows the researcher to form hypothesis so that it can be tested and its
relevance can be found out with respect to the research study. This philosophy entails
existing theories that facilitates to develop hypothesis testing during this research study
(Dang and Pheng 2015). Moreover, this philosophy utilizes the facts to verify data relating to
this thesis. Interpretivsim relates to the type of social approach that is basically allied with
idealism and is utilized by making the qualitative research. This philosophy is applied for
interpreting elements related to this specific thesis and adopting individuals interest. Realism
philosophy depends on the facts and ideas that are not dependent on reality (Flick 2015). In
addition to this, this research philosophy is mainly based on certain assumptions of scientific
approach to the knowledge development activities.
For this research study, positivism philosophy had been used for determining
sustainability of ethical business in East Africa. This philosophy had been chosen as it helps
to describe the phenomena from viewpoint of certain objectives that were taken up in this
thesis. Moreover, this philosophy aids to manipulate reality with independent variable so that
relations can be made with certain elements in real world. As this positivism philosophy leads
to statistical data analysis, proper analysis had been done for this study.
Research Approach
There are basically two major kinds of research approach such as – deductive and
inductive. Inductive approach indicates the approach that uses specific observations for
25

developing basic principles relating to this study (Ledford and Gast 2018). This approach
mainly starts with particular observations and measures, which in turn helps to detect the
patterns as well as regularities. In this approach, the data are collected and analyzed on
certain patterns to innovate new theory. In fact, the researcher can conclude theories by
formulating the tentative hypothesis. It mainly verbalizes the tentative hypothesis,
investigates and develops common conclusion or theories. Inductive approach is mainly
concerned with qualitative data.
On the other hand, deductive approach is mainly concerned with hypothesis testing
for planning research strategy and formulating in the operational terms. This approach mainly
provides stress on testing casual relationship in generic situation. In fact, testing of hypothesis
is done based on the existing theories. The outcome of hypothesis testing is further
scrutinized and then accepted or rejected accordingly. Moreover, this approach is mainly
concerned with the quantitative data.
In this present thesis, deductive approach had been used due to adoption of survey
method. The survey method aids to gather large amount of data that are descriptive in nature.
This approach also facilitated to design research strategy for developing as well as testing
hypothesis. This approach helps to establish different kinds of theories along data collection
method that aid to fill the gap for completing this study. This approach also facilitates to
explore theories and test validity in specific circumstances. Moreover, it also benefits in
completing the project within short period of time. This approach had been preferred for this
study as it involves no risk while conducting the research. The inductive approach had not
been used for this study as the data collection are further analyzed for innovating new
theories.
26

Research Design
According to Panneerselvam (2014), research design relates to the strategy adopted by
the researcher to implement different components of the thesis in logical way. Research
design helps to plan as well as structure the whole investigation process in proper way so that
the issues can be identified in a better way (Creswell 2013) The research design mainly
functions with development as well as identification of process that needs to be undertaken
for conducting the research. Research design involves few advantages that include- simple
structure, easy to assess, reflecting trend pattern over the time period. But still research
design has some limitations that include- lack of proper data, less samplre size might forbid
the researcher to obtain accurate outcome. Research design is of three major kinds that
involve- explanatory, exploratory and descriptive (Teichler, Arimoto and Cummings 2013).
Explanatory research design relates to the design that attempts to link individual ideas
for understanding cause and effect of relationship (Roberts 2013). This design aid to analyze
and interpret the quantitative research that had been conducted within sample population in
order to authenticate research. This research design facilitates to explain all the things which
come in collective way.
Exploratory research design aid to explore different circumstances in order to provide
insights about specific research (Vaioleti 2016). This design also helps to establish priorities
among different competitive explanations. In addition to this, this design aid to clarify
various concepts as well as theories and formulate issues in precise way. This design aid to
conduct the research in both qualitative and quantitative way through in- depth analysis based
on certain sample population.
Descriptive research design is the scientific method that involves observing as well as
describing individual’s behavior without influencing it other way (Walliman 2017). It is also
27

useful in those cases where it is impossible to test as well as measure large samples that are
required for quantitative kind of experimentation.
Since this research had been conducted to analyze the effect of corruption within the
business enterprises operating in Eastern African region mainly in Uganda, descriptive
research design had been integrated in this study. This research design had helped to conduct
this research in effective way by taking into consideration several issues that have been
identified during this study. Descriptive research design also helped to determine the
unethical issues occurring within the corporations operating in Eastern Africa. It had also
facilitated to attain proper information about how these issues impact the working conditions
of employees in the enterprises of East African countries. This research design also helped to
encounter these problems so that it could be beneficial for the enterprises in long run.
Another benefit of using this design for conducting this research is that participants in the
survey procedure are observed accurately. This design also helped to understand attitudes and
behavior of the participants in effective way.
Data collection Method
The primary information that a researcher obtains for assessing the authenticity of the
research mainly based on acquiring of accurate data. There are two methods of collecting
data, which includes- primary and secondary. Primary data are collected through survey
process and observations whereas secondary data are collected from peer-reviewed journals,
newspapers, books and internet. Yilmaz (2013) opines that primary data is more reliable and
accurate than secondary data as the latter might be often imprecise and inadequate. Primary
data is further classified into two types- qualitative and quantitative. Quantitative data are
assessed with the help of statistical as well as numerical inferences. This type of data is
mainly used for higher sample size so that the thesis can be analyzed properly. It assumes
reliability and is categorized in form of discrete data. The quantitative data is collected
28

through varied processes that involve- surveys, experiments. On the other hand, qualitative
data describes about the features and properties of the objects. This type of data helps to give
insight about specific research problem. The methods that are used for collecting qualitative
data are interview process, observations and archival materials.
For this research study, primary data collection method had been used for determining
the sustainability of ethical business in the East African countries especially in Uganda (West
2014). In this study, primary research had been taken over secondary data since the
information attained from the employees of the organization helped to obtain accurate
outcome of the research. For this specific study, quantitative data had been collected through
the survey questionnaire procedure. The employees of the Kamuli Sugar Limited, Uganda
had been chosen for conducting the survey questionnaire procedure. A structured
questionnaire had been framed and provided to the employees of this organization for
attaining accurate results. The survey questionnaire had been designed in such a way that it
help the participants to answer the questions with ease and at the same time permit to acquire
accurate outcome of this research. The ordinal questions had been given at the beginning
such that it facilitate to identify different demographic features that exists in the enterprise.
The ordinal questions had been followed by the interval questions such that Likert scale can
aid the respondents to give their opinions accordingly. Furthermore, the opinions of the
respondents are measured from zero to higher level in the Likert Scale. However, quantitative
data collection method had helped to obtain accurate outcome of the research.
Data Analysis
As per Quinlan et al. (2017), data analysis is taken into account as a crucial
determinant that ensures integrity of data and is the suitable process of assessing the research
findings. It is the method that converts raw data into final information and is useful for
decision making in the thesis. The data gathered was further analyzed with the help of SPSS.
29

Moreover, the quantitative method used for this research helps to analyze the data in proper
way. This in turn provides a clear insight about how corruption affects the working
conditions of employees of Kamuli Sugar Limited, Uganda. Nevertheless, the data analysis
procedure also provides an overview about the sustainable ethical business in the East
African countries. In addition to this, the data obtained through survey questionnaire
procedure were further analyzed with the help of tables and graphical representation.
Sampling technique
Sampling technique is mainly of two kinds that involve - probability and non-
probability. Probability sampling method permits the researcher to be accurate relating to the
relationship between sample and population (Acharya et al. 2013). Some types of probability
sampling method are – simple random sampling, cluster sampling, stratified sampling
(Fowler 2013). On the other hand, non- probability sampling method relates to the technique
in which the samples are collected in the procedure that does not provide equal chances to the
individuals from the total population. There are three kinds of non- probability sampling
procedure- convenience sampling, purposive sampling and quota sampling.
In this research study, probability sampling had been selected in order to attain precise
outcome of this research. This sampling technique had been used as it creates more
convenience as well as generate samples that are representative of the whole population.
Furthermore, this sampling technique had also given equal opportunity to the employees of
Kamuli Sugar Limited, Uganda of being chosen for survey questionnaire. Since the
employees of this company were mainly affected due to corruption and unethical business,
the survey questionnaire had been designed based on this objective. This in turn helped to
gather proper information about the sustainability of ethical business within the corporations
operating in the East Africa.
30

Sampling design
According to Levy and Lemeshow (2013), sampling design relates to the framework
that mainly serves as the basis of selecting the survey sample and also impacts several other
aspects of survey as well. The two elements that makes up sampling design are- sampling
method and estimator. Sampling method relates to the process by which few elements of
population are involved in the sample (Levy and Lemeshow 2013). Furthermore, estimator
refers to the estimation procedure of estimating sample statistics. Various methods that are
utilized for the sampling design are- simple random sampling, stratified sampling and cluster
sampling. In this specific research study, sampling design had been used for selecting the
subsection of elements from target population to gather information relating to this research
study. This data facilitated the researcher to draw conclusion regarding the whole population
of the corporations in East Africa.
In this specific research study, simple random sampling design had been used for
obtaining accurate outcome of the research study. This type of sampling technique had been
selected for this research study as it helps to randomly choose the participants from large set
of population and thus give equal chance to all individuals in the population. It also helped to
select the employees in easier way and complete the survey questionnaire process in effective
way. This design also helps to attain the information about the sustainable ethical business
from the employees without much difficulty.
Target Population
According to Fowler (2013), target population relates to the total units for which the
survey findings are used to make proper inferences. The target population also facilitates to
determine whether all the sample units are appropriate for the survey. In some cases, the
target population is mainly limited to eliminate those participants who are difficult to
interview. The target population of this research study were the permanent workers of Kamuli
31

Sugar Limited, Uganda. Few employees of this corporation had cooperated in this research
by voluntarily participating in the survey process and providing unbiased answer to the given
questions. As a result, this simplified the procedure of completing the whole research study
and thus objective of this research study was met.
Sample Size
Fowler (2013) opines that sample size mainly determines the act of choosing total
number of participants to include in statistical sample. It is considered as the vital trait in the
research study for drawing conclusion about the participants from total sample. There are
different methods that are utilized for choosing the sample size that involves- confidence
level, experience and target variance. A sample size of around 40 employees of Kamuli Sugar
Limited in Uganda was taken into account for understanding their behavior and analyzing the
data accurately. Moreover, the employees chosen for the survey procedure were aged
between 35 to 50 years so that the view of sustainability of ethical business could be obtained
from both young as well as aged individuals.
Research Instrument
Lloria and Moreno-Luzon (2014) states that research instrument is taken into account
as one of the crucial component of the research design as it aid to collect proper information.
Survey questionnaire is taken into account as widespread tool that helps to collect data
beyond the observers reach. There are two kinds of survey questionnaire, which include-
open- ended form and close- ended form. In this research study, close- ended survey
questionnaire form had been used to gather accurate data from the employees of Kamuli
Sugar Limited in Uganda. The close- ended survey questionnaire form had provided benefit
in conducting this research as it involved less time and preserved the respondent’s privacy.
Apart from this, it facilitates in testing validation of data in accurate manner. On the contrary,
32

this research instrument led to some difficulties while conducting the survey procedure in the
corporations. Some of the challenges faced during the survey questionnaire process include-
low rate of response, less chance in clarifying indefinite answer, high printing cost and low
rate of retrieval. In few questions, low responses were attained which in turn become difficult
to achieve accurate outcome of research. During the survey process, few respondents of the
corporation gave biased answer to the question provided in the survey questionnaire. In
addition to this, few employees chose to stay anonymous so that it does not create any
difficulty for them in future.
Ethical Consideration
Cacciattolo (2015) cites that maintaining ethics during the research procedure is vital
so that it makes the procedure smother and effectual. Proper ethical checklist is required to be
submitted in the enterprise where the research is mainly conducted. This also permits the
enterprise to provide necessary consent so that researcher might carry out necessary activities
(Ketefian 2015). In this research, the participants consent had been taken so that they
becomes fully aware relating to the thesis on which survey had being conducted. The
background information of this research study had also been given to the participants so that
it might aid the respondents to understand the basis for which the research was being
conducted. The incentives were given to the participants the so that it did not hamper their
productivity level. The enterprise had allocated one hour of time to the employees who
participated in the survey process so that it might be undertaken in better way. It had also
helped the employees to give feedback regarding the research topic. In addition to this, it also
motivated the workers to voluntarily participate in the survey procedure. The questions to be
asked to the managers had been given beforehand, which in turn led to less consumption of
time in framing their answers. Besides this, the name of the respondents were not disclosed
33

so that it do not create any difficulty for them. Even the information given by the managers
were kept confidential and interpreted by the researcher in order to avoid risk in this research.
Summary
From the above discussion, it can be concluded that the methods adopted for this
research had helped to attain accurate outcome and draw proper conclusion of this research.
The primary data collection through the survey questionnaire process had helped to
understand the participants mind and attain proper information relating to this research topic.
Furthermore, simple random sampling procedure also helped to select the respondents
without any difficulty and thus benefitted in voluntary participation of workers. In fact,
maintaining ethics during the survey process also facilitated to gather unbiased and accurate
answer to the questions asked to them. Overall, the whole research method helped to conduct
the research with much ease.
Chapter 4
Introduction
This particular chapter consist of the detailed explanation of the collected survey data. It
also includes the analysis of the data along with the explanation of the data. At first this
particular chapter will be introducing the various features of the sample. After that the
chapter will be testing the reliability of the surveyed data and lastly it will then further
analyse the various statistical process. Mostly, the main issues will be covered are
demographics of the respondents and the presentation of data will be presented in terms of
tables, cross tabulations and charts for studying the objectives of the study. The investigation
of the survey will evaluate the demographic profile of the sample used in the research. Both
the correlation and regression that is present between the variables are also investigated in the
survey.
34

The mean scores of the variables taken will be examined with the use of the independent
sample t-test. The mean scores will be examined with the help of using One Way ANOVA.
Lastly, this particular chapter will be discussing the relative findings to evaluate how much
the findings will support the current available literature.
Respondents Socio-Demographic Analysis
For conducting the entire survey the researcher will be selecting 50 employees as a sample.
The questionnaire consist of three groups which consist of the age group, education level and
the number of years in the industry.
Section1 General Information
GI Age group (years) ☐ 18 -29 ☐30-39 ☐40-49 ☐50+
G2
Education ☐ Up to High School ☐ Diploma ☐ Bachelor Degree ☐
Master/Doctorate
G3 Number of Years in the Industry ☐<3 years ☐3-6 years ☐7+ years ☐
The above questionnaire have been designed for studying the sustainability factors of the
Ethical Business in Kamuli Sugar Limited of East Africa. Section 1 of this part consist of the
general information of the participants. The general information of the questionnaire consist
of the age group of the participants of four age groups. The age group comprises of people
from 18-29, 30-39, 40-49 and also participants of above 50 years. The education level have
been divided in four groups
35

Table 1
Age group
Frequency Percent
Valid
18 - 29 years 25 50.0
30 - 39 years 18 36.0
40 - 49 years 6 12.0
More than 50
years
1 2.0
Total 50 100.0
From the above table it can be said that 25 percent of the people are between the age group
of 18-29 years, 36 percent of the people are between 30-39 years old. On the other hand in a
36

sample population of 50 participants 12 percent of the people are between 40-49 years of age
and only 2 percent people are more than 50 years. Therefore it can be said that maximum
number of participants are less than thirty years old.
Table 2: Education
Frequency Percent
Valid
Up to High School 11 22.0
Diploma 18 36.0
Bachelors 10 20.0
Masters /
Doctorates
11 22.0
Total 50 100.0
37

The above pie chart shows that 22% of the participants are educated only upto high school
and 36% of the people have completed their diploma. More than 20% of the population have
completed their masters. Therefore, it can be said that the participants are more or less
educated.
Table 3: Numbers of years in the industry
Number of Years in the Industry
Frequency Percent
Valid
Less than 3 years 17 34.0
3 - 6 years 19 38.0
More than 6 years 14 28.0
Total 50 100.0
38

According to the pie chart which have been provided above it can be said that only 28% of
the partiipants have been working for more than six years in the industry and the maximum
number of participants have a work experience of less than six years.
4 Reliability test
For testing the internal consistency of the variables, the most commonly used test is known as
the Cronbach’s alpha. The Cronbach’s alpha states that the value of Alpha should be either
equal to or more than the value of 0.7 for maintaining the internal consistency of the
variables.
Table 4 Reliability test
Variables Cronbach’s alpha No. of items
Environmental performance 0.737 5
Economic performance 0.704 5
Social performance 0.756 5
Quality performance 0.742 5
The above table 4 represents the reliability test based on the Cronbach’s Alpha. The vale is
seemed to range between 0.737 and 0.756 which states the variables are highly reliable in
nature since all the values are found t6o be more than 0.7. the reliability of the environmental
performance and the economic performance have been found to be 0.737 and 0.704. The
Chronbach’s alpha of the social performance and the quality performance have been found to
be 0.756 and 0.742 respectively. These value states that the values are highly reliable in
39

nature and the value of the alpha lies above 0.7. Therefore, it can be said that the researcher
can conduct further statistical analysis by using these four variables.
5 Descriptive analysis of the model variables
The descriptive analysis of the variables have been carried out for analysing the level of
acceptance of the sample respondents studied.
Table 5 Environmental performance
The organization does not release toxic
air into the environment
The
organizat
ion does
not
contamin
ate the
soil
through
pollutant
s
Waste
water
from the
organizat
ion is not
released
without
treatmen
t
There is
effi cient
energy
utilizatio
n
The
organizat
ion takes
up
activities
for
material
recycling
Strongly Disagree 3 2 3 3 3
Disagree 3 7 6 11 8
Neutral 11 10 12 11 15
Agree 19 20 21 19 16
Strongly Agree 15 12 9 7 9
From the above table we find out that 30% of the respondents strongly agree that the
organization does not release any kind of toxic air in to the environment. Therefore it can be
said that Kamuli Sugar Limited are environment friendly in nature. 40 percent of the
respondents also agree that the industry does not contaminate the soil through pollutants.
More than 40% of the respondents agrees that waste water coming from Kamuli Sugar
Limited are treated before releasing. More than 35% of the people also agrees there is an
40

efficient utilization of energy. More than thirty percent of the respondents agrees that Kamuli
have taken up various activities for recycling of the materials. The above table shows that
only a small percentage of the respondents did not agree that the environmental performance
of the industry are not up to the mark.
Table 6 Economic performance
The
organizatio
n has a
profit in the
market
The
management of
the
organization is
concerned
about the
employees’
health
The
products
of the
market
has a
large
market
share
The
organization
expends on
environmental
safety
The
organization
expends on
social
development
Strongly
Disagree
2 2 2 5 2
Disagree 2 4 12 13 9
Neutral 6 17 11 5 8
Agree 19 13 16 18 22
Strongly
Agree
22 15 10 10 10
The above table states that 44% of the participants strongly agrees that Kamuli Sugar Limited
has a huge profit in the market. 34% of the people did not agree or disagree with the fact that
41

the management is concerned about the health of the employees. Most of the people also
agrees that the products of the Kamuli Sugar Limited has a large share market and the
organization also spends on the safety of the environment. The table above also shows that
44% of the people spends a lot of money for social development.
Table 7 Social performance
The
industry
promotes
fairness in
employee
performan
ce and
The
managem
ent is
concerned
with
employer
performan
The
managem
ent is
concerned
with
employer
health and
The
managem
ent
provides
employee
training
The
organizati
on is
concerned
about
local
communit
42

wages ce and
safety
safety y
Strongly
Disagree
2 2 3 3 3
Disagree 6 9 6 11 7
Neutral 11 7 14 9 13
Agree 13 15 16 21 21
Strongly
Agree
19 18 12 7 7
Maximum number of participants strongly agrees that Kamuli Sugar Limited promotes
fairness in the wages and fairness of the employees. Only few number of participants
disagree that the firm is fair with the wages and employee performance. About 35% of the
participants strongly agrees that the management in very well concerned with the health and
safety of the employers. According to the 42% of people the management of the Kamuli
Sugar Limited known to have provided proper training of the employees. However, 22% of
the population does not agree to the fact that the management of the organization provides
employee training. Most of the participants also agrees that the organization, Kamuli Sugar
Limited is also concerned about the local community of the place although more than twenty
five percent of the people is does not agree or disagrees with the fact that the organization is
concerned with the local community. So, it can be said that the social performance of the
organization is well established.
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Table 8 Quality performance
The
management
is
committed
to quality
The
management
is concerned
about the
quality of
raw material
There is
process
stability in
the
organizatio
n
The
management
is
committed
to
productivity
The
management
is concerned
about
customer
satisfaction
Strongly
Disagree
2 1 3 2 3
Disagree 3 6 11 7 10
Neutral 9 10 11 12 12
Agree 19 15 15 23 18
Strongly
Agree
18 19 11 7 8
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The above table of quality performance states that 38% of the participants agrees to the fact
that the management of the Kamuli Sugar Limited is committed to equality. About 28% of
the people strongly agrees to the fact that the management of Kamuli Sugar Limited is also
concerned about the quality of the raw materials produced. Around thirty percent of the
participants agrees to the fact that there is a process stability in the organization. Most of the
people also agrees to the fact that the management is also concerned with the satisfaction of
the customer. Therefore, most of the people agrees to the fact that the organization maintains
a high quality performance.
6. Data analysis
Correlation
For testing the association between the two variables the method of Karl Pearson Correlation
coefficient (r ) is generally used. The correlation coefficient is used for detecting the strength
and direction of the relationship. In case of positive correlation it is reflected by a positive
sign (+). The negative correlation is generally identified by negative sign (-). The strength of
the correlation generally depends on the distance of the correlation for 0 to 1. When the
number is closer to 1, there will be more correlation and there is no correlation for r=0.
45

Correlations
EnvironPerf EconomicPerf SocialPerf QualityPerf Sustaainibility
EnvironPerf
Pearson Correlation 1 .560** .417** .513** .703**
Sig. (2-tailed) .000 .003 .000 .000
N 50 50 50 50 50
EconomicPerf
Pearson Correlation .560** 1 .599** .627** .849**
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
SocialPerf
Pearson Correlation .417** .599** 1 .595** .765**
Sig. (2-tailed) .003 .000 .000 .000
N 50 50 50 50 50
QualityPerf
Pearson Correlation .513** .627** .595** 1 .850**
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
Sustaainibility
Pearson Correlation .703** .849** .765** .850** 1
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
Regression
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .703a .494 .483 .54140
a. Predictors: (Constant), EnvironPerf
46

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 13.736 1 13.736 46.861 .000b
Residual 14.069 48 .293
Total 27.805 49
a. Dependent Variable: Sustaainibility
b. Predictors: (Constant), EnvironPerf
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 1.627 .308 5.281 .000
EnvironPerf .571 .083 .703 6.845 .000
a. Dependent Variable: Sustaainibility
From the above regression table4 it can be said that the dependent variable is the
sustainability and the independent variable is the environmental performance. From the above
table it can be said that the value of R square is found to be 0.494 which suggests that only
49% of the variables have been explained.
Ch 5. ANALYSIS & CONCLUSIONS
INTRODUCTION
5.1 CRITIQUE OF ADOPTED APPROACH
The method that is used in this paper is primary and quantitative in nature. There are various
kinds of research methods that are used are the experimental ways, surveys, questionnaires,
interviews, case studies and sometimes observational trials. The research can be classified in
47

various ways with the help of the basis of the methodology of the research. Research can be
broadly classified into either qualitative research and quantitative research where the
quantitative research is done through collection of the numerical data on the other hand it can
be said that the data which are qualitative in nature cannot be analyzed with the help of
mathematical techniques. The study has used the quantitative data for this particular topic of
the ethical business in Kamuli Sugar Limited. One of the disadvantage is that the quantitative
data cannot be used for explaining any kind of social phenomena. The main purpose of the
quantitative research is the quantification of the data. It will be also allowing generalisations
of the results by measuring the views as well as the responses of the sample population. One
of the major disadvantage of the method of primary quantitative research is that it is quite
expensive and time consuming. It can be said that quantitative research is quite difficult,
expensive and will be requiring a huge amount of time for performing the analysis. A large
amount of population will be appropriate for representing the target population. For this
reason the data collected in quantitative approach will be too expensive in nature. The
quantitative research is quite complex in nature which is used for social sciences. The data
collection using the primary research when the business conducts its own research and
control its own data. The primary quantitative method is therefore costly and is time
consuming depending on the sampling method. When the design of the questionnare will be
poor it will be producing bias results. There will be only limited outcomes in case of
quantitative research. Also in this case the respondents will be having only limited options
which is based on the selection made by the researcher.
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Analysis
It have been found out that corruptions and various fraudulent activities have known to lead
the creation of various kinds of legal troubles for the companies in order to solve them. The
presence of the corrupt officials along with the activities which works within the production
framework of business will lead to loss of goodwill of the company. The method which have
been used in this case is by surveying the data. By investigating the survey it will help on
evaluating the demographic profile of the sample used in the research. There have been usage
of both correlation and regression in this particular study. The general information of the
survey comprises of the age group of the interviewers, education and also the number of yeas
they are in the industry. This particular survey had been carried out for studying the
sustainability factors of the Ethical Business in Kamuli Sugar Limited of East Africa. It have
been found out that majority of the people working in this particular organization is below 30
years and they have completed there diploma and are working for less than six years.
Therefore, it have been found out from the analysis that the interviwers are more or less
experienced. From the reliability test, it have been found out that the value of Cronbach’s
alpha is lore than 0.7 which states that there is a presence of internal consistency of the
variables. For all the values starting from the environmental performance, economic
performance, social performance and also the quality performance, it have been found out
that the value of the Cronbach’s alpha is moe than 0.7. after that it have been found out that
most of the people strongly agrees to the fact the organization Kamuli Sugar Industries is
environmental friendly and does not pollute the air, does not contaminate soil and is
efficiently utilizes energy. The organization is also known to take up various activities for
material recycling. Most of the people also strongly agrees to the fact that the economic
performance of the organization is quite good, where it has known to make profit in the
market and the management is also concerned about the health of the organization. The
49

Kamuli Sugar Industries also known to spend a large amount for maintain the environmental
standards of the economy. It also known to depend on the social development of the place.
Coming to the social performance the industry known to promote fairness for the employee
performance and is also concerned about the local community of the project. The
management also known to provide proper training to the employees and are also concerned
with the health and safety. The quality performance of the organization is also well
maintained where the management is committed to the quality of the raw material and is also
committed to the productivity and is concerned about the customer satisfaction. However,
there had been corruptions taken place in these industries where it had known to hamper the
expansion of the business activities of the companies substantially by stalling their
developments. It can also be said that the level of corruption in the business scenario of
Africa and as a whole is quite similar in nature and there is also a lack of operational
framework of the government.
Further research
In the further research, a large number of people can be considered for participating in the
research. Then in that case the values will be more accurate which will help in further studies.
50

Conclusion and limitation
This particular chapter will be discussing the entire research work in a brief manner. This
particular paper will be discussing the entire research work of the topic sustainable factors of
the Ethical Business in Kamuli Sugar Limited of East Africa. From this paper it have been
found out that Africa as a whole and also the different African countries ranks quite high in
terms of corruption. Corruption had\s been seen to present in every aspect of the livelihood of
the population in many countries. Kenya, Uganda and Zimbabwe are known to be some of
the highly corrupted places in Africa. As the business systems known to vary in various
countries, the research findings that is based only on one particular country will tend to lack
generalisation in case of other countries. One of the major objective of this particular paper is
developing a framework for the assessment of the sustainability program with the help of
using the case study of Ethical Business of Kamuli Sugar Limited in case of East Africa.
With the help of using the empirical research methods, the framework had been developed to
the characteristics and concerns of the sugar manufacturers. A survey had been taken for
seeking the common characteristics for enabling the generalisation of the result.
The framework validity can be confirmed with the engagement of various sources of
information which comprises of interviewing people from different departments of the
organization with direct observations and also support from relevant literature and document.
Different kinds of information have been obtained from various sources for effective
identification of the relevant indicators. The study therefore also allowed the researchers for
discussing with the practitioners regarding the completeness of the framework. The validity
of the research of the items to each of the qualitative indicator had been confirmed with the
help of analysis of the survey. The reliability of the various items which are qualitative in
51

nature have been proved through the analysis with the help of Cronbach’s alpha value. The
discussions which have been done after the survey makes sure that the indicators will be
easier for interpreting them. The framework have been taken place because of the absence of
comprehensive measure of the corporate sustainability which have been designed for the
sugar industry. The significant area of this particular research had been placed on the four
main dimensions which includes environment, economic, social and quality. It takes in to
account both the present as well as the future concerns of the stakeholders. One of the benefit
of performing the analysis is to make each of the dimensions clear and transparent. The
absence of any kind of standard method for analysing the performance of the company
relying on the quantitative aspects can be examined when the new items will be introduced.
The evaluation grades which have been taken out in this particular research study states the
evidence that is required for achieving each level of the each item. The following step will be
used for minimizing inconsistency of the subject. For analysing the sustainability
performance there will be number of challenges which are present in subsequent studies. The
intention of the research is to capture all the critical aspects which have been promoted by the
researchers by the sugar manufacturer industry in East Africa. Another kind of challenge
takes place as how the obtained information will be logically aggregated.
For understanding the strength of the association the study have conducted a bivariate
analysis. Sustainable development have been made for the development that will be meeting
the need of the present generation instead of compromising the ability of the future
generations or meeting their own needs. One of the aim of the paper is developing the
framework for the assessment of the corporate sustainability specifically for Kamuli Sugar
Limited. One of the main research method which is employed in the case study will be the
interview method. Four managers from the top companies agreed for taking part where the
interview was conducted. The main challenge is investigating the qualitative aspects of the
52

sustainability. It will also combine economic measures with the environmental impacts in the
ratio formats. The environmental performance here contributed to the environmental impacts
whereas the economic performance which state the profitability of the industry. In the part of
the quality performance the internal quality have been manufacturing the productivity and for
processing stability and the social performance will include the external society which will be
supporting the supplier and collaboration. The social performance will also include social and
local community concerns. Each dimensions of the corporate sustainability will be assessed
in a standardised manner.
Reflection
While completing the paper, I came to realize that I truly enjoyed the process. I learned the
various methods of analysisng the data with the help of spss and I am passionate about
learning new things for my knowledge. I can now look back and realize that the experience
will help me both as a student and a s a nonprofit professional. As research and writing skills
are valued everywhere. Overall, I feel that writing this paper have been a valuable and
enjoyable experience and I feel prepared to write more papers in the upcoming years.
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