Influence of ethics on financial performance in Tanzanian local government authorities

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Date

2018

Journal Title

Journal ISSN

Volume Title

Publisher

Research journali

Abstract

Financial misconducts in Tanzania Local Government Authorities (hereafter named LGAs) have been recurring for years despite efforts taken to offset them. In this paper level of financial performance in Tanzanian LGAs and influence of ethics on financial performance in Tanzanian LGAs are reported on. A questionnaire, focus group discussions and key informant interviews were used in data collection. The study involved 400 LGA employees, 12 focus group discussions and 12 key informant interviews. Data were analyzed by using the SPSS software programme. Descriptive statistical analysis was used to determine level of financial performance in Tanzanian LGAs. Ordinal Logistic Regression analysed influence of ethics on financial performance in Tanzanian LGAs. While descriptive statistics analysis revealed moderate level of financial performance in Tanzanian LGAs, ordinal logistic regression analysis revealed significant influence of accountability, transparency and conflict of interest on financial performance at the 0.05 level of significance. LGA employees are urged to regularly attend ethics trainings sessions. Since ethics has significant effect on financial performance, it is important that the public service employees take a proactive measure by considering these variables seriously in their operations. The Tanzania Public Service College that is mandated to train public servants should design, train and monitor ethical practices in the public sector of Tanzania.

Description

Researchjournali’s Journal of Business Ethics, Vol. 4 | No. 1

Keywords

Ethics, Local Government Authorities, Financial Performance

Citation