Influence of ethics on financial performance in Tanzanian local government authorities
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Date
2018
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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