THE IMPACT OF BUSINESS ETHICS ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF NEW KABUL BANK, AFGHANISTAN

Abstract

This research aims to evaluate how business ethics influence the performance of organizations, using New Kabul Bank in Afghanistan as a case study. New Kabul Bank, the largest commercial bank in Afghanistan with 116 branches spread across the country, has established its prominent position in the national banking sector. The study will be conducted at the bank's central office. The study covered a period of four (4) years from starting 2018-2021. This time chosen is the period in which the company experienced issues in its performance in their operations. The study will assess the period and determine the extent and degree of existence of the organization through business ethics. By utilizing a quantitative research approach, survey data was collected from a sample of 207 employees (171 male and 36 female) across various departments and hierarchical levels within NKB. The information gathered from the participants will be inputted into a computer system and analyzed using the Statistical Package for the Social Sciences (SPSS) Version 20. This software will aid in summarizing the coded data and expediting the data analysis process. The study had a general objective of examining the overall effect of Business ethics on organizational performance, while specific objectives focused on exploring the relationships between ethical climate, ethical standards, and ethical leadership with organizational performance. Data analysis involved several techniques, including descriptive analysis to summarize and explore the data, factor analysis to identify underlying factors contributing to the observed correlations among variables, correlation analysis to determine the relationships between the study variables, and regression analysis to fulfill the study's objectives by examining the effects between variables. The study will be important to the employees of New Kabul Bank in Afghanistan since it will viii encourage the adoption of ethical practices within the company, which will improve organizational performance. The study will be important for leadership and management as well since it will give them information about ethical leadership and help them comprehend it. Additionally, it will give business executives and managers of all firms in the Southeast information on how to succeed as a company by implementing strong ethical standards.