Individual ethical orientation, ethical sensitivity and performance of third party logistics firms in uganda

Abstract

Firms have increasingly become more aware of the need to instill issues of ethics and sustainable competitiveness in their decision making. Unethical practices of 3pls are posing serious obstacles in the move towards development and prosperity. Individual ethical orientation and ethical sensitivity are some of the drivers that affect performance of third party logistics firms in Uganda. This study attempts to examine the relationship between individual ethical orientation, ethical sensitivity and performance of third party logistics firms in Uganda. Individual ethical orientations and ethical sensitivity are important because they do determine the behavior of transport managers in the firms. The research was based on 3pls in Uganda. Although anectodal evidence shows that morals within transport industry are lowering in Uganda, the influence of individual ethical orientation, ethical sensitivity and performance has not been given some attention in the transport industry. The study adopted a quantitative cross sectional survey research design, data was collected using self-administered questionnaire and sample size of 85 firms were randomly selected from the population of 115 firms from Kampala district. Data was analyzed using Statistical Package for Social Scientists (SPSS). The study revealed that there was a positive and significant relationship between individual ethical orientation, ethical sensitivity and performance of third party logistics firms in Uganda. Nonetheless, considering the two predictors in this study, the results show that ethical sensitivity has a better contribution effect on performance of third party logistics firms in Uganda. In addition ethical sensitivity can be relied upon by performance of third party logistics firms in Uganda. Therefore, third party logistics firms in Uganda and other stakeholders should promote ethical sensitivity among third party logistics firms. This paper is the first of its kind which examines the state of performance within the field of transport operations and identifies areas and sets the agenda for future research in this field.