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.
