INFLUENCE OF ETHICAL CONSUMER RELATIONS ON THE FINANCIAL PERFORMANCE OF LISTED FIRMS IN KENYA
Keywords:
Ethical consumer relations, Ethical leadership, financial performance, Listed FirmsAbstract
Purpose: The objective of the study was to investigate the influence of ethical consumer relations on the financial performance of listed firms in Kenya.
Methodology: The study adopted a causal research design to establish the relationship between ethical leadership and financial performance of companies listed in the Nairobi Securities Exchange using correlation and regression analysis. Primary data was collected through a semi-structured questionnaire. Secondary data was collected from both the listed firms in the Nairobi Securities Exchange (NSE), and information from the sector regulator, the Capital Markets Authority (CMA). The target population of this study was 64 companies listed in the Nairobi Securities Exchange (NSE) with consistency being evaluated between the years 2011 to 2015. Data analysis was done using the Statistical Package for Social Scientists (SPSS).
Results: The study found out that there exists a strong relationship between ethical consumer relations and financial performance. The study showed that listed firms uphold consumer relation policies, and the firms put the interest of consumers first, before profitability.
Unique contribution to theory, practice and policy: This study recommends that listed firms need to religiously adhere to conducts of ethical leadership. To the consumers, quality is of priority. Listed firms should formulate ways of always adhering to provision of quality services to consumers.
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