Assessment of Business Ethics Practices among Food Agro-Industries in Ethiopia: Case Study of ASHRAF Group PLC in Bahir Dar City

Abstract

In an increasing domestic and international market competition, businesses cannot ignore ethics due to the risk to their reputation and increasing internal and external pressures. By considering the importance of business ethics and the importance and increasing trend in the role played by agro-industries and agribusiness development efforts in the country, the study aims to investigate business ethics practices among the food agro-industries in Ethiopia. The study adapted a case study design with Bahir Dar Edible Oil Company of the ASHRAF Group PLC and explored implementation of business ethics practices and four business ethics dimensions, namely, product safety, employee health and safety, social responsibility (social concern) and environmental protection. By drawing data from in-depth interviews, questionnaire based survey and company document review and analysis, the study explored business ethics practices and implementation in the company. Overall, the study shows absence of overall and companywide business ethic guide although there were fragmented and informal activities to deal with business ethics issues. There were also gaps and rooms for improvement in the four dimensions of business ethics considered. Although there were gaps and lapse in business ethics practices, it was encouraging to find positive attitudes and willingness in the company to strive more and implement proper business ethics practices. The study also provides a wakeup call to other companies to clearly outline, design and implement business ethics in their strategy and operations. In addition, it is also a significant input for regulators to review, assess and design policies and mechanisms to ensure companies in the sector undertake necessary measures to address issues of business ethics.