The Effect of Business Ethics on Procurement Practices in Construction Firms in Kano State
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Background of the Study
Business ethics encompasses the principles and standards guiding decision-making and behavior in organizations. In the construction industry, where procurement accounts for a significant proportion of project costs, adherence to ethical practices is crucial for ensuring transparency, value for money, and the successful completion of projects (Adebayo & Yusuf, 2024).
In Kano State, the construction sector plays a vital role in economic development, yet unethical procurement practices such as favoritism, bid-rigging, and kickbacks are prevalent. These practices undermine competition, inflate costs, and compromise project quality. Scholars argue that ethical procurement is vital for achieving sustainability and efficiency in the construction sector (Musa & Bello, 2023).
This study investigates the effect of business ethics on procurement practices in construction firms in Kano State, examining how ethical principles influence procurement processes and outcomes.
Statement of the Problem
Despite the importance of ethics in procurement, unethical practices remain widespread in the construction industry in Kano State. Issues such as lack of transparency, corruption, and conflicts of interest persist, leading to inefficiencies and project failures (Oluwaseun & Adeola, 2025). While ethical guidelines exist, their implementation is often weak, and many firms lack mechanisms for monitoring and enforcing compliance.
This study seeks to address these challenges by examining the relationship between business ethics and procurement practices, identifying gaps, and recommending strategies for improvement.
Objectives of the Study
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To evaluate the current state of business ethics in procurement practices in construction firms in Kano State.
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To assess the impact of ethical principles on procurement efficiency and transparency.
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To recommend strategies for promoting ethical procurement practices in the construction industry.
Research Questions
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What is the current state of business ethics in procurement practices in construction firms in Kano State?
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How do ethical principles influence procurement efficiency and transparency?
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What strategies can enhance ethical procurement practices in the construction sector?
Research Hypotheses
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Business ethics has no significant effect on procurement practices in construction firms.
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Ethical principles do not significantly improve procurement efficiency in the construction sector.
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Existing ethical guidelines are sufficient to ensure transparent procurement practices.
Scope and Limitations of the Study
The study focuses on construction firms in Kano State, examining the relationship between business ethics and procurement practices. Limitations include the potential reluctance of participants to disclose sensitive information and the generalizability of findings to other regions or sectors.
Definitions of Terms
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Business Ethics: Moral principles guiding behavior and decision-making in business contexts.
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Procurement Practices: Processes and methods used to acquire goods and services for organizational needs.
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Construction Firms: Companies involved in building, engineering, and infrastructure projects.
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