A Study of the Role of Ethics and Compliance in Business Sustainability in Nigerian National Petroleum Corporation (NNPC), Jigawa State
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Background of the Study
Ethics and compliance play a significant role in business sustainability by promoting transparency, accountability, and responsible corporate behavior. Companies that adhere to ethical principles and regulatory standards are more likely to achieve long-term success and maintain public trust (Ferrell & Fraedrich, 2023). In industries such as oil and gas, ethical lapses can lead to environmental degradation, legal penalties, and reputational damage.
The Nigerian National Petroleum Corporation (NNPC), the country’s leading oil and gas company, operates in various states, including Jigawa. As a state-owned enterprise, NNPC is expected to uphold high ethical standards and regulatory compliance to ensure sustainable operations. However, challenges such as corruption, environmental concerns, and regulatory breaches have raised questions about the effectiveness of NNPC’s ethics and compliance policies (Adamu & Suleiman, 2024). This study examines the role of ethics and compliance in business sustainability within NNPC’s Jigawa State operations.
Statement of the Problem
Despite the existence of ethical guidelines and compliance policies, reports of unethical practices in Nigeria’s oil and gas sector persist. Issues such as contract irregularities, environmental pollution, and financial mismanagement have affected the sustainability of petroleum companies, including NNPC. While NNPC has implemented various compliance measures, their effectiveness in ensuring ethical business practices and long-term sustainability remains unclear. This study aims to analyze the role of ethics and compliance in sustaining NNPC’s operations in Jigawa State.
Objectives of the Study
- To evaluate the ethical standards and compliance policies implemented by NNPC in Jigawa State.
- To assess the impact of ethics and compliance on business sustainability at NNPC.
- To identify challenges affecting ethical compliance in NNPC’s operations.
Research Questions
- What ethical standards and compliance policies are in place at NNPC in Jigawa State?
- How do ethics and compliance influence business sustainability at NNPC?
- What challenges hinder ethical compliance at NNPC?
Research Hypotheses
- Strong ethical policies enhance business sustainability at NNPC.
- Weak compliance measures lead to unethical business practices at NNPC.
- Regulatory enforcement improves ethical compliance in the oil and gas sector.
Scope and Limitations of the Study
This study focuses on ethics and compliance at NNPC’s Jigawa State operations from 2023 to 2025. Limitations include restricted access to confidential corporate reports and potential resistance from employees.
Definitions of Terms
- Business Sustainability: The ability of an organization to maintain long-term profitability and ethical operations.
- Ethics: Moral principles guiding corporate behavior and decision-making.
- Regulatory Compliance: Adherence to laws, rules, and guidelines governing business operations.
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