Ethical Leadership, Ethical Selling, and Financial Services Performances: A Case of Nigerian Market

Ethical Leadership, Ethical Selling, and Financial Services Performances: A Case of Nigerian Market

Ayodele Oniku (Department of Business Administration, University of Lagos, Lagos, Nigeria), Achi Awele Emmanuel (Department of Business Administration, Faculty of Business Administration, University of Lagos, Lagos, Nigeria) and Olawale Adetunji (Department of Marketing, Moshood Abiola Polytechnic, Abeokuta, Nigeria)
Copyright: © 2017 |Pages: 14
DOI: 10.4018/IJSEM.2017100103
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The antecedents of Nigerian financial industries in the past few decades call for a deeper understanding of the sector vis-à-vis ethical practice. Importantly, the revolution in the sector in the early 1990s birthed an industry that resolutely shifted practice from “armchair” marketing to aggressive marketing system that embraces selling practice. The paper seeks to understand that the failure recorded in the sector in terms of bankruptcy and insolvency of many banks and insurance companies is not really as a result of failure of core financial practice but abuse of depositors' funds which are mostly diverted and the unethical selling practice embraced by staff that made many depositors lost faith in the sector. The study therefore looks at the role of ethical leadership and its influence on ethical selling practice in financial industry. The paper found that ethical leadership that reflects on and entrenches ethical selling practice would definitely promote ethical behaviour among financial services sales (marketing) staff.
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In recent times, the issue of ethical practice in the financial sector of Nigerian economy has been under serious debate and on few occasions banks and insurance companies have been slammed with government hammers of closure, revocation of licenses and imprisonment of top officers of few banks and insurance companies. The bottom line of the government drastic actions against some of the firms largely revolved around ethical practice contravention. Lately, the Central Bank of Nigeria (CBN) sacked the Chief Executive Officers of five (5) banks due to excessive high level of non-performing loans and other unethical practices. Unethical conducts and issues related to unprofessional conducts, violation of corporate governance rules, insider trading and balance sheet engineering dominate the ugly table. However, the buck of the practices falls on the leadership in the affected banks and the development directly begs for the question of: What is the level of ethical leadership practice in the financial industry?

The study clearly investigates the relationship between the practice of ethical leadership –EL, and the extent it may enhance or endanger marketing staff performance that leads to customer satisfaction in financial services. Thus, the study investigates the mediating roles of ethical leadership practice and its relationship with selling ethics that will engender positive ethical practice among subordinates, especially sales/marketing staff. Hence, the study will fill the gap that earlier studies have not recognised in terms of how EL and ethical selling can affect or engender marketing staff performance in financial service/industry.

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