Role of Business Ethics in Competitive Advantage of Safaricom Limited in Kenya

Abstract

Today’s organizations are competing on the forefront of intense completion at a global level and global expansion has necessitated the need for ethical considerations given the interaction of diverse cultures and socio-economic systems. Organizations are striving to attain sustainable competitive advantage by establishing long-term stakeholder value and being reasonable corporate citizens. By incorporating business ethics practices into the organizational strategy in the form of professional codes or applied ethics organizations are deriving several benefits such as security of investors as well as attracting talented employees to work for the organizations. Safaricom limited is one of the organizations that is considering embracing business ethics due to the intense competition in the telecommunication industry. It is against this background that the research study was conducted to establish the role of business ethics on competitive advantage of Safaricom limited. The study specifically focused on the business ethics practices such as personal code of conduct, government legislation, ethical code of the company, social norms and ethical climate of the industry to attain competitive advantage. The study employed a case study design and interview guides used to collect data from key decision makers at Safaricom limited. The study also used secondary sources of data through the Safaricom website and the Communication Authority of Kenya website. Content analysis was used to analyse data collected from the interview because the research was qualitative in nature. From analysis on the findings, it was concluded that Safaricom limited in incorporating business ethics in its business as a competitive strategy through indicators of competitive advantage such as economies of scale, customer satisfaction and cost of doing business. The research also revealed that the role of business ethics on competitive advantage is influenced by external and internal environment of the organization and at the same time the organization’s culture and people are key to drive the sustainability agenda. The study recommends that Safaricom limited continue to inform its business strategy by incorporating business ethics to drive its sustainability agenda and realizing its purpose of transforming lives of its stakeholders. Moreover, it is recommended that other organizations emulate business ethics in the organization’s strategy to reap the benefit of competitive advantage.