Organisational culture, managerial ethical behavior and fraud management among banking institutions in Mbarara district

Abstract

This study examined the relationship between organizational culture, managerial ethical behavior and fraud management among banking institutions in Mbarara district. The study was prompted by reports of an increase in fraudulent activities in banking institutions in the district.

A cross sectional reaearch design was employed whereby data were collected at a specific point in time. Given the nature of research objectives, correlation analysis was performed to test associations between the study variables, while a hierarchical regression analysis was used to test both the individual and combined predictive power of organizational culture, managerial ethical behavior on fraud management. Data was analyzed using SPSS.

The study results show that both organizational culture and managerial ethical behavior have a significant relationship with fraud management which is in line with the previous studies. The results also show that organizational culture and managerial ethical behavior combined explain 51.2% (R2=.512) of the variation in fraud management.

Banking institutions in Mbarara district should therefore focus on employing ethical managers who will create innovative, bureaucratic and supportive cultures to improve on fraud management. More so, managers of banking institutions should consider establishing fraud management departments and employing fraud management officers who will give special attention and priority to the fraud management practices of the organisation. The study recommends that a longitudinal study across the country be carried out to confirm the findings.