Eco-Friendly Housing: How Sustainability is Shaping the Real Estate Landscape

Housing is no longer just about location, location, location. The conversation is rapidly shifting towards sustainability and how eco-friendly a house can be. As the awareness of our carbon footprints grows, so does the demand for eco-friendly homes. The real estate industry is taking note of this global trend. Let’s explore how this green wave is revolutionizing the property sector.

 

Photo by Tom Fisk on Pexels.com

1. The Rise of Green Real Estate

 As stated by Green Builder Media, the global market for green building materials is anticipated to skyrocket to a staggering $1.2 trillion by 2027. Notably, in the United States, there has been a 500% increase in LEED-certified buildings within the past ten years. This upward trend highlights an increasing consumer consciousness towards the environmental repercussions of their homes and an eager willingness to minimize their carbon footprints.

Quick Fact: In 2022, the National Association of Realtors revealed that 61% of home buyers were hunting for houses with green features. The Millennials are leading this charge, with 68% prioritizing eco-friendly characteristics.

 

2. Popular Green Features in Modern Homes

Eco-friendly housing isn’t merely a buzzword; it’s a broad spectrum of features and designs that homeowners now expect in their future homes. According to the 2023 National Association of Realtors report, leading the green wish list are:

  • Energy-efficient appliances (53%)
  • Energy-efficient windows (48%)
  • Solar panels (46%)

Yet, the innovations continue. Forbes listed the top eco-friendly housing trends in 2023, which include:

  • Net-zero energy homes: Designed to balance the energy consumed with the energy produced.
  • Sustainable building materials: Crafted from renewable or recycled sources.
  • Smart home technology: A digital touch to reduce energy consumption and water wastage.
  • Green roofs: Offering a dual benefit of reducing stormwater runoff and elevating air quality.
  • Community gardens: Fostering community spirit while offering a sustainable food source.

 

3. The Real Estate Market Responds

Incorporating green features lowers utility bills, reduces environmental impact, and has a tangible monetary advantage when selling a property. As stated by the Journal of Real Estate Research, homes with eco-friendly attributes were found to sell at a premium of 4.5% over traditional houses. This stat serves as a potent reminder to buyers and sellers: sustainability is not just a passion but an investment.

A pertinent question often arises: can you buy a house before selling your own? The answer is yes, although it comes with challenges. However, in the competitive housing market, especially where green homes are concerned, making a quick purchase might be an intelligent strategy. Let’s explore how this green real estate wave is revolutionizing the property sector”

 

4. Steps Toward a Greener Home

Not all homes come eco-friendly, but they can be upgraded. The Consumer Financial Protection Bureau (CFPB)encourages homeowners to embark on the green journey. Their top recommendations include:

  • Conducting an energy audit to detect energy drains.
  • Implementing basic fixes like swapping to energy-efficient bulbs and sealing any air leaks.
  • Investing in more extensive energy-saving tactics like insulating homes or switching to green appliances.

Eco-friendly housing isn’t a fleeting trend; it’s the future of real estate. With more buyers prioritizing green features, it’s evident that sustainability, both in construction and living, is driving the real estate landscape. Whether you’re looking to buy, sell, or upgrade, now is the time to think green and invest wisely in the future of our planet.

Influence of Classroom Control and Management on Academic Performance of Secondary School Students in Enugu East Local Government Area

1Nwogbo Mercy Obianuju

2Chukwu, Regina Nwamaka

3Ofozoba, Chinonso Anthony (PhD)

4Ikedimma, Ifeanyi Francis

1, 2&4Department of Educational Management and Policy, Nnamdi Azikiwe University, Awka.

3Department of Arts and Social Science Education, Chukwuemeka Odumegwu Ojukwu University, Igbarim.

Abstract

The study examined the influence of effective classroom control and management on the academic performance of secondary school students in Enugu East LGA. The study was guided by one specific purpose and one research question. From a population of 36,711 a sample size of 335, were drawn using simple random sampling technique. A structured questionnaire which was validated by experts was used to collect data for the study. The reliability of the instrument was carried out using Cronbach’s Alpha and this yielded a reliability index of 0.75. The data collected was analyzed using mean score. The result showed that use of the right teaching methods and adequate use of instructional material helps in improving classroom management and control in secondary schools. The researchers recommended that workshops/seminars should be organized for teachers on the importance of instructional materials in teaching and learning process so as to improve their classroom management.

Keywords: Classroom Management, Classroom Control, and Academic Performance

Introduction

Classroom management has been highlighted across numerous research studies as a major variable that affects students’ academic performance. The most obvious reason for this assertion is that, effective classroom management sets the stage for teaching and learning. It sets a tone in the classroom that captures students’ attention – as a necessity for effective teaching and learning (Onyali, 2020). This statement is obvious since a classroom which is chaotic and disorganized as a result of poor classroom management is highly unlikely to enhance expansive learning and students’ academic performance and might, indeed, inhibit it. In chaos, according to Ononye (2020), very little academic learning can take place. According to Walter (2012), classroom management differs from one teacher to another because of the teacher’s personality, teaching style, preparedness, and number of students in the classroom. According to Oguejiofor (2020), the concept of classroom management is broader than the notion of student control and discipline, it includes all the things teachers must do in the classroom to foster students’ academic involvement and cooperation in classroom activities to create conducive learning environment.

Nwankwo (2022), relates that classroom management involves curtailing learner’s disruptive behaviors such as fighting and noise making, close observation, arrangement of classroom learning materials, and response to students who suffer from poor sight (vision), poor hea3etb ring, poor reading, poor writing, poor spelling, shame, dullness, hyperactivity and poor study habits. When classroom management is viewed in a more wider and holistic sense, incorporating every element of the classroom from lesson delivery to classroom environment becomes important (‘Obiakor’ 2022). According to Nicholas, this includes creating organized and orderly classroom, establishing expectations, inducing students’ cooperation in learning tasks, and dealing with the procedural demands of the classroom. This view of classroom management contrasts to a more narrow view of classroom management as it deals with just discipline and control. According to Bassey (2012), the wider view of classroom management shows increased engagement, reduction in inappropriate and disruptive behaviors, promotion of student responsibility for academic work, and improved academic performance of students. In effect, discipline, control and the consequences become authoritative or punitive approaches to classroom management. These have become much smaller part of the term classroom management. Thus, classroom management denotes much more than any of these words (Charlie, 2016). 

In the view of Williams (2014), classroom management involves how the teacher works, how the class works, how the teacher and students work together and how teaching and learning takes place. An analyses of the past 50 years of classroom management research identified classroom management as the most important factor, even above students’ aptitude, affecting students’ learning and academic performance (Akubilo, 2019). Contrary to popular belief held by Obi and Obiakor (2021), classroom management is not a gift bestowed upon some teachers. While it is true that some teachers adapt to classroom management easily, making it felt by their colleagues as if they possess some innate talents. Classroom management is a skill that can be acquired like any other profession. It is a skill that must be practiced to achieve proficiency. Classroom management thus requires specific skills such as planning organizing, as well as an aptitude for team work. It requires a great deal of commitment, initiatives, teachers’ willingness to adjust, creative thinking and actions (Abel, 2011)

Ofojebe and Obiakor (2022) observes that improved teacher training in classroom management is a critical part in improving academic performance in a particular subject. Factors contributing to effective classroom management include: teaching methodology, lesson planning and preparation, interpersonal relationships and student motivation (Gaston, Lee and MacArthur 2010). Ezenwagu and Obiakor (2021) observed that structuring a classroom so that it supports positive student behavior requires prior planning. The structure of the classroom environment should decrease the likelihood of inappropriate student behavior and increases desirable student interactions and consequently improves academic performance. A classroom environment would enable learners to study in a way that is interesting, enjoyable and purposeful. Among models to restructure a good classroom environment include: use of a variety of teaching methods and involving students to numerous learning activities, physical class arrangement that allows a teacher to access students, efficient use of class time and ensuring that students interact positively during cooperative learning activities (Obiakor and Oguejofor,2021).  Kerr and Nelson (2012) assert that the use of rules is a “powerful, preventive component of classroom organization and management plans.” Rules are aimed at establishing the expected behaviors, what to be reinforced and the consequences for inappropriate behavior. Thus emphasis of effective class discipline helps to cut down on discipline problems and leave the classroom with fewer interruptions and disruptions. Wong (2009) believes that student performance is influenced by how well the procedures are laid out and taught to them.

To instill class discipline, teachers should introduce class rules early enough when the year is beginning and make sure they are understood by all. The teacher should be fair and impartial across all the students. In case of disruption within a lesson, the teacher should deal with the interruption with as little distraction as possible. Teachers should consider over planning as a recipe to avoid giving students free-time within the lesson. The teacher should be consistent in that they cannot afford to ignore negative behavior. Collins (2012) advocates for “cooperative discipline” where the teacher and students work together to make decisions. To him teachers should come up with a code of conduct that shows how students should behave and not how they should not behave. This instills discipline in a child as they know what is expected of them. Glenn (2013) emphasized the need for teachers to hold class meetings severally. Class meetings encourage respect among teacher and students. According to Barbara Coloroso theory of Inner self control, students should be given an opportunity to develop their self-control and that classrooms are the ideal places for this opportunities.

Thus class discipline can be identified through the use of lesson plans, learning activities, a code of conduct (rules and routines), communicating to parents and through group works (Collins 2012). Consequently there are strategies that promote good use of routines such as: praising, giving a token and signing behavior contracts with students with behavior problems (Emmer and Stough 2011). In South Africa: school Act of 1996 encouraged the need for positive disciplinary strategies as opposed to corporal punishment. Mabeba and Prinsobo (2010) asserts that positive discipline builds a learners’ self-esteem and enables them to cooperate and participate in the classroom and consequently assume responsibility for what happens. A research carried out by Nelson (2012) in Nigeria shows that teachers who assist students to set high expectations and engage them in self-evaluation of their performance get better grades as compared to student with poor self-efficacy.

Kerr and Nelson (2012) encourage the use of humor as a way to engage students and activate their learning. To them, when teachers share a laugh or a smile with students, they help students feel more comfortable and open to learning. Moreover, humor brings enthusiasm, positive feelings, and optimism to the classroom. Teachers are expected to conduct a needs analysis to identify the needs of students so as to capture their attention during learning process. Students need to be taught respect for self and others so that they can be able to function healthily in the society (Rogers, 2009). In Nigeria, as a behavior adjustment strategy, guiding and counseling department has been introduced in educational institutions as opposed to corporal punishment used in many African countries. Thus a good classroom environment should promote independent learning (Kireria 2014). Students should be exposed to numerous learning activities so that they can take pride in their accomplishments and instill a desire for knowledge.

The quality of education has been reflected not only in the subjects taught and achievement levels reached, but also in the learning environment. The environment has both reflected and influenced the behavior of students, and it has been affected by events within and outside of the school (Condition of Education, 2014). Most educators and researchers have agreed that the total environment should be comfortable, pleasant, and psychologically uplifting; should provide a physical setting that students find educationally stimulating; should produce a feeling of well-being among its occupants; and should support the academic process. One major aspect of the classroom climate that has fallen under the control of the teacher is that of classroom management and discipline. As might be expected classroom climate which motivated learning and afforded the students the opportunity to be actively and meaningfully engaged in academic activities influenced the positive rating of teacher’s classroom management hence the relation to their performance in physics.

Classroom management has referred to all the planned or spontaneous activities and interactions that have occurred within a classroom. In recent years, a growing interest has emerged in the area of classroom management. The classroom environment is a large part of classroom management that will either encourage students to succeed, or hamper their abilities and cause more failures. The classroom environment is different than the classroom management because it deals with how the students feel in the classroom. While classroom management focuses on procedures, routines, and expectations, the classroom environment focuses on the relationships between students and teachers, as well as how the students feel amongst their peers in the classroom (Stepanek, 2011). Classroom management is the heart of teaching and learning in school setting. A well-managed classroom can provide an exciting and dynamic experience for everyone involved. Unfortunately, student behavior can often with this process. Good classroom management implies not only that the teacher has elicited the cooperation of the student s in minimizing misconduct and can intervene effectively when misconduct occurs, but also that worthwhile academic activities are occurring more or less continuously and that the classroom management system as a whole is designed to maximize student engagement in those activities, not merely to minimize misconduct. Many times, by encouraging behavior that is more positive and uplifting in one classroom, the behavior will carry on into other classrooms, taking the safe environment further than one classroom. Student achievement, as well as emotional and social outcomes, can all be positively affected by a safe, positive learning environment (Stepanek, 2011). When teachers do not tolerate disrespect both among students and between the students and teacher, they set the standard for their classroom and students feel more encouraged to participate and take risks in the classroom. Because of this, setting the classroom environment is often just as important as establishing classroom management strategies.

Teachers have entered a new age of classroom management. Faced with new challenges during the first part of the twenty first century teachers, teacher educators and school administrators have searched for alternative ways to manage classrooms. However, finding answers to classroom management situations is difficult because there is disagreement about what constitutes effective classroom management approaches.

Some administrators and teachers think of classroom management and discipline as being synonymous terms. Vasa (2014) describe classroom management as behaviors related to maintenance of on-task student behaviors and the reduction off-task or disruptive behaviors. Those who share his view define effective classroom management as a way of preparing students for life. They focus not on controlling students‟ behavior today but on preparing students for the world they live in tomorrow. Teachers and administrators who approach classroom management from this perspective define effective classroom management as the process of creating a positive social and emotional climate in the classroom (Morris, 2016). One of the most important skills possessed by effective teachers is that of classroom management. These skills are considered by Lang (2012) as by far the most important aspect of a teachers training and they state that effective classroom management is largely concerned with disruptive strategies, but other aspects are also of vital importance. Aspects are also of vital importance. The definitions developed by Conrath (2011) for classroom management includes the organization and planning of students’ space, time and materials so that instruction and learning actives can take place effectively.

Alternatively, effective classroom management was divided into four main categories in the studies of Evertson & Emmer (2012) and Sanford (2014). These four categories are: classroom procedures and rules, student work procedures, managing student behavior and organizing instruction. It is clear from these examples that classroom management is much more than a collection of strategies for discipline and involves many aspects of a teacher’s professional expertise. Teacher’s varying approaches to classroom management are reflected in differing levels of effectiveness. For example, a well-prepared teacher has a much greater chance of achieving effective lesson management. In the discussion of Lang (2012), different approaches to discipline are said to range from intimidation to total permissiveness. They advise that such extremes should include monitoring and enforcing reasonable classroom rules, procedures and routines. Effective teaching is more than discipline alone and classroom management has been closely linked to the achievement and engagement of high school science students (McGarity & Butts, 2010). Both this study and the discussion of Lang indicate that teachers should strive to develop effective classroom management techniques and that this will have a significant impact on their educational effectiveness. An analysis of the past fifty years of educational research as noted by (Wang, Haertel, and Walberg 2011) revealed that effective classroom management increases student engagement, decreases disruptive behaviors, and makes good use of instructional time.

A teacher is a person who possess specified knowledge and skills from an institution of higher education and have fulfilled requirements for certification (McNergney and Herbert 2011). Teacher qualifications include attaining a post graduate certificate in education (PGCE), Professional Graduate Diploma in Education (PGDE) and Bachelor of Education. Telia (2013) defined teacher qualification as the highest educational certificate possessed by a particular teacher. Whitehurst (2009), views teacher qualification indicators as; teacher’s academic ability, teacher’s certification status, teacher’s instructional practice in the classroom, teacher’s subject matter expertise and experience. In the study area, teacher preparation takes the form of undergraduate training with a period of teaching practice designed to provide opportunities to practice in the classroom. During teaching practice, the trainee is required to maintain a record about students’ needs and abilities, classroom rules and routines and the flow of instructional activities. At the same time, the trainee is expected to conduct tutoring sessions in the classroom or/and assist the teacher with classroom activities. It is after successful completion of the five year undergraduate course that a teacher is awarded a certificate or licensed if they meet the basic requirements and standards of a particular state.

Moreover, the certification is a way of preventing harmful teaching practice. Thus the certified teacher needs to continually attend seminars organized in colleges and university campus to discuss issues of teaching and share ideas about more and less effective teaching strategies. In a research carried out by Moreau (2017), asserts that extra training of teachers influences pupil learning outcomes positively. Extra training improves teacher performance by sharpening both their technical skills and their instructional competence.

This is confirmed by the fact that many state governments in Nigeria have increased the requirements for one to qualify for certification (MacPhialWilcox and King 2012). At the same time, it was noted that possession of master’s degree or teacher education at graduate level did not have an impact on pupil learning. However, Bidwell and Kasadra (2009) asserted that teacher qualification is closely tied to teaching skills that is the nature of instruction and concluded that teacher retention in the profession was of significant importance in influencing the level of student performance. Goldhaber and Brewer (2010) noted significant achievement on high school students handled by teachers with standard, probationary or emergency certification as compared to those students handled by teachers who are not certified and those who held private school certification. Similarly, Fetler (2009) found that students of fully certified teachers did better than those of emergency certified teachers. In India there are two groups of teachers; teachers with formal Education (TFEs) and subject specialist teachers. The TFEs are teachers with minimum qualification in Bachelor of Education degree or Masters in Education but they are not subject specialists. Specialist teachers include teachers with at least a Master’s degree in a particular subject. 

In conclusion, teacher training should provide appropriate field experience. The trainees should practice with experienced teachers in their subject field (Emmer and Stough, 2011). They recommend that teacher training programs should provide content and supervised experience related to classroom organization and behavior management.

Poorly managed classrooms are usually characterized by disruptive behaviors such as sleeping, late coming, noise making, miscopying of notes, eating, calling of nicknames, verbal or physical threat to fellow students or the teacher (Ekere, 2013). These disruptive behaviors disorganize learning processes and hamper academic performance of students. Effiong (2012) suggests that teachers can deal with these disruptive behaviors in the classroom and reduce them to the minimum through effective classroom management so that effective learning can take place. Once teachers are able to effectively reduce or eliminate disruptive behaviors in the classroom, there would be increased academic attentiveness and engagement which would pave way for better academic performance by students. The use of verbal instruction is one of the techniques for effective classroom management that can be adopted by teachers. According to Good (2014), clear instruction on what should be done gives the students concrete direction to compliance. In this approach, teachers try to be consistent in enforcing the verbal instruction so that it produces the desired results. Until recently, corporal punishments were used widely as an effective classroom management technique to curb disruptive behaviors in the classroom. It is now not commonly applicable through it is still practiced in some schools as an effective classroom management technique.   

Instructional supervision is another technique of effective classroom management adopted by teachers in the classroom. According to Obot (2010), instructional supervision involves moving around the classroom to observe students closely, engaging students in academic activities, asking questions and employing both verbal and non‐verbal teaching methods to ensure that students are paying undivided attention and taking more from the lesson than simple facts. Delegation of authority to learners is still another technique of effective classroom management where the teacher delegates his/her authority to deserving students and assign them duties such as cleaning chalk board, time keeping, controlling noisemakers, managing learning materials, collecting assignment from students, copying lesson notes on the chalk board, class representatives on behalf of the class (Nima, 2014). These contribute a great deal to making the classroom a conducive place since cooperation between students and teachers in the classroom is fostered. Classroom management techniques are aimed at producing conducive learning environment where students can learn with ease and perform better academically. All of these techniques can be adopted in the classroom depending on the nature of the problem at hand.

This study is aimed at examining the influence of effective classroom control and management on the academic performance of secondary school students in economics in Enugu East LGA.

Statement of the Problems

Unconducive learning environment in the public schools has posed serious problems to students’ academic performance over many decades ago. This trend has been on the increase on daily basis. Its prevalence has attracted the concern of the teachers, parents, the guidance counselors and many researchers. Effective classroom management has been discussed extensively at educational seminars and workshops, with efforts aimed at bringing lasting solution to the problem of students’ poor academic performance encountered in secondary schools. In most cases, classroom teachers become tired of using verbal instruction in attempts to establish effective classroom management, but this method alone does not produce desired results. Many teachers use corporal punishment to instill fear and discipline in the classroom yet there are prevalence of disruptive behaviors in the classroom. A lot of teachers waste time and energy in intensive classroom supervision so that the classroom climate could be conducive for lessons. Some classroom teachers delegates authority to deserving prefects such as time – keeper, noise prefects, class prefects, etc. to share in the responsibility of ensuring a conducive learning atmosphere in the classroom. These methods are adopted by teachers to enable the classroom become conducive enough for effective teaching – learning process and to facilitate higher academic performance of the students and it seems not to be yielding any result hence this study.

Purpose of the Study

The main purpose of the study is to examine the influence of effective classroom control and management on the academic performance of secondary school students in economics in Enugu East LGA of Enugu State.

Research Question

How does the environment influence classroom management and control in secondary schools?

Methods

A descriptive survey research design was adopted for the study which was carried out in public secondary schools in Enugu East Local Government Area of Enugu State. One research question guided the study. From a population of 38,077 respondents, a sample of 335 was drawn using a multistage sampling procedure. A researchers’ developed instrument titled “Classroom Management and Control Questionnaire” (CMCQ) which was validated by three experts was used for data collection. The questionnaire was structured on a four point scale of Strongly Agree (SA), Agree (A) Disagree (D) and Strongly Disagreed (SD) weighted 4, 3, 2 and 1. The internal consistency of the instrument was ascertained using Cronbach’s Alpha and this yielded reliability coefficient of 0.75. The instrument was considered reliable in line with Nworgu (2015), who stated that if the co-efficient obtained for an instrument is up to 0.70 and above, the instrument should be considered good enough to be used for a study. The direct administration and retrieval method was used for data collection. Mean was used to answer the research questions.

Results

Table 1: Mean responses of respondents on how environment influences classroom management and control in secondary schools

S/NItemsMeanSDRemark
1Home factor/parental upbringing affects the child behavior in school2.61.83Agree
2Unfriendly school atmosphere influences classroom management2.86.98Agree
3Lack of teacher’s attention in the school influences classroom management2.651.28Agree
4Inadequate infrastructure influences classroom management2.501.16Agree
5Influence of peer groups affects classroom management and control2.56.95Agree
6Children from wealthy single parent homes do not have much financial support compared to their counterpart from poor single parent’s homes.  2.661.23Agree
7Children from poor parental homes do not have much financial support compared to those from wealthy single parental homes.2.521.28Agree

According to the table above, the respondents agree that all seven items are factors that influence classroom management and control in secondary schools in Enugu East Local Government Area of Enugu State. The mean ratings for the seven items ranged from 2.50 to 2.86.

Discussion

The finding of the study showed that unfriendly school atmosphere, inadequate infrastructure, influence of peer groups and lack of teacher’s attention in the school are some of the environmental influences on classroom management and control in secondary schools. This was in line with the findings of Johnson (2013) who noted that unconducive learning environment and non-availability of the teaching materials can make the teaching/learning environment boring and unbearable. Also, the finding Ngwangwa (2012) is in line with the findings of the present study. His study showed that environmental influences impacts on teachers’ classroom management and control.

Conclusion 

Based on the findings of the study, the researcher concluded that unfriendly school atmosphere, lack of teacher’s attention in the school, peer group influence and inadequate infrastructure influences classroom management and control in secondary schools.

Recommendations

Based on the findings of the study, the researcher recommended that;

  1. Schools should endeavor to provide the necessary learning facilities that will enhance classroom management and control.
  2. Teachers should be advised to use the available instructional material in teaching as it will enhance their classroom management

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Identifying Standard SKD/CKD and Automotive Manufacturing Development Stage in Ethiopia

Ermiyas Abate1 &Yared Negussie

Manufacturing Technology and Engineering Industry R& D Center, Addis Ababa, Ethiopia (Msc)

Lijalem Gebrehiwet 2

Ethiopian Space Science and Technology Institute, Addis Ababa, Ethiopia (Msc)

Abstract

Semi-Knock-Down (SKD) and Complete-Knock-Down (CKD) solutions have been widely accepted worldwide for export and import goods especially for automotive industry. The CKD kit ensures trade benefits and boosts technological capability for import substitutions. Duty at customs is high for products which are in the state of ready to use conditions where as the duty on SKD or CKD products imported from another country is lesser. Most domestic companies where the assembly cost is low and import cost is high prefer to buy product in SKD or CKD kits where as Complete-Built-Up (CBU) are not preferred technically and economically. This study focuses primarily on the basic concepts of assembly kit in Ethiopia, their benefits in tariff considerations, import substitution, technological transfer and other economic advantages. Secondly to analyzes basic problems on the understanding of these concepts to develop vehicle standard SKD and CKD in Ethiopia. In addition to this to highlight the automotive industry stage of development. The implementation of these concepts has great benefits in the size of job creation and import substitution rates which have impact on the economy. The investment for CKD in automotive industry requires greater finance when to compare machineries and equipment.

Keywords: Automotive, SKD, CKD, Tariff, Manufacturing, Assembly kit.

  1. Introduction

          The automotive sector is vast in terms of commercial and technical factors which require different types of assembling and vehicle body manufacturing facilities to produce finished products (White, 1979). Ethiopia is transforming from total car importer to domestic assembler to some extent and its automotive stage of development is compared and contrasted in Figure 1 in which Kenya and Myanmar are a little ahead of Ethiopia (Ohno, 2019). Information of products, suppliers, international quality service links and technology is still lagging behind which still gives space for CBU second hand cars in Ethiopia. The main problems in SKD and CKD shipments are related to tariff issues in a particular country and it should promote manufacturers over importers (Ohno, 2019).

Figure:01 Automotive industry development

           According to Rob (2016), there are differences and inconsistencies in SKD and CKD definitions and standards worldwide as a result different countries may have different standards for these particular kits. The basic definition for these kits is provided by the Japan Automobile Manufacturing Association (JAMA) as shown in Figure 2 (Kim, 2013).

Figure:02 Definition of SKD,CKD and CBU by JAMA

           The vehicle production for assembling of manufactured and inspected parts is referred to as SKD where as in CKD kit there are car body related tasks including interior parts assembly, welding and painting works (Hofmann, Neukart & Bäck, 2017). According to Tomiyama (2014) & Sherry (2015), CKD is more sophisticated than a SKD. The main objective of this study is to standardize different products in SKD and CKD kits. Secondly assessing their tariff system and impact on the domestic trade and labour. Finally standardize the binding rules for national SKD and CKD concepts in automotive industry. At the end we should identify the stage of SKD & CKD development in Ethiopia from different manufacturers’ point of view.

  • Literature Review

2.1  CBU, SKD and CKD Conditions

          The use of any form of kit has a direct impact on the total cost of the chain of supply. CBU, SKD and CKD logistics have great impact to the imported country. Motorcycles, trucks, buses, and tractors occasionally need to be imported in CKD, which accounts for greater market share as viewed by Libor and Alan (2008). Saberi (2018) described that CKD forms are exported to countries where automotive industry is at high development stage from developed countries which require high capital investment. Knocked down strategy for a company should be carefully evaluated in order to decide with any kind of deal and the formula used to calculate the overall logistics cost of CKD is shown below (Malavolti, 2019) ;                                                                                     

Cost of CKD = Cost of stock + Cost of warehouse + Cost of customer clearance + Cost of Shipping + Cost of customer clearance (Supplier) + Cost of stock (Supplier) + Cost of packing (supplier) + Cost of unpacking…………………………………………………(1)

           The finished bodywork is assembled in the country of destination and they are exported where complete disassembled of parts not required (Libor & Alan, 2008). According to the definition of Toni (2022), kit is not totally knocked down and SKD often refers to subassemblies that can be quickly and readily put together partially in another nation. CBU vehicles are those that arrive in a country ready to use with completely build. In the research paper of Yongwook (1987) and Tulder & Ruigrok (1998) each model change requires production line changes, re-tooling, and constant technological change. Some companies in Malaysia issued supplier development and localization program as well as locally produced parts initiated by the company with listed parts in different category (Abdullah, Lall, & Tatsuo, 2008). In conclusion, the common definitions of the three terms can be illustrated as shown below (Chemendy, 2018).

                  Figure:03 Automobile model kits

2.2  Automotive Manufacturing Processes

           Automotive integrated manufacturing facilities consist of different shops or departments each with a special function with input resource delivered from outside suppliers. The body shop, paint shop, assembly shop and material logistics department are the five key departments that make up the general organisation of the assembly plant (Oumer, Atnaw, Cheng, and Singh, 2016). According to the paper by Sherry (2015) Mortimer (1987), KD parts are delivered to the production site by the car manufacturer or independent contract suppliers.

2.2.1      Chassis Fabrication

      Generally there are different types of chassis according to the fitting of engine namely, Conventional chassis, Non-Conventional chassis, Full forward, Semi forward, Bus chassis, Engine in front and Engine at the center. Conventional type is also known as a non-load-carrying frame where as the non-conventional chassis is known as frameless chassis or unibody chassis (Abernathy, 2012), (Brünger, Engler, & Hirsch, 2006) and (Selvamanikandan &Venkatesan, 2019).

Figure:04 Conventional and Non-conventional chassis

According to Bhise, (2012) and Hryciów, Wiśniewski, Rybak & Tarnożek, (2021), the bus chassis provides an increased floor space in the vehicle. Harr, (2018) described the automobile frame moves to component assembly areas where complete front, rear suspensions, different components and accessories are sequentially installed. Chassis is mostly imported from OEM in different forms. Every assembly task on chassis has provided assembly workers with the safest and most efficient tools available (Anazawa, 2021 and Aswicahyono & Kartika, 2010). 

2.2.2      Stamping Process

          Metal stamping is a sophisticated industrial process that uses a variety of metal shaping techniques to transform flat metal sheets into precise forms which is also known as pressing. The term “Body in White” (BIW) describes the parts of the car that have been welded together using various types of connecting methods. The parts included in the BIW are the cover, body, floor, and encon (Mortimer, 1987), (Selvamanikandan &Venkatesan, 2019), (Cooper, Rossie, & Gutowski, 2016), (Fu, Guang-Hong, Yang, Ma, Chen, & Zhu, 2022) and (Awatiger, 2020).

Figure: 05 BIW stamped parts (Yu-Kai Fu and et al, 2022)

           The required shape is obtained by shaping the metal using different stamping techniques and model BIW stamped parts is shown in Figure 5  (Mortimer, 1987), (Cooper, Rossie, & Gutowski, 2016), (Fu, Guang-Hong, Yang, Ma, Chen, & Zhu, 2022) and (Asnafi, Shams, Aspenberg, & Öberg, 2019). Stamping is a common choice in the automotive sector due to its high productivity, affordable, capacity to provide exceptional strength, and cost-effectiveness at high production volumes (Cao, Kinsey, Yao, Viswanathan, & Song, 2001). Technically stamping is considered to be a net shaping process (Mortimer, 1987) and (Brünger, Engler, & Hirsch, 2006). The body of a vehicle is made up of several hundreds of stamped components which are joined together by spot welding and accurate production of the car body (BIW) is essential (Thiruvengadam, 2010) and (Chaturvedi & Kumar, 2019).

2.2.3      Body Fabrication

          The process of fabricating bodies is extremely mechanized and most popular tools are used to create unibody chassis assemblies. The largest body component to which a multitude of panels and braces will subsequently be either welded or bolted together as it moves down the assembly line (Almeida, Diasa, Goncalvesa, Peschlb, & Hoffmeisterc, 2011). According to Sherry (2015), manually operated welding equipment is also used in less automated manufacturing facilities.  The front and rear door pillars, roof, body and side panels are assembled in the same fashion with a high number of weld operations with a degree of great accuracy (Mortimer, 1987) and (Brünger, Engler, & Hirsch, 2006). Fully assembled parts are subsequently installed using pneumatically assisted tools (Almeida, Diasa, Goncalvesa, Peschlb, & Hoffmeisterc, 2011).

Figure:06 Car body fabrication

2.2.4      Vehicle Painting and Curing Ovens

           Vehicles move into the paint shop after final body assembly. According to research paper of Pendar, Rodrigues, Carlos Pascoa, & Lima, (2022), the paint shop provides corrosion protection and attractive appearance to the BIW vehicle body. Primer coating operations in an automobile assembly plant are usually implemented in three stages (M. Mahajan, Varade, P. Mahajan & Patil, 2019).

Figure: 07 Layers in primer coating

            The exterior body parts are thoroughly cleaned and inspected as it moves through a brilliantly illuminated white chamber to see any flaws (Pendar, Rodrigues, Carlos Pascoa, & Lima, 2022). The main purpose of painting is to prevent the BIW from corrosion and to provide desired shapes in style, texture and color. Different countries have their own vehicle painting standards and processes (Lovell, Higgs, & Deshmukh, 2006). Paints usage should be free of environmental hazard and most eco-friendly painting process should be used (Meschievitz T., Rahangdale Y., & Pearson R., 1995)

           Curing ovens are directly or indirectly heated by various types of fuels and they are applied after the primer coat, base coat and the clear coats. Ovens are divided into multiple zones with the radiated heat dries the outer layer of the paint (Sherry, 2015) and (Akafuah, Poozesh, Salaimeh, Patrick, Lawle, & Saito, 2016).

Figure:08 Flowchart of car painting process

2.2.5      Vehicle Interior Assembly and Car Mating

           The painted body travels through the process where parts like instrumentation, wiring systems, dash panels, interior lights, seats, door and trim panels, headliners, radios, speakers, all glass (except the automobile windshield)steering column, wheel, body weather strips, brake and gas pedals, carpeting, bumpers and fascias are assembled. The automated lines facilitates a continuous process with a moderate speed which enables human operators to perform interior and door assembly tasks with the required level of safety (Mortimer, 1987) and (Brünger, Engler, & Hirsch, 2006). During mating the chassis assembly and body shell conveyor meet at final stage of production in which the shell is lifted from its conveyor fixtures and placed onto the frame to be bolted by assembly workers. The automobile travels down the assembly line to receive final trim components after auto mating of body shell and chassis White (1979) and (Brünger, Engler, & Hirsch, 2006). The majority of modern automobiles has a unibody construction in the middle of the vehicle and supports various components in a half-frame configuration (Mortimer, 1987) and (Brünger, Engler, & Hirsch, 2006).

3.    Material and Methods

3.1  Kit Production Network

           The kit concepts mainly differ in terms of the degree of disassembly, partition, number of kits and the value addition. The automotive global production network clearly put the production strategy that determines the type of assembly sections established at the local production facility as well as in the sales country as shown in Figure 9 (Börold, Teucke, Rust, & Freitag, 2020) and (Schwede C., Song Y., Sieben B., Hellingrath B. & Wagenitz A., 2009). 

Figure: 09 Strategies in global automotive production network

            In SKD process description, the exporter collects and packs the parts in the SKD warehouse but the importer repacks the products in the local OEM factory. This process can be referred as SKD-packing-and-SKD-unpacking process (Börold, Teucke, Rust, & Freitag, 2020) and (Schwede C., Song Y., Sieben B., Hellingrath B. & Wagenitz A., 2009). Similarly under the CKD mode, the exporter has the control of technology, the factory organizational structure and information flow. The operation point of view all CKD parts are subject to the CKD-packing before export in the exporter warehouse. The CKD kits are subject to the CKD unpacking before the assembly in the importer plant (Börold, Teucke, Rust, & Freitag, 2020) and (Schwede C., Song Y., Sieben B., Hellingrath B. & Wagenitz A., 2009).

3.2  CBU/SKD and CKD Tariff Conditions

            Ethiopia is known for its high automotive tax rates which require various policies and amendments for car assembly from the CBU to SKD and then to CKD stage. Nigeria raised CBU tariffs to 70% for passenger cars and 35% for commercial vehicles while SKD tariff is 10%. CBU is taxed at higher than CKD which gives sufficient incentive for domestic assemblers. There is no distinction between passenger cars and commercial vehicles in Kenya’s tax structure as shown in the Figure 10 (Ohno, 2020) and (K.Ohno, I. Ohno, & Nagashima, 2018).

Figure: 10 Kenya’s automotive tax structure until 2019 (Ohno, 2020)

           According to Ohno, (2020) and K. Ohno et al (2018), positive rates are applied for designated 17 automotive components but Kenya did not have an SKD definition as of 2019. The smaller tax gap is not economical to cover production cost and Japanese producers need at least 20-30% advantage in favor of SKD/CKD over CBU (Ohno, 2019), (Nogimori, 2020) and JETRO (2018). The duty rate for different automotive products and tariff code is tabulated from Ethiopian custom commission in accordance with different references from the Ethiopia Custom Guide, (2017), Ethiopian Customs proclamation, (No. 859/2014), Ethiopian Customs Tariff Book, (HS 2017) and Ethiopian HS Code Import Data. The tariff system for parts and accessories is seen clearly from Ethiopia’s automotive tariff structure as shown in the Table 1.

Table 1

HS code chapter 87 tariff description

Type of productHS codeTariff codeTariff descriptionDuty rate
 Complete vehicle  8703  3219Other vehicles, with compression ignition internal combustion piston engine(diesel or semi diesel)…..Of a cylinder capacity exceeding 1500cm3 but not exceeding 2500cm3   …..Others 35%
Intermediateproducts 8706 0091Chassis fitted with engines, for motor vehicles of headings 8701 to 8705      …..Others….For vehicle of heading 8703 10%
Parts andaccessories  8708  4020Gearbox and parts thereof…..for industry assembly of (end-use condition)Vehicle of heading 8703 5%

3.3  Definitions and ambiguity

           The main ambiguity for vehicle SKD/CKD kits arose due to the fact that all components are available in different chapters of the harmonized system and HS code. Most of the parts are found in Chapters 40, 68, 70, 73, 83, 84, 85, 90, 91 and 94.  Concerns on Chapter 87 is that motor chassis fitted with cabs fall in headings 8702 to 8704 but not in heading 8706 about chassis fitted with engines for motor vehicles of headings 8701 to 8705.  As stated on Ethiopian Customs Tariff Book (HS 2017) and Ethiopian HS Code Import Data, it is important to consider the exclusions as well as the texts of headings 87.06 and 87.07 including note 3 in Chapter 87 when considering general HS code interpretation to sets of unassembled parts. 

Table 2 

Concerns on HS code chapter 87 subtitles

8706Chassis with engine for tractors, motor vehicles for pass/good & special purpose
870600  Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705. For the vehicles of subheading 870120 or heading 8702 or 8704
8707Bodies (including cabs), for specific motor vehicles
870710  Bodies (including cabs)For the vehicles of heading 8703
870790Other Bodies, for the Other Motor Vehicles

            Each component in SKD and CKD kits are not specified clearly in order to insert additional clarifications in the subtitles. In the CKD case studies of Aswicahyono & Kartika (2010), some joint venture company are responsible to produce engine for commercial trucks and others to be imported from overseas companies as well as locally produced engine parts as shown in the Figure 11.

Figure: 11 Engine CKD part for firm 2

           The actual collection of “parts” does not have to be sufficient to assemble complete vehicles according to the clarification and the “parts” can be assembled into an incomplete article that has the essential character of a complete or finished article as declared in Ethiopian Customs Tariff Book, (HS 2017) and Ethiopian HS Code Import Data.

3.4  Custom Duty and Product for Imported goods

           The supply strategies and the growth of sales of the product or product life cycle from CBU to different KD products can be related with the market’s maturity as a result the economic concept leads to a chronological order of the strategies (Schwede, Song, Sieben, Hellingrath and Wagenitz, 2009). The different import tax systems and facts in Ethiopia are shown in Table 3;

Table 3

Import tax in Ethiopia (Custom proclamation No. 307/2002, 570/2008, 610/2008 and directive no 18/2009), (Income tax proclamation No 286/2002 & Proclamation No. 285/2002), (Customs proclamation No. 622/2009) and (Customs tariff amendment No.1, 1996 edition)

 

S/NFacts of taxes in EthiopiaRemark
F1The tax sequential orders are customs duty, excise tax, VAT, surtax and withholding tax. Taxes on imported goods are collected by Ethiopian Revenues and Customs Authority (ERCA).ERCA collects customs duty based on the rules stipulated in the customs proclamation No. 622/2009. 
F2ERCA collects customs duty on a great variety of goods which can be classified into two categories. Depending on the primary purpose of the imported goods. Items for public, personal or non productive uses.Category 1It includes raw materials, semi finished goods, producers goods and import items for public use.Category 2It includes items such as consumer or finished goods imported for personal use. 
F3Customs duty has 6 bands or groups of rates which are applied to imported goods. These bands of rates are 0%, 5%, 10% 20%, 30% and 35%.The maximum is 35 percent of the CIF (Cost + Insurance + Freight) value of an imported item.
F4According to the Customs Tariff, the maximum customs duty rate used to be 60 % of the CIF value of an imported item.CIF(Cost + Insurance + Freight) value of an imported item
F5 Excise tax it is one of the most well known forms of tax in Ethiopia. It is a tax levied on selected goods such as luxury goods and basic goods. The minimum excise tax rate is 10% & maximum is 100%.Excise Tax is also applied to goods which are considered hazardous to health and that may cause social problems.
F6Excise tax has 10 bands or groups of rates at which excise can be charged. These band rates are 10%, 20%, 30%, 33%, 40%, 50%, 60%, 75%, 80% and 100%.These rates are used to calculate the payable excise tax.
F7In Ethiopia, VAT is levied at a flat percentage rate. To the exclusion of goods detailed in article 8 of the proclamation No. 285/2002 and goods exempted from VAT by the directive issued by the Ministry of Finance and Economic Development.VAT is levied on every imported item. Importers are liable to pay 15 percent of the sum of cost,
insurance, freight, customs duty and excise tax.
F8Automotive techs are not included in the type of goods or services exempted from payment or VAT except the supply or import of fuel gas. It is stated at “Circular Ref. No. Am3/16/28/227.The law that allows exemption of goods and services from payment of VAT for the supply or import of fuel gas. 
F9Surtax is the fourth of the five taxes imposed on import items. Surtax was introduced in the Ethiopian tax system on April 9, 2007. The council of Ministers issued a regulation to levy 10 percent surtax on imported goods.Ten percent of the sum of cost, insurance, freight, customs duty, excise tax, and VAT is the base of computation for surtax on all goods imported into the country.
F10There are items and services which are exempted from payment of surtax. Fertilizer, Petroleum, lubricants and motor vehicles.Motor vehicles for freight and passenger and other special purpose motor vehicles.
F11Withholding tax is not a tax in the traditional sense. Goods imported by the following individuals and firms are exempted from the 3 percent withholding tax imposed on commercial import items. The amount collected on imported goods shall be three percent of the sum of cost, insurance and freight (CIF value). Auto tech is not included in this privilege.

Predefined Process: DPV= cost + Insurance + Freight………………………………..2
DPV x CUDU = A……………………………………………….3
(DPV+A) x EXTA = B…………………………………………..4
(DPV + A + B) x VAT = C………………………………………5
(DPV + A + B + C) x SURTAX=D……………………………...6
DPV x WHT = E…………………………………………………7
Total Payment = A + B + C + D + E……………………………..8

From customs proclamation No. 622/2009 and Customs tariff amendment No.1, (1996 edition), the formula for calculating customs duty and other taxes in Ethiopia are shown below;

 Where 

DPV = Duty Paying Value; CUDU = Customs Duty Rate; EXTA = Excise Tax Rate; SURTAX = Surtax; WHT = Withholding tax 

  • Results and Discussion

4.1  Basic Standards Identified for SKD and CKD 

      Basic standards are required in the tax related issue and should be clearly put with clarifications as a result the Ethiopian standards (recommended) for SKD and CKD automotive products or categories is tabulated in Table 4,5,6 and 7 below. The SKD/CKD parts and production methodology differs from company-to-company, permission of OEM, manufacturers’ company standard which is compatible with specific types of vehicles. SKD/CKD standards are summarized for vehicle types categorized as LMV, MMV and HMV for different models are described in the tables below.

Table 4

Vehicle parts for standard SKD/CKD category (Engine)

Vehicle typeLMV, MMV and HMV
KD type or form       SKD
EngineFrom OEM for SKD parts
LMV, MMV and HMV Except for Bajaj and motor cyclesFull engine kit fixed on car chassisFittings and mechanical hardware
Assembly manualsElectrical harness
User instructionsFuel system pipe connection
Basic drawings Cooling system assembly
`KD type or formCKD
EngineFrom OEM to CKD parts
It is for LMV, MMV and HMV Except for Bajaj and motor cyclesNote: Low Motor Vehicle = LMV= Car, Jeep, Minivan, etc    Medium MV = MMV= Tempo, bus, mini truck, etc  High MV = HMV=   Truck, trailer, container, tractor, multi-axle bus Separate engine kit in boxDisc assembly clutch
Engine is not fixed on chassis or airframeCover assembly clutch
Assembly manualsFly wheel
User instructionsBracket mounting
Basic drawingsCushion rubber
Engine testing instructionsStopper 
Defect troubleshooting manualsAlternator 
Ground support equipmentsStarter motor
Radiator Manifold exhaust rear/front
Oil pumpFan 
Water pumpInlet manifold
Air filter & Oil filterCover assembly & Cover rocker assembly
Battery Fitting and mechanical hardware
EGR valve and CatalyzerHarness and Engine mounts


Table 5

Vehicle parts for standard SKD category (Car body)

Vehicle typeLMV, MMV and HMV
KD type or formSKD
Car bodyFrom OEM for SKD parts
  It is for LMV, MMV and HMV Except for Bajaj and motor cyclesNote: Low Motor Vehicle = LMV= Car, Jeep, Minivan, etc     Medium MV = MMV= Tempo, bus, mini truck, etc   High MV = HMV=   Truck, trailer, container, tractor, multi-axle bus   Main body (Body shell) + chassis unpainted§  All basic parts are supplied unassembled (LMV) (MMV and HMV)§  Car chassis without body parts but engine, gearbox, wheel/ tire, steering, drive train, suspension/dumper, seats, batteries, exhaust system, control parts supplied unassembled (MMV and HMV)§  All electrical wiring installed with lightsCar body parts painted for LMV
LMVMMVHMV
Fender and fender linerChassis without bodyChassis without body
Roof panelsDoors & door waysHinges 
Doors Skirt panel front/rearTruck cabin
Sill Main side panels bay1, 2, 3.Catches and latches
Hood or bonnetAccess capDoor checks
Number plate lidSkirt panels (all)Door panel locks
Window glass & mirrorsSpare wheel access flap and other panelsHandles 
WiperPillar capping (All)Dump hoist assembly
WheelsRoof panel bay1, 2, 3….Bumper and hitch (rear)
Brake shoeValance panelsOther small assemblies
Trunk lidSide panels (all type)Parts to be manufacturedLocally for truck bodySide walls Columns (rails)Bulkheads (portal frame)Truck floor assemblySide sheet panelsRear panel (door)Beam doorSide ladderMetering chainDouble acting tailgateTank
Front and center pillarEmergency door parts
Front  and side roof railFlaps 
Side memberEntrance steps
Small body partsDoor aperture
Engine hoodLongitudinal and lateral, rails, & frames
Floor partsWheel arches
Windshield glassRoof parts (roof sticks)
Outside  handle (locks)Arch members
Door weather stripCross bearer
Front and rear bumperMirrors 
Head & tail lights, lamps Window glasses
Mud flapsWindshield glass

Table 6

Car body CKD manufaturing requirements

CKD tasks
Main body (Body shell) + chassis unpainted§  Unassembled chassis or main body§  Car chassis without body parts but engine, gearbox, wheel/ tire, steering, drive train, suspension/dumper, seats, batteries, exhaust system, control parts supplied unassembled (MMV and HMV)§  All electrical wiring uninstalled §  Car body parts fully not assemble, unpainted and not glazed Some component customized locally
Related to chassis
Without leaf springØ  Without differential/axel partsØ  Without suspension jointsØ  Without axle longitudinal link supportsØ  Without inner cross members and bracketsUnassembled brake and suspension components

Table 7

Vehicle parts for standard CKD category (Car body)

Vehicle typeLMV, MMV and HMV
KD type or formCKD
Car bodyFrom OEM for CKD parts
It is for LMV, MMV and HMV Except for Bajaj and motor cyclesNote: Low Motor Vehicle = LMV= Car, Jeep, Minivan, etc    Medium MV = MMV= Tempo, bus, mini truck, etc  High MV = HMV=   Truck, trailer, container, tractor, multi-axle bus LMVMMVHMV
All car body SKD components unassembledAll car body SKD components unassembledAll car body SKD components unassembled
Body sides, roof and floor supplied loose Body sides, roof and floor supplied loose All car body SKD manufacturing tasks
Fully disassembled body frame (chassis)Disassembled (loose) chassis Body sides, roof and floor supplied loose 
Disassembled body parts(Read- made)All materials supplied loose for final welding and assemblingAll materials supplied loose for final welding and assembling
Disassembled doors, handle and locksDisassembled doors, handle and locksDisassembled (loose) chassis
Full logistics with assembly line is requiredFull logistics with assembly line is required  Disassembled doors, handle and locks 
Full logistics with assembly line is required Full logistics with assembly line is required 
Required equipments for CKD Welding guns, Jigs, Templates,Metrology Equipment (3-D measuring machines), etc.Conveyors, paint tanks, paint both,Drying oven, etc. Wheel alignment tester, Turning radius tester and Shower testing Head light tester, Side slip tester, Speedometer tester, Brake dynamometer and 

 

4.2  Stages of Development for Domestic Assembling Companies in Ethiopia

     The development stage of different domestic vehicle companies for light vehicle, bus, truck and trailer assembling as well as manufacturing are assessed as per to 2019 data and the current five years data will be required to further filter the respective assessment but the stage is mostly at CKD. Table 8 for light vehicle, Table 9 for buses, Table 10 for trucks and Table 11 for trailer fabrication companies are tabulated below to assess their developmental stage in SKD/CKD strategies.

Table 8

S/NINDUSTRY Stage of development
SKDCKD
1Abay technical and trading sc.
2Belayab motors plc
3Bishofitu automotive industry
4JIN BEI motors plc
5Marathon motors engineering plc
6Mesfin industrial engineering plc
7Tamrin international trading plc
8Yangfan motors plc 

Light vehicle assembling companies

Table 9

Bus assembling companies

S/NINDUSTRYStage of development
SKDCKD
1Ada bus assembling and steel engineering
2Bishofitu automotive industry

Table 10

 

Truck assembling companies

S/NINDUSTRYStage of development
SKDCKD
1Bishofitu automotive industry
2Frankun ET automotive engineering plc
3NA metal industry and engineering
4AMCE(Automotive manufacturing of Ethiopia)
5Mesfin industrial engineering

Table 11

Trailer fabrication and assembling companies

S/NINDUSTRY DESCRIPTION Stage of development
SKDCKD
1Abenco general construction industry and  trading  plc    
2Alami industrial engineering    
3AMCE (Automotive manufacturing company of Ethiopia (sc.)    
4Ami metal engineering    
5Asnake engineering    
6Belaynehe Kindie metal Engineering complex    
7Bridge metal & wood shop business plc    
8Dagim Kennedy general trading plc    
9Fasil Mesfin Derso manufacturing    
10Frankun ET automotive engineering plc    
11Habtom G/Egziebher Woldehawaryat    
12HH engineering plc    
13KG Engineering    
14Kifle Mekonene importer trade in iron & steel manufacturing    
15Maru metals industry plc    
16Mesfin industrial engineering plc    
17NA metal industry and engineering    
18Nehemmiah engineering plc    
19NKG Engineering    
20Ocfa metal manufacturing plc    
21Rahel Dagnachew Gelaye    
22Tsehay industries sc.    

      From the above table, we can conclude that Ethiopia’s automotive development stage is mostly on SKD/CKD strategy and the import substitution or technological specialization is only on some body parts of vehicle types. Generally Ethiopia is in the second automotive manufacturing stage which is similar to the JICA report on automotive industrial development stage for Africa as shown below (FRN 2015 Report).

Figure: 12 Automotive manufacturing stages

5.    Conclusion

           In this study it is revealed that the value chain of interconnected global market system shows the importance of automotive manufacturing development with higher foreign investors’ and OEM role in this sector. The study identified clearly the following significance for assembling and manufacturing of auto vehicles in Ethiopia;

  • Perform relevant research studies on SKD/CKD concepts practically which is functional in different countries and CKD related tariff system encouraged by other nations.

 Collection of annual market data in SKD/CKD for all vehicle types in auto manufacturing areas in Ethiopia and the impact of tax rates. Review highlights for custom classifications and their gap in fulfilling the CKD tariff systems

  • Clearly identify items to be manufactured domestically for all types of vehicles in order to promote the import substitutions. Auto domestic parts production capability study should be undertaken to restrict import of these parts and promote the manufacturers.
  • Revise the established standard for SKD/CKD kits for automotive industry in all types of vehicle models annually. All the prepared documents should be revised side-by-side with the assemblers for its effectiveness or gaps in production. 
  • Import and excise duties for completed built-up and complete knocked-down vehicles should be promising in order to prohibit imports of used commercial vehicles, their parts, components gradually. Promising incentives should be provided for critical and high value-added parts and components.
  • The custom and tariff issues should encourage strategic partnership between globally branded manufacturers (OEM) with domestic investors which enhance the competitiveness and effective technological transfer.
  • Complete implementation of vehicle-type and component approval as well as vehicle end-of-life policy should be introduced by the Ministry of Transport for all types of vehicle imported to Ethiopia.
  • The Ministry of Science, Technology and Innovation should introduce and enforce mandatory standards for vehicles, their parts and components operational nationally.
  • Relevant federal offices related to natural resources and environment should establish a clear roadmap for fuel, lubricants and paints standards used in vehicle operation, maintenance as well as manufacturing.    

Acknowledgements

     We convey our gratitude to all of our colleagues for their support and encouragement to publish the article.

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COMMUNICATION PATTERNS AND LEADERSHIP STYLES OF ADMINISTRATORS AS CORRELATES OF ORGANIZATIONAL CLIMATE IN SOUTH EAST, UNIVERSITIES, NIGERIA.

Ezeobi, Blessing Chijindu & Prof. Nkechi Ikediugwu

Department of Educational Management and Policy

Faculty of Education,

Nnamdi Azikiwe University, Awka

Abstract 

The study investigated communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. Five research questions guided the study and five null hypotheses were tested at 0.05 level of significance. Correlation research design was adopted for the study. The population of the study comprised 749 administrators in public universities in South East, Nigeria. A sample size of 300 administrators was drawn for the study using proportionate stratified sampling techniques. A researcher developed questionnaires titled ‘‘Communication Patterns Questionnaire (CPQ)’’, ‘‘Leadership Styles Questionnaire (LSQ)’’ and ‘‘Organizational Climate Scale (QCS)’’ were used for data collection. The instruments were validated by three experts, two from the Department of Educational Management and Policy, and one from the Department of Educational Foundations, Nnamdi Azikiwe University. Cronbach alpha was used for a test of internal consistency of the instruments which yielded overall co-efficient values of 0.80, 0.82 and 0.82 for CPQ, LSQ and OCS respectively. The researcher together with four research assistants collected data for the study using the direct approach method and 97% return was recorded. Pearson Product Moment Correlational Coefficient was used to answer the research questions 1-4 and t-test of correlation to test hypotheses 1-4, while multiple regression was used to answer research question 5 and test hypothesis 5. The findings of the study revealed among others that downward and horizontal communication patterns of administrators have strong positive relationship with organization climate. Further results indicted that democratic leadership style of administrators has strong positive relationship with organizational climate in public universities South East, Nigeria. It was also revealed that all dimensions of communication patterns and leadership styles of administrators have significant relationship withorganizational climate in South East, Universities, Nigeria. Based on the findings, it was recommended among others that university management should organize training programmes in forms of annually or quarterly conferences, seminars, short-courses and workshops to enable administrators acquire skills and knowledge of applying communication patterns and leadership styles to create positive organizational climate. 

Key words: Communication Patterns, Leadership styles, Downward, Horizontal, Administrators, Organizational Climate

Introduction 

Higher education is the post secondary level of education that enables individuals to gain knowledge and acquire skills to improve their sources of livelihood and also contribute to the development of the society. It also inculcates sound moral values and character that promotes peaceful coexistence of individuals in the society. Federal Republic of Nigeria (2013) noted that higher education is the education given after post basic education in institutions such as Colleges of Education, Monotechnics, Polytechnics, Universities and other specialized institutions such as Colleges of Agriculture, School of Health and Technology and the National Teachers’ Institutes (NTI). The focus of this study is on university.  

            University is an institution of higher learning where people study to acquire knowledge, shape their character and obtain degrees in different disciplines.  Tofi, Agada and Okafor (2020) opined that university is the foremost tertiary institution in Nigeria with responsibility for equipping people with knowledge and skills to undertake tasks and employment functions which are necessary for transformation of societies. The authors added that the functions of university in Nigeria include: teaching, research, production of texts, certification, storage and retrieval of knowledge, community service and enlightenment service. Universities offer opportunity for people to study at an undergraduate level for first degrees and at postgraduate level for advanced degrees. Similarly, Asuquo and Ekpoh (2020) opined that as the apex of education, every university is expected to generate knowledge, ideas, skills and disseminate same through teaching, learning, research and community services. 

            There are public and private universities in Nigeria which are regulated by National Universities Commission. The focus of the study is on the public universities which are established, financed and managed by State or Federal Government. Akpakwu and Okwo (2014) noted that the State and Federal Universities in Nigeria are composed of members of Governing Council, Vice-Chancellors, Principals officers, Administrators (Deans and Heads of Departments (HODs), academic and non-academic staff. The administrators control the daily activities of academic and non-academic. The university administrators inform and clarify members of staff of their job responsibilities and expectations through communication. 

            Communication is the act of disseminating information, passing message and expressing feelings among two or persons. According to Akarika, Umoren and Okon (2021), communication is an expression of thoughts, feelings, ideas and messages from the sender to the receiver through verbal, non-verbal, written and non-written forms. It is a process by which individuals exchange information, share ideas, provide facts, express their thoughts, feelings and values in a given setting. University administrators disseminate information and influence the activities of members of staff through different communication patterns. 

            Communication patterns are the channels and strategies employed by workforce of an organization in passing messages, sharing ideas and feelings among each other. According to Weldeghebriel, Mberia and Ndavula (2019), communication patterns deal with how information flows for smooth and better functioning of an organization. Communication patterns are techniques for creating, sending, and receiving information in the workplace. Fiel-Miranda and Miranda (2019) defined communication patterns as the ways of transmitting ideas, facts, thoughts, feelings and values between two or more persons. It is the structure in which information flow in an organization. Contextually, communication patterns are the sets of lines or flows of information by words, writing, symbols, body languages and other mediums. Several scholars identified communication pattern as follow: upward, downward and horizontal patterns (Badau, 2018; Joda, 2022, Akarika, Umoren and Okon, 2022; Uwandu, Udo-Anyanwu and Okorie, 2022). The focus of the study is on downward and horizontal patterns of communication.

            Downward communication pattern is the flow of information from superiors to subordinates in an organization. Job descriptions, policies and goals of an organization are made known to subordinates through downward communication pattern. Ogunola and Akporaro (2015) asserted that when managers, supervisors, and team leaders communicate with the employees that are directly under them, downward communication is used. Continuing, they stressed that it is used to assign goals, provide job instructions, inform employees of policies and procedures, point out problems that need attention, and offer feedback about performance. The administrators who send letters to lecturers to informing them of deadline for lectures delivery and commencement of examinations have applied downward communication pattern. Badau (2018) pointed out that university leaders, from central office administrators to building-level administrators, communicate downward to members of academic and non-academic staff through speeches, messages in University bulletins, University board policy manuals, and school procedure handbooks.  They added that the types of messages transmitted through downward pattern of communication are job instructions, job rationales and practices information, feedback and indoctrination. Some of the information communicated downward could be discussed and disseminated among staff of the same level through horizontal communication pattern.

            Horizontal communication pattern is the style of exchanging information among members of staff across the same level or rank in an organization. Joda (2022) noted that horizontal communication is the transmission of information between people, divisions, departments or units within the same level of organizational hierarchy. Horizontal communication pattern helps to improve coordination between departments in the university. Badau (2018) noted that information disseminated through horizontal communication pattern is basically for coordination to tie together activities within or across departments on a single school campus or within divisions in a school-wide organisational system. Horizontal communication pattern takes place, when there is exchange of information among Heads of Departments, Divisional Heads and Unit Heads among others. Hee, Qin, Kowang, Husin and Ping (2019) asserted that horizontal communication pattern is useful in coordinating the activities of different departments in an organization. They added that it contributes in developing stronger relationship among staff in both similar department and different departments in an organization. The flow of information in universities could be enhanced by the leadership style of administrators. 

            Leadership styles are strategies adopted by administrators to influence and control the efforts of staff towards attainment of set goals and objectives. Leadership styles are series of approaches adopted by management towards ensuring members of staff diligently execute their duties. Dzakpasu, Amankwah, Konin and Amanfo (2022) defined leadership styles as the patterns of the manager’s interaction or behaviour in guiding, structuring and facilitating activitiesand relationships in a school. Leadership styles are the behavioural patterns of operating the activities of an organization and influencing the efforts of members of staff to attain common goals. Narad, Kaitano and Lakhanpal (2020) definedleadership styles as the behavioural patterns that a leader adopt to influence and motivate the attitude of the followers to accomplish given objectives.  Leadership styles are the peculiar ways of influencing the conduct of staff in the workplace. Operationally, leadership styles are the ways and approaches in which administrators provides direction, control and influence the activities of staff toward realising predetermined objectives. The leadership styles could inspire, demoralize or encourage the contribution of subordinates towards the attainment of set goals. Several scholars have outlined leadership styles as follows: democratic, autocratic and laissez-faires (Jideofor, 2022; Mohammad, Alam, Amin and Alam, 2019). This study focused on three leadership styles namely democratic, autocratic and laissez-faires because they influence the behaviour of staff in an organization. 

            The democratic leadership style is an approach of leading by participation and collaboration of subordinates. The university administrators who apply democratic leadership style seek the opinions of the subordinates before taking decisions on the affairs of the institutions. Achimugu and Obaka (2020) posited that the suggestions, recommendations, opinions and views of the subordinates who are affected by decisions are actively sought by administrators who apply democratic leadership style. They further asserted that democratic leaders encourage staff and students to participate actively, thereby making them feel engaged and motivated to attain predetermined goals and objectives of the institution. The democratic style of leadership encourages use of initiatives and promotes creativity as the inputs of lecturers are highly valued. Okoroma and Agbo (2022) posited that democratic leadership style encourages trust, promotes team work and cooperation among employees. They added that this leadership style makes workers to be motivated to do more as they are usually part of the entire process of reaching decision. The administrators who adopt democratic leadership style tend to treat members of staff with kindness, respect and fairness.  The administrators who use threats to get things done have applied autocratic leadership style,

            Autocratic leadership style is characterised by the use punishment, threat, rules and regulations to guide the conduct of staff in an organization. Ziduli, Molepo, Buka and Jadezweni (2018) pointed out that autocratic leaders do not consult members of the organization in the decision-making process; they set all policies, predetermine the methods of work, determine the duties of followers, specify technical and performance evaluation standards. Autocratic administrators dictate all activities and work procedures in an organization.  Jideofor (2022) asserted that autocratic leadership style is a self-centred leadership approach in which the superiors provide clear expectations of what needs to be done, when it should be done and how it should be done. Administrators who adopt autocratic style of leadership issue orders and give directives that must be obeyed by subordinates without any question. Achimugu and Obaka (2020) averred that autocratic style of leadership often engenders anger, frustration, despair, and in extreme cases withdrawal from school activities. Under autocratic style of leadership, there is limited freedom because of the domineering control by the administrators. Autocratic leadership style of administrators is likely to shape organizational climate of the university.

            Organizational climate is the perception of the staff about the norms, practices and expectations in the work environment. Ezinine and Ughamadu (2021) defined organizational climate as the behavioural pattern, structure, norms, values, and traditions of a college that distinguish it from other organizations. Organizational climate is the shared beliefs and values that guide the work behaviour of staff of an establishment.  According to Bello and Oredein (2022), organizational climate is the norms, goals, values, interpersonal relationships, teaching, learning, management practices and structure of a workplace. Organizational climate is a set of characteristics, feelings and work norms which is created from the way an organization deals with its members. Operationally, organizational climate is core sets of norms, shared values and perceptions that influence the thoughts and actions of staff in the workplace. 

            The rapid demand for university education without corresponding leadership styles and communication patterns to build a favourable organizational climate creates the problem of institutional effectiveness in Nigeria. Some university administrators tend to disengage members of staff from making suggestions regarding tasks to be done for attainment of set organizational goals. This is buttressed by the observation of Ndukwe, Ukeje and Onele (2016) which indicated that some university administrators apply undemocratic leadership style by not only denying members of staff the opportunity to participate in decision/policy making but force them to complete tasks against their wish. They added that this has created organization climate of disloyalty and distrust which tend to leads to formation of coalitions and cliques among staff in public universities in South East, Nigeria. Some administrators tend to be too harsh to staff and also demonstrate strictness by insisting on total compliance to lay down rules and procedures in public universities in South East, Nigeria. 

            There tends to be gap in the flow of information from the top-down and the bottom-up as it appears that communication from bottom-up is considered relevant only when problematic situation arises in public universities in South East, Nigeria. Badau (2018) observed that some administrators fail to respond when staff members bring up information or problems in Nigeria Universities. The author further noted that failure of university administrators to respond to request of members of staff will ultimately result in communication gaps. The communication gaps tends to make subordinates feel under-valued and left out in the affairs of universities which breed gossips, rumours and distrust that create unhealthy organizational climate. Nebo, Nwankwo and Okonkwo (2015) noted that the constant delay in accessing information by staff of universities in South East, Nigeria seems to create unfavourable organizational climate. This background prompted the investigation into communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria.

Statement of the Problem

            The hostile, unsupportive and unhealthy atmosphere of some public universities in South East is probably due to untimely dissemination of information, closed-minded leadership behaviours of the university administrators and their leadership styles of ignoring of staff’s suggestions on crucial matters which breed misunderstanding and confrontation. Inputs of some lecturers that tend to be sought during decision-making process appear to be hardly taken into considerations before deciding on university affairs in South East, Nigeria. Communication channels put by in place by some administrators tend to distract, interrupt and impede the flow of information from bottom-up in public universities in South East, Nigeria. Some administrators seem to be bossy, harsh and rely on the use threats to get work done by subordinates. 

            The hostile nature of some universities atmosphere in South East, Nigeria may be connected to communication gaps and rigid leadership behaviour of university administrators. The communication gaps could be associated with rumours and confusion in universities in South East, Nigeria. Some lecturers who are not well communicated about their roles by administrators are more likely to misunderstand their job requirements and expectations which undermine the success of the universities. The negative reactions of lecturers to the breakdown in communication in some universities in South East have somehow been reflecting in their absenteeism, low team spirit, grudges and poor interpersonal relationship with administrators. This prompted this study to investigate communication patterns and leadership styles of administrators as correlates of organizational climate in south-east universities. 

Purpose of the Study 

            The study determined the communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. Specifically, it determined 

  1. Downward communication pattern of administrators as correlates of organizational climate in South East, Universities.
  2. Horizontal communication pattern of administrators as correlates of organizational climate in South East, Universities.
  3. Democratic leadership style of administrators as correlates of organizational climate in South East, Universities.
  4. Autocratic leadership style of administrators as correlates of organizational climate in South East, universities.
  5. Communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria

Research Questions 

            The following research questions guided the study:

  1. What is the relationship between downward communication pattern of administrators and organizational climate in South East, Universities? 
  2. What is the relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities? 
  3. What is the relationship between democratic leadership style of administrators and organizational climate in South East, Universities? 
  4. What is the relationship between autocratic leadership style of administrators as correlates of organizational climate in South East, universities? 
  5. What is the relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria

Hypotheses  

            The following null hypotheses were tested at 0.05 level of significance: 

  1. There is no significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 
  2. There is no significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 
  3. There is no significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 
  4. There is no significant relationship between autocratic leadership style of administrators as correlates of organizational climate in South East, universities. 
  5. There is no significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Methods

            Correlation research design was adopted for this study. According to Nworgu (2015), this type of study seeks to establish what relationship exists between two or more variables. This design is appropriate since the study sought to collect data from respondents in order to investigate communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. The study was conducted in South East, Nigeria which is bounded in the east by Benue and Cross River States, in the west by Delta State, in the North by Kogi State and in the South by Akwa Ibom and Rivers States. South East Nigeria has five states namely; Abia, Anambra, Ebonyi, Enugu and Imo States. 

            The population of the study comprised 749 administrators in public universities in South East, Nigeria. The sample for the study comprised 300 administrators drawn using proportionate stratified sampling technique. The sample size was 40% of the population of the study. 

            Three sets of instruments titled Communication Patterns Questionnaire (CPQ), Leadership Styles Questionnaire (LSQ) and Organizational Climate Scale (QCS) were used to collect data.  The first instrument titled CPQ was developed by the researcher from literature review and consultation of experts in the field of education. The instrument which measured communication patterns contains 14 items spread two clusters (1-2). Cluster 1 contained 7 items on downward communication pattern and Cluster 2 contained 7 items on horizontal communication pattern. The second instrument titled LSQ was developed by the researcher from literature review and consultation of experts in the field of education. The instrument which measured leadership styles contained 19 items spread three clusters (I-II). Cluster I contained 10 items on democratic leadership style and Cluster II contained 9 items on autocratic leadership style. The third instrument titled OCS was adopted from Pena-Suarez, Muniz, Campillo-Alvarez, Fonseca-Pedrero and Garcia-Cueto (2013). The instrument contained 25 items which measured organizational culture. The items of the three sets of instruments are placed on a 4-point rating of Strongly Agree (SA), Agree (A), Disagree (D) and Strongly Disagree (SD) weighted 4, 3, 2 and 1 respectively. 

            The instruments were subjected to face validation by three experts, two in the Department of Educational Management and Policy, and one in Measurement and Evaluation in the Department of Educational Foundations, all in the Faculty of Education, Nnamdi Azikiwe University, Awka. The researcher presented the title, purpose of the study, research questions and hypotheses with a copy of the questionnaires to the three experts and requested them to examine and scrutinize the items in terms of relevance, suitability, clarity of instruction and content coverage. The experts suggested among others that leading statements should be provided in all clusters and some items should be restructured. Their suggestions were used to produce the final version of the instrument. The reliability of the instruments were ascertained through Cronbach alpha. The internal consistency coefficient values of 0.81 and 0.79 were obtained for Cluster 1 and 2 of CPQ with overall reliability coefficient value of 0.80. On the other hand, the internal consistency coefficient values of 0.84 and 0.80 were obtained for Cluster I and II of LSQ with overall reliability coefficient value of 0.82, while the coefficient obtained for OCS was 0.82. 

            The researcher with the help of four research assistants who are lecturers in public universities in South East administered copies of the questionnaires to the respondents through a direct approach. A total of 300 copies of the questionnaires were distributed and 291 were properly filled and successfully retrieved indicating 97% return rate. The copies of the questionnaires distributed, duly filled and successfully retrieved were used for data analysis. Data collected were analyzed using Pearson’s Product Moment Correlation Coefficient to answer the research questions 1-6, t-test of correlation to test the hypotheses 1-8 and multiple regression to answer research question 9 and test hypothesis 9. For decision on the research questions, the coefficient r and the size of the relationship was interpreted using the correlation coefficient by Alsagr (2021), as follows

Coefficient                              Relationship

.00- .19                                    Weak correlation 

.20- .39                                    Fair correlation 

.40- .69                                    Moderate correlation 

.70- .89                                    Strong correlation 

.90- .1.00                                 Very strong correlation  

            In taking decisions on the null hypotheses, if p-value is equal to or less (≤) than significant value of .05, the null hypothesis was rejected, but if p-value is greater than (>), the significant value of .05 the null hypotheses was accepted.

Results

Research Question 1: What is the relationship between downward communication pattern of administrators and organizational climate in South East, Universities? 

VariablesN Downward Communication Pattern   Organizational Climate Remarks
Downward Communication Pattern2911.00.759 Strong Positive Relationship 
Organizational Climate 291.759        1.00 

Table 1: Pearson (r) on Relationship Downward Communication Pattern of Administrators and Organizational Climate 

            Result in Table 1 revealed that Pearson’s correlation coefficient (r) of .759 was obtained. This showed that there is strong positive relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This indicated that an improvement in downward communication pattern of administrators will contribute to positive organizational climate. 

Research Question 2: What is the relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities? 

VariablesN Horizontal Communication Pattern   Organizational Climate Remarks
Horizontal Communication Pattern2911.00.715 Strong Positive Relationship 
Organizational Climate 291.715        1.00 

Table 2: Pearson (r) on Relationship Horizontal Communication Pattern of Administrators and Organizational Climate 

            Table 2 indicated that a Pearson’s correlation coefficient (r) of .715 was obtained. This showed that there is strong positive relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This indicated that increase in horizontal communication pattern of administrators will lead to better organizational climate. 

Research Question 3: What is the relationship between democratic leadership style of administrators and organizational climate in South East, Universities? 

VariablesN Democratic Leadership Style Organizational Climate Remarks
Democratic Leadership Style 2911.00.818 Strong Positive Relationship 
Organizational Climate 291.818        1.00 

Table 3: Pearson (r) on Relationship Democratic Leadership Style of Administrators and Organizational Climate 

            As shown in Table 3, Pearson’s correlation coefficient (r) of .818 was obtained. This showed that there is strong positive relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This indicated that improvement on the democratic leadership style of administrators will contribute to better organizational climate. 

Research Question 4: What is the relationship between autocratic leadership style of administrators and organizational climate in South East, Universities? 

VariablesN Autocratic Leadership Style Organizational Climate Remarks
Autocratic Leadership Style 2911.00.309 Fair Positive Relationship 
Organizational Climate 291.309        1.00 

Table 4: Pearson (r) on Relationship Autocratic Leadership Style of Administrators and Organizational Climate 

            Table 4 indicated that a Pearson’s correlation coefficient (r) of .309 was obtained. This showed that there is fair positive relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This indicated that autocratic leadership style of administrators will contribute to fair organizational climate. 

Research Question 5: What is the relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria?

ModelR R SquareAdjusted R SquareStd. Error of the Estimate Remarks 
.876.767.762.283658Strong

Table 5: The Summary of Multiple Regression Analysis on Communication Patterns and Leadership Styles of Administrators as Correlates of Organizational Culture

Table 5 showed that correlation coefficient of simple regression analysis is .876 with a coefficient of determination of .767. This shows that 76.7% variation in organizational Climate can be attributed to communication patterns, leadership styles of administrators. The regression Coefficient r of .876 indicated that there is strong positive relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. 

Hypothesis One: There is no significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 

Table 6: The Summary of t-test of Correlation on the Significant Relationship between Downward Communication Pattern of Administrators and Organizational Climate

Variables NDownward Communication Pattern Organizational Climate P-ValueRemark
Downward Communication Pattern 2911.759   
    .000.05Rejected
Organizational Climate 291.7591   

Table 6 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 

Hypothesis Two: There is no significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 

Table 7: The Summary of t-test of Correlation on the Significant Relationship between Horizontal Communication Pattern of Administrators and Organizational Climate

Variables NHorizontal Communication Pattern Organizational Climate P-ValueRemark
Horizontal Communication Pattern2911.715   
    .000.05Rejected
Organizational Climate 291.7151   

The result presented in Table 7 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 

Hypothesis Three: There is no significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 

Table 8: The Summary of t-test of Correlation on the Significant Relationship between Democratic Leadership Style of Administrators and Organizational Climate

Variables NDemocratic Leadership Pattern Organizational Climate P-ValueRemark
Democratic Leadership Style 2911.818   
    .000.05Rejected
Organizational Climate 291.8181   

The result presented in Table 8 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 

Hypothesis Four: There is no significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. 

Table 9: The Summary of t-test of Correlation on the Significant Relationship between Autocratic Leadership Style of Administrators and Organizational Climate

Variables NAutocratic Leadership Pattern Organizational Climate P-ValueRemark
Autocratic Leadership Style 2911.309   
    .000.05Rejected
Organizational Climate 291.3091   

Table 9 showed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. 

Hypothesis Five: There is no significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Table 10: The Summary of Multiple Regression Analysis on Communication Patterns and Leadership Styles of Administrators as Correlates of Organizational Climate 

PredictorR R2FP-valueRemark
Communication Patterns and Leadership Styles.876 .767158.856.000*S
*Significant       

            As shown in Table 10, the multiple regression coefficient (R) is .876 while the R2 is .767 showing that communication patterns and leadership styles of administrators make 76.7% contribution to the variance organizational climate. The F (1/291) =158.556 and the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Discussion 

            The result of the study indicated that there is strong positive relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This is in conformity with the finding of Thet and Htarr (2020) which indicated that there was positively strong relationship between principals’ downward communication pattern and school climate. The agreement in findings could be associated with the fact that the two studies were conducted in educational institutions where administrators give instructions and provide directions using downward communication pattern. This is in disagreement with the finding of This contradicted the finding of Sapian, Abdullah, Ghani, Abdullah and Omar (2019) which indicated that there was moderate relationship between principals’ downward communication pattern and school climate. The difference in geographical locations where there are different policies guiding downward communication pattern. This finding is explained by the fact that downward communication pattern is a means of providing instructions and disseminating information on policies, rules and work procedures enable subordinate become aware of their job roles and expected behaviour contribute to strong organizational climate. Downward communication pattern is strongly correlated with organizational climate due to the fact that it helps to keep members of staff up-dated and well-informed of tasks to be done and how to execute the tasks. The university administrators through downward communication pattern delegate duties and instill a sense of responsibilities to subordinates which contribute ton strong organizational climate.

            Further result indicated that there is significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This is in line with the finding of Thet and Htarr (2020) which revealed that there was significant relationship between principals’ downward communication pattern and school climate. The university administrators give order and directives to the subordinates through downward communication pattern to ensure uniformity and compliance to standard mode of operations which explain the significant relationship with organizational climate. The mission and values of universities shared with members of staff through downward communication pattern enable them understand the expected attitude towards achieving the values which thereby create favourable organizational climate. 

            It was revealed that indicated that there is strong positive relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This is in agreement with the finding of Lannes (2021) which showed a strong positive correlation between organizational horizontal communication and organizational climate. Horizontal communication pattern which ensures unity of purpose among departments or teams at the same level in universities could explain the strong relationship with organizational culture. Members of staff with the same job title could work together to achieve interdependent goals through horizontal communication pattern. Some departments who are dependent on one another for vital information in executing tasks could create strong organizational climate through horizontal communication pattern. The opportunity in which horizontal communication pattern provides for staff at the same level to communicate directly without going through the university administrators could account for the strong relationship with organizational climate. 

            Further finding showed that there is significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This affirmed the finding of Sidiropoulou (2021) which showed a significant correlation between organizational horizontal communication and organizational climate. Horizontal communication pattern which facilitates information sharing and task coordination between departments or units could account for the significant relationship with organizational climate. 

            The finding of the study indicated that there is strong positive relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This supported the finding of Zamin and Hussin (2021) which showed there was a strong positive relationship between democratic leadership style and work climate. This is also in line with the finding of Barnova, Trelova, Krasna, Benova, Hasajova and Gabrhelova (2022) which indicated democratic leadership style has strong correlation with school climate. The agreement in the findings of the studies could be connected to the fact that the two studies were conducted in educational institutions. This finding is probably due to the fact that democratic leadership style which empowers subordinates to participate in decision-making process could make them feel valued and thereby create strong and healthy organizational climate. Open discussion and sharing of new idea encouraged by administrators who apply democratic leadership style lead to feeling of trust, loyalty and team cohesion could be connected with the strong relationship with organizational climate. Members of staff feel more involved, committed and inspired to take action that foster healthy organizational climate through their inputs and ideas solicited by democratic administrators. 

            Further result showed that there is significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This is in consonance with the finding of Barnova, Trelova, Krasna, Benova, Hasajova and Gabrhelova (2022) which showed democratic leadership style has significant correlation with school climate. University administrators who apply democratic style inspire trust and respect among subordinates which could account for the significant relationship with organizational climate. University administrators who apply democratic leadership style delegate responsibilities, foster participatory management and team work which help to build strong organizational climate. 

            The result of the study indicated that there is fair positive relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This agreed with the finding of Zamin and Hussin (2021) which revealed that there was a fair positive and significant relationship between autocratic leadership style and work culture. This disagreed with the finding of Philip, Ibrahim and Yussof (2020) which revealed that there exist weak relationship between autocratic leadership style and organizational climate. The difference in geographical location could explain the disagreement in findings. The autocratic administrators who deprive subordinates the opportunities to make inputs and provide feedback on the affairs of university lead to feeling of mistrust and this breeds misunderstanding which could explain the fair relationship with organizational climate. The absolute control over subordinates by administrators who apply autocratic leadership impair creative ideas and inputs that tend to lead to physical confrontation which could contribute to the fair relationship with organizational climate. Autocratic administrators fail to value the suggestions of subordinates decrease their morale and create unfair organizational climate. 

            Further finding showed that there is significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This refuted the finding of Philip, Ibrahim and Yussof (2020) which showed that there was no significant relationship between autocratic leadership style and organizational climate. This disagreed with the finding of Ngoma, Sakakombe and Kabeta (2019) which indicated that the relationship between autocratic leadership style and school climate was not statistically significant. This disagreement could be attributed to the fact that the studies were conducted in different levels of education where the school administrators have different qualifications and experience that guide their use of autocratic leadership style to shape the school climate.  

            It was showed that there is strong positive relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. This supported the finding of Witarini and Sriathi (2020) which showed that there is joint strong relationship between leadership styles, effective communication and organizational climate. This finding is explained by the fact that communication patterns and leadership styles of administrators determine the social norms, values and expected behaviour that forms the organizational climate of universities. The interaction of administrators with subordinates, decision-making process as well as work procedures which are instrumental in creating strong organizational climate is determined by the communication patterns and leadership styles in universities. 

            Further result showed that there is significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. This agreed with the finding of Witarini and Sriathi (2020) which showed that there is significant relationship between leadership styles, effective communication and organizational climate. This finding is explained by the fact that the flow of information determined by communication patterns of administrators as well as their leadership styles which influence the work behaviour of staff could significantly create the organizational climate of universities. 

Conclusion

            Based on the findings, it was concluded that the communication patterns and leadership styles of administrators have positive and significant relationship with organizational climate in South East, Universities. Communication patterns and leadership styles of administrators help to convey information about core values, mission and expected behaviour that create organizational culture of universities. It is the patterns of communication and styles of leadership that could inspire open discussion, good interpersonal relationship, teamwork and honest feedback that strongly shape the organizational culture of universities.

Recommendations 

            Based on the findings of the study, the following recommendations were made: 

  1. University management should formulate programme and modalities that encourage downward communication pattern by creating innovative channels for timely dissemination of information to members of staff and students for healthy organizational climate.
  2. University council should create flowchart that provide details of communication between departments or units with regard to frequency and mode of communication which will foster horizontal communication pattern and strongly improve organizational climate. 
  3. University administrators should practice democratic leadership style by encouraging open communication and friendly environment that embolden subordinates to express how they think and feel things could be done to strongly create healthy organizational climate. 
  4. University administrators should modify their autocratic leadership style by considering the inputs of subordinates in operation of daily affairs to create positive organizational climate. 
  5. University management should organize training programmes in forms of annually or quarterly conferences, seminars, short-courses and workshops to enable administrators acquire skills and knowledge of applying communication patterns and leadership styles to create positive organizational climate. 

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Communication Patterns and Leadership Styles of Administrators as Correlates of Organizational Climate in South East, Universities, Nigeria.

Ezeobi, Blessing Chijindu & Prof. Nkechi Ikediugwu 

Department of Educational Management and Policy

Faculty of Education,

Nnamdi Azikiwe University, Awka

Abstract 

The study investigated communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. Five research questions guided the study and five null hypotheses were tested at 0.05 level of significance. Correlation research design was adopted for the study. The population of the study comprised 749 administrators in public universities in South East, Nigeria. A sample size of 300 administrators was drawn for the study using proportionate stratified sampling techniques. A researcher developed questionnaires titled ‘‘Communication Patterns Questionnaire (CPQ)’’, ‘‘Leadership Styles Questionnaire (LSQ)’’ and ‘‘Organizational Climate Scale (QCS)’’ were used for data collection. The instruments were validated by three experts, two from the Department of Educational Management and Policy, and one from the Department of Educational Foundations, Nnamdi Azikiwe University. Cronbach alpha was used for a test of internal consistency of the instruments which yielded overall co-efficient values of 0.80, 0.82 and 0.82 for CPQ, LSQ and OCS respectively. The researcher together with four research assistants collected data for the study using the direct approach method and 97% return was recorded. Pearson Product Moment Correlational Coefficient was used to answer the research questions 1-4 and t-test of correlation to test hypotheses 1-4, while multiple regression was used to answer research question 5 and test hypothesis 5. The findings of the study revealed among others that downward and horizontal communication patterns of administrators have strong positive relationship with organization climate. Further results indicted that democratic leadership style of administrators has strong positive relationship with organizational climate in public universities South East, Nigeria. It was also revealed that all dimensions of communication patterns and leadership styles of administrators have significant relationship with organizational climate in South East, Universities, Nigeria. Based on the findings, it was recommended among others that university management should organize training programmes in forms of annually or quarterly conferences, seminars, short-courses and workshops to enable administrators acquire skills and knowledge of applying communication patterns and leadership styles to create positive organizational climate. 

Key words: Communication Patterns, Leadership styles, Downward, Horizontal, Administrators, Organizational Climate

Introduction 

Higher education is the post secondary level of education that enables individuals to gain knowledge and acquire skills to improve their sources of livelihood and also contribute to the development of the society. It also inculcates sound moral values and character that promotes peaceful coexistence of individuals in the society. Federal Republic of Nigeria (2013) noted that higher education is the education given after post basic education in institutions such as Colleges of Education, Monotechnics, Polytechnics, Universities and other specialized institutions such as Colleges of Agriculture, School of Health and Technology and the National Teachers’ Institutes (NTI). The focus of this study is on university.  

            University is an institution of higher learning where people study to acquire knowledge, shape their character and obtain degrees in different disciplines.  Tofi, Agada and Okafor (2020) opined that university is the foremost tertiary institution in Nigeria with responsibility for equipping people with knowledge and skills to undertake tasks and employment functions which are necessary for transformation of societies. The authors added that the functions of university in Nigeria include: teaching, research, production of texts, certification, storage and retrieval of knowledge, community service and enlightenment service. Universities offer opportunity for people to study at an undergraduate level for first degrees and at postgraduate level for advanced degrees. Similarly, Asuquo and Ekpoh (2020) opined that as the apex of education, every university is expected to generate knowledge, ideas, skills and disseminate same through teaching, learning, research and community services. 

            There are public and private universities in Nigeria which are regulated by National Universities Commission. The focus of the study is on the public universities which are established, financed and managed by State or Federal Government. Akpakwu and Okwo (2014) noted that the State and Federal Universities in Nigeria are composed of members of Governing Council, Vice-Chancellors, Principals officers, Administrators (Deans and Heads of Departments (HODs), academic and non-academic staff. The administrators control the daily activities of academic and non-academic. The university administrators inform and clarify members of staff of their job responsibilities and expectations through communication. 

            Communication is the act of disseminating information, passing message and expressing feelings among two or persons. According to Akarika, Umoren and Okon (2021), communication is an expression of thoughts, feelings, ideas and messages from the sender to the receiver through verbal, non-verbal, written and non-written forms. It is a process by which individuals exchange information, share ideas, provide facts, express their thoughts, feelings and values in a given setting. University administrators disseminate information and influence the activities of members of staff through different communication patterns. 

            Communication patterns are the channels and strategies employed by workforce of an organization in passing messages, sharing ideas and feelings among each other. According to Weldeghebriel, Mberia and Ndavula (2019), communication patterns deal with how information flows for smooth and better functioning of an organization. Communication patterns are techniques for creating, sending, and receiving information in the workplace. Fiel-Miranda and Miranda (2019) defined communication patterns as the ways of transmitting ideas, facts, thoughts, feelings and values between two or more persons. It is the structure in which information flow in an organization. Contextually, communication patterns are the sets of lines or flows of information by words, writing, symbols, body languages and other mediums. Several scholars identified communication pattern as follow: upward, downward and horizontal patterns (Badau, 2018; Joda, 2022, Akarika, Umoren and Okon, 2022; Uwandu, Udo-Anyanwu and Okorie, 2022). The focus of the study is on downward and horizontal patterns of communication.

            Downward communication pattern is the flow of information from superiors to subordinates in an organization. Job descriptions, policies and goals of an organization are made known to subordinates through downward communication pattern. Ogunola and Akporaro (2015) asserted that when managers, supervisors, and team leaders communicate with the employees that are directly under them, downward communication is used. Continuing, they stressed that it is used to assign goals, provide job instructions, inform employees of policies and procedures, point out problems that need attention, and offer feedback about performance. The administrators who send letters to lecturers to informing them of deadline for lectures delivery and commencement of examinations have applied downward communication pattern. Badau (2018) pointed out that university leaders, from central office administrators to building-level administrators, communicate downward to members of academic and non-academic staff through speeches, messages in University bulletins, University board policy manuals, and school procedure handbooks.  They added that the types of messages transmitted through downward pattern of communication are job instructions, job rationales and practices information, feedback and indoctrination. Some of the information communicated downward could be discussed and disseminated among staff of the same level through horizontal communication pattern.

            Horizontal communication pattern is the style of exchanging information among members of staff across the same level or rank in an organization. Joda (2022) noted that horizontal communication is the transmission of information between people, divisions, departments or units within the same level of organizational hierarchy. Horizontal communication pattern helps to improve coordination between departments in the university. Badau (2018) noted that information disseminated through horizontal communication pattern is basically for coordination to tie together activities within or across departments on a single school campus or within divisions in a school-wide organisational system. Horizontal communication pattern takes place, when there is exchange of information among Heads of Departments, Divisional Heads and Unit Heads among others. Hee, Qin, Kowang, Husin and Ping (2019) asserted that horizontal communication pattern is useful in coordinating the activities of different departments in an organization. They added that it contributes in developing stronger relationship among staff in both similar department and different departments in an organization. The flow of information in universities could be enhanced by the leadership style of administrators. 

            Leadership styles are strategies adopted by administrators to influence and control the efforts of staff towards attainment of set goals and objectives. Leadership styles are series of approaches adopted by management towards ensuring members of staff diligently execute their duties. Dzakpasu, Amankwah, Konin and Amanfo (2022) defined leadership styles as the patterns of the manager’s interaction or behaviour in guiding, structuring and facilitating activitiesand relationships in a school. Leadership styles are the behavioural patterns of operating the activities of an organization and influencing the efforts of members of staff to attain common goals. Narad, Kaitano and Lakhanpal (2020) definedleadership styles as the behavioural patterns that a leader adopt to influence and motivate the attitude of the followers to accomplish given objectives.  Leadership styles are the peculiar ways of influencing the conduct of staff in the workplace. Operationally, leadership styles are the ways and approaches in which administrators provides direction, control and influence the activities of staff toward realising predetermined objectives. The leadership styles could inspire, demoralize or encourage the contribution of subordinates towards the attainment of set goals. Several scholars have outlined leadership styles as follows: democratic, autocratic and laissez-faires (Jideofor, 2022; Mohammad, Alam, Amin and Alam, 2019). This study focused on three leadership styles namely democratic, autocratic and laissez-faires because they influence the behaviour of staff in an organization. 

            The democratic leadership style is an approach of leading by participation and collaboration of subordinates. The university administrators who apply democratic leadership style seek the opinions of the subordinates before taking decisions on the affairs of the institutions. Achimugu and Obaka (2020) posited that the suggestions, recommendations, opinions and views of the subordinates who are affected by decisions are actively sought by administrators who apply democratic leadership style. They further asserted that democratic leaders encourage staff and students to participate actively, thereby making them feel engaged and motivated to attain predetermined goals and objectives of the institution. The democratic style of leadership encourages use of initiatives and promotes creativity as the inputs of lecturers are highly valued. Okoroma and Agbo (2022) posited that democratic leadership style encourages trust, promotes team work and cooperation among employees. They added that this leadership style makes workers to be motivated to do more as they are usually part of the entire process of reaching decision. The administrators who adopt democratic leadership style tend to treat members of staff with kindness, respect and fairness.  The administrators who use threats to get things done have applied autocratic leadership style,

            Autocratic leadership style is characterised by the use punishment, threat, rules and regulations to guide the conduct of staff in an organization. Ziduli, Molepo, Buka and Jadezweni (2018) pointed out that autocratic leaders do not consult members of the organization in the decision-making process; they set all policies, predetermine the methods of work, determine the duties of followers, specify technical and performance evaluation standards. Autocratic administrators dictate all activities and work procedures in an organization.  Jideofor (2022) asserted that autocratic leadership style is a self-centred leadership approach in which the superiors provide clear expectations of what needs to be done, when it should be done and how it should be done. Administrators who adopt autocratic style of leadership issue orders and give directives that must be obeyed by subordinates without any question. Achimugu and Obaka (2020) averred that autocratic style of leadership often engenders anger, frustration, despair, and in extreme cases withdrawal from school activities. Under autocratic style of leadership, there is limited freedom because of the domineering control by the administrators. Autocratic leadership style of administrators is likely to shape organizational climate of the university.

            Organizational climate is the perception of the staff about the norms, practices and expectations in the work environment. Ezinine and Ughamadu (2021) defined organizational climate as the behavioural pattern, structure, norms, values, and traditions of a college that distinguish it from other organizations. Organizational climate is the shared beliefs and values that guide the work behaviour of staff of an establishment.  According to Bello and Oredein (2022), organizational climate is the norms, goals, values, interpersonal relationships, teaching, learning, management practices and structure of a workplace. Organizational climate is a set of characteristics, feelings and work norms which is created from the way an organization deals with its members. Operationally, organizational climate is core sets of norms, shared values and perceptions that influence the thoughts and actions of staff in the workplace. 

            The rapid demand for university education without corresponding leadership styles and communication patterns to build a favourable organizational climate creates the problem of institutional effectiveness in Nigeria. Some university administrators tend to disengage members of staff from making suggestions regarding tasks to be done for attainment of set organizational goals. This is buttressed by the observation of Ndukwe, Ukeje and Onele (2016) which indicated that some university administrators apply undemocratic leadership style by not only denying members of staff the opportunity to participate in decision/policy making but force them to complete tasks against their wish. They added that this has created organization climate of disloyalty and distrust which tend to leads to formation of coalitions and cliques among staff in public universities in South East, Nigeria. Some administrators tend to be too harsh to staff and also demonstrate strictness by insisting on total compliance to lay down rules and procedures in public universities in South East, Nigeria. 

            There tends to be gap in the flow of information from the top-down and the bottom-up as it appears that communication from bottom-up is considered relevant only when problematic situation arises in public universities in South East, Nigeria. Badau (2018) observed that some administrators fail to respond when staff members bring up information or problems in Nigeria Universities. The author further noted that failure of university administrators to respond to request of members of staff will ultimately result in communication gaps. The communication gaps tends to make subordinates feel under-valued and left out in the affairs of universities which breed gossips, rumours and distrust that create unhealthy organizational climate. Nebo, Nwankwo and Okonkwo (2015) noted that the constant delay in accessing information by staff of universities in South East, Nigeria seems to create unfavourable organizational climate. This background prompted the investigation into communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria.

Statement of the Problem

            The hostile, unsupportive and unhealthy atmosphere of some public universities in South East is probably due to untimely dissemination of information, closed-minded leadership behaviours of the university administrators and their leadership styles of ignoring of staff’s suggestions on crucial matters which breed misunderstanding and confrontation. Inputs of some lecturers that tend to be sought during decision-making process appear to be hardly taken into considerations before deciding on university affairs in South East, Nigeria. Communication channels put by in place by some administrators tend to distract, interrupt and impede the flow of information from bottom-up in public universities in South East, Nigeria. Some administrators seem to be bossy, harsh and rely on the use threats to get work done by subordinates. 

            The hostile nature of some universities atmosphere in South East, Nigeria may be connected to communication gaps and rigid leadership behaviour of university administrators. The communication gaps could be associated with rumours and confusion in universities in South East, Nigeria. Some lecturers who are not well communicated about their roles by administrators are more likely to misunderstand their job requirements and expectations which undermine the success of the universities. The negative reactions of lecturers to the breakdown in communication in some universities in South East have somehow been reflecting in their absenteeism, low team spirit, grudges and poor interpersonal relationship with administrators. This prompted this study to investigate communication patterns and leadership styles of administrators as correlates of organizational climate in south-east universities. 

Purpose of the Study 

            The study determined the communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. Specifically, it determined 

  1. Downward communication pattern of administrators as correlates of organizational climate in South East, Universities.
  2. Horizontal communication pattern of administrators as correlates of organizational climate in South East, Universities.
  3. Democratic leadership style of administrators as correlates of organizational climate in South East, Universities.
  4. Autocratic leadership style of administrators as correlates of organizational climate in South East, universities.
  5. Communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria

Research Questions 

            The following research questions guided the study:

  1. What is the relationship between downward communication pattern of administrators and organizational climate in South East, Universities? 
  2. What is the relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities? 
  3. What is the relationship between democratic leadership style of administrators and organizational climate in South East, Universities? 
  4. What is the relationship between autocratic leadership style of administrators as correlates of organizational climate in South East, universities? 
  5. What is the relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria

Hypotheses  

            The following null hypotheses were tested at 0.05 level of significance: 

  1. There is no significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 
  2. There is no significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 
  3. There is no significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 
  4. There is no significant relationship between autocratic leadership style of administrators as correlates of organizational climate in South East, universities. 
  5. There is no significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Methods

            Correlation research design was adopted for this study. According to Nworgu (2015), this type of study seeks to establish what relationship exists between two or more variables. This design is appropriate since the study sought to collect data from respondents in order to investigate communication patterns and leadership styles of administrators as correlates of organizational climate in South East, Universities, Nigeria. The study was conducted in South East, Nigeria which is bounded in the east by Benue and Cross River States, in the west by Delta State, in the North by Kogi State and in the South by Akwa Ibom and Rivers States. South East Nigeria has five states namely; Abia, Anambra, Ebonyi, Enugu and Imo States. 

            The population of the study comprised 749 administrators in public universities in South East, Nigeria. The sample for the study comprised 300 administrators drawn using proportionate stratified sampling technique. The sample size was 40% of the population of the study. 

            Three sets of instruments titled Communication Patterns Questionnaire (CPQ), Leadership Styles Questionnaire (LSQ) and Organizational Climate Scale (QCS) were used to collect data.  The first instrument titled CPQ was developed by the researcher from literature review and consultation of experts in the field of education. The instrument which measured communication patterns contains 14 items spread two clusters (1-2). Cluster 1 contained 7 items on downward communication pattern and Cluster 2 contained 7 items on horizontal communication pattern. The second instrument titled LSQ was developed by the researcher from literature review and consultation of experts in the field of education. The instrument which measured leadership styles contained 19 items spread three clusters (I-II). Cluster I contained 10 items on democratic leadership style and Cluster II contained 9 items on autocratic leadership style. The third instrument titled OCS was adopted from Pena-Suarez, Muniz, Campillo-Alvarez, Fonseca-Pedrero and Garcia-Cueto (2013). The instrument contained 25 items which measured organizational culture. The items of the three sets of instruments are placed on a 4-point rating of Strongly Agree (SA), Agree (A), Disagree (D) and Strongly Disagree (SD) weighted 4, 3, 2 and 1 respectively. 

            The instruments were subjected to face validation by three experts, two in the Department of Educational Management and Policy, and one in Measurement and Evaluation in the Department of Educational Foundations, all in the Faculty of Education, Nnamdi Azikiwe University, Awka. The researcher presented the title, purpose of the study, research questions and hypotheses with a copy of the questionnaires to the three experts and requested them to examine and scrutinize the items in terms of relevance, suitability, clarity of instruction and content coverage. The experts suggested among others that leading statements should be provided in all clusters and some items should be restructured. Their suggestions were used to produce the final version of the instrument. The reliability of the instruments were ascertained through Cronbach alpha. The internal consistency coefficient values of 0.81 and 0.79 were obtained for Cluster 1 and 2 of CPQ with overall reliability coefficient value of 0.80. On the other hand, the internal consistency coefficient values of 0.84 and 0.80 were obtained for Cluster I and II of LSQ with overall reliability coefficient value of 0.82, while the coefficient obtained for OCS was 0.82. 

            The researcher with the help of four research assistants who are lecturers in public universities in South East administered copies of the questionnaires to the respondents through a direct approach. A total of 300 copies of the questionnaires were distributed and 291 were properly filled and successfully retrieved indicating 97% return rate. The copies of the questionnaires distributed, duly filled and successfully retrieved were used for data analysis. Data collected were analyzed using Pearson’s Product Moment Correlation Coefficient to answer the research questions 1-6, t-test of correlation to test the hypotheses 1-8 and multiple regression to answer research question 9 and test hypothesis 9. For decision on the research questions, the coefficient r and the size of the relationship was interpreted using the correlation coefficient by Alsagr (2021), as follows

Coefficient                              Relationship

.00- .19                                    Weak correlation 

.20- .39                                    Fair correlation 

.40- .69                                    Moderate correlation 

.70- .89                                    Strong correlation 

.90- .1.00                                 Very strong correlation  

            In taking decisions on the null hypotheses, if p-value is equal to or less (≤) than significant value of .05, the null hypothesis was rejected, but if p-value is greater than (>), the significant value of .05 the null hypotheses was accepted.

Results

Research Question 1: What is the relationship between downward communication pattern of administrators and organizational climate in South East, Universities? 

VariablesN Downward Communication Pattern   Organizational Climate Remarks
Downward Communication Pattern2911.00.759 Strong Positive Relationship 
Organizational Climate 291.759        1.00 

Table 1: Pearson (r) on Relationship Downward Communication Pattern of Administrators and Organizational Climate 

            Result in Table 1 revealed that Pearson’s correlation coefficient (r) of .759 was obtained. This showed that there is strong positive relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This indicated that an improvement in downward communication pattern of administrators will contribute to positive organizational climate. 

Research Question 2: What is the relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities? 

VariablesN Horizontal Communication Pattern   Organizational Climate Remarks
Horizontal Communication Pattern2911.00.715 Strong Positive Relationship 
Organizational Climate 291.715        1.00 

Table 2: Pearson (r) on Relationship Horizontal Communication Pattern of Administrators and Organizational Climate 

            Table 2 indicated that a Pearson’s correlation coefficient (r) of .715 was obtained. This showed that there is strong positive relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This indicated that increase in horizontal communication pattern of administrators will lead to better organizational climate. 

Research Question 3: What is the relationship between democratic leadership style of administrators and organizational climate in South East, Universities? 

VariablesN Democratic Leadership Style Organizational Climate Remarks
Democratic Leadership Style 2911.00.818 Strong Positive Relationship 
Organizational Climate 291.818        1.00 

Table 3: Pearson (r) on Relationship Democratic Leadership Style of Administrators and Organizational Climate 

            As shown in Table 3, Pearson’s correlation coefficient (r) of .818 was obtained. This showed that there is strong positive relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This indicated that improvement on the democratic leadership style of administrators will contribute to better organizational climate. 

Research Question 4: What is the relationship between autocratic leadership style of administrators and organizational climate in South East, Universities? 

VariablesN Autocratic Leadership Style Organizational Climate Remarks
Autocratic Leadership Style 2911.00.309 Fair Positive Relationship 
Organizational Climate 291.309        1.00 

Table 4: Pearson (r) on Relationship Autocratic Leadership Style of Administrators and Organizational Climate 

            Table 4 indicated that a Pearson’s correlation coefficient (r) of .309 was obtained. This showed that there is fair positive relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This indicated that autocratic leadership style of administrators will contribute to fair organizational climate. 

Research Question 5: What is the relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria?

ModelR R SquareAdjusted R SquareStd. Error of the Estimate Remarks 
.876.767.762.283658Strong

Table 5: The Summary of Multiple Regression Analysis on Communication Patterns and Leadership Styles of Administrators as Correlates of Organizational Culture

Table 5 showed that correlation coefficient of simple regression analysis is .876 with a coefficient of determination of .767. This shows that 76.7% variation in organizational Climate can be attributed to communication patterns, leadership styles of administrators. The regression Coefficient r of .876 indicated that there is strong positive relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. 

Hypothesis One: There is no significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 

Table 6: The Summary of t-test of Correlation on the Significant Relationship between Downward Communication Pattern of Administrators and Organizational Climate

Variables NDownward Communication Pattern Organizational Climate P-ValueRemark
Downward Communication Pattern 2911.759   
    .000.05Rejected
Organizational Climate 291.7591   

Table 6 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. 

Hypothesis Two: There is no significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 

Table 7: The Summary of t-test of Correlation on the Significant Relationship between Horizontal Communication Pattern of Administrators and Organizational Climate

Variables NHorizontal Communication Pattern Organizational Climate P-ValueRemark
Horizontal Communication Pattern2911.715   
    .000.05Rejected
Organizational Climate 291.7151   

The result presented in Table 7 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. 

Hypothesis Three: There is no significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 

Table 8: The Summary of t-test of Correlation on the Significant Relationship between Democratic Leadership Style of Administrators and Organizational Climate

Variables NDemocratic Leadership Pattern Organizational Climate P-ValueRemark
Democratic Leadership Style 2911.818   
    .000.05Rejected
Organizational Climate 291.8181   

The result presented in Table 8 revealed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. 

Hypothesis Four: There is no significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. 

Table 9: The Summary of t-test of Correlation on the Significant Relationship between Autocratic Leadership Style of Administrators and Organizational Climate

Variables NAutocratic Leadership Pattern Organizational Climate P-ValueRemark
Autocratic Leadership Style 2911.309   
    .000.05Rejected
Organizational Climate 291.3091   

Table 9 showed that the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. 

Hypothesis Five: There is no significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Table 10: The Summary of Multiple Regression Analysis on Communication Patterns and Leadership Styles of Administrators as Correlates of Organizational Climate 

PredictorR R2FP-valueRemark
Communication Patterns and Leadership Styles.876 .767158.856.000*S
*Significant       

            As shown in Table 10, the multiple regression coefficient (R) is .876 while the R2 is .767 showing that communication patterns and leadership styles of administrators make 76.7% contribution to the variance organizational climate. The F (1/291) =158.556 and the p-value of .000 is less than .05. Therefore, since the p-value is less than the stipulated .05 level of significance, the null hypothesis was rejected. Therefore, there is significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria.

Discussion 

            The result of the study indicated that there is strong positive relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This is in conformity with the finding of Thet and Htarr (2020) which indicated that there was positively strong relationship between principals’ downward communication pattern and school climate. The agreement in findings could be associated with the fact that the two studies were conducted in educational institutions where administrators give instructions and provide directions using downward communication pattern. This is in disagreement with the finding of This contradicted the finding of Sapian, Abdullah, Ghani, Abdullah and Omar (2019) which indicated that there was moderate relationship between principals’ downward communication pattern and school climate. The difference in geographical locations where there are different policies guiding downward communication pattern. This finding is explained by the fact that downward communication pattern is a means of providing instructions and disseminating information on policies, rules and work procedures enable subordinate become aware of their job roles and expected behaviour contribute to strong organizational climate. Downward communication pattern is strongly correlated with organizational climate due to the fact that it helps to keep members of staff up-dated and well-informed of tasks to be done and how to execute the tasks. The university administrators through downward communication pattern delegate duties and instill a sense of responsibilities to subordinates which contribute ton strong organizational climate.

            Further result indicated that there is significant relationship between downward communication pattern of administrators and organizational climate in South East, Universities. This is in line with the finding of Thet and Htarr (2020) which revealed that there was significant relationship between principals’ downward communication pattern and school climate. The university administrators give order and directives to the subordinates through downward communication pattern to ensure uniformity and compliance to standard mode of operations which explain the significant relationship with organizational climate. The mission and values of universities shared with members of staff through downward communication pattern enable them understand the expected attitude towards achieving the values which thereby create favourable organizational climate. 

            It was revealed that indicated that there is strong positive relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This is in agreement with the finding of Lannes (2021) which showed a strong positive correlation between organizational horizontal communication and organizational climate. Horizontal communication pattern which ensures unity of purpose among departments or teams at the same level in universities could explain the strong relationship with organizational culture. Members of staff with the same job title could work together to achieve interdependent goals through horizontal communication pattern. Some departments who are dependent on one another for vital information in executing tasks could create strong organizational climate through horizontal communication pattern. The opportunity in which horizontal communication pattern provides for staff at the same level to communicate directly without going through the university administrators could account for the strong relationship with organizational climate. 

            Further finding showed that there is significant relationship between horizontal communication pattern of administrators and organizational climate in South East, Universities. This affirmed the finding of Sidiropoulou (2021) which showed a significant correlation between organizational horizontal communication and organizational climate. Horizontal communication pattern which facilitates information sharing and task coordination between departments or units could account for the significant relationship with organizational climate. 

            The finding of the study indicated that there is strong positive relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This supported the finding of Zamin and Hussin (2021) which showed there was a strong positive relationship between democratic leadership style and work climate. This is also in line with the finding of Barnova, Trelova, Krasna, Benova, Hasajova and Gabrhelova (2022) which indicated democratic leadership style has strong correlation with school climate. The agreement in the findings of the studies could be connected to the fact that the two studies were conducted in educational institutions. This finding is probably due to the fact that democratic leadership style which empowers subordinates to participate in decision-making process could make them feel valued and thereby create strong and healthy organizational climate. Open discussion and sharing of new idea encouraged by administrators who apply democratic leadership style lead to feeling of trust, loyalty and team cohesion could be connected with the strong relationship with organizational climate. Members of staff feel more involved, committed and inspired to take action that foster healthy organizational climate through their inputs and ideas solicited by democratic administrators. 

            Further result showed that there is significant relationship between democratic leadership style of administrators and organizational climate in South East, Universities. This is in consonance with the finding of Barnova, Trelova, Krasna, Benova, Hasajova and Gabrhelova (2022) which showed democratic leadership style has significant correlation with school climate. University administrators who apply democratic style inspire trust and respect among subordinates which could account for the significant relationship with organizational climate. University administrators who apply democratic leadership style delegate responsibilities, foster participatory management and team work which help to build strong organizational climate. 

            The result of the study indicated that there is fair positive relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This agreed with the finding of Zamin and Hussin (2021) which revealed that there was a fair positive and significant relationship between autocratic leadership style and work culture. This disagreed with the finding of Philip, Ibrahim and Yussof (2020) which revealed that there exist weak relationship between autocratic leadership style and organizational climate. The difference in geographical location could explain the disagreement in findings. The autocratic administrators who deprive subordinates the opportunities to make inputs and provide feedback on the affairs of university lead to feeling of mistrust and this breeds misunderstanding which could explain the fair relationship with organizational climate. The absolute control over subordinates by administrators who apply autocratic leadership impair creative ideas and inputs that tend to lead to physical confrontation which could contribute to the fair relationship with organizational climate. Autocratic administrators fail to value the suggestions of subordinates decrease their morale and create unfair organizational climate. 

            Further finding showed that there is significant relationship between autocratic leadership style of administrators and organizational climate in South East, Universities. This refuted the finding of Philip, Ibrahim and Yussof (2020) which showed that there was no significant relationship between autocratic leadership style and organizational climate. This disagreed with the finding of Ngoma, Sakakombe and Kabeta (2019) which indicated that the relationship between autocratic leadership style and school climate was not statistically significant. This disagreement could be attributed to the fact that the studies were conducted in different levels of education where the school administrators have different qualifications and experience that guide their use of autocratic leadership style to shape the school climate.  

            It was showed that there is strong positive relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. This supported the finding of Witarini and Sriathi (2020) which showed that there is joint strong relationship between leadership styles, effective communication and organizational climate. This finding is explained by the fact that communication patterns and leadership styles of administrators determine the social norms, values and expected behaviour that forms the organizational climate of universities. The interaction of administrators with subordinates, decision-making process as well as work procedures which are instrumental in creating strong organizational climate is determined by the communication patterns and leadership styles in universities. 

            Further result showed that there is significant relationship between communication patterns, leadership styles of administrators and organizational climate in South East, Universities, Nigeria. This agreed with the finding of Witarini and Sriathi (2020) which showed that there is significant relationship between leadership styles, effective communication and organizational climate. This finding is explained by the fact that the flow of information determined by communication patterns of administrators as well as their leadership styles which influence the work behaviour of staff could significantly create the organizational climate of universities. 

Conclusion

            Based on the findings, it was concluded that the communication patterns and leadership styles of administrators have positive and significant relationship with organizational climate in South East, Universities. Communication patterns and leadership styles of administrators help to convey information about core values, mission and expected behaviour that create organizational culture of universities. It is the patterns of communication and styles of leadership that could inspire open discussion, good interpersonal relationship, teamwork and honest feedback that strongly shape the organizational culture of universities.

Recommendations 

            Based on the findings of the study, the following recommendations were made: 

  1. University management should formulate programme and modalities that encourage downward communication pattern by creating innovative channels for timely dissemination of information to members of staff and students for healthy organizational climate.
  2. University council should create flowchart that provide details of communication between departments or units with regard to frequency and mode of communication which will foster horizontal communication pattern and strongly improve organizational climate. 
  3. University administrators should practice democratic leadership style by encouraging open communication and friendly environment that embolden subordinates to express how they think and feel things could be done to strongly create healthy organizational climate. 
  4. University administrators should modify their autocratic leadership style by considering the inputs of subordinates in operation of daily affairs to create positive organizational climate. 
  5. University management should organize training programmes in forms of annually or quarterly conferences, seminars, short-courses and workshops to enable administrators acquire skills and knowledge of applying communication patterns and leadership styles to create positive organizational climate. 

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The Lived Experiences of Covid-19 Survivors in Surigao City

Lucy L. Teves, PhD, RN (Orcid No. 0000-0003-0939-2824)

Joyce B. Bailo (Orcid No. 0009-0004-5068-7311)

Mark John E. Omandam (Orcid No. 0009-0005-5588-1452)

Abstract

The study explored the lived experiences of COVID-19 survivors in Surigao City. This qualitative study used Colaizzi’s (1978) descriptive phenomenology. The researchers have had their informant sourcing completed using the purposive and snowball sampling methods to find the twelve (12) people needed for this study. The researchers have utilized a researcher-made semi-structured interview in data generation. Eight core emergent themes developed from the seventeen cluster themes that emerged during data analysis using Colaizzi’s (1978) method to describe the lived experiences of COVID-19 survivors. The data analysis findings allowed for an in-depth description of the phenomenon’s lived experience. Even though treatments and a cure for COVID-19 are already available, the trauma it left behind remains, necessitating appropriate mental health intervention. However, comprehending survivors’ difficulties and psychological disturbances may aid mental health professionals in taking steps to mitigate their traumatic experiences. Consequently, the survivors may have varied experiences with COVID-19, yet they remain grateful, compassionate, and resilient despite their adversities.

Keywords: COVID-19 Survivors, Lived Experiences, Psychological & Physiological Disturbances, Vigilance, Spirituality, Resiliency

Introduction

Coronavirus Disease 2019 (COVID-19) has become a global issue due to its higher mortality rate and pandemic health crisis. According to Munawar and Choudhry (2021), healthcare systems and people must prepare medically and psychologically while the outbreak is still happening. However, a pandemic health crisis was inept in the Philippines, and no one prepared for the outbreak. A lot of medical frontliners died to save lives despiteuncertainty. According to World Health Organization (WHO) global figures, the COVID-19 death rate was 7% (Moradi et al., 2020).

Surigao City is in Mindanao, particularly in the Caraga region, and according to the Surigao City Planning Office (2022), the city’s total population is 171, 107 based on a 2020’s survey. In addition, Surigao City is one of the places where the disease entered and continuously spread. Surigao City reported in 2020 that the disease had begun to spread and afflicted several people. Based on the statistical data given, out of 371 (0.22%) cases in the year 2020, 36 people died. Therefore, 335 have recovered from the disease. In 2021, the total confirmed cases increased by up to 5.8%; the total recovered cases were 2,323, and the number of deaths was about 169 out of the 2,513 (1.5%) confirmed cases. In 2022, from January to February, the number of deaths based on the cumulative data was 179 out of 2,711 (1.6%) cases, and 2,509 have recovered. The data shows that the cases have increased by 7.9% regardless of whether the patient had experienced symptomatic, was asymptomatic, or had gone through an intensive care unit (ICU) (City Health Office, 2022).

Due to the anxiety and spirituality underlying the pandemic, the novel coronavirus disease (COVID-19) impacts many facets of people’s lives. However, mainly on mental health (Rathakrishnan et al., 2022), the situation prompted the researchers to conduct this study to explore the lived experiences of COVID-19 survivors and how they were affected psychosocially.

Philosophical Underpinnings

This study was a phenomenological approach. Phenomenology study explores lived experiences to learn more about how individuals interpret those experiences (Ho & Limpaecher, 2022). Following data collection and analysis using phenomenological psychological reduction, descriptive phenomenological techniques make an effort to characterize the experiences lived through (Meyer, 2019). Husserl’s phenomenological approach, on the other hand, is the study of human beings at a deeper level through observing phenomena. It is a philosophy and a method of inquiry used to understand the lived reality of human beings at a conscious level (morrow, 2018). Similarly, Colaizzi’s (1978) descriptive phenomenology is a way of thoroughly understanding people’s lived experiences rather than conceiving or developing theories as it reveals the experience of the phenomenon studied. 

Moreover, the researchers have also incorporated epistemology as a stance because the philosophy of knowing, epistemology, concerns how and from what sources information have gained. Regarding research, the researcher’s philosophical viewpoint on the world and knowledge significantly impacts how he or she interprets evidence. Hence, his or her philosophical position should be stated clearly from the beginning (Brown, 2022). In modern epistemology, phenomenology aids in defining the phenomena based on knowledge assertions, whereas phenomenology claims to gain first-person knowledge of the nature of consciousness through intuition (Smith, 2013). Equally important, an epistemological perspective provides a basis for predicting, describing, enabling, and deconstructing population-specific worldviews, expanding the body of knowledge that leads to a better understanding of qualitative research’s aim (Merriam, 2009, as cited by Hautly, 2020), as well as how you acquire and evaluate facts is heavily influenced by your understanding of knowledge and truth (Brown, 2022). Epistemology reflects researchers’ worldviews and guides how they conduct research (Cal & Tehmarn, n.d.). This premise is consistent with Husserl’s and Colaizzi’s phenomenology: gaining a conscious understanding of an individual’s lived experiences. For Colaizzi, using his method, people’s experiences can be consistently understood as it helps uncover authentic meanings (Wirihana et al., 2018). Moreover, the researchers chose Colaizzi’s phenomenology as it allows them to delve further into the lived experiences of COVID-19 survivors and explore their perspectives on the possible scenarios they have experienced. 

Colaizzi’s (1978) seven-stage process also ensures a thorough examination, with each phase remaining true to the facts. The outcome is a succinct yet comprehensive explanation of the phenomenon under investigation, validated by the people who generated it. The method relies upon comprehensive first-person accounts of experience gathered through face-to-face interviews, written narratives, blogs, research diaries, and internet interviews (Morrow et al., 2015). Furthermore, Colaizzi’s phenomenological approach of seven steps refers to transcribing all the subject’s description; extracting significant statements; creating formulated meanings; building themes; developing a detailed description; identifying the fundamental structure of the phenomenon; and returning to participants for validation. 

Methods and Materials

This study used a qualitative approach employing Colaizzi’s (1978) descriptive phenomenology to investigate and understand survivors’ life experiences, challenges, and well-being because of the Coronavirus Disease 2019. This method would also uncover the authentic experience of the phenomenon under research (Colaizzi, 1978). Through the colaizzi’s approach, the informants have shared their personal takes, perspectives, and situations, allowing the researchers to explore and assess these experiences extensively. 

The researchers completed their informant sourcing using the purposive and snowball sampling methods to find the twelve (12) people needed for this study. The age range of all the informants in this study was 28 to 65. The researchers interviewed one (1) businessman, 65, and one (1) businesswoman, 55. One (1) government employee, one (1) MEPEO section manager, and eight (8) policemen and policewomen ranging in age from 28 to 35. Thus, the researchers interviewed five (5) men and seven (7) women in this study. Furthermore, purposive sampling is a technique in which the researchers select informants who must meet the criteria needed in the study. This approach was appropriate for phenomenological studies because the informants must have experienced a particular phenomenon. On the other hand, the snowball sampling approach has helped the researchers find the informants through referrals. Hence, the study chose the informants based on the following inclusion criteria:

1. Those that have been diagnosed with COVID-19; 

2. Had been admitted at the hospital or admitted at COVID-19 facilities; and

3. Have fully recovered.

The researchers used a researcher-made semi-structured interview in data generation. The questions formulated aimed to understand the whole experience of the individuals within the current phenomenon. Probing questions served as manual questions to clarify and ensure the widespread points within the informants’ responses. Furthermore, the interviews began with small talk to build a rapport with each informant.

Results and Discussion

            The data gathered was analyzed using the Colaizzi’s phenomenological approach: transcribing all the subject’s description, extracting significant statements, creating formulated meanings, building themes, developing an exhaustive description, identifying the fundamental structure of the phenomenon, and returning to participants for validation. Results are shown in the following tables:

Table 1 shows The Psychological and Physiological Disturbances: Survivors’ psychological, emotional, and physical challenges have led to anxiety, fear, sadness, trauma, exhaustion, discomfort, and struggle. This theme was formulated out of the significant statements being extracted. The cluster themes formed are anxiety, fear, sadness, and trauma.

Reference NumberFormulated MeaningsCluster ThemesThemes
A10Avoiding social gatherings to prevent oneself from getting re-infected by the disease.           Anxiety                           The Psychological and Physiological Disturbances: Survivors’ psychological, emotional, and physical challenges have led to anxiety, fear, sadness, trauma, exhaustion, discomfort, and struggle       

B14
Persistent to be admitted to isolate oneself and prevent the disease from spreading inside the house and infecting loved ones.
C25Anxious as to when one would recover.
D30Anxious of being alone and having no one to talk to about what one’s going through.
D37Having lots of thoughts because of the situation one was in.
F42COVID has negatively affected the extraverts, as they get anxious in their surroundings.
F46Initiated to distance oneself, thinking that people might feel disgusted.
G54Tend to get more anxious about her hygiene. 
I57Having feelings of stress, hopelessness, and sadness when the swab test result was received.
I58Having anxiety because, as seen on television, many people died due to COVID.
L71Doesn’t like to talk about COVID-19 because it was so traumatizing that his brother died because of it. 
L78Disinfecting oneself with alcohol and wearing another set of clothes outside the house to avoid any trace of the virus.
A12Not attending the mass out of fear of getting infected again.             Fear 
A13Afraid of losing one’s life because of COVID.
C24Afraid of having physical contact with a stranger.
D29Keeping all of your pain to yourself and not telling your family about your situation.
D31Afraid that his family would feel frightened given the same experience he had with his brother.
D36Afraid that someone would make a hurtful or humiliating remark after the recovery.
F44Afraid that others would make a negative remark.
F47Feeling ashamed and one’s self-esteem were affected due to how she perceived things, such as the rules that should be followed and what someone would think of her.
I60Their car wash business was affected because no one wanted to have their car cleaned, afraid that they may get infected with the disease.
K67Afraid to infect her children.
L77Avoiding social interaction, even with friends, to avoid re-infection.
B18Feeling sad that a COVID patient would be buried without the presence of relatives.   Sadness
C27They were desperate to see their families because they were lonely.
J63They were lonely because they were not allowed to go outside to prevent the virus from spreading.
K66Felt sad when she found out that she tested positive for COVID.
 L70Had a traumatic experience with COVID-19 because his brother tested positive for the same diagnosis. Trauma
C20Having the feeling of discomfort and exhaustion because of the COVID symptoms. Exhaustion
C22Discomfort because of the sore throat. 
D28Having COVID symptoms was stressful. Discomfort 
D32Doesn’t want to make his family worry hence, handling the symptoms for ten days without letting his family know about it.       Struggle
G51Having a peculiar situation in which one cannot do the things she normally does.
G52One’s outgoing personality suffers as a result of isolation.
K65Had unidentified feelings and missed her loved ones.
K68COVID-19 symptoms were difficult to handle.
L73Having mental, emotional, and spiritual difficulties.

Table 2 shows the Vigilance of being the Carrier: The fear of disease transmission which has led to cautiousness, social responsibility, guilt, and sympathy.

A1Protecting oneself against the disease through isolation.                 Vigilance of being the Carrier: The fear of disease transmission which have led to cautiousness, social responsibility, guilt, and sympathy. 
A6Become more cautious. 
A9Not staying in the crowd to maintain social distancing. 
B14Insist on being admitted to isolation to prevent the disease from spreading inside the house and infecting loved ones. 
B19Become more cautious about one’s health. 
B15Showing concern and care for loved ones, thereby distancing oneself to prevent the virus from spreading.Cautiousness
F43Learning to adjust and distance oneself from others. 
G55Disinfecting oneself and changing of clothes before entering the house. 
A3Not afraid of losing income hence, closed the stores for the safety of everyone including their workers. 
A4Responsible enough to submit oneself and ask for medical professional help.  Social Responsibility
A5Providing support to workers who were diagnosed with COVID-19. 
E40Submitting oneself to professional help can prevent the virus from spreading. 
L72Feeling guilty and blaming herself for his brother’s death. 
L74Questioning God about his brother’s death when it should have been her since she supposes that she was the carrier of the virus that infected her brother.Guilt 
B17Showing care and sympathy with other patients who were unable to obtain their vital signs. 
D33Having sympathy for another patient who was unable to be isolated in a better facility.Sympathy
G53Showing more concern about others. 

Table 3 illustrates Spirituality: The outcome of one’s isolation became a sense of connection where strengthening of faith results in a realization, trust, opportunity, and appreciation.

A11Realizing that life is too short and putting one’s faith in God through praying.  Realization            Spirituality: The outcome of one’s isolation became a sense of connection where strengthening of faith results in a realization, trust, opportunity, and   
D38Realizing that life is too short and prevention is better than cure.
D39Asking for God’s help and enlightenment.
F50Realizing how beautiful life is and how it strengthens one’s relationship with God.
K69Recognizing the importance of prayer and how it can help you by alleviating your dilemmas.  
L75She was able to recover because of her faith in God.Faith
L76Has a firm belief in God and believes that everything, including his brother’s death, has a purpose. 
L80Faith in God has become stronger. 
B16Knowing how to obtain one’s vital signs was beneficial. 
I59COVID has helped her relax.Opportunity
I61Considering how beneficial her isolation was, as it helped her relax and set things aside for the meantime. 
F48Appreciating the lessons COVID has taught.Appreciation
F49COVID provided time to reflect and appreciate life. 
H56COVID-19 taught to appreciate life. 
L79Appreciating how beautiful life is. 

Table 4. Resiliency amidst COVID-19 Circumstance: The ability to adapt, accept and recover from the challenges, as well as the suffering and unpleasantness endured by the survivors, helps them gain resilience to face the trials.

 L81 Her experience made her become stronger.   Resilience Resiliency amidst COVID-19 Circumstance:The ability to adapt, accept and recover from the challenges
J64The quarantine had an impact on his job and parental responsibilities.Trial

Conclusion

            The lived experiences of COVID-19 survivors varied from one patient to another, resulting in four (4) emerging themes such as psychological and physiological disturbances, vigilance of being the carrier, spirituality, and resiliency amidst COVID-19 circumstance. Even if treatments and vaccines for COVID-19 are now available, the trauma it left behind is still present.

Moreover, the survivors have not heard nor received negative remarks about them being COVID patients isolated in a facility, but their families did. The survivors chose not to react and understand the people who discriminated against their family. Some of the survivors also mentioned that they did not feel any discrimination from people but received COVID jokes from their friends after recovering from the disease and returning to work. Even so, they still considered it as a friendly joke only. Furthermore, some survivors became grateful because they were asymptomatic, while those who were symptomatic, survived and their faith in God became stronger. Consequently, the survivors may have varied experiences with COVID-19, yet they remain grateful, compassionate, and resilient despite their adversities.

Implication

The following are the implications in light of the findings and conclusions:

COVID-19 Survivors. The findings of this study would make it possible for them to be heard and understood. May this study serve as how they can be helped and attain acceptance from society. The idea would make it easier for survivors to live without fear of discrimination or prejudice.

Citizens. The results of this research would enlighten the public regarding the experiences of COVID-19 survivors and what they have endured while coping with the disease. The findings would also help them realize that insensitive COVID remarks are never acceptable, regardless of the addressee. Therefore, sensitivity, understanding, and empathy are required to reduce such acts.

Practitioners in the Medical and Mental Health Fields. This study’s findings serve as a primary source for determining the effects of COVID-19 on infected individuals. They would aid in the development of a mental health intervention plan.

Government. The findings of this study could provide them with the knowledge and information they may seek about mental health and help them understand the experiences of COVID-19 survivors and develop initiatives to prevent discrimination.

Psychology Students. The findings of this study would assist them in determining the effectiveness of mental health concerning the COVID-19 survivors’ experiences and eradicating the stigma. 

Future Researchers. This study’s findings can serve as a foundation for future research. The results would also serve as a background or summary for topics related to COVID-19 and raise awareness of the struggles COVID-19 survivors confront.

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The Impact of Directors Remuneration on Financial Performance of Quoted Selected Firms in Nigeria

ESE Theresa Esenohor, Yakubu Abubakar, Orogun E. Simeon

College of Education, Warri

Abubakar Yak & Co Chartered Accountants

College of Education, Warri

Abstract

This study examines the impact of directors’ remuneration on financial performance of selected quoted firms in Nigeria. The study has been conducted in different parts of the globe and in Nigeria with different findings which are mixed and inconclusive. The population of the study consists of ten (10) firms quoted on the Nigerian stock exchange as at 31st December 2021 out of which ten (10) firms were selected as samples for a period of Ten (10) years from 2012 to 2021 based on purposeful sampling technique. The study uses Correlation matrix and OLS regression as tools for analysis and adopted the correlational research design. The study shows that Directors’ remuneration has a positive significant impact on financial performance of quoted selected firms in Nigeria.

Keywords: Directors, Remuneration, Leverage.

Introduction

Director Remuneration plays an important role in firms especially it impacts on firm’s financial performance.Directors’ remuneration is the full package of compensation received by a director from a company. It is seen beyond the salary, but can also include bonus payments, stocks, options to buy stocks, and other benefits. Tax consequences can restrict the way directors’ remuneration is calculated based on relevant legislations imposed on Companies. According to Ab Razak (2014), Directors’ remuneration is the payment made for services or employment of directors on the board of a company or corporation. Directors may be compensated by fee, salary, and or use of the company’s property as an agreement between them and the company. However, the amount of remuneration cannot exceed the amount specified in the articles of association (AOA) as stated in company law. Akter (2020) opined that Directors` pay will certainly impact positively on firm performance if the payment mechanism effectively elicits/incentivizes the board to do so. Thus, a positive impact of pay on performance indirectly reflects whether directors are paid for performance. On the other hand, the high levels of an interrelation exist between and within the remuneration packages for CEOs and board of directors with the indicators of corporate performance. The results showed that performance indicators and remuneration packages are positively correlated with each other (Aslam, Haron& Tahir 2019). Empirical studies conducted on the Directors Remuneration and financial performance which include studies Herdan & Szczepanska (2011), Ab Razak (2014), Razali, Yee, Hwangi, Tak, & Kadri (2018), Akter, Ali, Abedin, & Hossain, (2020) of are largely foreign. Most of studies conducted in Nigeria to the best of our knowledge concentrated on insurance firms, deposit money banks and Hospitality firms which could not provide adequate evidence on the impact of Directors remuneration on financial performance as far as selected firms in the Consumer goods and oil and gas sectors are concerned. Those studies have provided mixed and inconclusive findings due to the data collected, methodology used and the industry used and to the best of our knowledge, among studies conducted in Nigeria, we have not seen a study that took into consideration the selected quoted firms from Consumer goods and Oil and gas sectors. To this end, this study attempts to fill the gap by examining the impact of Directors remuneration on financial performance of selected quoted firms of Consumer goods and Oil and gas sectors in Nigeria. The main objective of the study is to examine the impact of Directors Remuneration on financial performance of quoted selected firms in Nigeria. The Specific objective of the study are to determine the extent to which Directors remuneration impact on financial performance of quoted selected firms in Nigeria. In line with the specific objective, a hypothesis was formulated which is: HO1 Directors remuneration has no significant impact on financial performance of quoted selected firms in Nigeria.

 Literature Review

Many studies have been conducted on the impact of Directors remuneration on financial performance. Herdan & Szczepanska (2011) opined the impact of Directors’ Remuneration and Companies’ Performance of Listed Companies in Poland and Uk. They said that companies size, accounting factor and market factor are three factors that affect CEO compensation.. They looked at the relationship between each of this factors and directors remuneration. Sample of companies listed on London Stock Exchange (LSE) and Warsaw Stock Exchange (WSE) for the period of 2007 – 2010. Data were collected through annual reports content analysis and announcement on websites of LSE and WSE. Linear regression was run on collected data. The results of the findings showed a positive correlation between directors’ remuneration and companies’ size in both British and Polish listed companies. There existed also a positive relationship between directors pay and companies performance. Ab Razak (2014) investigated the relationship between director’s remuneration, corporate governance structure and performance of a sample of 150 companies listed on the Bursa Malaysia from year 2008 until 2013. Sample was selected to provide matched-pair of government linked companies (GLCs) and non-government linked companies (non-GLCs), as it was anticipated that these group would have different governance structure, the key difference being government ownership. The result holds even when we control for company specific characteristic such as corporate governance, company size, leverage, director’s remuneration, board size and auditors. They used panel based regression model to examine the impact of government control mechanism on company performance using two important measurers. Accounting based measure was proxies by ROA and non-accounting based measured by Tobin’s Q. The result of the study showed a significant impact of government ownership on company performance after controlling for company specific characteristics. Lawrence (2020) examined the impact of directors’ remuneration on firms’ performance of Thirteen (13) commercial banks listed on the Nigerian Stock Exchange from 2010 to 2017.  Descriptive Statistics, Correlation Matrix, and the Ordinary Least Square Regression Techniques were used in analyzing the related data set. The results of the study revealed that there is no significant relationship between directors’ remuneration (proxy as directors’ salary and bonus share) and firm’s performance in terms of shareholders’ value of Tobin Q, among listed banks in Nigeria. Razali, etal (2018) examined the Impact of Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry. Firm performances are measured by return on assets (ROA) and return on equities (ROE). A sample of 40Malaysian listed companies for the period of 2012to 2014 was employed. After controlling forboard size, CEO duality, firm size, firm age and leverage, the results of the study revealed that director remuneration has positive relationship with firm performance measured by ROA and ROE. The result also shows all variables affect firm performance differently.  Ahmed, Bahamman, & Abdulkarim (2020) examined the effect of  directors’ remuneration on financial performance of listed insurance companies in Nigeria. Data was gotten from annual reports and accounts of listed Insurance companies in Nigeria from 2012 to 2017. The Population of the study was all 28 insurance companies listed on the floor of the Nigerian stock exchange market, out of which 19 insurance companies were randomly selected as sample for the study. Data was analyzed using pooled OLS, fixed and random effects regression. It was found that directors’ remuneration is positively and significantly related to financial performance at 10% level of significance. On the interaction variables, it was found that the presence of more independent directors on the board strengthens the positive impact of directors’ remuneration on firm performance. Otekunrin etal (2018) studied the impact of Directors Compensation on firm performance using selected general insurance companies as a case study. Eight general insurance companies which were listed in Nigeria Stock Exchange (NSE) were used from 2009-2013. The time frame used considered the recapitalization in the insurance industry that occurred in 2007. They made use of secondary data which were collected from the published annual reports of the eight (8) general insurance companies under study. The data was analyzed using the regression analysis. Return on Assets (ROA) and net claims paid (NC) were used to establish a relationship between with directors’ compensation. The results of the study revealed a significant relationship between annual directors’ compensation and firm performance of the general insurance companies. It also showed a significant but negative relationship between directors compensation and Return on asset, while that of net claims paid was significantly positive. Akter etal (2020), Directors’ Remuneration and Performance: Evidence from the Textile Sector of Bangladesh, They used Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) from 2011 to 2017 resulting in a total of 140 firm-year observations. They used directors’ remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results of the study showed that there existed a negative association between board remuneration and firm performance. They found no significant relationship between board independence and firm performance of the sample firms. John etal (2019) studied the effect of Directors’ Remuneration on Financial performance; Evidence from the Nigerian Hospitality industry. They employed ex-post facto research design using panel data from 2009 to 2018. The scope of the study comprised of the three hotels listed in the Nigerian Stock Exchange as at December 2018. Necessary data were obtained from the audited financial reports of the selected companies. The results of the regression analysis revealed a positive significant relationship between directors’ remuneration and corporate financial performance. Drake & Kevin (2003) examined the impact of Executive remuneration and firm performance: Evidence from a panel of Mutual organizations. The relationship between the remuneration of: the highest paid director (HPD), mean Board remuneration (Director), and the Chairperson of the Board (Chair) and firm-level performance were examined on a panel of mutual building societies from 1991 to 1996. Profitability and the change in total factor productivity (TFP were two measures of performance employed. The result of the study showed a strong positive relationship between profitability and pay is found for the HPD but not for the Director or Chair. The relationship between pay and TFP change is generally weak for all three measures of executive remuneration. A strong relationship between size and the executive remuneration measures is found, particularly for the Director.  Singhal & Agrawal (2022) studied the Impact of director’s Remuneration on financial performance of top 10 BSE Listed companies from. 2019-2021Financial performance of the company was measured by various financial ratios i.e. NPR, DE, ROCE, CR, ROA. Secondary data were collected from the official website of the company. E views were used to investigate the correlation between Directors remuneration and financial performance. The result of the study indicates that director’s remuneration has significant impact on financial performance. Saidu, Bello & Jibril (2017), Executive Compensation and Financial Performance; Industry Sensitivity Test. They used ex post-facto research design to test its objectives using ten years data drawn from banking and construction industries with results obtained from data analysis using both descriptive and inferential statistics. The result of the study showed that both correlation and OLS results revealed significantly negative and positive results on banking and construction industries respectively. Capuano (2022) investigated the impact of directors’ remuneration on bank performance: Evidence in the US for the period 1999–2021. They focused on the remuneration of the chief executive officer (CEO), neglecting that of the board members. The scientific analysis methodology was adopted based on the analysis of panel data. The results of the data analysis made it possible to highlight the existence of a significant link between the remuneration policies adopted by banks concerning the corporate results obtained in terms of profitability. Secondly, the results showed differences, in terms of impact on banking performance, between the remuneration of chief executive officers and the remuneration of directors. Aslam, Haron& Tahir 2019. Studied How director remuneration impacts firm performance: An empirical analysis of executive director remuneration in Pakistan, They used GMM approach to account for the problem of potential endogeneity and unobserved heterogeneity that arises due to the potential reverse causality (pay and performance) for a sample of non-financial firms listed in the KSE from 2009 to2016. They supported the agency theory whereby CEOs/board of directors is compensated for their prior level of market-based performance. In addition, it weakly supports the notion of the steward/tournament theory. The result of the study revealed that CEOs/board director’s remuneration is highly persistent and takes time to adjust to long-run equilibrium.

Methodology

This research adopted correlation research design and was considered adequate and appropriate for this study because it describes the statistical relationship between the independent variable of the study (Directors remuneration) and the dependent variable (Return on Equity). The population consists of selected firms from Oil and Gas and Consumer goods Sector namely Conoil Plc, Champion Breweries Plc, Dangote Sugar Refinery Plc, Flour Mills Nigeria Plc, Forte Oil Plc, Honeywell Flour Mills Plc, MRS oil Nigeria Plc, Nestle Nigeria Plc, Oando Plc, Total Nigeria Plc quoted on the Nigerian Stock Exchange as at 31st December 2021 and covered a period of Ten (10) years (2012-2021). Purposeful sampling technique was employed to select the sample. The sample selected was in line with this, the sample size is all the ten (10) selected quoted firms on the Nigerian stock exchange namely Conoil Plc, Champion Breweries Plc, Dangote Sugar Refinery Plc, Flour Mills Nigeria Plc, Forte Oil Plc, Honeywell Flour Mills Plc, MRS oil Nigeria Plc, Nestle Nigeria Plc, Oando Plc, Total Nigeria Plc. The study employed panel data using statistical package for social sciences (SPSS 25) and Ordinary Least Square (OLS) method adopted in this study is a parametric statistical test that is based on a number of assumptions, the violation of which could affect the reliability of the results. The Pearson correlation and t-test statistics were used for inferential analysis. Two of the most commonly encountered problems addressed in this study relate to normal distribution of the variables and descriptive statistics was used to test for normality of data.

 Model Specification

The model that was used to test the hypothesis formulated for this study is presented below. The null Hypothesis is tested considering the results for the P-values at 1%, 5% and 10% level of significance.

ROE = f (DIREREβ1+ LEVβ2)

ROE = α + β1DIRERE + LEVβ2+ ϵi

Where

α= the intercept

ROE = Profit after Tax divided by Total Equity.

DIRERE= the Total amount of Expenditure incurred on Directors remuneration for the year

LEV = the total liabilities divided by total assets.

ϵi= error term

Leverage is a controls variable.

Data Presentation

This part presents the results of the descriptive statistics and regression results on the impact of Directors remuneration on financial performance of selected quoted firms in Nigeria. One explanatory variable and One (1) control variable are employed for the purpose of explaining and predicting the impact of Director Remuneration on financial performance of selected quoted firms in Nigeria.

Test of Normality

The normality tests are supplementary to the graphical assessment of normality. For this study, Z skewness and Z Kurtosis are used to test for normality of the One (1) independent variable; namely Directors remuneration. The Z skewness was computed as skewness divided by standard error of skewness and the Z kurtosis was computed as kurtosis divided by standard error of kurtosis.

Table 4.2.1 shows the skewness, kurtosis and Z skewness and Z kurtosis.

Table 1 Descriptive Statistics Table for the Variables

VariablesSkewnessStandard ErrorZ SkewnessKurtosisStandard ErrorZ Kurtosis
DIRERE2.4610.24110.215.5590.47811.63

This table shows the normality test for Director Remuneration

 In Small samples like that of this study which the number of observations is 100, values of Z skewness and Z kurtosis greater or lesser than 1.96 are sufficient to establish normality of the data. The result of Skewness for Directors remuneration is 2.461. The Z skewness of Directors remuneration is 10.21 which is more than 1.96 shows that the data is normal which indicates that the data for Directors remuneration relates linearly to the dependent variable (Return on Equity). The results of the Kurtosis for Directors remuneration is 5.559 and the Z kurtosis of Directors remuneration is 11.63 is more than 1.96 and therefore, is normal which indicates that the data for Directors remuneration relates linearly to the dependent variable (Return on Equity). Ghasemi and Zahediasl (2012).

Table 2.  Correlational Matrix of Independent and Dependent Variables

 DIRERELEVROEDIRERE     0.2840.004 ***0.4630.000 ***LEV0.2840.004*** 0.4690.000ROE0.463 .000 ***0.4690.000 ***      
Source: Author’s computation using SPSS 25The symbol * represents significant at 10%The symbol ** represents significant at 5%     
The symbol ***represents significant at 1%The results from the table above shows that Directors remuneration correlates positively with the dependent variable (Return on Equity) at 1% level of significant. Directors’ remuneration correlates positively with the control variable (Leverage) at 1% level of significant. The implication of the result is that a higher directors’ remuneration is able to motivate and retain directors in order to perform their duty and work harder for the best interest of shareholders which will result in better financial performance.       

Table 3. OLS Regression Results Directors Remuneration impact on Financial performance

Variable CoefficientT – valueP – value
Constant0.1472.8110.006
DIRERE0.3584.1590.000
LEV0.3674.2650.000
0.582  
R20.338  
Adj R20.325  
F stat24.785  
F-Sig0.000  
DW1.950  

Source: Author’s computation using SPSS 25

            The estimated equation of the study is presented as follows:

            ROE = 0.147 + 0.358 (DIRERE) + 0.367 (LEV).

Financial performance measured by Return on Equity would be equal to 0.147 when all other variables are held to zero. One-unit change of Directors remuneration all other variables remain constant, would increase Director Remuneration by 0.147. The regression result of the study shows that the beta coefficient in respect of Directors remuneration is (0.358) and the t-value is (4.159) and it is significant at 1%. This means that, as far as selected firms of oil and gas and consumer goods sectors are concerned, Directors remuneration has significant impact on financial performance of quoted selected firms in Nigeria. The implication of this is that, a higher directors’ remuneration is able to motivate and retain directors in order to perform their duty and work harder for the best interest of shareholders which will result in better financial performance. This provides an evidence of rejecting the hypothesis stating that Directors remuneration has no significant impact on financial performance of quoted selected firms in Nigeria. 

The overall impact Directors remuneration of is able to explain the dependent variable up to (58%). This shows a positive relationship as indicated by the R value and the remaining (42%) are controlled by other factors. Similarly, the result of the F- statistic shows the overall fitness of the model. The F- statistic has a value of (24.785) and is significant at 1% which implies that the model is fit because it is significant at all levels of significant. Durbin Watson of (1.950) shows that there is no problem of autocorrelation in the data set (Gujarati, 2004).

 Findings of the Study

 Directors’ remuneration has significant impact on financial performance of quoted selected firms in Nigeria which is in line with the findings of Herdan & Szczepanska (2011), John etal (2019) and Razali, etal (2018).

Conclusions

This study has contributed to findings on Accounting Research in Nigeria. It investigated whether Directors remuneration impacted on financial performance of quoted selected firms in Nigeria. The study concludes that Directors remuneration has a positive significant impact on financial performance of quoted selected Oil and gas and consumer goods firms in Nigeria. 

References

Ab Razak, N.H (2014), Director remuneration, corporate governance and performance: A comparaison Between Government linked companies vs. Non-government linked companies, Corporate Board: Role, Duties & Composition, Volume 10, Issue 2.

Akter, S., Ali, H.M .,Abedin, T.M Hossain, B. (2020), Directors’ Remuneration and Performance: Evidence from the Textile Sector of Bangladesh , / Journal of Asian Finance, Economics and Business Vol 7 No 6 (2020) 265-275 265,doi:10.13106/jafeb.2020.vol7.no6.265 

Aslam, E., Haron, R. & Tahir, N. (2019). How director remuneration impacts firm performance: An empirical analysis of executive director remuneration in Pakistan, Borsa Istanbul Review, http://www.elsevier.com/journals/borsa-istanbul-review/2214-8450.

Capuano, P. (2022) Impact of Directors’ Remuneration on Banks’ Performance: Evidence in the US Banking System, Corporate Board: Role, Duties and Composition, Volume 18, Issue 3.

Drake, K. & Kevin, L. (2003), Executive remuneration and Firm performance: Evidence from a panel of Mutual organizations, Department of Economics, University of Leicester, Leicester, LE1 7RH, UK.

Gujarati (2004), Basic Econometrics, Fourth edition.

Ghasemi and Zahediasl (2012), Normality Test For Statistical Analysis: A Guide for Non- Statisticians, International Journal of Endocrinology and Metabolism.

Herdan & Szczepanska (2011),  Directors remuneration and Companies’ performance of Listed Companies in Poland and Uk, Foundations of Management, Vol. 3, No. 2, ISSN 2080-7279.

John, O.A., Odutola, J.O., Taofiki, A.T. & Olurotimi, E.O. (2019), Directors’ remuneration and Financial performance: Evidence from the Nigerian Hospitality Industry, Fountain University Osogbo Journal of Management (FUOJM), Volume 4(2), Page 105 – 111

Lawrence (2020) The impact of Director’s remuneration on Firms’ Performance Evidence: a Study of Nigerian Banking Sector, TUJAMSS, Vol. 7, No. 1.

Otekunrin, A.O., Nwanji, T. I. Ajayi, S., Dayo, F., Falaye, A.A.J., Eluyela, D. F. (2018), Directors Compensation on firm performance of quoted selected Firms, Journal of Social Sciences and Public Policy, Volume 10, Number 2.

Razali, M.W.M., Yee, S., Hwangi, Y., Tak, A.B & Kadri, N. (2018), Directors’ Remuneration and Firm’s Performance: A Study on Malaysian Listed Firm under Consumer Product Industry, International Business Research; Vol. 11, No. 5, ISSN 1913-9004.

Singhal & Agrawal (2022), the Impact of director’s Remuneration on financial performance of top 10 BSE Listed, Journal of Pharmaceutical Negative Results, Volume 13 Special Issue 7 

Nurses Attitude towards Psychiatric Patients with an Aggressive Behaviors at Saudia Arabia Psychiatric Hospital

1*Faisal Wahaq D. Alotaibi2Faris Saeed Almalki3Faisal Raffaa H. Aljuaid,

4Yasir Mutlaq M. Al-zaidi,5Fahad Saud Alharthi6Hani Hilal S. Almalki,7Naif Mohmmed A. Alharthi,8Ghaidaa Khalid Khurmi,9Uthman Abdullah Mohammed Albeshi,10 Sultan Dhaifallah Awadh Alharbi,11Khadra Abdullah Alawali,12Barakat Hussain Asiri, 13Mobarak Fadel Aldosary

Abstract

 Background: psychiatric nurses care for hospital patients with
behavioral health conditions.. 

Objectives:  The current study aimed to assess attitude towards Psychiatric,

 Patients with Aggressive Behaviors at Saudia arabia Psychiatric Hospitals.

 Materials and methods:    

Descriptive cross sectional hospital based design was used to conduct this study at a Psychiatric Hospital in Saudia arabia. The target population consisted of 60 nurses employed at the Saudia arabia Psychiatric Hospital. Structured questionnaires were distributed to the participants for data collection.  Data analysis was done using a Statistical Package for Social Science, version 24, and nominal as well as ordinal data was analyzed using descriptive analysis.  

Results: The study found that nurses had strong perception in environment perspective and managing aggressive respectively behavior of person with mental illness (PMI). Nurses trained in psychiatry have attitude regarding management of violent behavior. Hence it is recommended that nurses should inculcate behavioral change communication among psychiatric patients.

Conclusion:   The results of the study have indicated that nurses have acceptable attitude of psychiatric patient aggression and its management. Nurses should be given proper training to enhance their competencies in aggression management.

  KeywordsAttitude, Psychiatric, Saudia arabia psychotic hospital

  1. Introduction:

Mental illness is becoming more common than many other illnesses such as heart disease cancer and diabetes. Patient aggression or violence against psychiatric nurses is a global problem.  (Ministry of Health, 2008) These nurses therefore face the following major challenges of provide nursing care to aggressive psychotic patients.

Nurses serve as the frontline care providers in a nation’s health care system.

   Nurse is necessary acquire the knowledge and skills necessary to manage aggressive patients with mental disorders without getting hurt in the process. To do this, we need to educate psychiatric nurses. They are also trained to understand mental illness and how it affects their behavior. (Ministry of Health, 2008) 

Mental illness has a significant impact on individual and collective health. Disability more serious than physical illness. Physical ailments include, among others risk of injury, cardiovascular disease, and HIV (human immunodeficiency virus) major contributors to disease burden (Corrigall et al., 2007). However, according to World Health Organization (2004), 5 of the 10 leading causes of disability in the world, it’s a mental illness. These include major depression, schizophrenia, Bipolar disorder, panic disorder, alcohol use disorder. This highlights the burden incurred due to mental illness in psychiatric services.

Attacks on mentally ill patients are seen as a major challenge nationally and internationally. Chen et al., (2005), reported those nurses’ experiences of aggression or patient violence is an internationally anticipated occupational hazard.  From a survey of mental health and learning disabilities in patient wards, nurses were consistently higher, with up to 86% of nurses being affected by violence and aggression patient behavior. Duxbury and Wright (2011) and American Psychiatric Nurses   Association (2007) adds that patient aggression in healthcare settings raises safety concerns for both patients and staff. Workplace violence in healthcare is seen as it is an epidemic by different authors because it has been reported in almost every country in the world (Kennedy et al.,   2009).  In a study conducted by Inoue et al. (2006) tudy at two hospitals in Japan to assess the psychological impact of verbal abuse or violence by patients on nurses working in psychiatric departments and to identify factors related to their impact. Findings from this study revealed that exposure to aggressive behaviour could lead to long term psychological effects, such as burnout and psychological distress of nurses, which would ultimately affect the quality of care provided to patients (Inoue et al., 2006). Also Papadopoulos et al., (2012) assert that violence and aggression cause a negative effect on staff performance including a high rate of absenteeism, high stress levels and low staff morale. In a South African study conducted by Kennedy and Julie (2013) on nurses‟ experience and understanding of workplace violence in trauma and emergency departments, the authors allude to nurses experiencing physical threats, verbal abuse, psychological and imminent violence on a regular basis. These authors also assert that nurses tended to normalize abusive behavior as it was perceived „to come with territory. The present study aimed to assess attitude towards Psychiatric Patients with an Aggressive Behaviors at Saudia arabia Psychiatric Hospital.

MATERIALS AND METHODS:

The study design was a quantitative descriptive cross sectional hospital study. 

STUDY AREA

This study was conducted in Altif Erada Complex and Mental health as psychotic hospital.

 The population chosen for this study includes registered nurses as well as nursing unit managers working in Altif psychiatric hospital. 

  1. SELECTION CRITERIA

1.2.4.1. Inclusion criteria:

The inclusion criteria for those eligible for the study was include male and female registered nurses and nursing unit managers who have worked in Altif psychiatric hospital.  

1.2.4.2. Exclusion criteria:

Those who were not agree to participate in the study and those who are not found at the time of data collection.

  1. SAMPLE SIZE AND   SAMPLING TECHNIQUES

The sample size was taken conviencely as 60 nursing in Altif psychiatric hospital.

 1.2.5.6. DATA COLLECTION

 Data collection is the precise, systematic gathering of information relevant to the
research purpose or the specific objectives (Burns et al., 2013). According to Polit and Beck (2008), a data collection plan for quantitative studies should yield accurate, valid and meaningful data that are maximally effective in answering research questions. The researcher used a self-designed, structured questionnaire, consisting of 30 closed ended questions, to collect data. Brink et al. (2012) define questionnaires as a self-report instrument where the participants respond to given questions. The questionnaire was developed by the researcher.

1.2.5.8. Data analysis:

Descriptive statistics are used to describe and synthesize data. This helps to set the stage for the understanding of quantitative research evidence (Polit and  Beck, 2012). The data was arranged into frequency distribution that is described by Polit and  Beck (2012) as a systematic arrangement of values from the lowest to the highest value, together with the number of times each value was obtained. 

  1. Study findings:

  Fig.1: Distribution of nurses according to gender (n=60)

  Fig.2: Distribution of nurses according to age group (n=60)

      Fig.3: Distribution of nurses according to years of experience (n=60)

      Fig.4: Distribution of nurses by education level (n=60)

      Fig.5: Distribution of nurses by type of aggression (n=60)

    Table 1: Overall attitude of nurses towards psychiatric patients with an aggressive behavior in terms of Situational Perspective at Altif Psychiatric Hospital.

Situational PerspectiveStrongly agree AgreeNeutralDisagreeStrongly disagree
No.%No.%No.%No.%No.%
Patients commonly become aggressive because staff do not listen to them3253.31423.346.7610.046.7
Poor communication between staff and patients leads to patient aggression2440.02338.346.7711.723.3
Improved one to one relationships between staff and patients can reduce the incidence of patient aggression and violence.2745.02135.023.3711.735.0
Patients are aggressive because of the environment they are in.2846.71220.0813.311.71118.3
It is largely situations that contribute towards the expression of aggression by patients. 2338.32338.346.735.0711.7
Overall  Situational Perspective13444.79331.0227.3248.0279.0

                      Mean score = Mean± SE=10.3 ± (.4)

    Table 2: Overall attitude of nurses towards psychiatric patients with an aggressive behavior in terms of environmental factors of regression at Altif Psychiatric Hospital.

Environmental perspectiveStrongly agreeAgreeNeutralDisagreeStrongly disagree
No.%No.%No.%No.%No.%
Patients are aggressive because of the environment they are in. 2338.31321.7813.3915.0711.7
If the physical environment were different, patient 2236.72236.7610.011.7915.0
It is difficult to prevent patients from becoming aggressive or violent. 2236.71728.3813.335.01016.7
Overall environmental factors6737.25228.92212.2137.22614.4

                      Mean score = Mean± SE=12.4 ± (.4)

 Table 3: Overall attitude of nurses towards psychiatric patients with an aggressive behavior in terms of Management Perspectives of regression at Altif Psychiatric Hospital.

Management PerspectivesStrongly agreeAgreeNeutralDisagreeStrongly disagree
No.%No.%No.%No.%No.%
Medication is a valuable approach for treating aggressive and violent behavior.2033.31423.3915.0610.01118.3
The use of negotiation could be used more effectively when managing aggression and violence.2745.01728.358.3915.023.3
Expressions of aggression do not always require staff intervention.1931.71931.7711.735.01220.0
Alternatives to the use of containment and sedation to manage patient violence could be used more frequently. 2135.01830.0610.01118.346.7
Prescribed medication should be used more frequently to help patients who are aggressive and violent.2541.71525.046.7813.3813.3
Overall  management perspectives11227.78327.73110.33712.33712.3

                      Mean score = Mean± SE=11.7 ± (.4)

Table 4: Overall attitude score of aggression

DomainMean SESig.
Situational Domain10.3 (29.7%).4.000
Environmental Domain12.7 ( 36.6%).4.000
Management Domain11.7 ( 33.7%).4.000
Total score34.71.2.000

1.4. DISCUSSION:

  This descriptive cross-sectional hospital based study was conducted among 60 nurse’s attitude in Altif Psychiatric Hospital.  The present study aimed to assess   attitude towards Psychiatric Patients with an Aggressive Behaviors at Altif Psychiatric Hospital.

  The nurses need to have appropriate skills to manage aggressive behavior of person with mental illness (PMI). Aggression and violence against nurses during working period is an important component in clinical nursing practice. When we compare nurses with other health care personnel they are the high risk group. Perception of nurses has a lot of impact in strategies they use for managing aggressive behavior of psychiatric patients. Hence need was felt for improving knowledge and skill of nurses for managing aggressive behavior. Before that it is important to know perception of nurses (Banerjee et al., 2021).

This study showed that the majority of participants were experienced   physical aggression 95%, 91.7% experienced verbal aggression while 51.7% experienced sexual aggression.

 Evidence suggests that nurses experience both physical and verbal forms of aggression but verbal aggression has been found to be the most common form of aggression experienced (Farrell et aI., 2006; McKenna et aI., 2003). Foster et al. (2007) found that for 145 cases of aggression reported by nurses, 84.1 % were verbal abuse and only 16.6% involved a nurse being pushed or being struck by a hand. Only one incident of violence was reported involving a patient pouring hot water on a nurse. In his study on the extent of aggression exposure and the effects of such exposure on the psychological health of nurses in Sydney Australia, Lam (2002) found that 40% of their sample (314 nurses) had psychological distress and 10% showed signs of mild to severe depression. In their study on the psychological impact of verbal abuse and violence by patients on nurses working in psychiatric wards in Japan, Inoue, Tsukano, Muraoka, Kaneko and Okamura’s (2006) showed that following exposure to verbal abuse, nurses suffered psychological distress. Richter and Berger (2006) assessed the course of post-traumatic stress disorder among members of the mental health hospital following patient assault over a period of six months in Germany. Of the 46 assaulted staff members who agreed to participate in their study 70% were nurses and others included others members of the health team i.e. physicians, social workers and housekeeping staff. About 10% of the participants suffered from post-traumatic stress disorder.

The present study showed that nurse had 29.3% perception of situational domain with mean of 10.3, 36.6% of environmental domain with mean of 12.7 and 33.7% of management domain with mean of 11.7%. he finding is lower than obtained by a study conducted by Marina Lepiesova et al on analysis of the MAVAS instrument to study also 83% nurses had stronger perception in environmental domain but 50% nurses had stronger perception in Situational domain. In case of total score 50% nurses had strong perception and 50% had lower perception in managing aggressive behavior (Lepiesonva and Tomagova, 2014 ).

Interviews with patients in Wijk’s (2006) study revealed that living in a dirty environment was frustrating while rigid limit setting and lack of privacy contributed significantly to the cause of inpatient aggression. Other patients attributed their outburst of aggression to poor living conditions such as boredom, inadequate bedding, inadequate food and the lack of appreciation by nursing staff for their cultural differences. Some patients also reported that the ward atmosphere was generally a contributor to their outburst of aggression. Patients presenting with different mental health problems were incarcerated together which in turn caused tension and frustration among patients, leading to aggressive outbursts. An assessment of both the staff and patients views on the causes and management of inpatients aggression and violence was carried out in England (Duxbury ND Whittington, 2005). A total of 82 patients and 80 nurses participated in the study. Both the nurses and the patients’ perceptions were captured using Management of Aggression and Violence Attitude Scale (MAVAS) questionnaire. Five nurses and five patients were further interviewed in order to explore in-depth the meaning of the issues raised in the questionnaire. The results revealed that both nurses and patients agreed with factors within the environment as the precursor to some of the inpatient aggression. Patients highlighted issues such as being locked up and treated like prisoners as problematic whereas nurses attributed aggressive outbursts to the ward design. In their study on the perceptions of staff and patients on aggression in mental health care units in Australia, Ilkiw-Lavalle and Grenyer (2003) found similar trends and results. Limit setting such as being refused leave to go home by the staff, was seen by patients as the reason for their aggression while nurses saw medication or treatment the clients receives as the cause of aggression.

Management of inpatient aggression includes preventative measures such as risk assessment, close observation patient teaching, interpersonal management of communication, listening skills, and the use of traditional methods objectively with both the client and nurse’s wellbeing and safety a priority (Duxbury et aI., 2008; Needham et al. 2004). Some researchers are of the view that nurses show a preference for the use of traditional methods over other methods and that choice of management is also dependent on who is affected and the severity of the problem (Foster et aI., 2007).

Conclusion:

   The Nurses had strong perception in environment perspective and managing aggressive respectively behavior of person with mental illness (PMI). Nurses trained in psychiatry have attitude regarding management of violent behavior. Hence it is recommended that nurses should inculcate behavioral change communication among psychiatric patients.

REFERENCES

Banerjee, N., Ghai, S. and Sharma, R., 2021. Perception of nurses towards aggressive behaviour among person with mental illness in psychiatry unit of a tertiary care hospital. Nursing & Midwifery Research Journal, 17(3), pp.101-107.

Brink, H., van der Walt, C., & van Rensburg, G. (2012). Fundamentals of research
methodology for healthcare professionals. 3rd ed. Cape Town: Juta & Co Ltd.

Chen, S., Hwu, H., & Williams, A. (2005). Psychiatric nurses‟ anxiety and cognition in managing psychiatric patients‟ aggression. Archives of Psychiatric Nursing, 19, 3,141-149.

Corrigal, J., Pienaar, D., Matzopoulos, R., Bourne, D., Bradshaw, D., Draper, B., Chopra, M., & Sanders, D. (2007). Western Cape Burden of Disease Reduction project (vol. 2 of 7). Western Cape Government Publishing Service.

Duxbury, 1., & Whittington, R. (2005). Cause and management of aggression and violence: Staff and patient’s perspectives. Journal of Advanced Nursing, 50, 469-478.

Duxbury, J. (2002). An evaluation of staff and patient views of and strategies employed to manage inpatient aggression and violence on one mental health unit: a pluralistic design. Journal of Psychiatric and Mental Health Nursing, 9, 325-337.

Foster, c., Bowers, L., & Nijman, H. (2007). Aggressive behavior on the acute psychiatric wards: Prevalence, severity and management. Journal of advanced Nursing, 58, 140- 149.

Ilkiw-Lavalle, O. (2006). Enhancing mental health staff confidence and skills in response to aggression and violence: A longitudinal study of aggression minimisation programme. PhD Thesis. University of Wollongong, Department of Psychology.

Inoue, M., Tsukano, K, Muraoka, M, Kaneko, F & Okamura, H. (2006). Psychological impact of verbal abuse and violence by patients on nurses working in psychiatric department. Psychiatry and Clinical Neuroscience, 60, 29-36.

Kennedy, M., & Julie, H. (2013) Nurses‟ experiences and understanding of workplace
violence in a trauma and emergency department in South Africa. Health SA Gesondheid, 18 (1) , 1-9.

Kennedy, M., & Julie, H. (2013) Nurses‟ experiences and understanding of workplace violence in a trauma and emergency department in South Africa. Health SA Gesondheid, 18 (1) , 1-9.

Lepiesova M, Tomagova M. Analysis of the MAVAS instrument to assess the management of patient Banerjee, N., Ghai, S. and Sharma, R., 2021. Perception of nurses towards aggressive behavior among person with mental illness in psychiatry unit of a tertiary care hospital. Nursing & Midwifery Research Journal, 17(3), pp.101-107. t Cent Eur J Nurs Midw 2014;5(3):127- 35.

Ministry of Health (2008). Nursing Strategy for South Africa. Retrieve on April 23, 2015 from http://www.sanc.co.za/pdf/nursing-strategy/pdf.

Papadopoulos, C., Ross, J., Stewart, D., Dack, C., James, K., & Bowers, L. (2012). The antecedents of violence and aggression within psychiatric inpatient settings. Acta Psychiatrica Scandinavica, 125, 425-439.

Polit, D.F., & Beck, C.T. (2008). Nursing research: Generating and assessing evidence for nursing practice. 8th ed. Philadelphia: Lippicott William & Wilkins.

Wijk, E. (2006). An investigation into patients’ perceptions of contributing factors towards their aggressive and violent behavior after admission to a mental facility. A minithesis submitted in partial fulfilment of the requirements for the degree of Magister Curationis. Department of Nursing Science. University of the Western Cape.

Integrated Reporting: Enhancing Stakeholder Engagement and Performance through Sustainability Accounting in Nigeria

James U. Akpan1*, Oluyinka I. Oluwagbade2 and Victor I. Owonifari3

1, 2, 3 Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

Abstract

As a developing economy facing unique social and environmental challenges, Nigeria’s organizations need to adopt sustainable business practices and effectively engage stakeholders. However, the level of adoption and understanding of IR and sustainability accounting practices in Nigeria remains limited. This study aims to address this gap by investigating the potential benefits, challenges, and strategies for implementing IR and sustainability accounting in Nigeria. The study begins by providing a comprehensive background on IR and sustainability accounting, highlighting their significance and the motivation behind their adoption in Nigeria. It identifies the challenges faced by organizations in implementing these practices, such as limited awareness, technical skills gaps, and perceived lack of financial benefits. Drawing on existing literature, the study examines the theoretical foundations of stakeholder engagement, performance measurement, and governance in the context of sustainability accounting. The study reviews various reporting frameworks and standards, including the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB), to provide an overview of the reporting landscape. It discusses the benefits of integrated reporting for organizations, such as improved stakeholder relationships, enhanced financial and non-financial performance, and long-term value creation. Additionally, it explores the measurement and reporting of environmental performance, the assessment and communication of social impact, and the governance and ethical considerations in sustainability accounting. Using a comparative analysis approach, the study presents case studies of successful stakeholder engagement initiatives in developed countries, developing countries, and Nigeria. These case studies highlight best practices and lessons learned from organizations that have effectively implemented integrated reporting and sustainability accounting, emphasizing the importance of stakeholder engagement, measurement, and communication of performance. The study further examines the impact of integrated reporting on financial performance, emphasizing the relationship between IR adoption and financial outcomes. It explores the use of non-financial performance indicators and their impact on organizational success, considering indicators such as environmental, social, and governance factors. Additionally, the study explores the concept of long-term value creation through integrated reporting and sustainability accounting, identifying key factors and strategies for achieving sustainable business practices. Acknowledging the challenges and limitations in implementing integrated reporting, the study identifies barriers specific to the Nigerian context, including regulatory gaps, resource constraints, and cultural factors. It offers recommendations and strategies for overcoming these challenges, promoting adoption, and driving sustainable business practices in Nigeria.

Keywords: Integrated reporting, Sustainability accounting, Stakeholder engagement, Performance measurement, Nigeria.

1.1       INTRODUCTION

Integrated Reporting has emerged as a response to the limitations of traditional financial reporting, which often fails to capture the full range of an organization’s value creation and sustainability performance. Recognizing the need for a more comprehensive approach, Integrated Reporting seeks to provide a holistic view of an organization’s activities by incorporating financial, environmental, social, and governance dimensions (ESG) information to provide a holistic view of an organization’s performance (Ajibolade & Olabisi, 2021). This concept gained momentum in the early 21st century as a means to address the evolving information needs of stakeholders in a changing business landscape. It aims to enhance stakeholder engagement and performance through sustainability accounting practices. 

In Nigeria, as a developing economy with unique social and environmental challenges, the adoption of IR and sustainability accounting practices is of increasing importance. However, the implementation of these practices faces various challenges, and there is a need to explore their potential benefits and strategies for effective adoption. The motivation behind this study stems from the recognition of the need for organizations in Nigeria to embrace sustainable business practices and effectively engage stakeholders. By adopting IR and sustainability accounting, organizations can enhance their reputation, attract investment, mitigate risks, and align their operations with environmental and social goals. The study seeks to provide a comprehensive understanding of the potential benefits and challenges associated with IR and sustainability accounting in Nigeria, ultimately driving organizational performance and contributing to sustainable development in the country.

Integrated Reporting holds significant importance for organizations and stakeholders alike, for several reasons. Firstly, it enhances stakeholder decision-making by providing a comprehensive understanding of an organization’s value creation process. Integrated reports offer stakeholders a holistic view of a company’s strategy, business model, risks, opportunities, and future prospects, enabling them to assess the organization’s long-term viability (Eccles & Krzus, 2010). Secondly, Integrated Reporting improves resource allocation and risk management by considering the broader impacts of an organization’s activities. By incorporating non-financial information, companies can identify and manage risks related to sustainability factors, leading to more informed decisions on capital allocation and more sustainable business practices (Eccles & Armbrester, 2011).

Moreover, Integrated Reporting enhances accountability and transparency. By engaging with stakeholders and disclosing relevant sustainability information, organizations demonstrate their commitment to ESG issues and efforts to create long-term value while considering societal and environmental concerns (Adams, 2015). Additionally, Integrated Reporting contributes to strengthening investor confidence. By providing a broader range of information, including non-financial performance indicators, integrated reports enable investors to evaluate the quality of a company’s management, governance, and sustainability practices. This, in turn, supports more informed investment decisions (Krzus & Kopp, 2014). Lastly, Integrated Reporting fosters long-term thinking and sustainability. It encourages organizations to adopt a broader perspective by considering their impact on society and the environment. Through integrated thinking, organizations can better integrate sustainability into their strategies, driving the transition towards more sustainable business models (Herzig & Schaltegger, 2016).

Despite the growing global interest in IR and sustainability accounting, the level of adoption and understanding of these practices in Nigeria remains limited. Organizations face challenges such as limited awareness, lack of technical skills, and the perception of limited financial benefits (Okpala & Ekwueme, 2021). As a result, there is a gap in knowledge regarding the benefits, challenges, and strategies for implementing IR and sustainability accounting in the Nigerian context. Understanding these factors is essential for organizations to effectively engage stakeholders, improve performance, and contribute to sustainable development. This study aims to address the aforementioned gap by investigating the potential benefits of IR and sustainability accounting for organizations in Nigeria. It seeks to provide insights into how these practices can enhance stakeholder engagement, improve financial and non-financial performance, and contribute to sustainable business practices. The findings will be valuable for organizations, policymakers, and regulators in Nigeria, as they can inform decision-making and guide the adoption and implementation of IR and sustainability accounting practices. Furthermore, the study contributes to the existing body of literature by providing empirical evidence and practical recommendations specific to the Nigerian context.

1.2       Objective of the study

The objective of this study is to examine the role and impact of Integrated Reporting on organizations and their stakeholders. Specifically, the study aims to:

  1. Explore the extent to which organizations have adopted Integrated Reporting as a means to enhance their reporting practices and communicate a comprehensive view of their value creation process.
  1. Assess the benefits and challenges associated with implementing Integrated Reporting, including its effect on stakeholder decision-making, resource allocation, risk management, accountability, transparency, and investor confidence.
  2. Examine the relationship between Integrated Reporting and organizational performance, with a particular focus on sustainability outcomes and the integration of ESG considerations into strategic decision-making.
  3. Identify best practices and key success factors for effective implementation of Integrated Reporting, drawing insights from organizations that have embraced the framework and achieved positive outcomes.
  4. Provide recommendations and insights for organizations, policymakers, and other stakeholders on how to leverage Integrated Reporting as a tool for enhancing sustainability accounting practices, stakeholder engagement, and overall organizational performance.

By addressing these research objectives, the study aims to contribute to the existing body of knowledge on Integrated Reporting and its role in enhancing stakeholder engagement and performance through sustainability accounting. It seeks to provide practical guidance and insights for organizations looking to adopt Integrated Reporting and policymakers interested in promoting sustainable business practices.

1.3       Research Questions:

  1. What is the current level of adoption of Integrated Reporting among organizations, and what factors influence its adoption?
  1. How does Integrated Reporting influence stakeholders’ understanding and assessment of an organization’s performance and value creation?
  2. How does Integrated Reporting facilitate stakeholder engagement and dialogue?
  3. In what ways does Integrated Reporting impact stakeholders’ decision-making processes and actions?
  4. What are the perceived benefits and challenges associated with implementing Integrated Reporting?
  5. How do organizations address the challenges and leverage the benefits of Integrated Reporting?
  6. How does Integrated Reporting contribute to improved sustainability outcomes and organizational performance?
  7. To what extent does Integrated Reporting facilitate the integration of ESG considerations into strategic decision-making?
  8. What evidence exists of the impact of Integrated Reporting on organizational performance, both financial and non-financial?
  9. What are the key success factors and best practices for organizations in implementing Integrated Reporting effectively?
  10. How do organizations ensure the integrity and reliability of their Integrated Reports and overcome barriers in the process?

2.0       Conceptual Framework

2.1       Sustainability accounting and its role in integrated reporting

Sustainability accounting plays a crucial role in Integrated Reporting as it enables organizations to measure, monitor, and communicate their environmental, social, and governance (ESG) performance. It provides a framework for capturing and reporting on the broader impacts of an organization’s activities, going beyond traditional financial metrics (Deegan, 2017). By incorporating sustainability accounting into Integrated Reporting, organizations can provide a more comprehensive view of their value creation process and engage stakeholders in a meaningful way. Sustainability accounting encompasses various aspects, including measuring and reporting on environmental indicators, such as carbon emissions, water usage, and waste management. It also involves assessing social factors, such as employee well-being, community development, and human rights practices. Additionally, it encompasses governance aspects, such as board composition, executive compensation, and risk management systems (Eccles & Armbrester, 2011).

Through sustainability accounting, organizations can identify their environmental and social impacts, set targets for improvement, and track progress over time. This information can then be integrated into the broader narrative of Integrated Reporting, providing stakeholders with a holistic understanding of the organization’s performance (Herzig &s Schaltegger, 2016). Furthermore, sustainability accounting helps organizations identify and manage risks and opportunities related to ESG factors. By considering these aspects, organizations can mitigate potential risks associated with environmental, social, and governance issues and seize opportunities for value creation (Adams, 2015). The integration of sustainability accounting into Integrated Reporting enables organizations to demonstrate their commitment to sustainable practices and responsible business conduct. It provides a mechanism for organizations to communicate their efforts in addressing societal and environmental concerns, and fosters transparency and accountability (KPMG, 2017).

2.2       Theoretical Foundations of Stakeholder Engagement

Stakeholder engagement is grounded in various theoretical foundations that provide a conceptual basis for understanding the importance of engaging stakeholders and the strategies organizations can employ to foster effective stakeholder relationships. These theoretical foundations shed light on the motivations for engaging stakeholders, the benefits of collaboration, and the ethical considerations associated with stakeholder engagement.

One prominent theoretical foundation of stakeholder engagement is Stakeholder Theory. Developed by R. Edward Freeman, Stakeholder Theory posits that organizations have a moral and ethical responsibility to consider the interests and needs of all stakeholders affected by their actions (Freeman, 1984). This theory recognizes stakeholders, including employees, customers, communities, and investors, as critical entities that can significantly influence and be influenced by an organization’s activities.

Relationship Management Theory provides another valuable theoretical perspective on stakeholder engagement. This theory emphasizes the importance of building and maintaining positive relationships with stakeholders (Griffin and Mahon, 1997). According to this perspective, organizations should actively engage stakeholders in dialogue, collaboration, and mutual value creation. Effective relationship management facilitates trust, cooperation, and long-term partnerships between organizations and stakeholders.

Social Exchange Theory also contributes to the theoretical foundations of stakeholder engagement. According to this theory, individuals and organizations engage in mutually beneficial interactions based on the expectation of reciprocity (Blau, 1964). Organizations engage stakeholders by offering them value in terms of information sharing, involvement in decision-making processes, and opportunities for participation. In return, stakeholders provide their expertise, resources, and support to the organization.

These theoretical foundations collectively highlight the significance of stakeholder engagement in organizational success. Engaging stakeholders fosters transparency, trust, and legitimacy, while also facilitating collaboration, innovation, and shared value creation. By understanding and applying these theoretical perspectives, organizations can develop effective stakeholder engagement strategies that enable them to address stakeholder concerns, align their activities with societal expectations, and navigate complex business environments

Stakeholder Theory

Stakeholder engagement is grounded in stakeholder theory, which posits that organizations have a moral and ethical responsibility to consider the interests and needs of all stakeholders affected by their actions (Freeman, 1984). This theory recognizes that stakeholders, including employees, customers, communities, and investors, can significantly influence and be influenced by the organization’s activities.

2.2.1    Relationship Management Theory

Stakeholder engagement draws on relationship management theory, emphasizing the importance of building and maintaining positive relationships with stakeholders (Griffin & Mahon, 1997). This theory highlights the need for organizations to actively engage stakeholders in dialogue, collaboration, and mutual value creation.

2.2.2    Social Exchange Theory

The concept of stakeholder engagement can also be explained through social exchange theory, which suggests that individuals and organizations engage in mutually beneficial interactions based on the expectation of reciprocity (Blau, 1964). Organizations engage stakeholders by offering them value in terms of information sharing, involvement in decision-making, and opportunities for participation.

2.3       Theoretical Foundations of Performance Measurement

Performance measurement serves as a vital tool for organizations to assess, monitor, and communicate their progress toward achieving strategic goals and objectives. It is grounded in various theoretical foundations that provide a conceptual framework for understanding the principles and practices of measuring organizational performance. These theoretical foundations offer insights into the factors influencing performance measurement, the relationship between performance and organizational behavior, and the alignment of performance metrics with organizational strategies.

Key theoretical foundations of performance measurement include agency theory, the balanced scorecard, and stakeholder theory. Agency theory focuses on the principal-agent relationship within organizations and provides insights into how performance measures can align the interests of shareholders and managers, ensuring accountability and goal congruence. The balanced scorecard framework emphasizes the importance of a balanced set of financial and non-financial indicators to evaluate performance, considering dimensions such as customer satisfaction, internal processes, learning and growth, in addition to financial metrics. Stakeholder theory highlights the significance of considering the interests and needs of multiple stakeholders in performance measurement, recognizing their influence and impact on organizational outcomes.

By understanding these theoretical foundations, organizations can design and implement performance measurement systems that are robust, meaningful, and aligned with their strategic objectives. These foundations provide a basis for selecting appropriate performance metrics, establishing performance targets, and fostering a culture of continuous improvement. Furthermore, they facilitate the integration of financial and non-financial aspects of performance, enabling organizations to assess their social, environmental, and governance contributions alongside traditional financial indicators.

This discussion will delve into the theoretical foundations of performance measurement, exploring the concepts and insights offered by agency theory, the balanced scorecard, and stakeholder theory. By embracing these theoretical foundations, organizations can enhance their performance measurement practices, gain a deeper understanding of their overall performance, and drive sustainable success.

2.3.1    Agency Theory

Performance measurement is grounded in agency theory, which examines the principal-agent relationship between shareholders (principals) and managers (agents) (Jensen and Meckling, 1976). Performance measures serve as a mechanism to align the interests of shareholders with those of managers, ensuring accountability and goal congruence.

2.3.2    Balanced Scorecard

The balanced scorecard framework provides a theoretical foundation for performance measurement by emphasizing a balanced set of financial and non-financial indicators (Kaplan and Norton, 1992). It recognizes the importance of measuring not only financial performance but also other dimensions such as customer satisfaction, internal processes, and learning and growth.

2.3.3    Stakeholder Theory

Stakeholder theory also informs performance measurement by emphasizing the importance of considering the interests and needs of multiple stakeholders. Performance measures are expanded to incorporate stakeholder perspectives and outcomes, going beyond traditional financial metrics (Donaldson and Preston, 1995).

2.4       Overview of reporting frameworks and standards

In today’s rapidly evolving business landscape, organizations are increasingly recognizing the importance of transparent and comprehensive reporting practices that go beyond financial performance. Reporting frameworks and standards provide guidelines and principles for organizations to measure, manage, and communicate their economic, environmental, and social impacts. These frameworks and standards offer a structured approach to reporting, enabling organizations to effectively disclose relevant information to stakeholders and demonstrate their commitment to sustainability and responsible business practices.

Various reporting frameworks and standards have emerged to meet the evolving needs of organizations and stakeholders. These frameworks serve as a roadmap for organizations to navigate the complex landscape of sustainability reporting, ensuring consistency, comparability, and relevance. They provide organizations with a common language and set of indicators to report on their environmental, social, and governance (ESG) performance, helping them address the expectations of stakeholders, including investors, customers, employees, and communities.

Key reporting frameworks and standards include the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Framework (IIRC), and the Carbon Disclosure Project (CDP), among others. These frameworks and standards offer organizations a structured approach to reporting, encompassing a wide range of sustainability topics specific to their industry or business context. By adopting these frameworks, organizations can enhance their reporting practices, improve stakeholder engagement, and drive sustainable value creation.

It is crucial for organizations to understand and utilize these reporting frameworks and standards effectively. By doing so, they can align their reporting practices with international best practices, gain insights into emerging sustainability trends, and respond to the increasing demand for transparent and comprehensive reporting. Additionally, these frameworks and standards play a vital role in guiding organizations towards integrating sustainability considerations into their decision-making processes, fostering long-term resilience and responsible business conduct.

This overview will delve into prominent reporting frameworks and standards, such as GRI, SASB, IIRC, and CDP, providing insights into their key features, industry applicability, and the benefits they offer to organizations. By embracing these frameworks and standards, organizations can enhance their reporting capabilities, demonstrate accountability, and contribute to a more sustainable and inclusive future.

2.4.1    Global Reporting Initiative (GRI) 

The Global Reporting Initiative is a widely recognized and widely used framework for sustainability reporting. GRI provides guidelines for organizations to report on their economic, environmental, and social impacts (GRI, 2016). The framework offers a comprehensive set of reporting principles and indicators that enable organizations to measure, manage, and communicate their sustainability performance.

2.4.2    Sustainability Accounting Standards Board (SASB)

The Sustainability Accounting Standards Board develops industry-specific standards for the disclosure of financially material sustainability information. SASB standards focus on financially material issues that are relevant to a specific industry, helping organizations disclose information that is decision-useful for investors (SASB, 2020). These standards provide a framework for organizations to report on sustainability topics specific to their industry, ensuring comparability and relevance.

2.4.3    International Integrated Reporting Framework (IIRC) 

The International Integrated Reporting Framework provides guidance for organizations to produce integrated reports that go beyond financial information and include a holistic view of their value creation process. It encourages organizations to report on their strategy, governance, performance, and future prospects in a way that demonstrates the connectivity between financial and non-financial aspects (IIRC, 2013). The framework emphasizes the integration of financial and non-financial information to provide a more comprehensive understanding of an organization’s activities and impacts.

2.4.4    CDP (formerly Carbon Disclosure Project)

CDP is a global disclosure platform that enables organizations to measure, manage, and disclose their environmental impacts, particularly on climate change. It requests companies to disclose information related to their greenhouse gas emissions, climate risks, water usage, and other environmental metrics. CDP provides a standardized reporting framework that enables organizations to benchmark their performance and demonstrate their commitment to addressing climate-related 

3.0       Integrated Reporting: Benefits and Challenges

Integrated reporting holds immense potential as a transformative reporting practice that aligns financial and non-financial dimensions of performance.it offers benefits such as enhanced transparency, improved decision-making, stakeholder engagement, and access to capital. 

3.1       Key benefits of integrated reporting for organizations

3.1.1    Enhanced Transparency and Accountability

Integrated reporting enables organizations to provide a comprehensive view of their financial, environmental, social, and governance (ESG) performance. By disclosing relevant information in a holistic and transparent manner, organizations can demonstrate their commitment to accountability and build trust with stakeholders. Integrated reporting helps organizations go beyond traditional financial reporting, showcasing their efforts in sustainable practices, risk management, and long-term value creation.

3.1.2    Improved Decision-making and Strategy Development

Integrated reporting encourages organizations to consider the interdependencies between financial and non-financial factors, providing a more complete understanding of their business context. This broader perspective facilitates informed decision-making and strategic planning by considering the potential impact on multiple stakeholders and a wider range of value drivers. Integrated reporting helps organizations identify risks and opportunities, align their strategies with sustainability goals, and drive innovation and resilience.

3.1.3    Stakeholder Engagement and Trust Building

Integrated reporting serves as a communication tool that enables organizations to engage with stakeholders effectively. By providing a clear and comprehensive account of their performance, organizations can facilitate meaningful dialogue and collaboration with stakeholders, addressing their concerns and aspirations. This engagement fosters trust, enhances relationships, and builds stronger partnerships with stakeholders, ultimately contributing to a more sustainable and inclusive approach to business.

3.1.4    Access to Capital and Investor Confidence

Integrated reporting responds to the growing demand from investors for comprehensive and standardized ESG information. By adopting integrated reporting, organizations can attract and retain investors who seek to make informed investment decisions based on a broader set of criteria. Integrated reporting helps organizations showcase their long-term sustainability prospects, risk management practices, and alignment with global ESG frameworks, thereby enhancing investor confidence and access to capital.

3.1.5    Improved Performance Measurement and Management

Integrated reporting promotes a holistic approach to performance measurement, encompassing financial, environmental, social, and governance dimensions. By integrating these various aspects, organizations can gain deeper insights into their performance, set meaningful targets, and track progress over time. Integrated reporting enhances the organization’s ability to manage risks, identify areas for improvement, and align performance with their sustainability objectives.

3.1.6    Regulatory Compliance and Legal Requirements

In some jurisdictions, integrated reporting is becoming a regulatory requirement or is encouraged by governance codes. By adopting integrated reporting, organizations can ensure compliance with applicable regulations and stay ahead of evolving reporting expectations. Integrated reporting frameworks provide a structured approach that helps organizations meet these requirements and demonstrate adherence to best practices in sustainability reporting.

3.2       Challenges and limitations in implementing integrated reporting

Integrated reporting in accounting also presents challenges related to data availability, organizational alignment, reporting complexity, and balancing short-term and long-term perspectives. Overcoming these challenges can pave the way for organizations to effectively communicate their sustainable practices and contribute to a more inclusive and responsible business environment.

3.2.1    Data Availability and Quality

One of the key challenges in implementing integrated reporting is the availability and quality of data across financial and non-financial dimensions. Organizations may face difficulties in collecting accurate and reliable data, particularly for non-financial indicators, and ensuring consistency and comparability. According to Adams et al. (2016), data availability and quality issues can hinder the integration of sustainability information into reporting processes, limiting the effectiveness of integrated reporting.

3.2.2    Organizational Alignment and Integration

Implementing integrated reporting requires organizational alignment and integration across various functions and departments. Achieving a unified approach to reporting and ensuring alignment between financial and non-financial aspects can be challenging. According to Eccles and Krzus (2010), organizational silos and resistance to change can impede the integration of information across different reporting systems, hindering the implementation of integrated reporting.

3.2.3    Reporting Complexity and Standardization

Integrating multiple dimensions of performance into a single report can be complex. Organizations may need to navigate various reporting frameworks, standards, and guidelines to ensure consistency and comparability. This complexity can pose challenges in terms of determining materiality, selecting appropriate metrics, and aligning with reporting frameworks. According to de Villiers et al. (2014), the lack of standardized reporting requirements and the proliferation of reporting guidelines can lead to confusion and difficulty in implementing integrated reporting.

3.2.4    Balancing Short-term and Long-term Perspectives 

Integrated reporting encourages organizations to adopt a long-term perspective and consider the impacts of their activities on multiple stakeholders. However, balancing short-term financial goals with long-term sustainability objectives can be challenging. Organizational pressures to meet short-term financial targets and shareholder expectations may hinder the integration of long-term sustainability considerations into decision-making processes. According to Cho et al. (2015), the short-term focus of financial markets and the pressure to deliver immediate results can pose limitations on the effective implementation of integrated reporting.

3.3       Comparative analysis of organizations adopting integrated reporting

Integrated reporting has gained momentum as a reporting approach that combines financial, environmental, social, and governance (ESG) information into a single, comprehensive report. Many organizations around the world have adopted integrated reporting as a means to communicate their sustainable practices and demonstrate a holistic understanding of value creation. This comparative analysis examines the experiences of different organizations that have embraced integrated reporting, highlighting their motivations, implementation strategies, challenges faced, and the outcomes achieved.

3.3.1    Motivations for Adopting Integrated Reporting:

Organizations adopt integrated reporting for various reasons. Some common motivations include:

  1. Enhancing Transparency and Accountability: Integrated reporting allows organizations to provide a more comprehensive and transparent view of their performance. By reporting on financial and non-financial aspects, organizations aim to demonstrate accountability, build trust with stakeholders, and address emerging sustainability concerns (Adams et al., 2016).
  1. Meeting Stakeholder Expectations: The adoption of integrated reporting is often driven by the desire to meet stakeholder expectations. Organizations recognize the growing demand from investors, customers, employees, and other stakeholders for reliable and comparable ESG information. By adopting integrated reporting, organizations aim to fulfill these expectations and maintain positive stakeholder relationships (Herbohn & Kober, 2013).
  2. Improving Decision-making and Strategy Alignment: Integrated reporting enables organizations to gain insights into the interdependencies between financial and non-financial factors. By integrating these dimensions, organizations can make more informed decisions, align their strategies with sustainability goals, and drive long-term value creation (Eccles & Krzus, 2010).

3.3.2    Implementation Strategies

Organizations approach the implementation of integrated reporting in various ways. While there is no one-size-fits-all approach, common strategies include:

  1. Engaging Key Stakeholders: Successful implementation of integrated reporting often involves engaging key stakeholders throughout the process. Organizations seek input and feedback from stakeholders to identify material issues, define reporting boundaries, and ensure the relevance and credibility of the integrated report (de Villiers et al., 2014).
  1. Integrating Reporting Processes: Organizations integrate their reporting processes by aligning financial and non-financial information. This involves streamlining data collection, developing internal systems to capture ESG indicators, and aligning reporting frameworks and standards to ensure consistency and comparability (Cho et al., 2015).
  2. Building Capacity and Knowledge: Organizations invest in building internal capacity and knowledge to effectively implement integrated reporting. This includes training employees, establishing cross-functional teams, and leveraging external expertise to ensure a comprehensive understanding of integrated reporting principles and practices (Adams et al., 2016).

3.3.3    Challenges Faced

Organizations face various challenges when adopting integrated reporting. Some common challenges include:

  1. Data Collection and Quality: Obtaining accurate and reliable data across financial and non-financial dimensions can be challenging. Organizations encounter difficulties in collecting relevant data, ensuring data quality, and addressing data gaps, particularly for non-financial indicators (de Villiers et al., 2014).
  2. Reporting Complexity and Standardization: The complexity of integrating multiple dimensions of performance into a single report can be daunting. Organizations may struggle with selecting appropriate metrics, determining materiality, and navigating different reporting frameworks and standards. The lack of standardized reporting requirements poses challenges in terms of ensuring consistency and comparability (Eccles & Krzus, 2010).

3.3.4    Outcomes Achieved

Organizations that have adopted integrated reporting report various positive outcomes, including:

  1. Improved Stakeholder Engagement: Integrated reporting enhances stakeholder engagement by facilitating transparent and meaningful communication. Organizations that adopt integrated reporting often report stronger relationships with stakeholders, increased trust, and opportunities for collaboration (Adams et al., 2016).
  1. Enhanced Decision-making: Integrated reporting provides organizations with a holistic view of their performance, enabling more informed decision-making. By considering a wider range of factors, organizations are better equipped to identify risks, seize opportunities, and align their strategies with sustainability goals (Eccles & Krzus, 2010).
  2. Enhanced Value Creation: Integrated reporting contributes to value creation by helping organizations identify and manage ESG-related risks and opportunities. It supports organizations in developing long-term, sustainable business models and attracting investment from stakeholders who prioritize sustainability (de Villiers et al., 2014).

4.0       Sustainability Accounting Practices

4.1       Measurement and reporting of environmental performance

Measurement and reporting of environmental performance are essential for organizations seeking to understand and manage their environmental impacts, comply with regulations, and demonstrate their commitment to sustainability. It involves the systematic collection, analysis, and communication of data and information related to an organization’s environmental activities and their outcomes. This section explores the key aspects of measuring and reporting environmental performance, including relevant frameworks, indicators, and approaches.

  1. Environmental Performance Indicators: Environmental performance indicators (EPIs) are quantitative or qualitative measures used to assess an organization’s environmental performance. They provide valuable insights into an organization’s environmental impacts, resource consumption, emissions, waste generation, and other relevant aspects. EPIs can be tailored to specific industries or organizations and should be aligned with organizational goals and stakeholder expectations (Klassen & McLaughlin, 1996).
  2. Reporting Frameworks: Several reporting frameworks and guidelines exist to support organizations in measuring and reporting their environmental performance. The Global Reporting Initiative (GRI) provides a widely recognized framework for sustainability reporting, including environmental aspects. GRI’s guidelines offer a comprehensive set of indicators and reporting principles to guide organizations in disclosing their environmental impacts and performance (Global Reporting Initiative, 2016).
  3. Life Cycle Assessment (LCA): Life Cycle Assessment is a methodology used to assess the environmental impacts of a product, process, or service throughout its entire life cycle, from raw material extraction to disposal. LCA provides a systematic approach to quantify and evaluate environmental aspects, including energy consumption, greenhouse gas emissions, water usage, and waste generation. It helps organizations identify hotspots, prioritize improvement opportunities, and inform decision-making for more sustainable practices (ISO, 2006).
  4. Environmental Management Systems (EMS): Environmental Management Systems are structured frameworks that help organizations manage and improve their environmental performance. Standards such as ISO 14001 provide a systematic approach to identify, control, and reduce environmental impacts. EMS enables organizations to set environmental objectives, establish processes for monitoring and measurement, and integrate environmental considerations into their overall management practices (ISO, 2015).
  5. Environmental Reporting Disclosures: In addition to formal sustainability reports, organizations may disclose their environmental performance through other channels. This includes regulatory filings, environmental impact statements, product labeling, and voluntary initiatives such as carbon disclosure programs. Such disclosures provide transparency and accountability, enabling stakeholders to evaluate an organization’s environmental performance and make informed decisions (Kolk & Perego, 2010).

4.2       Assessment and communication of social impact

Assessing and communicating social impact is crucial for organizations that aim to understand and demonstrate the positive outcomes they generate for society. It involves systematically evaluating the effects of an organization’s activities, programs, or initiatives on social factors such as community development, employee well-being, human rights, and stakeholder engagement. This section explores the key aspects of assessing and communicating social impact, including relevant frameworks, methodologies, and approaches.

  1. Social Impact Assessment: Social impact assessment (SIA) is a structured process that helps organizations understand the potential social consequences of their actions and decisions. SIA involves identifying and assessing both positive and negative social impacts, considering a range of stakeholders, and utilizing various data collection methods. It helps organizations identify potential risks and opportunities, optimize their interventions, and ensure that social considerations are integrated into decision-making processes (Vanclay, 2003).
  2. Social Return on Investment (SROI): Social Return on Investment is a methodology that quantifies and monetizes the social value created by an organization’s activities. It takes into account both the tangible and intangible impacts, considering factors such as improved quality of life, reduced inequality, and increased social cohesion. SROI helps organizations understand the social and economic benefits of their initiatives, make informed resource allocation decisions, and communicate their social value to stakeholders (Nicholls & Murdock, 2012).
  3. Stakeholder Engagement: Effective stakeholder engagement is crucial for assessing and communicating social impact. Engaging with stakeholders allows organizations to understand their perspectives, gather feedback, and involve them in the assessment process. Stakeholders can provide valuable insights on the social impacts experienced, identify additional factors to consider, and contribute to the development of appropriate metrics and indicators (Bryson et al., 2017).
  4. Reporting and Communication: Organizations employ various methods to communicate their social impact to stakeholders. This includes sustainability reports, social impact statements, case studies, infographics, and interactive websites. Clear and transparent communication of social impact helps organizations build trust, engage stakeholders, and demonstrate accountability for their actions and outcomes. It also enables stakeholders to make informed decisions and contribute to ongoing dialogue (Adams et al., 2016).

4.3       Governance and ethical considerations in sustainability accounting

Governance and ethical considerations play a crucial role in promoting sustainability accounting practices in Nigeria. As organizations strive to integrate sustainability into their operations and reporting, it becomes essential to establish effective governance structures and adhere to ethical principles. This section explores the key aspects of governance and ethical considerations in sustainability accounting in Nigeria, including the role of corporate governance, ethical frameworks, and reporting standards.

4.3.1    Role of Corporate Governance:

Corporate governance in Nigeria plays a pivotal role in promoting sustainability accounting practices and ensuring ethical behavior. The Nigerian Corporate Governance Code provides guidelines and principles for corporate governance, emphasizing the importance of sustainability, transparency, and accountability (Financial Reporting Council of Nigeria, 2018). Effective corporate governance mechanisms, such as board oversight, internal controls, and stakeholder engagement, contribute to the integrity and credibility of sustainability accounting practices in Nigerian organizations.

4.3.2    Ethical Considerations

Ethical considerations are paramount in sustainability accounting to ensure accurate, reliable, and unbiased reporting. Organizations in Nigeria should adhere to ethical principles and codes of conduct, such as those set forth by professional accounting bodies like the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN). These codes emphasize the importance of integrity, objectivity, professional competence, and confidentiality in sustainability accounting practices (ICAN, 2019; ANAN, 2015).

4.3.3    Reporting Standards

Adhering to recognized reporting standards is essential for sustainability accounting in Nigeria. The Global Reporting Initiative (GRI) provides comprehensive guidelines for sustainability reporting, including environmental, social, and governance (ESG) aspects. Nigerian organizations can adopt the GRI Standards as a framework to ensure the consistency, transparency, and comparability of their sustainability reports (Global Reporting Initiative, 2016). Furthermore, the Nigerian Stock Exchange (NSE) requires listed companies to submit sustainability reports, reinforcing the importance of sustainability accounting and reporting in Nigeria (NSE, 2021).

5.0       Stakeholder Engagement and Integrated Reporting

Stakeholder engagement and integrated reporting are crucial components of sustainable business practices in Nigeria. As organizations strive for transparency, accountability, and long-term value creation, they recognize the importance of actively involving stakeholders in decision-making processes and adopting integrated reporting frameworks to communicate their sustainability efforts. This section explores the significance of stakeholder engagement and integrated reporting in the Nigerian context.

5.1       Stakeholder Engagement in Nigeria

Stakeholder engagement involves the proactive involvement of individuals, groups, or organizations that are affected by or have an interest in an organization’s activities in Nigeria. It is a dynamic and ongoing process that aims to understand stakeholder perspectives, address their concerns, and foster mutually beneficial relationships. In Nigeria, stakeholders include local communities, government agencies, civil society organizations, employees, customers, and investors, among others. Stakeholder engagement in Nigeria is shaped by cultural, social, and economic factors unique to the country. It emphasizes the need for organizations to consider local customs, values, and community interests. Engaging with stakeholders in Nigeria requires building trust, respecting local traditions, and ensuring meaningful participation in decision-making processes. Effective stakeholder engagement contributes to improved social license to operate, enhanced reputation, and long-term sustainability (Adeniji et al., 2017).

5.1.1    Integrated Reporting in Nigeria

Integrated reporting involves the concise communication of an organization’s strategy, governance, performance, and prospects, including its environmental, social, and governance (ESG) impacts. In Nigeria, integrated reporting serves as a tool for organizations to provide a holistic view of their value creation processes and to demonstrate their commitment to sustainable development. The adoption of integrated reporting in Nigeria is gaining momentum, driven by the desire for improved corporate transparency and accountability. Organizations recognize that integrated reporting enables them to articulate their sustainability strategies, demonstrate the link between financial and non-financial performance, and showcase the value they create for stakeholders. The Securities and Exchange Commission (SEC) of Nigeria has issued guidelines that encourage the adoption of integrated reporting by listed companies. These guidelines provide a framework for organizations to disclose relevant ESG information and enhance the quality of reporting practices in Nigeria (Securities and Exchange Commission Nigeria, 2019).

5.2       Importance of Stakeholder Engagement in Integrated Reporting in Nigeria

Stakeholder engagement plays a crucial role in integrated reporting in Nigeria, enabling organizations to understand and respond to the diverse needs and expectations of their stakeholders. It enhances the credibility and relevance of integrated reporting by ensuring that the reporting process reflects the perspectives of those who are affected by or have an interest in an organization’s activities. This section highlights the significance of stakeholder engagement in integrated reporting in the Nigerian context.

  1. Enhanced Accountability and Transparency: Stakeholder engagement in integrated reporting fosters greater accountability and transparency in an organization’s reporting practices. By involving stakeholders in the reporting process, organizations in Nigeria can gather valuable insights, address concerns, and disclose relevant information that reflects the needs and expectations of their stakeholders. This promotes transparency, as stakeholders have a better understanding of an organization’s performance and impacts (Adeniji et al., 2017).
  2. Improved Decision-making: Stakeholder engagement in integrated reporting facilitates improved decision-making processes for organizations in Nigeria. By engaging with stakeholders, organizations can gain insights into the social, environmental, and governance issues that matter to their stakeholders. This information enables organizations to make more informed decisions and develop strategies that align with stakeholder expectations, leading to more effective and sustainable outcomes (Oyelere et al., 2020).
  3. Stakeholder Satisfaction and Trust: Stakeholder engagement in integrated reporting contributes to stakeholder satisfaction and trust. By involving stakeholders and considering their perspectives, organizations demonstrate their commitment to inclusive decision-making and responsible business practices. This fosters trust among stakeholders, enhances the organization’s reputation, and strengthens relationships, leading to long-term sustainable partnerships (Osagie et al., 2018).
  4. Effective Risk Management: Stakeholder engagement in integrated reporting supports effective risk management for organizations in Nigeria. Engaging with stakeholders allows organizations to identify and understand potential risks and opportunities related to social, environmental, and governance factors. This proactive approach enables organizations to develop strategies and processes to mitigate risks, capitalize on opportunities, and ensure long-term sustainability (Oyelere et al., 2020).

5.3       Strategies for effective stakeholder engagement

  1. Identify and Prioritize Stakeholders: Start by identifying the key stakeholders relevant to your organization and its activities. Consider individuals, groups, or organizations that are directly or indirectly affected by or have an interest in your operations. Prioritize stakeholders based on their level of influence, importance, and potential impact on your organization. This will help you allocate resources effectively and tailor your engagement efforts accordingly.
  2. Understand Stakeholder Needs and Expectations: To engage stakeholders effectively, it is crucial to understand their needs, expectations, and concerns. Conduct stakeholder analysis to gather information about their interests, values, and preferences. This can be done through surveys, interviews, focus groups, or other forms of dialogue. By gaining insights into stakeholder perspectives, you can align your engagement strategies with their expectations.
  3. Establish Clear Communication Channels: Create clear and accessible channels of communication to engage stakeholders. Utilize a variety of methods such as meetings, workshops, online platforms, newsletters, and social media. Ensure that stakeholders have the means to provide feedback, ask questions, and express their opinions. Foster a two-way communication process that encourages active participation and genuine dialogue.
  4. Foster Collaboration and Partnership: Engage stakeholders as partners rather than just recipients of information. Collaborative approaches such as co-creation, co-design, and co-implementation of initiatives can be effective in building trust, shared ownership, and mutual benefits. Involve stakeholders in decision-making processes, problem-solving, and the formulation of strategies. This helps ensure that diverse perspectives are considered and enhances the legitimacy of your actions.
  5. Provide timely and relevant information: Keep stakeholders informed about your organization’s activities, progress, and performance. Provide timely updates on sustainability initiatives, projects, and outcomes. Use clear and understandable language, avoiding technical jargon. Tailor the information to the specific needs and interests of different stakeholder groups. Transparency in sharing information builds credibility and fosters trust.
  6. Regularly evaluate and Respond to Feedback: Establish mechanisms to collect and analyze stakeholder feedback. Actively listen to their concerns, suggestions, and criticisms. Regularly review and evaluate the effectiveness of your stakeholder engagement strategies. Use the feedback received to improve your practices, address issues, and refine your sustainability initiatives. Demonstrating responsiveness to stakeholder input strengthens relationships and promotes ongoing engagement.
  7. Integrate Stakeholder Engagement into Decision-Making: Ensure that stakeholder engagement is integrated into your organization’s decision-making processes. Consider stakeholder perspectives when formulating strategies, setting goals, and evaluating performance. Incorporate stakeholder feedback and insights into your governance structures and decision-making frameworks. This helps align your organization’s actions with stakeholder expectations and fosters sustainable outcomes.

By implementing these strategies, you can build meaningful and mutually beneficial relationships with stakeholders, driving positive social, environmental, and economic impacts.

5.4       Case studies on successful stakeholder engagement initiatives

Case Study 1: Successful Stakeholder Engagement Initiative in a Developed Country

Title: Unilever’s Sustainable Living Plan

Unilever, a multinational consumer goods company, implemented a successful stakeholder engagement initiative through its Sustainable Living Plan. The company engaged with a wide range of stakeholders, including NGOs, suppliers, customers, and governments, to address environmental and social challenges. Unilever actively sought input from stakeholders through various channels, such as dialogue sessions, partnerships, and collaborative projects.

This initiative resulted in positive outcomes, including improved environmental performance, reduced carbon footprint, and increased social impact. Unilever’s stakeholder engagement efforts helped align business strategies with stakeholder expectations, fostered trust, and enhanced the company’s reputation as a sustainability leader (Unilever, n.d.).

Case Study 2: Successful Stakeholder Engagement Initiative in a Developing Country

Title: M-Pesa’s Financial Inclusion Program in Kenya

M-Pesa, a mobile money service, implemented a successful stakeholder engagement initiative in Kenya to promote financial inclusion. The company engaged with various stakeholders, including local communities, government agencies, NGOs, and telecommunications providers. Through extensive consultations and partnerships, M-Pesa addressed the challenges of financial exclusion by providing accessible and affordable financial services through mobile phones.

This initiative resulted in increased access to financial services for underserved populations, improved livelihoods, and enhanced economic opportunities. M-Pesa’s stakeholder engagement efforts played a pivotal role in shaping policies, building trust, and driving sustainable development in Kenya’s financial sector (Morawczynski & Pickens, 2009).

Case Study 3: Successful Stakeholder Engagement Initiative in Nigeria

Title: Shell’s Niger Delta Dialogue Process

Shell, an energy company operating in Nigeria, implemented a successful stakeholder engagement initiative known as the Niger Delta Dialogue Process. The initiative aimed to address the complex social, economic, and environmental issues in the Niger Delta region. Shell engaged with a diverse range of stakeholders, including local communities, government representatives, NGOs, and academics, through structured dialogue sessions and partnership programs. The Niger Delta Dialogue Process facilitated constructive discussions, conflict resolution, and the co-creation of sustainable development initiatives. It helped build trust, fostered collaboration, and contributed to positive social and economic outcomes in the region (Shell, n.d.).

These case studies illustrate successful stakeholder engagement initiatives in developed, developing, and Nigerian contexts. They demonstrate the importance of engaging stakeholders, building partnerships, and addressing societal challenges through collaborative efforts.

6.0       Impact of Integrated Reporting on Performance

Integrated reporting is believed to have several positive impacts on organizational performance. By providing a comprehensive view of an organization’s financial, environmental, social, and governance performance, integrated reporting enables better decision-making, improved stakeholder relationships, and enhanced long-term value creation. This section highlights the impact of integrated reporting on performance based on research and studies.

  1. Enhanced Decision-Making and Strategy Development: Integrated reporting facilitates better decision-making and strategy development by providing a holistic and integrated understanding of an organization’s performance. It allows organizations to consider a broader range of factors, including financial, environmental, and social aspects, when formulating strategies and setting goals. This comprehensive information helps organizations identify risks, capitalize on opportunities, and make informed decisions that align with long-term sustainable development (Eccles & Krzus, 2010).
  2. Improved Accountability and Transparency: Integrated reporting enhances accountability and transparency, leading to improved performance. By disclosing relevant information on financial, environmental, and social impacts, organizations demonstrate their commitment to responsible business practices. This transparency builds trust among stakeholders, such as investors, customers, and regulators, and enhances an organization’s reputation. Stakeholders are more likely to support and engage with organizations that demonstrate transparent reporting, leading to positive performance outcomes (Dumay et al., 2016).
  3. Stakeholder Engagement and Collaboration: Integrated reporting promotes stakeholder engagement and collaboration, which positively influences organizational performance. By including information on stakeholders, their concerns, and the organization’s efforts to address them, integrated reporting fosters trust and builds strong relationships. Engaging stakeholders in the reporting process increases their sense of ownership and involvement, leading to improved collaboration, innovation, and shared value creation (Bebbington et al., 2014).
  4. Long-Term Value Creation: Integrated reporting contributes to long-term value creation by encouraging organizations to adopt a more sustainable and holistic approach to performance management. By considering a wide range of value drivers, including financial, human, social, and environmental capitals, organizations can identify new opportunities for innovation, efficiency, and growth. This focus on long-term value creation ensures that organizations thrive in a rapidly changing business landscape and achieve sustainable competitive advantage (Adams et al., 2016).

6.1       Analyzing the relationship between integrated reporting and financial performance

Integrated reporting is a comprehensive reporting approach that provides a broader view of an organization’s performance, including its financial, environmental, social, and governance aspects. Many researchers and practitioners have explored the relationship between integrated reporting and financial performance, seeking to understand how integrated reporting practices impact an organization’s financial outcomes. This section examines the existing literature and studies that shed light on this relationship.

6.1.1    Positive Association with Financial Performance:

Several studies suggest a positive association between integrated reporting and financial performance. Integrated reporting provides a more complete picture of an organization’s value creation activities, including its environmental and social impacts, which can lead to improved financial performance. Research has found that companies adopting integrated reporting practices tend to exhibit higher profitability, increased shareholder value, and improved financial indicators (KPMG, 2013; Kotsadam & Middelthon, 2020).

6.1.2    Improved Investor Decision-Making

Integrated reporting can positively influence investor decision-making processes, leading to enhanced financial performance. By providing comprehensive and meaningful information about an organization’s financial and non-financial performance, integrated reporting helps investors gain a better understanding of the company’s long-term prospects and risks. This increased transparency and disclosure can attract socially responsible investors, promote capital market efficiency, and contribute to better investment decisions (EY, 2016; Luo & Zhang, 2019).

6.1.3    Long-Term Value Creation

Integrated reporting’s focus on sustainability and long-term value creation can contribute to improved financial performance. By considering a broader range of value drivers, such as human capital, social capital, and environmental impact, organizations adopting integrated reporting practices are better positioned to identify risks and opportunities for sustainable growth. This forward-looking approach can enhance competitiveness, operational efficiency, and innovation, leading to positive financial outcomes (Adams et al., 2016; Eccles & Saltzman, 2019).

6.2       Non-financial performance indicators and their impact on organizational success

Traditional financial performance indicators, such as revenue, profit, and return on investment, provide important insights into an organization’s financial health. However, they do not capture the full spectrum of factors that contribute to an organization’s success. Non-financial performance indicators, also known as non-financial measures or metrics, provide valuable information about an organization’s performance in areas beyond finance. This section explores the importance of non-financial performance indicators and their impact on organizational success, drawing on research and studies.

6.2.1    Balanced Scorecard Approach

The Balanced Scorecard approach, developed by Kaplan and Norton, emphasizes the importance of non-financial performance indicators in driving organizational success. It suggests that organizations should measure and manage performance across multiple dimensions, including financial, customer, internal processes, and learning and growth. By considering a range of non-financial indicators, such as customer satisfaction, employee engagement, and innovation, organizations can achieve better long-term performance and strategic alignment (Kaplan & Norton, 1996).

6.2.2    Customer Satisfaction and Loyalty

Measuring customer satisfaction and loyalty is a critical non-financial performance indicator that impacts organizational success. Satisfied and loyal customers tend to generate repeat business, referrals, and positive word-of-mouth, leading to increased sales and market share. Organizations that prioritize customer-centric strategies and use indicators like customer satisfaction ratings, Net Promoter Score (NPS), and customer retention rates can gain a competitive advantage and achieve sustainable growth (Reichheld, 2003; Rust et al., 2004).

6.2.3    Employee Engagement and Productivity

Non-financial indicators related to employee engagement and productivity have a significant impact on organizational success. Engaged employees are more likely to be motivated, committed, and productive, leading to higher quality outputs, better customer service, and increased operational efficiency. Measures such as employee satisfaction surveys, turnover rates, absenteeism rates, and training investments can help organizations assess and improve their workforce performance, ultimately driving organizational success (Gallup, 2017; Heskett et al., 2008).

6.2.3    Environmental Sustainability

Incorporating non-financial indicators related to environmental sustainability has become increasingly important for organizational success. Measures such as greenhouse gas emissions, energy consumption, waste reduction, and water usage provide insights into an organization’s environmental impact and its efforts towards sustainability. Organizations that adopt environmentally responsible practices can enhance their reputation, attract environmentally conscious customers, comply with regulatory requirements, and achieve cost savings through efficiency improvements (World Business Council for Sustainable Development, 2010).

By measuring and managing factors beyond finance, such as customer satisfaction, employee engagement, and environmental sustainability, organizations can achieve long-term performance, competitive advantage, and stakeholder value. Incorporating non-financial indicators into performance measurement systems allows organizations to have a more comprehensive understanding of their overall success.

6.3       Long-term value creation through integrated reporting and sustainability accounting

Integrated reporting and sustainability accounting are strategic approaches that aim to drive long-term value creation for organizations. By considering a broader range of factors beyond financial performance, these practices enable organizations to better understand and manage their social, environmental, and governance impacts. This section explores the importance of integrated reporting and sustainability accounting in driving long-term value creation, drawing on research and studies.

6.3.1    Integrated Reporting and Stakeholder Value

Integrated reporting, as advocated by the International Integrated Reporting Council (IIRC), seeks to provide a holistic view of an organization’s value creation activities. It encourages organizations to consider financial, environmental, social, and governance aspects and their interdependencies. Research has shown that organizations adopting integrated reporting practices can enhance stakeholder value through improved transparency, accountability, and communication of their long-term strategies and performance (Adams et al., 2016; Eccles & Armbrester, 2018).

6.3.2    Sustainable Business Practices and Competitive Advantage

Sustainability accounting, which encompasses the measurement and management of social and environmental impacts, plays a vital role in long-term value creation. By integrating sustainability considerations into business strategies and decision-making processes, organizations can identify risks and opportunities, improve resource efficiency, and enhance their reputation. Studies have indicated that sustainable business practices can lead to a competitive advantage, cost savings, access to new markets, and improved financial performance (Khan et al., 2019; KPMG, 2017).

6.3.3    Enhanced Risk Management and Resilience

Integrated reporting and sustainability accounting contribute to long-term value creation by improving risk management and organizational resilience. By considering a wider range of risks, including environmental, social, and governance factors, organizations can identify and mitigate potential threats to their long-term viability. Research suggests that organizations that effectively manage their non-financial risks and demonstrate robust sustainability practices are better equipped to withstand uncertainties and disruptions, leading to enhanced long-term value creation (Branco & Rodrigues, 2019; Eccles et al., 2014).

7.0       Implementation Challenges and Best Practices

7.1       Barriers to implementing integrated reporting and sustainability accounting

While integrated reporting and sustainability accounting offer numerous benefits, their implementation can face certain challenges and barriers. These barriers may vary across different contexts, including Nigeria. This section explores some of the common barriers to implementing integrated reporting and sustainability accounting in Nigeria, drawing on research and studies.

7.1.1    Lack of Awareness and Understanding:

One of the primary barriers to implementing integrated reporting and sustainability accounting in Nigeria is the lack of awareness and understanding among organizations. Many organizations may be unfamiliar with the concepts, frameworks, and benefits associated with integrated reporting and sustainability accounting. This lack of awareness hinders their adoption and implementation. It is essential for organizations to educate themselves about these practices and their potential value (Okoye et al., 2020).

7.1.2    Limited Resources and Capacity

Limited resources and capacity within organizations can present significant barriers to implementing integrated reporting and sustainability accounting in Nigeria. Organizations may lack the necessary financial resources, skilled personnel, and technology infrastructure to effectively implement these practices. This lack of resources and capacity can hinder data collection, analysis, and reporting processes, making it challenging to adopt and sustain integrated reporting and sustainability accounting (Ezeoha et al., 2018).

7.1.3    Regulatory and Legal Frameworks

The absence of clear regulatory and legal frameworks specific to integrated reporting and sustainability accounting in Nigeria can be a barrier to implementation. The lack of guidelines, standards, and enforcement mechanisms may make it challenging for organizations to develop consistent and reliable reporting practices. The establishment of comprehensive regulatory frameworks that promote the adoption and compliance of integrated reporting and sustainability accounting can help overcome this barrier (Ajibolade et al., 2021).

7.1.4    Organizational Culture and Mindset

The prevailing organizational culture and mindset can act as barriers to implementing integrated reporting and sustainability accounting in Nigeria. Organizations that are primarily focused on short-term financial performance and traditional reporting practices may resist the transition to integrated reporting and sustainability accounting. It requires a shift in organizational culture and mindset to embrace a more holistic view of value creation and accountability (Anyaduba et al., 2020).

7.2       Overcoming challenges and promoting adoption in Nigeria

While there are challenges to implementing integrated reporting and sustainability accounting in Nigeria, there are strategies and approaches that can help overcome these barriers and promote their adoption. This section explores some key steps that can be taken to overcome challenges and foster the adoption of integrated reporting and sustainability accounting in Nigeria.

7.2.1    Awareness and Education

Increasing awareness and understanding of integrated reporting and sustainability accounting among organizations and stakeholders is crucial for their adoption. Organizations can actively participate in capacity-building programs, workshops, and training sessions that provide knowledge and insights into these practices. Professional bodies, academic institutions, and industry associations can play a significant role in organizing awareness campaigns and educational initiatives to promote understanding and encourage adoption (Ajibolade et al., 2021).

7.2.2    Collaboration and Partnerships

Promoting collaboration and partnerships among stakeholders can help overcome resource limitations and build capacity for implementing integrated reporting and sustainability accounting in Nigeria. Organizations can collaborate with industry associations, research institutions, and regulatory bodies to share knowledge, resources, and best practices. Collaborative initiatives can support the development of guidance materials, frameworks, and benchmarks specific to Nigeria, ensuring their relevance and alignment with local contexts (Okoye et al., 2020).

7.2.3    Regulatory Framework and Standards

Establishing a robust regulatory framework and adopting relevant reporting standards specific to integrated reporting and sustainability accounting can provide clarity, consistency, and accountability. Regulatory bodies in Nigeria can work towards developing and enforcing guidelines, codes, and reporting requirements that encourage organizations to adopt integrated reporting practices. This can create a level playing field, enhance comparability, and ensure the credibility of integrated reports (Ezeoha et al., 2018).

7.2.4    Leadership and Organizational Commitment

Effective leadership and organizational commitment are crucial for driving the adoption of integrated reporting and sustainability accounting in Nigeria. Organizations need to demonstrate a commitment to sustainability, transparency, and accountability from top management down to foster a culture that embraces these practices. Leaders can champion the adoption of integrated reporting by integrating it into the organization’s strategic objectives, setting targets, and allocating resources for implementation (Anyaduba et al., 2020).

7.3       Best practices for successful implementation

Here are some best practices for successful implementation of integrated reporting and sustainability accounting. These best practices can guide organizations in successfully implementing integrated reporting and sustainability accounting, enabling them to effectively measure, manage, and communicate their sustainability performance.

  1. Clear Strategic Alignment: Ensure that integrated reporting and sustainability accounting are aligned with the organization’s overall strategy and objectives. This alignment helps integrate sustainability considerations into decision-making processes and fosters a cohesive approach to value creation (Lozano et al., 2018).
    1. Stakeholder Engagement: Engage with stakeholders throughout the implementation process to understand their expectations, concerns, and interests. This engagement fosters trust, improves decision-making, and ensures that reporting addresses the issues that matter most to stakeholders (Benn et al., 2019).
    1. Robust Data Collection and Analysis: Establish robust systems for collecting, analyzing, and reporting relevant data on environmental, social, and governance (ESG) performance. Use standardized frameworks and indicators to ensure consistency and comparability of data, facilitating meaningful analysis and decision-making (Kolk, 2016).
    1. Integration of Sustainability into Governance and Management: Integrate sustainability considerations into governance structures and decision-making processes. This involves incorporating sustainability metrics and targets into performance management systems, aligning executive compensation with sustainability goals, and integrating sustainability considerations into board discussions (Epstein, 2018).
    1. Communication and Transparency: Effectively communicate integrated reports to stakeholders, ensuring transparency, clarity, and relevance. Use plain language, visuals, and case studies to make complex information accessible. Clearly articulate the organization’s sustainability performance, challenges, and future goals (Rimmel et al., 2017).
    1. Continuous Improvement: Embrace a culture of continuous improvement in integrated reporting and sustainability accounting practices. Regularly review and evaluate the reporting process, engage in stakeholder feedback, and update reporting frameworks and indicators to reflect emerging sustainability issues (Hahn et al., 2015).

8.0       Future Trends and Implications

8.1       Emerging trends in integrated reporting and sustainability accounting

Some emerging trends in integrated reporting and sustainability accounting include the following:

  1. Embracing Technology and Digitalization: The integration of technology and digital tools is transforming the landscape of integrated reporting and sustainability accounting. This includes the use of data analytics, artificial intelligence, and blockchain technology to enhance data collection, analysis, and reporting processes, leading to more accurate and real-time reporting (Stubbs et al., 2017).
  2. Focus on Materiality and Impact: There is a growing emphasis on materiality assessment and determining the most relevant sustainability issues for an organization and its stakeholders. This trend involves identifying the social, environmental, and economic impacts that are most significant and aligning reporting efforts accordingly (Miočić et al., 2016).
  3. Integrated Thinking and Reporting: Integrated thinking refers to the holistic approach of considering financial and non-financial aspects in decision-making and reporting. This trend involves integrating sustainability considerations into strategic planning, risk management, and performance measurement, resulting in more comprehensive reporting (Adams et al., 2016).
  4. Climate-related Disclosures: With the increasing focus on climate change and its impacts, there is a growing demand for organizations to disclose their climate-related risks, opportunities, and strategies. This trend is driven by initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD), which aims to enhance climate-related reporting (Arya et al., 2021).
  5. Social Value Reporting: Organizations are recognizing the importance of reporting on their social value and societal impact beyond traditional financial measures. This trend involves measuring and communicating the social value created by organizations, including contributions to local communities, human rights, and social well-being (Carroll et al., 2021).

These emerging trends reflect the evolving landscape of integrated reporting and sustainability accounting, highlighting the need for organizations to adapt and embrace new practices to effectively address current and future sustainability challenges.

8.2       Regulatory developments and their impact on reporting practices

The following regulatory developments in Nigeria have had a significant impact on reporting practices, encouraging companies to adopt more comprehensive reporting frameworks and disclose their sustainability performance, thereby enhancing transparency and accountability.

  1. The Financial Reporting Council of Nigeria (FRCN): The Financial Reporting Council of Nigeria is the primary regulatory body responsible for setting accounting and reporting standards in Nigeria. The FRCN has developed the Nigerian Code of Corporate Governance, which provides guidelines for reporting practices, including sustainability reporting (Olibe, 2020).
  2. Sustainability Reporting Guidelines: In recent years, there has been an increasing emphasis on sustainability reporting in Nigeria. The Nigerian Stock Exchange (NSE) introduced the Sustainability Reporting Guidelines to encourage listed companies to disclose their environmental, social, and governance (ESG) performance (Akintoye et al., 2018).
  3. Climate-related Reporting: The Securities and Exchange Commission (SEC) in Nigeria has issued directives on climate risk reporting, aligning with global initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD). This development aims to enhance the disclosure of climate-related risks and opportunities by Nigerian companies (Emmanuel et al., 2020).
  4. Nigerian Extractive Industries Transparency Initiative (NEITI): NEITI plays a crucial role in promoting transparency and accountability in the extractive industries in Nigeria. NEITI requires companies in the oil, gas, and mining sectors to report their payments to the government, contributing to increased transparency in the sector (Ijaiya et al., 2019).

8.3       The evolving role of accountants in promoting sustainable business practices

Accountants play a crucial role in promoting sustainable business practices in Nigeria. As sustainability issues gain prominence in the business landscape, accountants are increasingly being recognized as key professionals who can contribute to driving sustainable development. Their evolving role encompasses various aspects, including:

  1. Sustainability Reporting and Assurance: Accountants are involved in the preparation, analysis, and assurance of sustainability reports. They ensure that organizations adhere to reporting frameworks and standards, such as the Global Reporting Initiative (GRI) guidelines, and provide independent verification of sustainability performance. This helps enhance the credibility and transparency of sustainability disclosures (Amran et al., 2017).
  2. Integrated Thinking and Decision-making: Accountants are increasingly involved in integrated thinking, which involves considering sustainability factors in financial decision-making. By integrating environmental, social, and governance (ESG) considerations into financial analysis and decision-making processes, accountants help organizations identify sustainable business opportunities, assess risks, and allocate resources effectively (Lozano et al., 2019).
  3. Performance Measurement and Management: Accountants contribute to the development and implementation of performance measurement systems that incorporate sustainability indicators. They assist organizations in tracking and assessing their environmental and social performance, enabling them to set targets, monitor progress, and make informed decisions to improve sustainability outcomes (Holland et al., 2018).
  4. Risk Management and Compliance: Accountants play a crucial role in identifying and managing sustainability risks. They contribute to the development of robust risk management systems that integrate environmental and social risks, ensuring compliance with relevant regulations and standards. Accountants help organizations identify potential sustainability risks, assess their financial implications, and implement appropriate mitigation strategies (Adelopo et al., 2019).
  5. Ethical and Responsible Business Practices: Accountants have a responsibility to promote ethical and responsible business practices. They contribute to the development and implementation of ethical frameworks, codes of conduct, and governance structures that foster sustainability principles. Accountants help organizations embed ethical considerations into their operations, promoting responsible behavior and long-term value creation (Asongu et al., 2020).

The evolving role of accountants in promoting sustainable business practices in Nigeria highlights their contribution to embedding sustainability within organizations. By leveraging their financial expertise, ethical standards, and understanding of sustainability issues, accountants are pivotal in driving the transition towards a more sustainable and responsible business landscape.

9.0       Conclusion

9.1       Summary of key findings

Numerous studies have highlighted the positive relationship between integrated reporting and financial performance. Organizations that adopt integrated reporting practices tend to experience improved financial performance, including increased profitability and shareholder value. Additionally, the inclusion of non-financial performance indicators, such as environmental and social metrics, positively impacts organizational success by providing competitive advantages, enhanced reputation, and improved stakeholder relationships.

In the context of Nigeria, stakeholder engagement plays a crucial role in integrated reporting. Companies that actively engage with stakeholders through dialogue and collaboration are better positioned to understand stakeholder expectations, address social and environmental concerns, and create long-term value. However, the effective implementation of integrated reporting faces various challenges in Nigeria, including limited awareness and understanding, inadequate technical skills, lack of standardized frameworks, and the perception of limited financial benefits.

To overcome these challenges and promote successful implementation, organizations in Nigeria should focus on best practices such as leadership commitment, stakeholder engagement, capacity building, and alignment with global reporting frameworks. Adopting a strategic approach, integrating sustainability into business strategies, and ensuring transparent and accurate reporting are crucial steps.

The emerging trends in integrated reporting and sustainability accounting emphasize the increasing importance of non-financial indicators, the integration of sustainability into business models, and the use of technology for data collection and reporting. Furthermore, regulatory developments in Nigeria have influenced reporting practices, with the adoption of frameworks and standards such as the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB).

Accountants in Nigeria play an evolving role in promoting sustainable business practices. They are increasingly recognized as key players in integrating sustainability into financial reporting, ensuring compliance with reporting standards, and providing expertise in measuring and disclosing non-financial performance indicators. Accountants are essential in driving the transition towards a more sustainable and responsible business landscape in Nigeria.

The findings suggest that integrated reporting and sustainability accounting are beneficial for organizations in Nigeria, leading to improved financial performance, enhanced stakeholder relationships, and long-term value creation. By overcoming challenges, adopting best practices, and staying abreast of emerging trends and regulatory developments, organizations in Nigeria can effectively implement integrated reporting and contribute to sustainable business practices.

9.2       Implications for practice and future research directions

The findings of this study have several implications for practitioners and organizations seeking to adopt integrated reporting and sustainability accounting practices:

  1. Stakeholder Engagement: Organizations should prioritize stakeholder engagement and establish robust mechanisms for dialogue and collaboration. By actively involving stakeholders in decision-making processes and incorporating their perspectives, organizations can enhance transparency, build trust, and align their reporting with stakeholder expectations.
  2. Capacity Building: To overcome the challenges of implementing integrated reporting, organizations should invest in building the technical skills and knowledge required for effective sustainability accounting. This may involve providing training and development opportunities for employees, hiring professionals with expertise in sustainability reporting, and partnering with external consultants or experts.
  3. Reporting Standards and Frameworks: Organizations should align their reporting practices with globally recognized standards and frameworks, such as the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB). Adhering to these frameworks helps ensure consistency, comparability, and credibility in reporting, and facilitates benchmarking against industry peers.
  4. Integration of Sustainability: Organizations should integrate sustainability considerations into their overall business strategy. By embedding sustainability principles and practices throughout their operations, organizations can drive long-term value creation, mitigate risks, and seize opportunities related to environmental, social, and governance (ESG) factors.

9.3       Future Research Directions

While this study provides valuable insights into integrated reporting and sustainability accounting, there are several areas that warrant further research:

  1. Long-term Performance Impact: Future studies could explore the long-term financial and non-financial performance implications of integrated reporting. This could involve assessing the relationship between integrated reporting practices and key performance indicators (KPIs), shareholder value, and market valuation over an extended period.
  2. Sector-Specific Analysis: It would be valuable to examine the specific challenges and opportunities associated with integrated reporting and sustainability accounting across different sectors in Nigeria. This sector-specific analysis can provide nuanced insights into the unique characteristics and requirements of various industries and their impact on reporting practices.
  3. Stakeholder Perspectives: Future research could delve deeper into the perspectives and expectations of different stakeholder groups regarding integrated reporting. This can help identify the specific information needs and preferences of stakeholders, facilitating the development of more targeted and meaningful reporting practices.
  4. Comparative Studies: Conducting comparative studies between organizations in Nigeria and those in other countries can provide valuable insights into the contextual factors that influence integrated reporting practices. Comparing the experiences, challenges, and outcomes of organizations across different national contexts can contribute to a more comprehensive understanding of integrated reporting and sustainability accounting.

By addressing these research gaps, future studies can further advance the field of integrated reporting and sustainability accounting, providing practitioners with evidence-based insights and guiding the development of best practices in Nigeria and beyond.

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Vehicle Accident Detection Using Arduino UNO

Mrs. Kanimozhi; Kamalesh N. S; Karan Kumar K.; Karkavel Raja K.; Sanjaikanth; P.D Merlin

Vel Tech High Tech Dr Rangarajan Dr Sakunthala Engineering College

Abstract 

Overall, the aim of the paper is to detect the place where our Vehicle got accident through GPS. Many of them still occur as a result of accidents nowadays. This is a result of specific human activity. Technology has made life easier for us every day. Some actions include driving while intoxicated, driving too fast, disobeying traffic laws, etc. If our vehicle is involved in an accident, the global positioning system (GSM) module will result in sending an alert to our phone number, allowing us to quickly get there and potentially save their lives. In this project, we want to prevent accidents from taking lives. In this paper, we provide a detailed explanation of the components we used, including the Arduino UNO. This project can be developed in the ensuing years. Solving issues of this nature will be the focus of our paper. To lessen the accident, our administration took a number of actions. They had installed specific monitors in the signal that could detect the vehicle’s speed and issue a fine.

Keywords : Arduino UNO, GSM module, GPS module.

                                     INTRODUCTION

Some of the technologies under examination also use machine learning methods for better accident prediction and detection. These systems include benefits such as accurate vehicle tracking, quicker emergency service response times, and faster identification and notification of accidents. High installation costs, false positives and false negatives in accident detection, and potential privacy issues with vehicle tracking are some of these systems’ drawbacks. Furthermore, elements like network coverage and the accessibility of local emergency services affect how effective these systems are. Overall, there are many accidents and injuries are occurred due to Vehicle accident with the development and use of vehicle monitoring, accident detection, and notification systems. To overcome these constraints and make these systems more dependable and cost-effective, however, ongoing upgrades and breakthroughs in technology and communication protocols are required. Nowadays, everyone uses a car, which may lead to a lot of accidents. More people are dying in our nation as a result of inadequate emergency facilities. We’ve installed a GPS in the car so that when we can find it, it will immediately send a message to the rescue crew. It is impossible to overestimate the significance of transportation to human civilization, and the vehicle plays a major role in contemporary transportation. But it’s impossible to overlook the dangers of driving, particularly in terms of collisions. Speed is a major risk factor when driving, as it not only influences the seriousness of collision the chance of something happening to getting in one. The number of fatal accidents has been drastically reduced thanks to the efforts of our government. The traffic laws now contain a huge number of rules and regulations. According to the level of violence, the fee was raised. The minimum fine for driving without a helmet was 1000 rupees. The primary location of a significant accident is where the traffic police have multiple cameras stationed. The camera will measure the car’s speed, and if it is too high, it will scan the licence plate and send the appropriate fine to the owner of the offending vehicle. Many foreign nations have these laws in place. The first time it was used was in Tamil Nadu. A step towards strengthening emergency services and lowering the risks to human life linked with traffic hazards and road accidents is the implementation of an automatic alert device for car accidents, as outlined in the article. The system is built to swiftly identify accidents and provide basic data, such as the accident’s location, time, and angle, to the nearest first aid facility. The rescue team then receives this information, which may help to save important lives. The technology uses a GSM module and a GPS module, respectively, to send the alarm message and locate the accident. Additionally, the system accurately detects the existence of an accident and the angle at which the automobile rolls over using both  vibration sensors and MEMS sensors. Additionally,  system has a switch that may be used to stop delivering messages when there are no casualties, saving the medical personnel valuable time. Every nation should place a high focus on enhancing emergency services and lowering traffic dangers and collisions. Technology, like the automatic alert system for car accidents, may offer a practical and efficient answer to this issue. Despite the numerous initiatives worldwide actions performed by governmental and non-governmental groups to increase awareness about irresponsible driving, accidents continue to happen frequently and frequently end in fatalities. If emergency personnel had been able to get to the scene of the accident in time, lives might have been spared in many situations. According to research, a sizable portion of fatalities would have been avoided if emergency assistance had been available sooner. This has led to an urgent need for an efficient automatic accident detection system that can notify emergency personnel immediately and disclose the location of the accident. By offering prompt aid, this system may contribute to saving priceless human lives. It is essential to have a system that can quickly and accurately detect accidents and alert emergency personnel. By doing this, it will be much easier to save lives and less likely that an accident will have a negative effect on people’s lives or society as a whole.

Problem statement 

Accidents on the road can be fatal and result in extensive property damage. Accident victims frequently can’t contact for assistance right away. Therefore, a system that can distinguish accidents and automatically warn emergency services is needed. The goal of an accident detection and alarm system is to develop a system that can accurately identify accidents , assess the accident’s severity, and instantly alert emergency personnel so they can render aid as soon as feasible. The system must be dependable, capable of real-time accident detection, and able to function under a variety of environmental factors, including weather and lighting. The objective is to speed up the accident response process.

Scope of the paper 

Accidents happen randomly and at any time, resulting in considerable property damage and, more crucially, the loss of human lives. In this project, we want to create a system for detecting accidents and alerting emergency services so they can provide prompt assistance. We’ll be using the Arduino UNO platform.The project’s objective is to develop a system that can detect accidents , notify the appropriate emergency services of their location and severity. The technology can be applied in a variety of settings to increase security and prevent accidents, including factories, workplaces, and construction sites.

Hardware components  

A power source, an accelerometer, a GPS module, a GSM module, and an Arduino UNO board are among the hardware elements of the system. An accident may be indicated by sudden variations in acceleration, which are measured by the accelerometer. The GPS module is used to locate the accident, while the GSM module is utilised to send SMS notifications to emergency personnel.

Software components  

An Arduino sketch that takes information from the GPS and accelerometer modules and uses the GSM module to deliver SMS messages is one of the system’s software components. Additionally, a smartphone application that may receive notifications of accidents and show their location and severity will be created.

Testing and evaluation 

To determine how well the system works at spotting accidents, we will test it in a variety of settings, including a moving car, a manufacturing facility, and a construction site. Additionally, we’ll assess how well the system identified the accident’s location and level of seriousness. A useful use of Arduino UNO in the sphere of safety and security is the accident detection system since it has a large potential to save lives and prevent injuries. The system’s precision and dependability, which can be increased through testing and assessment, will be crucial to the project’s success. Additional sensors can be added, and the mobile application’s functionality can be improved, to further improve the system.

                                                                            METHODOLOGY

The accident detection and message system was created to be installed in an automobile, like an ambulance or police car. Accident detection and notification are accomplished by the system using GSM and GPS technology. The GPS will locate the accident location , and  emergency services are notified via GSM. An Arduino is utilised to operate the device, and an LCD is employed to display accident data. Overall, the method is straightforward and effective, relying on currently available technology to identify and report incidents in real-time.

HARDWARE DESCRIPTION 

1.ARDUINO 

The Arduino UNO is a well-known open-source microcontroller board developed by Arduino.cc and based on the ATmega328P CPU . The Arduino UNO acts as the primary control component in this project, detecting accidents and alerting users. It is in charge of gathering information from a variety of sensors, including vibration sensors, GPRS and GSM modules, and either presenting the outcomes on a display system or communicating them via message.  The vibration sensor is crucial to this project’s success. It serves as an accident detection module and takes in the vibrations of the vehicle. When an accident is identified, the Arduino gathers data from every other module and uses the GSM module to deliver a message to the receiver. This makes it possible to get real-time accident notifications and take prompt action. Overall, the Arduino acts as the hub for coordinating the numerous sensors and modules, resulting in a dependable and effective accident detection and reporting system. It is a highly adaptive and accessible option for projects of a similar sort due to its open-source nature and widespread usage.

2. GSM MODULE 

The GSM SIM900 module is recommended for communication between the GPS, GSM, and the specified mobile number. the PCS 1900 MHz, the DSC 100 MHz, and the EGSM 900 MHz frequencies are all covered by the tri-band SIM900 module, which runs in the 900MHz to 1900MHz frequency range. For communication with the mobile phone, the transmitting pin of the GPS module and the reception pin of the GSM module are both used. This makes it the perfect option for accident detection and alert systems because it enables the real-time broadcast of location information and emergency messages.

3.GPS MODULE 

The SIM28ML GPS module is utilised in this instance to locate the car. The GPS module works by dividing the globe into coordinates, which enables it to precisely track the position of the car. The SIM28ML transmits position information in real time using the NMEA format at a frequency of 1575.42 MHz. This location information is retrieved by the GPS receiver and transmitted to the Arduino for additional processing. Following processing of the location data, it is sent via the GSM module to the saved contacts, enabling emergency services and family members to be informed of the accident’s location in real-time. Overall, this system’s utilisation of GPS technology is crucial for providing precise and prompt emergency responses.

4.NODE MCU  

The Node MCU is an open-source development board made to make IoT (Internet of Things) applications rapidly and effortlessly. It is built on the ESP8266 microcontroller, which has Wi-Fi functionality and can connect to a Wi-Fi network, making it the perfect board for Internet of Things applications that need wireless access. The ESP8266, a USB-serial converter, and a voltage regulator are all included in the Node MCU, which is essentially a low-cost, all-in-one platform. As a result, programmers may easily create and test their Internet of Things (IoT) applications without the need for a separate programmer, voltage regulator, or USB-to-serial adapter. Support for the Lua programming language, a compact, high-level scripting language, is one of the Node MCU’s primary characteristics. In order to get started with IoT development, beginners no longer need to learn difficult programming languages. Developers may utilise the enormous selection of Arduino libraries because the Node MCU can also be programmed using the well-known Arduino IDE. All things considered, the Node MCU is a fantastic development board for Internet of Things (IoT) projects that need wireless connectivity. It provides a perfect balance of features, simplicity, and affordability.

5.LCD DISPLAY 

In this project, numerals, alphabets, and special characters are displayed on a 16×2 alphanumeric LCD (Liquid Crystal Display) module. The module can display up to 32 characters at once and contains 16 columns and 2 rows. Using the LCD’s higher bit data lines, pins 11, 12, 13, and 14, which are connected to the Arduino’s digital pins 8, 9, and 10 in 4-bit mode, the module is connected to the platform. The LCD’s RS (Register Select) and E (Enable) pins are linked to pins 12 and 13, respectively, on the Arduino. To determine if the data being delivered to the LCD is a command or data, utilise the RS pin.  whereas the LCD’s ability to read incoming data is enabled by the E pin. The read/write (R/W) pin must be connected to ground in order to write data to the LCD. This shows that the data is being written to the LCD. In conclusion, the LCD module is used to show pertinent details about the accident, like the position and time, and is controlled by the Arduino by using a number of pins.

Flow chart 

A technology called an accident detection and alert system tracks how a car behaves on the road and looks for potential collisions. The system is often made up of a number of sensors, such as cameras, gyroscopes, and accelerometers, which gather information on the movement, speed, and direction of the vehicle. The system can use this data to find trends, including abrupt speed changes, swerving, or braking, that point to a higher chance of an accident. When an accident is identified, the system sends alerts to the driver, any nearby vehicles, and emergency services, including vital details like the accident’s location and severity. A collision can be avoided or its severity reduced by autonomous emergency braking or steering systems, which are included with some accident detection and alert systems. An accident detection and alert system has many advantages. These technologies can assist in preventing accidents from happening or reducing the severity of accidents that do occur by giving drivers real-time information about prospective accidents. Additionally, they can speed up emergency services’ reaction times considerably, possibly saving lives. Making an accident detection and alarm system accurate, dependable, and compatible with various vehicle kinds are obstacles that must be overcome. But given the potential advantages of this technology, it warrants significant study and advancement in the field of traffic safety.

 RESULT 

The success of an accident detection and warning system can be evaluated based on its dependability, speed, and efficiency in lowering reaction times to accidents, as well as its capacity to reliably detect accidents and transmit aid requests.To assess the system’s performance, many scenarios and settings can be examined, including as various weather and lighting conditions, different speeds, and various accident kinds. By contrasting the system’s findings with actual accidents and examining false positives and false negatives, the accuracy of the system may be assessed.The effectiveness of the system can also be assessed by comparing the system’s reaction timings against response times following accidents. In order to learn more about the system’s usability and usability, surveys of user satisfaction and feedback can also be done. Overall, the effectiveness of an accident detection and alarm system depends on its capacity to promptly dispatch aid requests and accurately identify incidents, both of which have the potential to save lives and lessen the effects of accidents on other road users.

PROPOSED METHOD 

A combination of sensors, including a GPS and an accelerometer, is the suggested approach for an accident detection and alarm system. These sensors can be used to detect collisions or unexpected external changes in a vehicle’s speed. The driver or occupants of the vehicle are given the chance to cancel the warning if it was a false alarm by using the data from these sensors to initiate one. A request for assistance is sent to emergency services and any listed family members or contacts if the alert is not cancelled or if the user clicks the “Call Help” button. This approach attempts to speed up response to accidents and increase all-around road user safety.

OBJECTIVE  

The goal of the Arduino UNO-based automobile accident detection system is to create a dependable and accurate system that can identify accidents and alert emergency services for quick assistance. The method aims to increase traffic safety and reduce the number of accidents-related injuries and fatalities. The system can detect abrupt changes in acceleration and locate the accident by making use of the capabilities of the Arduino UNO and sensors like accelerometers and GPS modules. In order to facilitate quick and efficient responses, the system can then transmit notifications to emergency services that include the accident’s location and level of seriousness. The project’s ultimate goal is to create a system that can save lives, stop injuries, and make all roadways safer for everyone.

CONCLUSION 

A vital piece of technology that might lessen the severity of accidents on the road is an accident detection and alert system. This system tracks a vehicle’s behaviour and looks for potential collisions using a variety of sensors and communication technologies. The technology notifies the driver and/or emergency services when an accident is detected, giving them vital information including the accident’s location and severity. With the help of this technology, emergency services can respond much more quickly, perhaps saving lives.The potential advantages of this technology cannot be understated, even if there are a number of difficulties in building an accident detection and alert system, including guaranteeing accuracy, dependability, and compatibility with various types of cars. Implementing an accident detection and alarm system can be a vital step in enhancing road safety and lowering fatalities due to the rising frequency of incidents on the road.

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