How does the Integrity Matter for Organisations: An Empirical Study on Role of Effective Corporate Governance in Firms profitability

Abstract

The concept of "integrity" has gained increasing prominence in studies on government and governance, as well as in policymaking at all levels. Integrity is closely tied to commitment, and employees who demonstrate the capacity to drive organizational success. Achieving organizational goals significantly depends on the quality and quantity of human resources. With integrity, individuals are empowered to accomplish tasks effectively. Those who possess integrity foster trusting relationships with others. At the corporate level, individuals with integrity play a crucial role in building harmony around shared values and guiding the organization toward common goals. Integrity is regarded as the quality of adhering to moral values, norms, and rules. It relates to the ethical behaviour of all individuals involved in governance and is considered essential for understanding governance itself. Corporate governance mechanisms, in particular, play a critical role in influencing a firm's performance, as they help address conflicts of interest between managers and shareholders. 217 respondents were considered in the study as a sample size. Mean and T-test was applied in the study to find the outcome.