The effect of ethics practice on customer relationship / Fitri Norhani Maslan

Generally, the ethical practices can have a direct impact on the success of the financial institutions. Financial institutions always look into the needs of ethics practice in order to survive and compete successfully in today's dynamic corporate environment. The financial institutions policy that encourages positive relationships with customers can help position of the financial institution as a trusted one. Therefore, this research study is aims to study the effect of ethics practice on customer relationship. The customer relationship longevity was chosen as a dependent variable and four variables which are privacy, honesty, transparency and autonomy as independent variables. The significant of this study is to obtain as much information regarding the ethic factors that affect the customer relationship in financial institutions. Besides, the findings of this study also give benefits to business organizations especially financial institutions considering that ethical practices in financial institutions can help to create favorable relationships and can also establish long-term positive relationships with existing and potential future customers. The data collection for this research was collected from primary and secondary data. The focus respondents of surveys are the peoples which are the customer of financial institutions in Malaysia. This study used Statistical Package for the Social Science (SPSS) to make data analysis. There are several test that have been used in this research which are Regression analysis to test the relationship between dependent variable with the independent variables and also Factor analysis to test the validity of the questionnaire. At the end of the study, finding show that three variables tested has significant relationship with the customer relationship longevity in financial institutions.