The UAE's ethical climate is positive, reinforcing its reputation as a good place to do business, according to an independent organisational ethics study, the first of its kind in the region.

Most UAE business and government organisations perform in an ethically responsible manner from an Islamic perspective, according to the findings of a study by the Gulf Centre for Excellence in Ethics (GCEE).

As the first empirical study of its kind to be conducted in the Gulf, the Islamic ethical concepts of tawhid (unity), adalah (justice) and khilafa (trusteeship) were employed to provide the framework to analyse the data and present the findings.

"Even though most UAE organisations appear to perform in an ethically responsible manner, a sense of complacency should not be an outcome of these results," notes the report, adding that the apparently low incidence of reported misconduct could have been partially affected by the ambiguity about what constitutes ethical misconduct.

"Hence, having a written ethical code or framework to draw upon would ostensibly eliminate confusion on this issue." The authors of the study are Lewis Tucker and Ralph Kuehn, both associate professors at the American University of Sharjah, and Fouad Al Shaikh, associate professor, UAE University. The team made a presentation of the findings recently in Abu Dhabi.

Consistent with the concept of tawhid or unity, there appears to be a strong and positive ethical climate operating in respondent organisations in the UAE. This is among the major findings of the study.

Also, ethical misconduct relating to the tawhid or unity dimensions of equality of opportunity and effort is reported in a minority of UAE organisations. Overall, respondents have strong positive views on the degree of cooperation and respect existing in their organisational cultures.

However, counter to the concept of adalah or justice, a little more than half of the respondents reported observing at least one act of ethical misconduct in their organisations. The most common forms of misconduct were withholding needed information, misreporting time, lying, abusive or intimidating behaviour towards employees, and bribery, kickbacks and inappropriate gifts.

Another finding is that the ethical responses instituted by UAE organisations which are related to fostering the role of khilafa or trusteeship within these organisations, are generally perceived positively by respondents.

Where statistical analyses were possible, no significant differences were observed between Arab nationals and Arab expatriates, national versus multinational versus government organisation types, organisational size and other individual or organisational demographics, notes the study.

The study points out that UAE organisations do not offer extensive institutional support to guide the ethical conduct of members. "While there is an even chance that the company may have a written code of ethics, few offer formal training programmes. Most respondents indicated the absence of institutional support resources such as advisory centres or telephone hotlines."

The study asks: Is good ethical conduct a product of high job satisfaction, or does high job satisfaction lead to good ethical conduct? "They both operate in a symbiotic relationship, each nurturing the other."

Previous studies have shown that organisations with high standards of ethical performance tend to have high employee morale, lower turnover and the ability to attract top quality talent. "Hence the promotion of ethical conduct in organisations is in effect an investment that has multiple paybacks. UAE organisations that operate ethically will not only enhance their reputations but will also increase their potential probability by having a highly motivated and competent workforce," concludes the study.

Some 320 male nationals and other Arab expatriates working in domestic, multinational and government organisations in Abu Dhabi, Dubai and Sharjah formed part of the representative sample for the study.