BUSINESS ETHICS VIOLATIONS AND THEIR IMPACT ON INVESTOR CONFIDENCE IN NIGERIA

Abstract

Ethical conduct is a cornerstone of sustainable business operations and investor trust. In Nigeria, recurring business ethics violations—ranging from financial misstatements to insider trading and environmental neglect—have created a crisis of confidence among investors. This study investigates the relationship between business ethics violations and investor confidence in Nigeria, employing a mixed-methods approach. Data was gathered from 150 local and foreign investors and 50 business professionals using questionnaires and interviews. The findings reveal that ethical lapses such as corporate fraud, regulatory evasion, and poor disclosure practices significantly erode investor confidence, leading to reduced foreign direct investment (FDI), capital flight, and risk aversion. The paper concludes that restoring trust requires enforcing corporate governance codes, strengthening regulatory oversight, and promoting ethical business cultures. Recommendations include the establishment of whistleblower protection systems, periodic ethical audits, and improved transparency in financial reporting