Investigating the Effects of Positive Psychological Capital on Ethical Behavior in the Private Sector in Ghana

Aims: The purpose of the study was to investigate the effects of positive psychological capital on ethical behavior in some selected private organizations in Ghana. Managers in five Regions in Northern Ghana were selected to examine the causality of the variables under study.

Study Design: The study used questionnaires in which only managers were made to answer within a period of 4 months.

Place and Duration of Study: Managers in five Regions in Northern Ghana (Northern, Savannah, North East, Upper East and Upper West Regions) were selected to examine the causality of the variables under studybetweenMarch 2020 and July 2021.

Methodology: The sample method used was stratified and systematic random sampling technique which aims at collecting data in a regular or ordered manner. The study also used factor analysis and structural equation model to conduct the analysis. The study analyzed 385 questionnaires comprising 158 for Northern region, Upper East 78, Upper West 65, Savannah 52 and North East 32.

Results: The results shows that the fit of the structural model for the relationship is good with = 411.368 (df = 245), = 1.679, CFI = 0.983, GFI = 0.916, TLI = 0.981 and RMSEA = 0.042. The results of the structural path estimates revealed that the standardised estimate of -0.369 between PPC and EB was statistically significant (P-Value=0.002) and a negative relationship was predicted. Furthermore, the C.R. value was -3.138 greater than 1.69 indicating that the probability of obtaining a critical ratio as large as 3.138 in absolute value is less than 0.05. This implies that the regression weight for PPC in the prediction of ethical behavior is significantly different from zero at 0.001 level. Overall, the result confirmed that the relationship between Positive Psychological and Ethical Behavior is supported by previous studies.