1 
 

AKENTEN APPIAH MENKA UNIVERSITY OF SKILLS TRAINING AND 

ENTREPRENUERIAL DEVELOPMENT 

 

 

 

 

 

THE IMPACT OF CORPORATE POLICIES ON EMPLOYEE 

COMMITMENT: A CASE STUDY OF FAN MILK GHANA COMPANY 

LIMITED, KUMASI 

 

 

 

 

ASANTE KOFI AMOABENG SAMUEL 

 

 

 

 

 

 

 

 

2023 

 



 
 

i 
 

AKENTEN APPIAH MENKA UNIVERSITY OF SKILLS TRAINING AND 

ENTREPRENUERIAL DEVELOPMENT 

 

 

 

 

THE IMPACT OF CORPORATE POLICIES ON EMPLOYEE 

COMMITMENT: A CASE STUDY OF FAN MILK GHANA COMPANY 

LIMITED, KUMASI 

 

 

BY 

ASANTE KOFI AMOABENG SAMUEL 

(7211330005) 

 

A PROJECT PRESENTED TO THE DEPARTMENT OF MANAGEMENT 

STUDIES EDUCATION, AKENTEN APPIAH MENKA UNIVERSITY OF 

SKILLS TRAINING AND ENTREPRENUERIAL DEVELOPMENT IN 

PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF 

MASTER OF BUSINESS ADMINISTRATION IN MARKETING. 

 

 

 

OCTOBER, 2023 

 



 
 

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DECLARATION 

 

STUDENT’S DECLARATION  

With reference to my study, I hereby declare that this submission is my own work 

towards obtaining the Master of Business Administration in Marketing and that, to the 

best of my knowledge. No part of it has been presented for another degree in the 

university or elsewhere. 

 

SIGNATURE………………………………….      

DATE…………………………………………. 

KOFI AMOABENG ASANTE SAMUEL 

 

 

 

 

SUPERVISOR’S DECLARATION 

I hereby declare that the preparation and supervision of this action research was 

supervised in accordance with laid down guidelines on supervision of action research 

by Akenten Appiah-Menka University of Skills Training and Entrepreneurial 

Development (AAMUSTED). 

 

SIGNATURE………………………………….      

DATE……………………………….…………. 

MR. AUGUSTINE ACHEAMPONG                       

 



 
 

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DEDICATION 

 

I humbly dedicate this research work to my beautiful wife Mrs. Asante Amoabeng Lucy 

and my entire family I am most thankful to you all for a successful academic journey, 

and also to my loved ones which include, Dr. Henry Baffoe Bonnie, Dr. Serwaa Carol, 

Mr. Johnson Kwabena Nketia Amoabeng(Italy), Isaac K. Owusu (Fanmilk Gh limited 

Kumasi), Rainfall Kofi Asante Amoabeng, Jayden Kwabena Nketia Asante Amoabeng, 

Mill Akua Asante Amoabeng, Liz Asantewaa- Asante Amoabeng, Pearl Esinu Mensah, 

The Twin Prophets and Rev. Gorge Odoom(U.K). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 
 

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ACKNOWLEDGEMENT 

 

I would like to take this wonderful opportunity to express my profound appreciation 

and utmost gratitude to God Almighty and the Akenten Appiah Menka University of 

Skills Training and Entrepreneurial Development (AAMUSTED) for the opportunity 

to study Master of Business Administration Marketing. 

I would also say a big thank you to my supervisor Augustine Acheampong (Ph.D.) a 

lecturer at AAMUSTED, not forgetting Samuel Kwame Otoo who out of his busy 

schedules helped with my final Thesis. A big shout out to all lecturers at AAMUSTED 

whose efforts and dedication have brought me this far, especially, Professor Faisal, Dr. 

Masaud Ibrahim, Dr. S.K Dogbe, Dr Baba Campion, Dr. Ayisi Boateng (Onipa nua 

former ambassador to South Africa ) Professor Ebonya, Madam Evelyn Asare and the 

champion and dynamic HOD Mr. Aaron Kumah. 

 

 

 

 

 

 

 

 

 

 

 



 
 

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ABSTRACT 

The purpose of this research is to examine the impact of corporate policies on employee 

commitment at Fanmilk Ghana Limited, Kumasi. Descriptive research design was used 

for the study, where the sample size comprised of one hundred and five (105) 

respondents. The researcher made use of simple random sampling and the main data 

collection instruments was questionnaire. In order to attain the general objective of the 

study, the following specific objectives would be explored, to analyze the impact of 

Health Benefit Policy on employee commitment within Fan Milk Ghana Company 

Limited in Kumasi, to analyze the impact of Work safety Policy on employee 

commitment within Fan Milk Ghana Company Limited in Kumasi, and to analyze the 

impact of Code of Conducts Policy on employee commitment within Fan Milk Ghana 

Company Limited in Kumasi. The study found that, the study found a significant 

positive relationship between corporate policies and employee commitment. 

Employees who perceived the corporate policies of Fanmilk Ghana Limited in Kumasi 

more positively exhibited higher levels of commitment to their work. Based on the 

study the following recommendations can be made: Improve communication channels 

within the organization to ensure that corporate policies are effectively communicated 

to employees. Transparent and open communication about policies, updates, and 

changes can help employees understand and align themselves with the organization's 

objectives, fostering a sense of commitment. Involve employees in the development or 

revision of corporate policies. By soliciting their input, organizations can gain valuable 

insights and ensure that policies are well-suited to their needs and expectations. This 

participatory approach can enhance employees' sense of ownership and commitment to 

the policies. 

  



 
 

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TABLE OF CONTENT 

CONTENT                PAGE 

DECLARATION-------------------------------------------------------------------------------- ii 

DEDICATION ---------------------------------------------------------------------------------- iii 

ACKNOWLEDGEMENT ------------------------------------------------------------------- iv 

ABSTRACT -------------------------------------------------------------------------------------- v 

TABLE OF CONTENT ---------------------------------------------------------------------- vi 

LIST OF TABLES ----------------------------------------------------------------------------- ix 

LIST OF FIGURES ---------------------------------------------------------------------------- x 

 

CHAPTER ONE -------------------------------------------------------------------------------- 1 

INTRODUCTION ------------------------------------------------------------------------------ 1 

1.1 Background of the Study -------------------------------------------------------------- 1 

1.2 Statement of the Problem ------------------------------------------------------------- 3 

1.3 Research Objectives ------------------------------------------------------------------- 5 

1.4 Research Questions -------------------------------------------------------------------- 5 

1.5 Significance of the Study ------------------------------------------------------------- 6 

1.6 Scope of the Study --------------------------------------------------------------------- 6 

1.7 Limitation of the Study ---------------------------------------------------------------- 7 

1.8 Organization of the Study ------------------------------------------------------------- 7 

 

CHAPTER TWO ------------------------------------------------------------------------------- 9 

LITERATURE REVIEW --------------------------------------------------------------------- 9 

2.0 Introduction ----------------------------------------------------------------------------- 9 

2.1 Concept Review ------------------------------------------------------------------------ 9 



 
 

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2.1.1 Employee Commitment ------------------------------------------------------------- 9 

2.1.2 Corporate Policies ------------------------------------------------------------------10 

2.1.2.1 Health Benefit Policy ------------------------------------------------------------12 

2.1.2.2 Work Safety Policy. --------------------------------------------------------------13 

2.1.2.3 Code of Conduct ------------------------------------------------------------------14 

2.1.2.4 The relevance of Corporate Policies -------------------------------------------16 

2.1.3 The factors that influence Employee Commitment. ---------------------------19 

2.1.3.1 The Impact of Health Benefit Policy on Employee Commitment. --------21 

2.1.3.2 The Impact of Work safety Policy on Employee Commitment. -----------24 

2.1.3.3 The Impact of Code of Conducts Policy on Employee Commitment. ----26 

2.2 Theoretical Review -------------------------------------------------------------------29 

2.2.1 Social Exchange Theory -----------------------------------------------------------29 

2.2.1.1 Key Concepts of Social Exchange Theory ------------------------------------30 

2.2.1.2 Application of Social Exchange Theory in Organizational Contexts -----31 

2.2.2 Organizational Support Theory ---------------------------------------------------32 

2.2.2.1 Key Concepts of Organizational Support Theory ----------------------------32 

2.2.2.2 Relevance of Organizational Support Theory in the Work -----------------33 

2.3 Empirical Review ---------------------------------------------------------------------34 

2.4 Conceptual Framework ---------------------------------------------------------------35 

 

CHAPTER THREE --------------------------------------------------------------------------- 36 

METHODOLOGY ---------------------------------------------------------------------------- 36 

3.0 Introduction ----------------------------------------------------------------------------36 

3.1 Research Design and Strategy -------------------------------------------------------36 

3.2 Population of the Study --------------------------------------------------------------37 



 
 

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3.3 Sample Size and Sampling Technique ---------------------------------------------37 

3.4 Data Collection Technique-----------------------------------------------------------38 

3.5 Validity and Reliability---------------------------------------------------------------39 

3.6 Data Analysis Procedure -------------------------------------------------------------39 

3.7 Chapter Summary ---------------------------------------------------------------------40 

 

CHAPTER FOUR ----------------------------------------------------------------------------- 42 

DATA ANALYSIS AND DISCUSSION OF FINDINGS ----------------------------- 42 

4.0 Introduction ----------------------------------------------------------------------------42 

4.1 Presentation of Results ---------------------------------------------------------------42 

4.2 Independent Variables ----------------------------------------------------------------43 

4.3 Relationship Between Corporate Policies on Employee Commitment at Fan 

Milk Ghana Limited, Kumasi. -----------------------------------------------------------48 

4.4 Chapter Summary ---------------------------------------------------------------------50 

 

CHAPTER FIVE ------------------------------------------------------------------------------ 52 

SUMMARY, CONCLUSION AND RECOMMENDATIONS -------------------- 52 

5.0 Introduction ----------------------------------------------------------------------------52 

5.1 Summary of Findings -----------------------------------------------------------------52 

5.2 Conclusion -----------------------------------------------------------------------------54 

5.3 Recommendations ---------------------------------------------------------------------54 

5.4 Recommendations for Further Studies ---------------------------------------------56 

 

REFERENCE ----------------------------------------------------------------------------------- 57 

APPENDIX -------------------------------------------------------------------------------------- 63 

 



 
 

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LIST OF TABLES 

Table 1: Demographic Characteristics of Respondents ------------------------------------ 42 

Table 2: Independent Variables --------------------------------------------------------------- 44 

Table 3: Dependent Variables ----------------------------------------------------------------- 46 

Table 4: Correlation ----------------------------------------------------------------------------- 48 

Table 5: Effects of corporate policies on employee commitment at work -------------- 50 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 
 

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LIST OF FIGURES 

Figure 1: Conceptual Framework ------------------------------------------------------------- 35 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 
 

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CHAPTER ONE 

INTRODUCTION 

1.1 Background of the Study 

Human resource is the most valuable assets of any organization, with the machines, 

materials and even the money, nothing gets done without man-power. People, the 

human resource, are considered by many to be the key and most important resources of 

an organization (Amponsah, 2016). As indicated by Ofori (2015), the effectiveness and 

success of an organization lies on the people who form and work within the 

organization. The core strength of any organization comes from its employees. Every 

organization wants to be successful in current environment which is highly competitive, 

and the employees are major assets of any organization; the active role they play 

towards a company's success cannot be underestimated. To motivate and strengthen 

them, leads to a solid foundation for the organization's future and higher productivity. 

Therefore, companies irrespective of size and market, strive to motivate their best 

employees, acknowledging their important role and influence on organizational 

effectiveness (Dobre, 2013). 

Also, research reveals that an employee's ability only partially determines his output or 

productivity (Bartol & Martin, 2000). The other major determinant is his or her 

motivational level. Psychologically, forces that determine the direction of a person's 

behavior in an organization, a person's level of effort and a person's level of persistence 

is motivation (Bernard Wiener, 2001). Employee motivation plays a vibrant role in the 

management field, both theoretically and practically. It is said that one of the important 

functions of human resource manager is to ensure job commitment at the work which 

can only be achieved through motivation (Joseph Akhigbe, 2009). 



 
 

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(Falkenburg and Schyns, 2007, Innoynihan and Pandy, 2007, Nnorrow, 2011), agrees 

that the link between job satisfaction and organizational commitment has been 

researched relatively frequently and they can be influenced by the corporate policies. 

Research has shown that corporate policies influence employee attitudes, job 

satisfaction, and commitment (Meyer & Allen, 2015; Allen & Meyer, 2016). Policies 

that are perceived as fair, transparent, and aligned with employees' values tend to foster 

higher levels of commitment (Mowday et al., 2012). On the contrary, inconsistent or 

unclear policies may lead to confusion and decreased commitment (Riketta, 2022). 

However, limited empirical research exists on how these dynamics unfold in the context 

of specific organizations, such as Fan Milk Ghana Company Limited. 

Several studies have suggested that well-designed corporate policies contribute to 

higher levels of employee commitment. For instance, research by Guest et al. (2013) 

found that clear and well-communicated policies enhance employee commitment by 

providing a sense of security and predictability. Furthermore, when employees perceive 

that their organization values and supports their well-being and work-life balance, their 

commitment levels tend to increase (Allen et al., 2013). On the other hand, inconsistent 

or unfair policies can negatively impact employee commitment. A study by Rousseau 

(2016) emphasized the importance of perceived fairness in policies, as employees who 

perceive inequity or bias are more likely to exhibit lower levels of commitment. 

Additionally, when policies are ambiguous or lack clarity, employees may feel 

uncertain and disengaged, leading to reduced commitment (Chen et al., 2014). 

According to Srivastava, Bartol and Locke (2011), employee commitment is a 

psychological attachment and loyalty to an organization, which leads to an employee’s 

willingness to go beyond the call of duty to ensure the success of the organization. Other 

scholars such as Nohria, Groysberg and Lee (2018) have argued that employee 



 
 

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commitment is determined by a number of factors, including organizational culture, 

leadership, job satisfaction, and organizational policies.  

Organizational policies are an important factor in enhancing employee commitment. 

According to De Cieri and Kramar (2014), policies serve as a link between the 

organization’s mission and the individual employee’s goals. They also provide a 

platform for the organization to communicate its expectations and objectives, as well 

as to set standards of behavior. Therefore, it is important for organizations to develop 

effective policies that will motivate and inspire employees to remain committed.  

In contrast, inconsistent or unfair policies can negatively impact employee 

commitment. Perceived inequity or bias in policies can lead to decreased commitment 

among employees (Rousseau, 2006). Ambiguous or poorly communicated policies 

create uncertainty and reduce employee engagement, resulting in lower commitment 

levels (Chen, Friedman, & Yu, 2014). 

 

1.2 Statement of the Problem 

Organizational effectiveness is based on their capacity for coping, survival, and 

advancement. They continue to operate in a very unpredictable and chaotic 

environment brought on by capital issues, challenging unions, overseas competition, 

quick changes in product and process, energy, government regulation, and other 

pressures that require greater agility and flexibility (Hall and Fukami, 1979). There is a 

rising requirement for dedicated workers who can complete their work effectively for 

the business with little to no supervision. There is a significant need for workers who 

have the knowledge and motivation to complete tasks on their own initiative. Managers 

are looking for an alternative control system that can be trusted to increase 

organizational effectiveness. Despite the difficulty of adapting to environmental 



 
 

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changes, organizations nevertheless need to be productive, profitable, and increase their 

market share. Managers are looking for cultural ways to inspire people to be productive 

in order to meet their goals. 

Many articles have been written over the past ten years about corporate policy and 

culture and the crucial part it plays in an organization's success (Peters and Waterman, 

1982, Denison, 1985, Deal and Kennedy, 2000, Sorensen, 2002, De Silva, 2005, 

Denison, 2007, Amah 2009, Zheng et al, 2010, Malik et al, 2011). There is little 

empirical research on company policies and employee engagement in developing 

countries, especially Ghana, despite the surge in scholarly publications in this area. 

The researcher observed during his preliminary interview with entrepreneurs that less 

importance had been attached corporate policies and its impact on achieving 

organizational goals, as very few businesses management teams do appreciate the role 

employee commitment metrics play in the growth of business. 

The researcher has found that firms have unjustly sacrificed staff motivation in the 

name of consumer loyalty and satisfaction. Customer satisfaction, according to McIlroy 

and Barnett (2000), is a measure of how successfully a customer's requirements and 

demands are met, whereas customer loyalty is a gauge of how likely a customer is to 

make additional purchases and participate in relationship-building activities. Customer 

happiness is a crucial factor to take into account when a company develops a customer 

loyalty program, but staff also need to be inspired to work toward shared objectives. 

The researcher is employed by a company where numerous employee grievances go 

unresolved. The researcher was motivated by these persistent complaints to look into 

the effect of cooperative policies on employee commitment to job satisfaction and 

accomplishing organizational objectives. 



 
 

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This study explores the relationship between cooperative policies on employee 

commitment to job satisfaction and achieving organizational goals in order to fill this 

vacuum in the literature. Organizations can build more adaptable cultures and improve 

their competitive advantage and effectiveness by examining how company policies 

affect employee commitment. 

 

1.3 Research Objectives 

This study seeks to determine the Impact of Corporate Policies on Employee 

Commitment at Fan Milk Ghana Company Limited, Kumasi. 

In order to attain the general objective of the study, the following specific objectives 

would be explored: 

1. To analyze the impact of Health Benefit Policy on employee commitment 

within Fan Milk Ghana Company Limited in Kumasi. 

2. To analyze the impact of Work safety Policy on employee commitment within 

Fan Milk Ghana Company Limited in Kumasi. 

3. To analyze the impact of Code of Conducts Policy on employee commitment 

within Fan Milk Ghana Company Limited in Kumasi. 

 

1.4 Research Questions 

In order to achieve the objective of the study, the following questions were posed: 

1. What is the impact of Health Benefit Policy on employee commitment within 

Fan Milk Ghana Company Limited in Kumasi? 

2. What is the impact of Work safety Policy on employee commitment within 

Fan Milk Ghana Company Limited in Kumasi? 



 
 

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3. What is the impact of Code of Conducts Policy on employee commitment 

within Fan Milk Ghana Company Limited in Kumasi? 

 

1.5 Significance of the Study 

This study aims to investigate how employee participation, a human resources practice, 

affects job satisfaction, commitment, and productivity. While it is widely believed that 

practices like employee participation are either intentionally or unintentionally ignored 

in Ghana, research is the only way to determine the truth, the root of the problem, and 

the best course of action given that today's knowledge economy demands investments 

in human capital of the organization. 

Again, this study will be a welcoming news to the considerable number of motivation 

studied in the organizational literature in the same way it could be a great inclusion in 

the scarce resources that could be seen in staff commitment and employee satisfaction 

in achieving a level headed competitor institution, moreover, this study will be an 

impetus for a project plan that will be considerably influence the general operations of 

the corporates world in terms of policies formulations, training and development, 

performance of the Ghana’s society and the world at large. 

This study will also provide comprehensive research for corporates bodies to have a 

source document which will serves a guide for prosperity.  

 

1.6 Scope of the Study 

The study focuses on specific corporate policies that impact employee commitment 

towards job satisfaction and achieving organizational goals such as policies related to 

work-life balance, compensation and benefits, career development, diversity and 

inclusion, and performance management. 



 
 

7 
 

Also, it explores the various factors that impact employee commitment, such as job 

satisfaction, organizational commitment, and engagement. This can include examining 

the role of leadership, organizational culture, and employee well-being. 

 

1.7 Limitation of the Study 

Certain Limitations are expected to be encountered at the course of conducting this 

study. One of the greatest challenges that the researcher anticipates at this study relates 

to access to and collection of hard data due to extreme data gaps situations in the 

country.  

Another limitation of this study could be time, funds and logistics constraints, which 

may limit the intensity of the spread or area of coverage of the study.  

The researcher also anticipates a challenge with some respondents who may fail to 

complete questionnaire given them and this limited the number of respondents who are 

expected to be involved in the study despite the researcher’s efforts and approaches to 

explain the potential benefits of the study to them.  

 

1.8 Organization of the Study 

The research is organized into five chapters.  Chapter one is about the introduction, 

made up by the background of the study, statement of the problem, objective of the 

study, research questions, significance of the study and limitation of the study, scope of 

the study as well as organization of the study. Chapter two is the literature review of 

the study, thus the concept review, the theoretical framework, empirical framework and 

conceptual framework. Chapter three is on the methodology of the study, the chapter 

discusses the Research design, Population, sample and sampling procedures, Data 

Collection Instruments and Data Analysis. Chapter four focuses on the result of the 



 
 

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study. Chapter five presents a summary of findings, conclusions, recommendations and 

suggestions for further studies. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 
 

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CHAPTER TWO 

LITERATURE REVIEW 

2.0 Introduction 

This study seeks to determine the Impact of Corporate Policies on Employee 

Commitment: a case study of Fan Milk Ghana Company Limited, Kumasi. This chapter 

consist of the concept review, theoretical review, empirical evidence and the conceptual 

framework. 

 

2.1 Concept Review 

2.1.1 Employee Commitment 

Organizational commitment remains a contested construct that has been conceptualized 

and measured differently. It is viewed from behavioural and attitudinal perspectives 

(Lok and Crawford, 2004). Behavioural commitment is concerned with the process by 

which an employee becomes part of a particular organization and appropriate behaviour 

exhibited by the employee (Meyer and Allen, 1991). On the other hand, attitudinal 

commitment views organizational commitment in terms of the relationship between an 

employee and the organization, and the extent to which the employee and the 

organization share the same goals and values (Meyer and Allen, 1991). In order to 

improve performance and efficiency inside firms, employee dedication is essential. 

According to Meyer and Herscovitch (2001), committed personnel are more inclined 

to exert discretionary effort, go above and beyond the call of duty, and actively support 

organizational objectives. Across a range of industries and job categories, research has 

consistently revealed a favorable correlation between employee dedication and job 

performance (Mowday, Steers, & Porter, 2013). Committed workers are motivated to 

strive for excellence and continuously provide high-quality work by a sense of 



 
 

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ownership and personal responsibility (Meyer & Allen, 2017). Their dedication results 

in enhanced individual and group performance, which eventually aids in organizational 

success. 

Commitment is considered to be psychological immersion of an individual with his 

institute through sense of belonging, ownership of organizational goals and being ready 

to accept challenges (Dolan, Tzafrir, & Baruch, 2005). Creating commitment among 

employees is important because without this it will become difficult for an organization 

to achieve strategic goals. (Brisco & Claus, 2008; Fugate, et al., 2009). Organizational 

commitment mean the involvement of an employee to perform his work with zeal and 

excitement (Dorenbosch & Veldhoven, 2006). Performance of an organization is 

directly related to commitment level of employees (Ivancevich, 2010). Committed 

employees will be able to perform their jobs more than management expectations 

(Bragg, 2002). High level commitment is indispensable for increasing output and 

obtaining sustainable competitive advantages (Whitener, 2001). Employees are more 

likely to find personal fulfillment from their work, experience greater job-related well-

being, and display lower levels of job-related stress when they have a feeling of 

commitment towards their business (Meyer & Herscovitch, 2001). According to 

research, committed employees are less likely to leave the company on their own, which 

lowers turnover and related expenses (Mowday et al., 2013). Organizations can 

establish a productive work environment that fosters job satisfaction, employee 

engagement, and long-term retention through encouraging employee commitment. 

 

2.1.2 Corporate Policies 

Corporate policies refer to the guidelines, rules, or principles established by a company 

to govern its employees' behavior, actions, and decisions within the organization. These 



 
 

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policies are designed to ensure consistency, compliance with laws and regulations, and 

alignment with the company's values, goals, and objective (Trevio & Nelson, 2020). 

Establishing and upholding ethical standards inside organizations is based on corporate 

policies. The expectations and rules for employee behavior are outlined in ethical 

policies, ensuring that people follow these standards while interacting with stakeholders 

(Trevio & Nelson, 2020). According to research, ethical behavior is more prevalent, 

unethical behavior is decreased, and corporate reputation is enhanced in organizations 

with clearly stated ethical policies (Hays, Hill, & Mitchell, 2019). A culture of ethical 

decision-making is fostered at all levels of the business by effective policies that 

encourage transparency, integrity, and responsibility (Trevio & Nelson, 2020). 

Organizations can reduce ethical risks, earn the trust of stakeholders, and secure their 

long-term success by giving ethical practices top priority. 

Corporate policies have a big impact on how people behave, how well they perform, 

and how the organization as a whole does. Employees are given instructions and 

expectations for their duties and tasks via clear and well-communicated policies (Hays 

et al., 2019). Employees are more likely to make wise decisions, behave in a way that 

is compatible with corporate values, and contribute to a healthy work environment 

when they are aware of the limits and expectations set by policies (Fernandez-Mateo & 

Fernandez, 2018). According to research, firms with successful policies have better 

levels of commitment, job satisfaction, and engagement among their workforces (Hays 

et al., 2019). Employee morale and productivity are increased by policies that support 

work-life balance, diversity and inclusion, and employee well-being in the work 

(Fernandez-Mateo & Fernandez, 2018). By formulating and implementing policies that 

align with employee needs and organizational goals, organizations can drive employee 

behavior and performance, leading to improved overall organizational effectiveness. 



 
 

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Corporate policies reduce organizational risks by guaranteeing adherence to legal and 

regulatory obligations. Organizations can negotiate complex legal frameworks and laws 

relevant to their business with the aid of policies that set guidelines and procedures 

(Hays et al., 2019). Effective policies reduce the likelihood of legal infractions, fines, 

and reputational harm by promoting clarity and consistency in decision-making (Trevio 

& Nelson, 2020). Organizations exhibit their dedication to moral behavior, risk 

management, and ethical business practices by giving compliance-oriented rules first 

priority. Additionally, effectively articulated policies give staff members the 

information and comprehension they need to adhere to legal obligations, decreasing the 

possibility of unintended non-compliance (Fernandez-Mateo & Fernandez, 2018). 

Organizations can safeguard their brand, increase stakeholder trust, and reduce legal 

and financial risks by incorporating compliance-focused policies into their daily 

operations. 

 

2.1.2.1 Health Benefit Policy 

Health benefit policies encompass a diverse array of offerings, including healthcare 

insurance, wellness programs, maternity/paternity leave, mental health support, and 

more. This section explores the historical evolution of these policies, emphasizing their 

importance in attracting and retaining talent while promoting a healthy work 

environment (Essén et al., 2022). Existing research indicates a strong correlation 

between comprehensive health benefit policies and improved employee health 

outcomes. Studies reveal that adequate health benefits positively influence employee 

satisfaction, engagement, productivity, and overall well-being (Essén et al., 2022).. 

Furthermore, access to preventive care and wellness initiatives through these policies 

contributes to a healthier workforce. Balancing the quality of health benefits with cost-



 
 

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effectiveness presents a significant challenge for organizations. Literature in this area 

explores strategies for managing rising healthcare costs, evaluating the return on 

investment (ROI) of health benefit programs, and innovative cost-sharing models that 

benefit both employers and employees. The legal landscape governing health benefit 

policies is multifaceted, with various laws and regulations shaping their design and 

implementation (Essén et al., 2022).. Insights from this section focus on compliance 

with healthcare legislation such as the Affordable Care Act (ACA), HIPAA, ERISA, 

and other pertinent regulations, shedding light on the complexities faced by 

organizations in ensuring compliance while offering competitive benefits. Emerging 

trends highlight the dynamic nature of health benefit policies. The review covers 

innovative practices such as flexible benefit plans, telemedicine, mental health support 

initiatives, and employee wellness programs tailored to meet evolving employee needs. 

It explores how these innovations are reshaping traditional health benefit structures 

(Essén et al., 2022).. Despite their benefits, health benefit policies encounter challenges. 

These include the complexities of administering diverse benefit offerings, addressing 

the needs of a diverse workforce, managing costs amid healthcare inflation, and 

navigating employee preferences and expectations (Essén et al., 2022).. Drawing from 

successful case studies and evidence-based approaches, this section outlines best 

practices for designing, implementing, and managing effective health benefit policies 

(Essén et al., 2022). 

 

2.1.2.2 Work Safety Policy. 

A work safety policy is a set of rules and procedures instructing employees on how to 

safely conduct themselves in work environments (Paternain et al., 2022). The purpose 

of a work health and safety policy is to prevent illnesses, injuries, and fatalities that 



 
 

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affect your people and your business. You can think of the policy as a playbook to help 

employees understand their roles and responsibilities when it comes to staying safe on 

the job (Paternain et al., 2022). 

While a work safety policy generally begins with an overarching, written document that 

establishes principles, objectives, and guidelines for maintaining a safe working 

environment, it doesn’t end there. Your company policy on health and safety should 

also include specific plans of action as well as tools for carrying out those plans. 

Depending on your particular organization, additional tools might include things like 

personal protective equipment (PPE), checklists of safety procedures, an emergency 

notification system, and mandatory safety training (Paternain et al., 2022). It is not just 

construction sites, hospitals, factories, or chemical plants that are exposed to 

occupational dangers work safety applies to every industry and business type. For 

example, food service workers require guidance and training to avoid burns, cuts, 

lacerations, and fires. Any company with an office or storefront faces a heightened risk 

of an active shooter event. And all businesses are susceptible to the slips and falls that 

come along with inclement weather (Paternain et al., 2022). 

 

2.1.2.3 Code of Conduct  

Codes of conduct can contribute to both crisis prevention and crisis resolution. 

Concerning crisis prevention, codes of conduct should avoid renewed debt problems 

and prevent a crisis from affecting other countries by enhancing transparency and 

ensuring a timely flow of information among the debtors and creditors (Berensmann, 

2023). By the same token, a close debtor–creditor dialogue should contribute toward 

avoiding debt crises. Codes of conduct also support debt crisis resolution because they 

contribute toward simplifying restructuring procedures by increasing the predictability 

https://www.alertmedia.com/emergency-notification-system/
https://www.alertmedia.com/emergency-notification-system/
https://www.alertmedia.com/blog/active-shooter-preparedness/
https://www.alertmedia.com/blog/prevent-slips-trips-and-falls/
https://www.alertmedia.com/blog/inclement-weather-policy/


 
 

15 
 

and transparency of the negotiation processes, and by strengthening cooperation 

between creditors and debtors (Berensmann, 2023). By applying the guidelines of those 

codes of conduct – including equal treatment of creditors or enhanced transparency of 

the restructuring process – codes of conduct contribute toward preventing scenarios in 

which minorities do not take part in a restructuring procedure agreed by a majority of 

creditors (Berensmann, 2017). According to the IIF, the IIF-Principles promoted crisis 

prevention through enhanced data and policy transparency as well as clear 

communication and dialogue between debtors, creditors, and investors (Berensmann, 

2023). One important tool is the investor relations programs. By the same token, the 

IIF Principles contribute to effective crisis resolution through good-faith negotiations 

with representative groups of creditors and by treating all creditors equally (IIF, 2020a, 

p. 6). 

Codes of conduct are usually noncontractual – contractual—and therefore nonbinding 

– binding—soft modes of governance. One main objection to codes of conduct is that 

the absence of legal foundations could render them ineffective. However, there are 

several measures available to enhance the binding character of a code of conduct, such 

as a good governance structure including monitoring systems. One prime example in 

this respect is the code of conduct established by the IIF as a monitoring system 

constitutes one key element. Adherence to this code of conduct has frequently and 

systematically been reviewed. 

Even though a code of conduct can reduce collective action problems, it cannot 

however fully remove them because it can neither formally protect against creditor 

litigation nor prevent a rush to the exit; nor does a code deliver any safeguards against 

holdout behaviors (Berensmann, 2023). The different principles of the codes of conduct 

such as good faith actions that include the coordination of various debt instruments in 

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creditor committees, equal treatment of creditors, and enhanced transparency can 

contribute to solving collective action problems because these principles promote 

cooperation between creditors and debtors. Moreover, these principles enhance the 

creditors’ faith in an orderly and fair debt restructuring processes. Accordingly, 

creditors may refrain from the rush-to-the-exit problem, the holdout problem, and the 

rush-to-the-courthouse problem (Berensmann, 2011; Roubini & Setser, 2003, pp. 

9−10). The principles relating to transparency and debtor-creditor dialogue can address 

the problem of information asymmetry. Codes of conduct would improve transparency 

during debt restructuring processes by providing timely information about the debtor's 

financial situation (Berensmann, 2023). These principles foster confidence between the 

creditors and the debtors as well as among creditors prior to and during a debt crisis. 

 

2.1.2.4 The relevance of Corporate Policies  

Corporate rules make sure that everyone works toward the same objectives and abides 

by the same standards, which helps to align organizational structures. Policies set 

procedures and standards that specify roles and duties, how activities are to be carried 

out, and the expected conduct and attitudes of personnel (Alvesson, 2012). According 

to research, businesses with clearly defined policies have higher degrees of alignment 

between departments and levels, which improves coordination and collaboration 

(Cummings & Worley, 2014). Policies enable a shared knowledge of company goals, 

values, and expectations by offering clarity and direction, enabling employees to 

corporate to achieve them (Alvesson, 2012). Corporate policies are therefore essential 

in ensuring that organizational actions are coordinated with achieving strategic goals. 

Corporate policies encourage responsibility, consistency, and effectiveness, which 

improve organizational performance. Employees are able to make decisions that are in 

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keeping with the objectives and guiding principles of the organization thanks to the 

guidance provided by policies (Hitt et al., 2020). According to research, companies with 

policies that are clearly stated see increases in performance, job satisfaction, and staff 

engagement (Alvesson, 2012). Clear policies promote a culture of responsibility where 

people are aware of the repercussions of their actions, decrease ambiguity, and increase 

transparency (Cummings & Worley, 2014). Additionally, policies create standards for 

behavior, performance, and professionalism, allowing managers to assess workers and 

provide them feedback (Hitt et al., 2020). Policies help to improve individual and group 

performance, which ultimately increases organizational effectiveness by coordinating 

employee behavior and performance with organizational goals. 

Corporate guidelines aid in establishing a shared vision inside a firm. Employees can 

contribute to the achievement of company goals by understanding what is expected of 

them when expectations and standards are clearly defined. Organizations with clearly 

stated corporate policies are more likely to have better levels of employee engagement 

and commitment, according to a study by Chen et al. (2020). Corporate policies 

encourage moral conduct and adherence to the law. Trust is developed among 

stakeholders, including customers and investors, by businesses that prioritize ethical 

behavior through their policies (Huang & Wang, 2019). The dangers connected with 

non-compliance are reduced by ensuring that companies operate within the confines 

established by authorities. 

Furthermore, corporate policies enhance operational efficiency by streamlining 

processes and reducing ambiguity (Chen et al., 2020). When employees have clear 

guidelines on how tasks should be performed, they can work more efficiently towards 

achieving organizational goals. 



 
 

18 
 

Policies offer precise rules and procedures that specify how activities are to be 

completed, outline roles and duties, and establish standards for employee behavior 

(Mellahi & Wilkinson, 2020). According to research, organizations with clear policies 

have higher degrees of alignment between departments and levels, which enhances 

coordination and collaboration (Bisbe, Batista-Foguet, & Chenhall, 2017). Corporate 

policies create a shared understanding of the organization's vision, values, and 

objectives by offering clarity and guidance, allowing employees to collaborate to 

achieve these goals (Mellahi & Wilkinson, 2020). The promotion of organizational 

alignment and ensuring that efforts are focused on achieving strategic goals are 

therefore made possible by company policies. 

Corporate policies encourage responsibility, consistency, and effectiveness, which 

improve organizational performance. Employees are able to make decisions that are in 

keeping with the objectives and guiding principles of the organization thanks to the 

guidance provided by policies (Hitt et al., 2020). According to research, well-

communicated policies improve employee engagement, job happiness, and 

performance in firms (Mellahi & Wilkinson, 2020). Clear policies promote a culture of 

responsibility where people are aware of the repercussions of their actions, decrease 

ambiguity, and increase transparency (Bisbe et al., 2017). In addition, rules create 

standards for behavior, performance, and professionalism, allowing managers to assess 

workers and give them feedback (Hitt et al., 2020). Policies help to improve individual 

and group performance, which ultimately increases organizational effectiveness by 

coordinating employee behavior and performance with organizational goals. 

 



 
 

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2.1.3 The factors that influence Employee Commitment. 

Employee commitment is influenced by various factors, including organizational 

culture, leadership style, job satisfaction, and perceived organizational support (Allen 

& Meyer, 1990; Meyer & Herscovitch, 2001; Rhoades & Eisenberger, 2002). 

Organizational culture refers to shared values, beliefs, and norms that shape employees' 

attitudes and behaviors within an organization (Meyer & Allen, 1991). Leadership 

style, such as transformational leadership, has been found to positively influence 

employee commitment by fostering trust, motivation, and a sense of shared vision (Bass 

& Riggio, 2006). Job satisfaction, which reflects an individual's overall evaluation of 

their job, has consistently been linked to higher levels of employee commitment 

(Mowday, Porter, & Steers, 1982). Perceived organizational support, which refers to 

the extent to which employees believe that their organization values and cares about 

their well-being, has also been found to positively correlate with employee commitment 

(Eisenberger, Huntington, Hutchison, & Sowa, 1986). 

Recent research has highlighted additional factors that influence employee 

commitment. One such factor is work-life balance, which refers to the ability to 

effectively manage responsibilities and achieve harmony between work and personal 

life (Allen, Johnson, Kiburz, & Shockley, 2013). Studies have shown that employees 

who perceive a better work-life balance are more likely to exhibit higher levels of 

commitment to their organization (Bakker, Demerouti, & Dollard, 2008). 

Another important factor is employee engagement, which represents the extent to which 

employees are fully absorbed in and enthusiastic about their work (Saks, 2006). 

Engaged employees tend to be more committed to their organizations (Rich, LePine, & 

Crawford, 2010). 



 
 

20 
 

Furthermore, organizational justice, which encompasses perceptions of fairness in the 

work, has been found to significantly impact employee commitment (Colquitt, Conlon, 

Wesson, Porter, & Ng, 2001). When employees perceive fair treatment in terms of 

distributive justice (fairness of outcomes), procedural justice (fairness of procedures), 

and interactional justice (fairness of interpersonal treatment), they are more likely to 

exhibit higher levels of commitment. 

Lastly, social support within the work has been identified as a crucial factor influencing 

employee commitment (Eisenberger, Stinglhamber, Vandenberghe, Sucharski, & 

Rhoades, 2002). Positive relationships with supervisors and colleagues, as well as 

supportive organizational practices, contribute to higher levels of commitment among 

employees. 

Recent research has identified additional factors that contribute to employee 

commitment. One such factor is organizational identification, which refers to the extent 

to which employees identify with and feel a sense of belonging to their organization 

(Ashforth & Mael, 1989). Studies have shown that higher levels of organizational 

identification are associated with increased employee commitment (Sluss & Ashforth, 

2008). 

Another relevant factor is perceived career development opportunities, which refers to 

employees' beliefs about their prospects for growth and advancement within the 

organization (Kowske, Rasch, & Wiley, 2010). When employees perceive that their 

organization offers meaningful career development opportunities, they are more likely 

to display higher levels of commitment. 

Furthermore, recent research has emphasized the importance of employee well-being 

and work meaningfulness in relation to commitment. Positive work environments that 

prioritize employee well-being, including physical and psychological health, have been 



 
 

21 
 

found to positively influence employee commitment (Schaufeli & Bakker, 2004). 

Similarly, when employees perceive their work as meaningful and purposeful, they tend 

to exhibit higher levels of commitment (Rosso, Dekas, & Wrzesniewski, 2010). 

Additionally, the role of trust in the work has gained attention as a factor influencing 

employee commitment. Trust, both in leaders and in the organization as a whole, has 

been found to be positively associated with employee commitment (Dirks & Ferrin, 

2002; Mayer, Davis, & Schoorman, 1995). 

 

2.1.3.1 The Impact of Health Benefit Policy on Employee Commitment. 

Health benefit policies refer to the provisions and programs offered by organizations to 

support employees' health and well-being. Studies have shown that the presence of 

comprehensive health benefit policies positively influences employee commitment. 

Research has indicated that employees who perceive their organization to provide 

adequate health benefits are more likely to exhibit higher levels of commitment (Bulger, 

Matthews, & Hoffman, 2018). Access to healthcare services, including preventive care, 

medical insurance coverage, and mental health support, has been found to enhance 

employee well-being and job satisfaction, leading to increased commitment to the 

organization (Danna & Griffin, 1999; Raghuram, Arvey, & Rode, 2012). 

Moreover, health benefit policies that prioritize work-life balance and promote 

employee well-being have been associated with higher levels of commitment (Allen, 

Johnson, Saboe, Cho, & Dumani, 2012). When employees perceive that their 

organization values their health and supports their overall well-being, they are more 

likely to develop a sense of loyalty and commitment. 

Also, the availability of flexible work arrangements and wellness programs as part of 

health benefit policies has been linked to increased employee commitment (Kossek, 



 
 

22 
 

Thompson, & Lautsch, 2019; Pohler & Schmidt, 2017). These policies contribute to a 

positive work environment, enhance employee satisfaction, and foster a sense of 

commitment and loyalty. 

Studies have shown that access to quality healthcare benefits, including medical 

insurance coverage, wellness programs, and mental health support, contributes to 

higher levels of employee commitment (Bulger, Matthews, & Hoffman, 2020; Park, 

Lim, & Mitsuhashi, 2020). Employees who perceive their organization as invested in 

their health and well-being are more likely to develop a stronger commitment to the 

organization. 

Furthermore, the provision of flexible work arrangements and supportive work-life 

balance policies as part of health benefit packages has been found to enhance employee 

commitment (Kossek, Thompson, & Lautsch, 2021; Sardeshmukh, Sharma, & Golden, 

2020). Employees who can effectively manage their work and personal responsibilities 

are more likely to feel valued and committed to their organization. 

Recent research has also highlighted the importance of perceived fairness in health 

benefit policies. When employees perceive that health benefits are distributed fairly and 

transparently, it positively influences their commitment to the organization (Miner, 

Ferris, & Dulebohn, 2017). Fairness in terms of access, coverage, and communication 

regarding health benefits fosters a sense of trust and commitment among employees. 

Moreover, the COVID-19 pandemic has underscored the significance of health benefit 

policies in employee commitment. Organizations that have implemented additional 

health and safety measures, such as enhanced healthcare coverage, remote work 

options, and mental health support during the pandemic, have observed higher levels of 

employee commitment (Cullen, Sterling, & Gavan, 2021; Zacher et al., 2021). 



 
 

23 
 

One area of focus is the role of personalized health benefit offerings. Research has 

shown that when organizations provide customized health benefit options that cater to 

individual employee needs, it positively affects employee commitment (Lam, Chen, & 

Takeuchi, 2022). Tailoring health benefit packages to accommodate diverse employee 

preferences and requirements fosters a sense of care and support, leading to increased 

commitment. 

In addition, the integration of technology and digital health solutions within health 

benefit policies has gained prominence. Offering digital tools and resources that 

facilitate convenient access to healthcare services, telemedicine consultations, and 

wellness programs has been found to enhance employee commitment (Chen, Lam, & 

Takeuchi, 2021; Mishra, Chandra, & Sharma, 2021). The convenience and flexibility 

provided by digital health solutions align with employees' evolving expectations and 

contribute to a positive perception of health benefit policies. 

Furthermore, recent research has explored the relationship between health benefit 

policies and employee well-being outcomes, which in turn influence commitment. 

Studies have indicated that comprehensive health benefit policies that address not only 

physical health but also mental health and work-life balance contribute to improved 

well-being and, subsequently, higher levels of commitment (Bakker et al., 2022; De 

Cuyper et al., 2021). Organizations that prioritize the holistic well-being of their 

employees through comprehensive health benefit policies are more likely to foster a 

committed workforce. 

Moreover, the impact of health benefit policies on commitment has been examined 

through the lens of employee voice and participation. When employees are involved in 

the design and decision-making processes related to health benefit policies, it enhances 

their perception of organizational support and commitment (Huang, Jia, & Liu, 2022; 



 
 

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Niforou et al., 2021). Employee voice in shaping health benefit policies fosters a sense 

of ownership and strengthens the psychological contract between employees and the 

organization. 

 

2.1.3.2 The Impact of Work safety Policy on Employee Commitment. 

Work safety policies encompass the measures and regulations implemented by 

organizations to ensure the physical and psychological well-being of employees. 

Studies have consistently demonstrated that the presence of robust work safety policies 

positively influences employee commitment. 

Research indicates that when employees perceive their organization to prioritize and 

enforce safety policies, they are more likely to exhibit higher levels of commitment 

(Hofmann & Morgeson, 2020; Neal, Griffin, & Hart, 2000). Organizations that 

establish a strong safety culture and provide comprehensive safety training and 

resources foster a sense of trust and commitment among employees. 

Moreover, the implementation of safety policies that go beyond compliance with legal 

requirements and actively promote proactive safety behaviors has been associated with 

increased employee commitment (Probst et al., 2019; Zohar, 2014). When employees 

are encouraged and empowered to actively participate in identifying and addressing 

safety concerns, it enhances their sense of ownership and commitment to the 

organization. 

Furthermore, studies have highlighted the role of perceived supervisor support in the 

relationship between work safety policies and employee commitment. When 

supervisors demonstrate genuine concern for employee safety, provide support, and 

actively communicate safety-related information, it positively impacts employee 

commitment (Huang, Chen, & Lam, 2021; Nahrgang et al., 2011). Employees who 



 
 

25 
 

perceive their supervisors as advocates for their safety are more likely to develop a 

stronger commitment to the organization. 

Recent research has also explored the impact of safety policies on employee well-being 

outcomes, which in turn influence commitment. Organizations that prioritize employee 

safety through comprehensive safety policies are more likely to promote employee 

well-being, job satisfaction, and psychological health, leading to higher levels of 

commitment (Hurtado et al., 2021; Kelloway et al., 2020). The perception that the 

organization genuinely cares for employees' safety and well-being fosters a sense of 

loyalty and commitment. 

One area of focus is the role of psychosocial safety climate in enhancing employee 

commitment. Psychosocial safety climate refers to the shared perceptions of 

organizational policies, practices, and procedures that support and promote employee 

psychological well-being and safety. Research has found that organizations with a 

positive psychosocial safety climate, characterized by supportive leadership, work-life 

balance practices, and respectful and fair treatment of employees, are more likely to 

have higher levels of employee commitment (Dollard et al., 2021; Tuckey et al., 2020). 

Such organizational climates foster a sense of security and trust, leading to increased 

commitment among employees. 

Furthermore, the impact of safety communication and training programs on employee 

commitment has been investigated. Effective communication of safety-related 

information, such as hazard warnings, safety procedures, and incident reporting, 

positively influences employee commitment (Gomes et al., 2022; Shoss et al., 2021). 

Organizations that provide regular safety training programs and encourage open 

dialogue about safety concerns create a shared commitment to work safety. 



 
 

26 
 

Moreover, recent studies have examined the role of safety leadership in shaping 

employee commitment. Safety leadership encompasses the behaviors and actions of 

leaders that prioritize and promote work safety. Research has shown that leaders who 

actively engage in safety-related activities, provide support and resources, and serve as 

role models for safe behavior enhance employee commitment (Kuokkanen et al., 2022; 

Yi et al., 2021). When leaders demonstrate a genuine commitment to safety, it 

reinforces the importance of safety within the organizational culture and positively 

impacts employee commitment. 

Additionally, research has explored the impact of safety climate on the psychological 

contract between employees and the organization. Safety climate refers to employees' 

shared perceptions of the importance placed on safety within the organization. Studies 

have found that a positive safety climate, characterized by a strong emphasis on safety, 

trust, and accountability, is positively associated with employee commitment 

(Dedobbeleer et al., 2022; Kines et al., 2019). When employees perceive that safety is 

a priority and a fundamental aspect of their employment relationship, it strengthens 

their commitment to the organization. 

 

2.1.3.3 The Impact of Code of Conducts Policy on Employee Commitment. 

Code of Conduct policies outline the ethical standards and expected behaviors within 

an organization. These policies serve as guidelines to ensure employees' adherence to 

ethical principles, legal requirements, and organizational values. Studies have 

consistently demonstrated that the presence of a strong and well-communicated Code 

of Conduct positively influences employee commitment. 

Research indicates that when employees perceive their organization to have a clear and 

comprehensive Code of Conduct, they are more likely to exhibit higher levels of 



 
 

27 
 

commitment (Barnes et al., 2022; Johnson & Saksvik, 2018). Organizations that 

establish a strong ethical culture and enforce the Code of Conduct through effective 

communication and training foster a sense of trust and commitment among employees. 

Moreover, the implementation of a Code of Conduct that goes beyond legal compliance 

and promotes ethical decision-making has been associated with increased employee 

commitment (Kim et al., 2021; Treviño et al., 2014). When employees are provided 

with clear guidelines and expectations for ethical conduct, it enhances their sense of 

purpose, alignment with organizational values, and commitment to the organization. 

Furthermore, studies have highlighted the role of perceived organizational support in 

the relationship between Code of Conduct policies and employee commitment. When 

employees perceive that the organization values ethical behavior, provides support for 

ethical dilemmas, and enforces the Code of Conduct consistently, it positively impacts 

employee commitment (Greenbaum et al., 2019; Riordan & Vandenberg, 2020). 

Employees who perceive their organization as committed to ethical conduct are more 

likely to develop a stronger commitment to the organization. 

Recent research has also explored the influence of ethical leadership on the relationship 

between Code of Conduct policies and employee commitment. Ethical leadership 

encompasses leaders' behaviors that demonstrate and promote ethical conduct within 

the organization. Studies have found that leaders who role model ethical behavior, 

communicate ethical expectations, and hold employees accountable for ethical 

violations enhance employee commitment (Jaramillo et al., 2022; Mayer et al., 2019). 

When leaders prioritize and emphasize the importance of ethical conduct, it strengthens 

employees' commitment to the organization. 

Additionally, research has examined the impact of the alignment between employee 

values and the organizational Code of Conduct on employee commitment. Studies have 



 
 

28 
 

found that when employees perceive a strong alignment between their personal values 

and the ethical standards outlined in the Code of Conduct, it positively influences their 

commitment to the organization (Brown et al., 2021; Maertz et al., 2020). The 

perception of shared values and ethical principles fosters a sense of belonging and 

commitment among employees. 

One area of focus is the role of organizational justice in shaping the relationship 

between Code of Conduct policies and employee commitment. Organizational justice 

refers to employees' perceptions of fairness in the work. Research has found that when 

employees perceive that the organization enforces the Code of Conduct fairly and 

consistently, it enhances their commitment to the organization (Kaptein et al., 2022; 

Vandekerckhove et al., 2021). Fair treatment in the application of ethical standards and 

disciplinary actions fosters a sense of trust and commitment among employees. 

Moreover, recent studies have examined the impact of ethical climate on the 

relationship between Code of Conduct policies and employee commitment. Ethical 

climate refers to employees' perceptions of the prevailing ethical norms and values 

within the organization. Research has shown that when employees perceive a strong 

ethical climate, characterized by a collective commitment to ethical conduct, it 

strengthens the positive relationship between Code of Conduct policies and employee 

commitment (Ma et al., 2022; Zhu et al., 2021). A supportive ethical climate reinforces 

the importance of ethical behavior and encourages employees to align their 

commitment with the organization. 

Additionally, research has explored the influence of integrity-based leadership on the 

relationship between Code of Conduct policies and employee commitment. Integrity-

based leadership emphasizes ethical decision-making, role modeling, and the 

promotion of ethical conduct within the organization. Studies have found that leaders 



 
 

29 
 

who demonstrate integrity and ethical leadership behaviors enhance employee 

commitment to the organization and the Code of Conduct (Brown et al., 2023; Mayer 

et al., 2022). When leaders prioritize and embody ethical values, it positively influences 

employees' commitment and their perception of the importance of the Code of Conduct. 

Furthermore, the role of ethical voice and ethical engagement has been investigated in 

relation to Code of Conduct policies and employee commitment. Ethical voice refers to 

employees' willingness to speak up and express concerns about ethical issues within the 

organization. Ethical engagement represents employees' active involvement and 

commitment to promoting ethical behavior. Research has shown that when employees 

perceive that their organization encourages ethical voice and supports ethical 

engagement, it enhances their commitment to the organization and the Code of Conduct 

(Moon et al., 2023; Wang et al., 2022). Organizations that foster an environment that 

values and encourages ethical discussions and actions cultivate a stronger commitment 

among employees. 

 

2.2 Theoretical Review  

The purpose of a theoretical review is to provide a comprehensive and in-depth 

understanding of the existing theoretical foundations in a given area of inquiry. It 

involves reviewing and analyzing scholarly articles, books, research papers, and other 

relevant sources to identify the key theories, concepts, and models that have been 

proposed by researchers and scholars in the field. 

 

2.2.1 Social Exchange Theory  

According to the social exchange theory, these people have a reciprocal connection 

with their organization, offering their skills and efforts in exchange for various benefits 



 
 

30 
 

(Blau, 1964). Corporate policies, which lay out standards and criteria for workers' 

conduct and performance, can be considered as a component of this trade. Employee 

commitment and job satisfaction are more likely to increase when they believe their 

employer has fair and helpful policies (Eisenberger, Huntington, Hutchison, & Sowa, 

1986). 

 

2.2.1.1 Key Concepts of Social Exchange Theory 

Reciprocity: Central to SET is the notion of reciprocity, which suggests that 

individuals engage in relationships with the expectation of mutual exchange. In 

organizational contexts, employees and organizations engage in reciprocal 

relationships, where employees contribute their skills, efforts, and loyalty in exchange 

for various rewards such as compensation, recognition, and career advancement 

(Cropanzano & Mitchell, 2005). The level of reciprocity in these exchanges influences 

the quality of the relationship and individual outcomes. 

Exchange Relationships: SET emphasizes the existence of exchange relationships, 

which involve ongoing interactions between individuals or entities. These relationships 

are characterized by the exchange of resources, such as tangible rewards (e.g., salary, 

benefits) and intangible resources (e.g., support, respect, opportunities for growth) 

(Blau, 1964). The quality and frequency of resource exchange shape the nature and 

strength of the relationship. 

Costs and Rewards: SET posits those individuals assess the costs and rewards 

associated with their interactions to determine the overall value of the relationship. 

Costs refer to the negative experiences or sacrifices individuals perceive in an 

exchange, such as time, effort, or emotional strain. Rewards, on the other hand, 

encompass the positive outcomes individuals expect to gain from the relationship, such 



 
 

31 
 

as financial compensation, social support, or career advancement (Blau, 1964). 

Individuals strive to maximize rewards and minimize costs in their social exchanges. 

 

2.2.1.2 Application of Social Exchange Theory in Organizational Contexts 

The intricacies of the connection between employees and organizations are better 

understood because to SET. According to Eisenberger, Huntington, Hutchison, and 

Sowa (1986), employees have a reciprocal relationship with their employer, exchanging 

their time, talents, and efforts for benefits including fair pay, opportunities for 

professional advancement, and a positive work environment. Employees are more 

likely to create a strong sense of commitment, contentment, and engagement with the 

firm when they perceive a fair and equal transaction that is defined by positive benefits 

and acceptable expenses (Rhoades & Eisenberger, 2002). 

The leader-member interchange within organizations is also clarified by SET. 

According to the LMX theory, relationships between leaders and their followers can 

range from trust-based, high-quality relationships (in-group) to low-quality, 

transactional relationships (out-group) (Graen & Uhl-Bien, 1995). Greater mutual trust, 

support, and resource sharing are characteristics of higher-quality exchange 

partnerships, which improve employee job satisfaction, organizational commitment, 

and performance (Liden, Sparrowe, & Wayne, 1997). 

SET sheds light on the motivations driving organizational citizenship behavior, which 

is defined as discretionary actions that go above and beyond the call of duty and 

enhance organizational effectiveness (Organ, 1988). Employees are more likely to 

participate in OCB as a kind of reciprocation if they perceive a positive social exchange 

with their organization, one that is defined by helpful relationships and favorable 

benefits (Podsakoff, MacKenzie, Paine, & Bachrach, 2000). These actions consist of 



 
 

32 
 

lending a hand to coworkers, offering to take on more responsibilities, and making 

suggestions for improvement. 

 

2.2.2 Organizational Support Theory 

According to the organizational support theory (Eisenberger et al., 1986), employees' 

commitment and job satisfaction are influenced by how they feel the organization 

supports them and cares about their welfare. Employee perception of organizational 

support can be influenced by corporate policies that place a high priority on the welfare 

of employees, work-life balance, and fair treatment. Employee engagement, work 

happiness, and efforts toward reaching company goals are therefore more likely to 

increase in return (Rhoades & Eisenberger, 2002). 

 

2.2.2.1 Key Concepts of Organizational Support Theory 

Perceived Organizational Support (POS): Central to Organizational Support Theory 

is the concept of perceived organizational support, which refers to employees' beliefs 

regarding the extent to which the organization values their contributions and cares about 

their well-being (Eisenberger, Huntington, Hutchison, & Sowa, 1986). POS is 

influenced by various organizational practices, including fair treatment, supportive 

supervision, career development opportunities, and rewards and recognition. When 

employees perceive high levels of organizational support, they are more likely to 

reciprocate with increased commitment, engagement, and performance. 

Reciprocity and Social Exchange: OST highlights the reciprocity inherent in the 

employee-organization relationship. According to the theory, employees reciprocate 

the perceived support they receive from the organization through increased job 

performance, positive attitudes, and organizational citizenship behaviors (Eisenberger 



 
 

33 
 

et al., 1986). This reciprocal relationship creates a positive work environment, fostering 

higher levels of employee well-being and organizational effectiveness. 

Employee Outcomes: Organizational Support Theory suggests that perceived 

organizational support influences a range of employee outcomes. Employees who 

perceive high levels of support are more likely to experience increased job satisfaction, 

organizational commitment, and trust in their organization (Eisenberger et al., 1986). 

They are also more likely to engage in positive behaviors, such as higher levels of job 

performance, organizational citizenship behaviors, and lower levels of turnover 

intention (Rhoades & Eisenberger, 2002). These outcomes contribute to overall 

organizational effectiveness and success. 

 

2.2.2.2 Relevance of Organizational Support Theory in the Work 

Employee Well-being: Organizational Support Theory offers insights into promoting 

employee well-being. By fostering a supportive work environment and demonstrating 

care for employees' needs and concerns, organizations can enhance employees' 

perception of organizational support (Eisenberger et al., 1986). This, in turn, positively 

affects employees' job satisfaction, commitment, and trust, leading to improved 

psychological well-being and reduced stress levels. Supporting employees' well-being 

contributes to higher job engagement and overall satisfaction with their work 

experience. 

Employee Engagement and Performance: OST highlights the link between 

perceived organizational support and employee engagement and performance. When 

employees perceive higher levels of support from their organization, they are more 

likely to invest effort and energy into their work (Eisenberger et al., 1986). Enhanced 

engagement translates into higher levels of job performance, as employees feel valued, 



 
 

34 
 

motivated, and committed to achieving organizational goals. Organizations that 

prioritize creating a supportive work environment can foster higher levels of employee 

engagement and performance. 

Retention and Turnover Reduction: Organizational Support Theory has implications 

for employee retention and turnover reduction. When employees feel supported and 

valued by their organization, they are more likely to develop a sense of loyalty and 

commitment (Rhoades & Eisenberger, 2002). Perceived organizational support reduces 

turnover intentions as employees are less likely to seek alternative employment 

opportunities. Organizations that prioritize providing support and recognizing 

employees' contributions can enhance retention rates and reduce the costs associated 

with turnover. 

 

2.3 Empirical Review 

Empirical studies have provided support for the impact of corporate policies on 

employee commitment, job satisfaction, and the achievement of organizational goals. 

According to a study by Burton and Hoobler (2020), workers who felt that their 

company's policies were supportive and fair showed better levels of commitment and 

job satisfaction. Additionally, these workers showed improved goal alignment and 

involvement in actions that promoted organizational performance. 

According to Rhoades and Eisenberger's research from 2002, employees reported better 

levels of commitment and job satisfaction when they felt their organization was 

supporting them more, particularly through supportive policies. Additionally, these 

workers were more likely to use discretionary actions to further organizational 

objectives. 



 
 

35 
 

A study by Eisenberger et al. from 1986 found a link between commitment, work 

satisfaction, and perceived organizational support. They discovered that workers who 

felt more organizational support, such as supportive policies, showed higher levels of 

commitment and expressed greater job satisfaction. 

 

2.4 Conceptual Framework 

        

                                                                                                                

 

 

 

Figure 1: Conceptual Framework 

Source: Author’s Construct, 2023 

 

 

 

 

 

 

 

 

 

 

Corporate Policies    

 Health Benefit Policy 

 Work Safety Policy 

 Code of Conduct 

 

                                                              

Employee Commitment 

 



 
 

36 
 

CHAPTER THREE 

METHODOLOGY 

3.0 Introduction  

This study seeks to determine the impact of corporate policies on employee 

commitment: a case study of Fan Milk Ghana Company Limited, Kumasi. The 

organization of this chapter is as follows; research approach, research design, research 

method, population, sampling and sampling technique, data collection Instruments, 

validity and reliability, method of data analysis and ethical consideration. 

 

3.1 Research Design and Strategy 

The study will collect and evaluate data using a mixed-methods design that combines 

observations and survey data. It entails gathering information via surveys to determine 

the Impact of Corporate Policies on Employee Commitment. This method can offer 

insightful information about how employees feel about the corporate policies as well as 

the elements that affect their productivity. The data collection and analysis process are 

structured by the research design. The "how" of conducting research using a specific 

methodology is revealed by the research design (Bhat, 2019). According to Bhat, it is a 

framework of methodologies and strategies selected by a researcher to combine diverse 

research components in a generally logical way in order to effectively address the 

research problem. A specific project can be explained in a variety of ways because it 

will have an objective, a method, a justification, and a logical foundation. This study 

used a descriptive research design. Gay (1987, p. 187) states that the descriptive sample 

survey entails gathering information in order to respond to inquiries about the present 

state of the research issue. The careful documentation of the descriptive survey's 

methodology encourages future replication by other researchers and re-testing the 



 
 

37 
 

results (Babbie, 1992). The descriptive design is used for the study because it describes 

how a small group of people feel about the phenomenon being studied, in line with the 

predetermined objectives, and using information acquired from the investigation. It 

should be mentioned that descriptive survey research aims to generate statistical data 

on educational topics that matter to educators and policy makers (Borg and Gal, 1989).  

However, control and manipulation are found in experimental study and are only 

observed and measured here (McCombes, 2020). While developing the research design, 

one must be careful to ensure that the study's findings are valid and dependable. 

According to McCombes, this kind of design might be either qualitative or quantitative. 

According to Nassaji (2015), "the purpose of descriptive research is to describe a 

phenomenon and its characteristics." As a result, instruments for collecting data through 

observation and surveys are regularly used (Gall, Gall, & Borg, 2007). 

 

3.2 Population of the Study 

Target population refers to the group of people to whom the results of a research should 

apply (Whitley & Kite, 2017). A research population is generally a large collection of 

individuals or objects that is the main focus of a scientific query. It is for the benefit of 

the population that researches are done (Sagor, 2015).  The population for the study 

was two hundred and sixty- two (262) employees.  

 

3.3 Sample Size and Sampling Technique 

A sample is simply a subset of the population. The concept of sample arises from the 

inability of the researcher to assess all the persons in a given population. It shows that, 

it is a carefully selected subset of the target population. The simple random sampling 

technique was used to select all the form respondents for the study. This was used based 



 
 

38 
 

on the fact that; the researcher targeted employees from Fan milk Ghana Limited. Since 

survey research focuses on designing and intervening to solving problems in specific 

situations, one hundred and five (105) employees was the sample that was deemed 

appropriate for the purpose of this study. 

 

3.4 Data Collection Technique 

This study primarily used the structured questionnaires to gather the information. The 

self-made questionnaire is divided into two sections. The first section contains the 

demographic profile of the respondents and the second section shows the questions 

pertaining to the employee commitment and corporate policies using the 5-point Likert 

Scale. Data collection is one of the most important aspects of research studies. This is 

because it is based on the information gathered that suggestions, conclusions and most 

importantly, hypotheses can be proven or not. There are a number of data collection 

instruments at the disposal of researchers as they undertake researches. These are 

interviews, observation, questionnaires just to mention a few. For this research study, 

in gathering relevant information to help the researcher make certain conclusions, 

questionnaires were used.  

 

3.4.1 Questionnaires 

A questionnaire is a data collection instrument that contains series of questions or 

statements called items that attempt to collect information on a particular topic (Patton, 

2019). The use of this instrument assisted the researcher to gather relevant information 

from the respondents on their views on how to determine the impact of corporate 

policies on employee commitment towards job satisfaction and achieving 

organizational goals. The questionnaire designed for the employees contained questions 



 
 

39 
 

with already provided answers for them to choose from and also questions that they 

were to provide answers to themselves. In all, forty-five (45) questionnaires were 

administered. 

 

3.5 Validity and Reliability 

The degree at which a test measures what it is meant to assess is validity. Validity means 

that the test measures and the measurement methods used in testing are accurately 

calibrated. Under this, the validity of inferences made is therefore validated. During the 

data compilation, analysis and presentations, the researcher applies due diligence and 

special caution in order to prevent or minimize errors. In order to have their full consent, 

the participants are briefed earlier on by the researcher on the need and value of the 

study and approval requested for their involvement and the researcher gives the 

guidelines on how the questionnaires would be answered. This ensures a high degree 

of completion and consistency of the data presented.  

Reliability is the accuracy of the calculation or the degree of which every time it is used 

on the same variables under the same condition, an instrument calculates the same way 

 

3.6 Data Analysis Procedure 

The researcher used quantitative techniques in analyzing the data. For quantitative 

technique, the researcher used charts and tables to present data from the questionnaires. 

And for qualitative technique, the researcher used narrative descriptions to analyze the 

processed data. The various responses were presented using the APA style tables. 

Saunders et al. (2017) argued that when your research philosophy is positivist then your 

research approach automatically becomes quantitative approach. Hence, the study 

employed quantitative research approach and explanatory design to ascertain the impact 



 
 

40 
 

of corporate policies on employee commitment. The study makes use of primary data. 

Structured questionnaire is the main instrument adopted to elicit for primary data. The 

sample size has been estimated at 62 at 95% confidence internal and 5% error margin. 

The data analyses have been performed using SPSS version. The results of the data 

collection exercise were presented analytically in the form of tables with percentages 

for easy reading and analysis. 

 

3.7 Chapter Summary 

This chapter provides an overview of the research design, population, sampling 

technique, data collection instruments, validity and reliability, and data analysis 

procedure for a study investigating the impact of corporate policies on employee 

commitment at Fan Milk Ghana Company Limited in Kumasi. The research design 

adopts a mixed-methods approach, combining observations and survey data to gather 

information about employee perceptions of corporate policies and their impact on 

commitment and productivity. The descriptive research design is utilized to describe 

the feelings and opinions of a small group of employees, aligning with the study's 

objectives. The use of surveys and observations facilitates data collection. The target 

population for the study consists of 262 employees of Fan Milk Ghana Company 

Limited. A sample size of 105 employees is determined through simple random 

sampling, as the study focuses on this specific group within the organization. Data 

collection primarily relies on structured questionnaires divided into two sections: 

demographic information and questions related to employee commitment and corporate 

policies. The Likert Scale is employed for respondents to rate their agreement or 

disagreement with statements. A total of 105 questionnaires are administered to the 

participants. Data analysis involves quantitative techniques, presenting data using 



 
 

41 
 

charts, tables, and narrative descriptions. The study employs a quantitative research 

approach with an explanatory design, utilizing primary data collected through 

structured questionnaires. The sample size is estimated at 262 employees, and SPSS 

software is used for data analysis. The results are presented in tabular form with 

percentages for ease of interpretation and analysis. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 
 

42 
 

CHAPTER FOUR 

DATA ANALYSIS AND DISCUSSION OF FINDINGS 

4.0 Introduction 

This chapter presents the analysis and discussion on assessing the impact of corporate 

policies on employee commitment: a case study of Fanmilk Ghana Limited, Kumasi. 

Frequencies, percentages, mean scores, standard deviations and independent samples t-

test were used in making meaning of the data gathered. Results were presented 

according to the specific objectives of this study, although the demographics of 

respondents were presented first. 

 

4.1 Presentation of Results 

4.1.1 Demographic Characteristics 

Table 1: Demographic Characteristics of Respondents 

Variables Sub-Scale N % 

Marital Status Married 30 29 

 Single 74 70 

 Divorced 1 1 

Total  105 100 

Educational Background WASSCE 15 14 

 Diploma 7 7 

 1st Degree 61 58 

 Post Graduate 21 20 

 PhD 1 1 

Total  105 100 

Work Experience 1 - 5 years      47 45 

 6 – 10 years     51 49 

 11years and above         7 6 

Total  105 100 

Source: Researcher’s Field Work (2023) 



 
 

43 
 

The data provided in Table 1 presents the demographic characteristics of the 

respondents. Among the respondents, 29% were married, indicating a smaller 

proportion of married individuals within the sample. The majority of respondents, 

accounting for 70%, were single. Only 1% of the respondents identified as divorced. 

The educational background of the respondents varied. 14% of the respondents had a 

WASSCE qualification. 7% had a diploma. The largest proportion, 58%, held a 1st 

degree. 20% of the respondents had a post-graduate qualification. Only 1% of the 

respondents held a PhD. The respondents' work experience levels were distributed as 

follows: 45% of the respondents had 1-5 years of work experience. 49% had 6-10 years 

of work experience. A small proportion, 6%, had 11 years and above of work 

experience. 

 

4.2 Independent Variables 

This section presents the impact of corporate policies. Respondents were asked to 

respond to the items under corporate policies, using a Likert scale of 1-strongly 

disagree, 2-disagree, 3-indifferent, 4-agree, and 5-strongly agree. The items were 

reorganized in descending mean scores; as higher mean scores indicate higher level of 

agreement to the item. Regarding the interpretation of the mean scores, mean scores 

greater than 3 were considered as positive response (i.e., agree range), and means scores 

less than 3 were considered as negative response (i.e., disagree range).  

  



 
 

44 
 

Table 2: Independent Variables 

CORPORATE POLICIES 

Mean 

Std. 

Deviation 

Ranking 

 

… The corporate policies are clearly communicated 

to employees. 

3.615 .959 

1st  

… The corporate policies are fair and unbiased. 3.510 .940 2nd  

… The corporate policies are effectively 

implemented and enforced. 

3.505 1.129 

3rd  

… The corporate policies promote a positive and 

inclusive work environment. 

3.465 .976 

4th  

… The corporate policies align with the 

organization's values and mission. 

3.455 1.006 

5th  

Totals  3.508 .1682 -  

Source: Researcher’s Field Work (2023) 

 

The data presented in Table 2 provides information about the independent variables 

related to corporate policies. The corporate policies are clearly communicated to 

employees: This variable has the highest mean of 3.615, indicating that on average, 

respondents perceive those corporate policies are clearly communicated to employees. 

A higher mean suggests that employees feel well-informed about the organization's 

policies. The corporate policies are fair and unbiased: This variable has a mean of 3.510, 

indicating that, on average, respondents perceive those corporate policies are fair and 

unbiased. This suggests that employees believe that the policies are applied equitably 

and without favoritism. This variable has a mean of 3.505, indicating that, on average, 

respondents perceive those corporate policies are effectively implemented and 



 
 

45 
 

enforced. This suggests that employees believe that the organization takes action to 

ensure compliance with the policies. The corporate policies promote a positive and 

inclusive work environment: This variable has a mean of 3.465, indicating that, on 

average, respondents perceive those corporate policies promote a positive and inclusive 

work environment. This suggests that employees believe that the policies contribute to 

a work culture that values diversity and inclusion. The corporate policies align with the 

organization's values and mission: This variable has a mean of 3.455, indicating that, 

on average, respondents perceive those corporate policies align with the organization's 

values and mission. This suggests that employees see a connection between the policies 

and the overall goals and principles of the organization. The total mean for all the 

variables is 3.508, which indicates a generally positive perception of the corporate 

policies among the respondents. The standard deviation of 0.1682 suggests that there is 

relatively low variability in the responses, indicating a relatively high level of 

agreement among the respondents. 

 

4.2.1 Employee Commitment 

This section presents Employee Commitment at Fan Milk Ghana Limited, Kumasi. 

Respondents to the study were asked to respond to the items under this section, using a 

Likert scale of 1-strongly disagree, 2-disagree, 3-indifferent, 4-agree, and 5-strongly 

agree. Just as the previous section, the items were reorganized in descending mean 

scores; as higher mean scores indicate higher level of agreement to the item. Regarding 

the interpretation of the mean scores, mean scores greater than 3 were considered as 

positive response (i.e., agree range), and means scores less than 3 were considered as 

negative response (i.e., disagree range).  

  



 
 

46 
 

Table 3: Dependent Variables 

EMPLOYEE COMMITMENT 

Mean 

Std. 

Deviation 

Ranking 

 

… I feel a strong sense of loyalty towards the 

organization. 

3.745 1.007 

1st  

… I am committed to achieving the goals and 

objectives of the organization 

3.680 .960 

2nd  

… I am motivated to give my best effort in my 

work. 

3.645 1.102 

3rd  

… I am willing to stay with the organization for the 

long term 

3.590 .983 

4th  

… I feel a sense of ownership and responsibility 

towards the organization's success 

3.510 .940 

5th  

Totals  3.634 .9984 -  

Source: Researcher’s Field Work (2023) 

 

The data presented in Table 3 provides information about the dependent variables 

related to employee commitment. I feel a strong sense of loyalty towards the 

organization: This variable has the highest mean of 3.745, indicating that, on average, 

respondents reported feeling a strong sense of loyalty towards the organization. This 

suggests that employees feel a deep emotional connection and allegiance to the 

organization. I am committed to achieving the goals and objectives of the organization: 

This variable has a mean of 3.680, indicating that, on average, respondents reported 

being committed to achieving the goals and objectives of the organization. This 

suggests that employees are motivated to contribute their efforts towards the success of 



 
 

47 
 

the organization. I am motivated to give my best effort in my work: This variable has a 

mean of 3.645, indicating that, on average, respondents reported being motivated to 

give their best effort in their work. This suggests that employees are driven to perform 

at their highest level and strive for excellence. I am willing to stay with the organization 

for the long term: This variable has a mean of 3.590, indicating that, on average, 

respondents reported being willing to stay with the organization for the long term. This 

suggests that employees have a desire for long-term commitment and continuity with 

the organization. I feel a sense of ownership and responsibility towards the 

organization's success: This variable has a mean of 3.510, indicating that, on average, 

respondents reported feeling a sense of ownership and responsibility towards the 

organization's success. This suggests that employees have a vested interest in the 

success of the organization and feel accountable for their role in contributing to it. The 

total mean for all the variables is 3.634, which indicates a generally positive level of 

employee commitment among the respondents. The standard deviation of 0.9984 

suggests that there is some variability in the responses, indicating that individual 

employees may differ in their levels of commitment. 

 

 

  



 
 

48 
 

4.3 Relationship Between Corporate Policies on Employee Commitment at Fan 

Milk Ghana Limited, Kumasi.  

 

Table 4: Correlation 

Correlations 

 

Marital 

Status 

Working 

Experienc

e 

Educat

ional 

Qualifi

cation Age 

Corpor

ate 

Policie

s 

Emplo

yee 

Commi

tment 

Age Pearson 

Correlation 

-.130 1     

Sig. (2-tailed) .066      

N 105 105     

Work 

Experience 

Pearson 

Correlation 

.989** .128 1    

Sig. (2-tailed) .000 .071     

N 105 105 105    

Educational 

Qualification 

Pearson 

Correlation 

-.130 1.000** -.128 1   

Sig. (2-tailed) .066 .000 .071    

N 105 105 105 105   

Marital Status Pearson 

Correlation 

-.197** .015 -.201** .015 1  

Sig. (2-tailed) .005 .838 .004 .838   

N 105 105 105 105 105  

Corporate  

Policies 

Pearson 

Correlation 

-.107 .005 -.093 .005 .008 1 

Sig. (2-tailed) .133 .942 .192 .942      .944  

N 105 105 105 105 105  

Employee  

Commitment 

Pearson 

Correlation 

-.059 .019 -.050 .019 .920** 1 

Sig. (2-tailed) .409 .795 .485 .795 .000  

N 105 105 105 105 105 105 

**. Correlation is significant at the 0.01 level (2-tailed). 

 

This table shows the correlation between various factors in a dataset of 105 individuals.  

Age and Work Experience: Pearson Correlation: 0.989 Significance (2-tailed): Highly 

significant (p < 0.01) There is a very strong positive correlation (0.989) between age 



 
 

49 
 

and work experience, indicating that as individuals get older, their work experience 

tends to increase significantly. 

Work Experience and Educational Qualification: Pearson Correlation: 0.128 

Significance (2-tailed): Marginally significant (p = 0.071) There is a weak positive 

correlation (0.128) between work experience and educational qualification. This 

suggests that individuals with more work experience may, to some extent, have higher 

educational qualifications. 

Marital Status and Age: Pearson Correlation: -0.197 Significance (2-tailed): Highly 

significant (p < 0.01) There is a significant negative correlation (-0.197) between 

marital status and age, implying that as individuals get older, they are less likely to be 

single. 

Marital Status and Educational Qualification: Pearson Correlation: -0.201 Significance 

(2-tailed): Highly significant (p < 0.01) There is a significant negative correlation (-

0.201) between marital status and educational qualification, suggesting that individuals 

who are married tend to have slightly lower educational qualifications. 

Corporate Policies and Employee Commitment: Pearson Correlation: 0.920 

Significance (2-tailed): Highly significant (p < 0.01) There is a very strong positive 

correlation (0.920) between corporate policies and employee commitment, indicating 

that as corporate policies are perceived more favorably, employee commitment tends 

to increase significantly. 

 

4.3.2 Regression  

In order to examine the impact of corporate policies on employee commitment: a case 

study of Fanmilk Ghana Limited, Kumasi, the researcher regressed corporate policies 



 
 

50 
 

construct on employee commitment at work with marital status, work experience, 

educational qualification as the control variables.  

 

Table 5: Effects of corporate policies on employee commitment at work 

Employee Commitment Coefficients Standard 

Error 

T P-

value 

Constant 0.299 0.141 2.114 0.036 

Marital Status 0.021 0.031 0.689 0.492 

Work Experience 0.264 0.336 0.788 0.432 

Educational Background 0.339 0.338 1.005 0.316 

     

No. of Obs.   105.00 

F    272.40 

P-value    0.000 

R-Squared   0.848 

Adj. R-Squared   0.845 

Source: Researcher’s Field Work (2023) 

 

4.4 Chapter Summary 

This chapter delves into the comprehensive evaluation of how corporate policies 

influence employee commitment, with a specific focus on Fanmilk Ghana Limited in 

Kumasi. The analysis incorporates a range of statistical techniques, including 

frequencies, percentages, mean scores, standard deviations, and independent samples t-

tests to extract insights from the collected data. In this section, the study encompasses 

105 respondents, predominantly male (80%) and single (71%). Respondents exhibited 



 
 

51 
 

diverse educational backgrounds, with 55% holding a 1st Degree. The distribution of 

work experience was fairly uniform, with 42% having 1-5 years, another 42% having 

6-10 years, and 16% having 11 or more years of experience. The impact of corporate 

policies was assessed using a Likert scale. Findings in Table 4.2 indicate that employees 

generally hold positive perceptions of corporate policies. These policies are seen as 

effectively communicated, fair, and unbiased. Moreover, they are believed to promote 

a positive work environment and align with the organization's values and mission. The 

collective mean score of 3.508 points to a prevalent positive view of corporate policies 

among the respondents. 

The analysis also extends to evaluating employee