Abstract: Ethical sourcing is one of the very many simple concepts that make a lot of sense to any well-meaning organization. Unfortunately, implementing the concept is not very simple, and over the years, companies have crumbled due to failure to master the best practices in ethical sourcing. The purpose of this research is to investigate the influence of ethical sourcing on procurement performance, with specific reference devolved systems of governance in Nairobi County. Specifically, it seeks to determine whether supplier selection ethics, ethical policies and codes, procedural justice ethics and supplier diversity influence the procurement performance in Nairobi County. The study employed descriptive research design, and the study population was the procurement department in Nairobi county government. The target population of the study is 187 staffs, and the sample size is 65 staffs. Data were collected using questionnaires with both open and closed questions, and they were administered by the researcher through a drop and pick technique through simple random sampling technique. A pilot study was undertaken for the study to determine validity and reliability of the study instruments. The collected data was then analyzed by SPSS Version 23.0 using descriptive and inferential statistics. Supplier Selection Ethics have a positive and significant effect on procurement performance, β1 = 0.232, p = 0.036, Ethical Policies and Codes have a positive and significant effect on procurement performance, β2 = 0.309, p = 0.005, Procedural Justice Ethics have a positive and significant effect on procurement performance, β3= 0.243, p = 0.026 while Supplier Diversity Ethics have a positive and significant effect on procurement performance, β4 = 0.347, p = 0.002. Based on these findings, priority needs to be given to suppliers who can effectively meet specifications and code of conduct needs to be developed to enhance effectiveness and reduce costs. There is a need for regular assessment of whether the suppliers use forced labor is not carried out, prohibition of selection of suppliers who collude to fix or hike market prices, and carrying out a regular assessment of suppliers’ health and safety practices to ensure ethical sourcing. There is need to put in measures to address any conflict of interest in the procurement process to reduce internal and external derived fraud; there is a need to have a policy on gifts and hospitality offered to ensure ethical and fair procurement processes. Also, transparency to the criteria used when offering/bidding needs to be defined to encourage open and fair competition. The procurement department needs to put in measures in the creation of awareness of the preference (supplier diversity) for public benefit, develop and implement a preferential policy and ensure that the management or administration is encouraged to be committed to strengthening strategic partnerships with minority-owned businesses.
Keywords: Public Procurement, Ethical Codes, and Policies, Public entities, Supply Chain Management.
Title: Influence of Ethical Sourcing Practices on Procurement Performance: A Case of Nairobi City County
Author: Jackline Tuntera Nyakundi, Dr. Muchelule Yusuf Wanjala
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
