The Effects of Ethical Sourcing On Organization Performance in the Energy Sector (A Case of Kenya Power Company Limited)
The research was carried out to determine the effect of ethical sourcing on the organization performance in the energy sector, a case of Kenya Power Company Limited. The essence of an efficient public sector procurement system no doubt is to create wealth and ensure good governance and transparency. Adhering to ethical policies, ethical codes and corporate social responsibilities by a corporate organization such as Kenya Power Company Limited (KPCL) enhances its financial performance and corporate image. The sampling technique used was stratified and simple random sampling. Quantitative data was collected using questionnaires from 72 respondents while qualitative data was collected using interviews. Data was analyzed using descriptive and qualitative methods. The relationship between variables was established using correlation analysis and the test of factors predicting independent variable was done through regression analysis. From the above findings it was concluded that Ethical Policies, Ethical Codes and CSR affect organizational performance. There is a strong correlation between the independent variables to the performance. A significant percentage (37.5% of the respondents agreed that policies, codes and CSR have a strong relationship with ethical sourcing which will ensure transparency, ethical standards and efficiency in the sourcing processes.