Analysis of Relationship Between Organizational Factors and Practice of Purchasing Ethics in Sugar Research Institute, Kenya

Abstract

As ethical supply issues become more widely known, stakeholders are starting to question companies about their record. There are complex problems to be resolved when addressing ethical and social responsibility issues and many of these issues are extremely sensitive, recommended best practices includes developing and understanding supplier's operations and offering guidance and support when improvement is necessary or appropriate. All professionals have issued code of conduct to govern their conducts and processes. The code of conduct prescribes the ethical relationships with the parties involved in the purchasing processes among other components of purchasing. It has been observed that due to interference by top management, senior government officials and politician's interests in purchasing activities, this open doors for fraudulent activities leading to wastage of tax payers' money. The specific objectives are to analyze the organizational factors existing in Sugar Research Institute; to examine the level of practice of purchasing ethics in Sugar Research Institute and to determine the relationship between organizational factors and practice of purchasing ethics in Sugar Research Institute. The study will be guided by a conceptual framework where the dependent variable will be the purchasing ethics and the independent variable will be organizational factors like internal processes, leT adoption, organizational culture and supplier-buyer relationship. The study utilized descriptive and correlation design. The target population was 30 employees involved in purchasing process. A census sampling was adopted. Primary data was collected using structured questionnaires. The reliability of questionnaire was tested through piloting while the validity was done through consultation with expertise. Data was analyzed using frequency distribution, median and inter-quartile range. Majority had worked at SRI between 1-5 years (43.3), 76.7% had diploma and first degree. Only 6.7% had certificate There are lacked well established departmental goals and objectives (median=4, IQR=I). Lack of appropriate sensitization and training on purchasing ethics and supportive organizational culture to implement the practice of purchasing ethics (median=4, IQR=I). Purchasing officers follow the purchasing process at Sugar Research Institute and that there is tendering committee that determines the awarding of tenders (median=5, IQR=l). The purchasing officers follow and practice the purchasing ethics (median=4, IQR=I). However, the practice of the purchasing ethics has led to amicable relationships between the department and the purchasing parties (median=3, IQR=1.25). There are a few cases of corruption and the management has not laid down any measures for those who are found corrupt. There are rules and regulations governing purchasing process to enhance effectiveness and efficiency in SRI. The study concluded that the management should not be rigid on implementing the practice of purchasing ethics. The study concluded that there were cases of corruption. The study should be used by the management of SRI in embracing the right process and the positivity of PPDA in the Institute and therefore putting mechanisms that would ensure all employees are in knowledge of the act and regulations for the purpose of efficiency in purchasing. The study recommends a study to be done on the effects of Public Procurement and Asset Disposal Act in Sugar Research Institute.