Social Principles within The Environmental, Social, and Governance (ESG) Framework and Their Effect on The Performance of NGOs in Kenya: A Case Study of Pursue Kenya

Constantine Sunday Otieno, Mary Mugo & Florence Kamau
Multimedia University of Kenya
Email: consatiz8@gmail.com

Abstract: Over recent decades, Environmental, Social, and Governance (ESG) principles have become increasingly important for mission-driven organizations such as non-governmental organizations (NGOs). This study examined the integration of social dimensions of ESG, specifically community engagement, labor practices, and stakeholder inclusivity—and their influence on the performance of NGOs in Kenya, with a focus on Pursue Kenya. A descriptive cross-sectional design was adopted, with sample size determined using Yamane’s formula. Purposive sampling identified the study area, while stratified and simple random sampling were applied to select participants across organizational subgroups. Data were collected using structured questionnaires and analyzed with SPSS version 26. Descriptive statistics were reported through frequencies and percentages, while chi-square tests and regression analyses were employed for inferential purposes. Results revealed significant positive associations between community engagement (B=0.209, p=0.006), stakeholder inclusivity (B=0.374, p<0.001), and organizational performance. Labor practices, however, showed no significant direct effect (B=-0.025, p=0.828). Combined regression indicated that community engagement (B=0.351, p=0.022) and stakeholder inclusivity (B=0.374, p=0.027) enhanced performance, whereas labor practices exerted a significant negative effect (B=-0.676, p<0.001). The study recommends strengthening staff compensation, investing in community program monitoring tools, expanding inclusive stakeholder engagement, and embedding social principles into long-term strategic planning to maximize impact.