Importance of Ethics in the Construction Industry

Background to the study:

Introduction:

  • In the engineering industry, following values based on ethical thinking is becoming harder because of the requirements and stresses put on specialists to achieve goals. On this current state and time, too many, money and success governs all. Most professionals on the market try their upmost to do something in an moral manner but gray areas do exist. It is easy to get involved in situations involving issue of interest, bribery, carelessness and environmental misconduct. An organisations capacity to enforce honest behavior relies on the size of the firm where smaller companies tend to emphasise less on Commercial Social Responsibility as bottom level lines and survival are higher up on the hierarchy. It is important that professionals respond with integrity in their work where business and professional ethics should be powered by personal ethics and specifications.

Importance:

  • The construction industry is regarded as to be one of the very most fraudulent market sectors worldwide (Transparency international, 2005) where 48% of construction professionals feel that corruption is commonplace within the industry (CIOB, ) and 41% have been professionally offered bribes at least one time during their jobs according a review (, 2006).
  • Ethical codes by themselves are not sufficient enough to ensure transparency by experts where these rules should be enforced using workplace training and the appointment of personal such as an ethics official to oversee moral issues within the organization (Calhoune, 2001). Therefor the size of a firm performs a key role in its capability to use CSR.

Aim & objectives of the study:

Goal:

  • Determine the importance of ethics in the construction industry and the consequences it has on the outcome of the organisations success depending on organization size

Aims:

  • To determine factors impacting professionals behavior in ethics in the structure industry
  • To identify what role ethics has on a task and firms success
  • To show the value of ethics in today's construction industry and its own effects
  • To regulate how organisation size plays a role in the enforcement of ethics.

ResearchQuestions:

  • Why and just how do ethical issues appear in the building industry?
  • How do ethical principles are different and apply to the construction industry depending on organization size or company structure?
  • What is the travelling force that helps prevent ethical behavior by professionals in the industry?
  • What impact does good ethical behavior have on the firms or project success?

NAME: Amaury Fayd'herbe de Maudave

REGISTRATION NO. :G20657902

ResearchMethodology:

  • A literature review was done to comprehend the issues around business ethics in the industry, the various types of moral misconduct and its own impact on a firm's result and the way the size of an company effects the amount of importance of moral behaviour and conduct by specialists.
  • A Questionnaire survey will be developed and given to construction firms of differing size pertaining to individuals experiences on honest issues within the construction industry
  • A Statistical/data analysis of the survey opinions will be performed to be able to answer the set out goals and objectives

Keyfindingsfrom the literature review:

  • The most frequent unethical situations confronted in the engineering industry include; cover costing, bid cutting, overdue and short repayments, lack of protection ethics on site, unfair sensitive/final account negotiations towards contractors.
  • Good ethical tendencies is key in gaining ideal benefits and good functionality from the industry
  • Most companies regardless of size involve some sort of ethical code of do in place
  • Ethics in the development industry's advancement depends seriously on the implementation and insurance policies of ethical suggestions set up by private organisations and professional bodies
  • Large firms tend to apply more stakeholder theory whereas small firms use public capital
  • SMEs should not have to adopt the same strategies and managerial tools as large organisations
  • An honest code of conduct is improbable to influence those aware of blatant unethical do but more so to situations where there is unintentional moral misconduct
  • An lack of a formal moral code of carry out does not signify there is a lack of matter for ethics
  • Small firm personal do not feel compelled to do something unethically but due to pressure can respond in ways considered to be less than honest, pressures including lack of resources and competitive market

Conclusions:

  • Pressures faced on the market affect behavior such as monetary requirements and deadlines, competitive character of the industry as well as for smaller firms lack of resources to execute at the required level
  • Smaller businesses use their strong romantic relationships built through trust, reputation and sincerity with stakeholders, customers and neighborhood to boost their stake in the market. In the overhand small organizations are unable to obtain relational capital through managerial tools such as ethical codes of carry out which in the permanent is helpful in creating value and revenue
  • Small solid personal tend to trust their own virtue over place codes including instinct and good habit from practical experience.
  • Larger firms generally use formal protocols as a method to communicate ethical carry out whereas small firms tend to rely more on close working relationships
  • A surveyors honest standard is merely as well affected by company culture of the organisation which is defined at management level
  • Firms with high ethical standards benefit fiscally credited to good reputation, good client satisfaction and staff retention

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