Identify what ethics are – definitions 6506BESG BM LESSON 3 : ETHICS Adapted by Sally Low , Trent Global College, Singapore Aims: Identify what ethics are – definitions Introduction to ‘Business ethics’ A look at ethics within Construction Understand Corporate Social Responsibility (CSR)

Questions that professional managers must ask themselves in a built environment workplace How important is ethics to you? Are you an ethical person? Think critically Who regulates ethical behaviour for construction professionals ? Is the public perception of ethical behaviour important? Is the public perception of ethical behaviour important

Ethics are an important part of being a construction professional? Strongly Agree Agree Disagree Strongly Disagree

Who regulates ethical behaviour for construction professionals? Government Professional Body Legal System

Cowboy Builders?? Reputation - marketing

Ethics - Definitions Simply – dictionary definition: ‘relating to morals’ So what are morals? Relating to character and conduct Capable of knowing right and wrong ‘Legal behaviour and a collection of moral principles or a set of values dealing with what is right or wrong, good or bad’ (Beckman, 1963)

Ethics Simply, ethics is learning what is right and wrong and then doing ‘the right thing’ The dilemma is – what is the right thing?? Fall into two areas: Ground rules by which we live – ethical guidelines often become law Moral values are guide to how we behave – respect, honesty, fairness etc

Who do you think is more ethical? A Woman A Man

Ethical Dilemma A madman who has threatened to explode several bombs in crowded areas has been apprehended. Unfortunately, he has already planted the bombs and they are scheduled to go off in a short time. It is possible that hundreds of people may die. The authorities cannot make him divulge the location of the bombs by conventional methods. He refuses to say anything and requests a lawyer to protect his fifth amendment right against self-incrimination. In exasperation, some high level official suggests torture. This would be illegal, of course, but the official thinks that it is nevertheless the right thing to do in this desperate situation.

Do you think that torture should be used? 70% of people interviewed agreed to use torture to extract confession Only 30% do not agree to use torture

If you do agree to torture, would it also be morally justifiable to torture the mad bomber’s innocent wife if that is the only way to make him talk?? Yes (60%) No (40%) Are the 60% people being ethical?

Business Ethics Can you have such a thing???? Do all the ‘scandals’ show that there are ethics within business???? Business activities involve aspects of ethics – honesty, trustworthiness, co-operation

Business Ethics Important because business impacts on everyday lives Is a view that business and ethics don’t mix Businesses want to make a profit and to some extent don’t care how they get there ‘Concentrates on how moral standards apply to business policies, institutions and behaviour’. (Velasquez, 1996)

Business Ethics Within the workplace Important within change Seen as the managers role A whole management discipline Two broad areas: Managerial Mischief – illegal or questionable practices Moral Mazes – conflicts of interest, misuse of resources etc (Madsen and Shafritz, 1990)

Business Ethics ‘Business situations, activities and decisions where issues of right or wrong addressed’ Morally not financially or strategically right or wrong Crane, A and Matten, D (2007) Business Ethics. 2nd Ed. Oxford University Press Read Chapter 3 Pg 3 to discuss the traditional views of Crane and Matten

Can you buy a Kit Kat on the Byrom Street site in… The SU Shop Starbucks cafe Both

Ethical Examples Nestle – ‘baby killers’ Nike – ‘child/cheap labour’ Top 10 CEO’s ‘ousted’ under ethics What do you think was the main ethical issue of 7 of the 10 CEO’s?

Benefits of Managing Ethics Managing business ethics within the workplace has improved: Society – health and safety, working hours etc Teamwork and productivity – behaviour Individuals growth and meaning – deal with issues Policies – legal (act as an insurance policy) Management of values within quality, diversity and strategic planning Public image - PR

Managing Ethics Recognise it is a process An ethics programme is about achieving preferred behaviours Ethical dilemma’s are reduced by having a process Ethical decisions should be taken by groups (cross functional) and made public Integrate ethics management into other management practices Value ‘forgiveness’ – something is better than nothing and is a stepping stone to improvement

Ethical Tools Codes of Conduct – actions Codes of Ethics – Guides on decisions related to the actions Polices and Procedures – personnel, standard formats Training

Ethics within Construction Do you think there are any? Two aspects have to be considered: The Organisation – business ethics The Professional – industry organisations See Blackboard for additional reading

Professional Bodies Within construction, most professions have a professional body e.g. CIOB, CIBSE, RICS All professional bodies will have a Code of Conduct that members must adhere to – ethics is part of this code Emphasis may be more, depending on the professional area

Professional Conduct As a member of professional body you have to abide by the rules and regulations of that body Code of conduct is one area Investigatory and Disciplinary Panel related to Professional Conduct Removed from the Institute Have a look on your particular professional bodies website for further info.

QS AS AN ETHICAL ENFORCER PROFESSIONAL (PG 4) AREAS which may fall into the challenges which can become ethical dilemmas… see Pg 4-5 for the details.. This is because their clients include developers, contractors and architects...

RICS (Royal Institute of Chartered Surveryors’ Core Values Act with integrity Always be honest Be open and transparent in all dealings Accountable for all actions Know and act within limitations Be objective at all times Treat others with respect Set a good example to others Have the courage to make a stand

Example Code of Conduct - ICE Discharge their professional duties with integrity. Only undertake work that they are competent to do. Full regard for the public interest, particularly in relation to matters of health and safety, and in relation to the well-being of future generations. Show due regard for the environment and for the sustainable management of natural resources.

Develop their professional knowledge, skills and competence on a continuing basis and shall give all reasonable assistance to further the education, training and continuing professional development of others. All members shall: notify the Institution if convicted of a criminal offence; notify the Institution upon becoming bankrupt or disqualified as a Company Director; notify the Institution of any significant breach of the Rules of Professional Conduct by another member.

Case Study on an Ethical Dilemma You are a newly appointed Project Manager for a main contractor and have been asked to work in a situation that you feel contravenes Health & Safety Regulations. On speaking to colleagues about this, it appears that this is common practice within the company for employees to be put in situations that could lead to a potential accident. What would you do if it was you?

Ethical Dilemma Whistleblowing – are you willing to do so? You are protected under Employment Legislation

Corporate Social Responsibility CSR There is not a single accepted definition of CSR However it can be defined as “ the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organisations at a given point in time.”

3 general domains of CSR Economic responsibility towards the end-user or consumers Legal responsibility in taking due care and diligence in their products and services Ethical responsibility in that organisations have to ensure that they do not short-change their customers and the society

4 management areas to show CSR Marketplace Workplace Environment Community at large

Importance of CSR to Construction Firms Health and safety Eco compatibility Responsible Supply Chain Management Equal opportunities for all people

Discussion on exam question 1. Critically examine why it is important for both professionals and organisations to have codes of conduct and standards of ethics? 2. Corporate Social Responsibility focuses on three key impact areas: Economic, Social and Environment. Discuss how organisations are addressing this within their working practices and company strategy.