1. 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)

3. 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

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

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

6. Cowboy Builders?? Reputation - marketing

7. 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)

8. 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

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

10. 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.

11. 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

12. 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?

13. 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

14. 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)

15. 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)

16. 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

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

18. 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?

19. 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

20. 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

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

22. 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

23. 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

24. 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.

25. 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...

26. 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

27. 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.

28. 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.

29. 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?

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

31. 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.”

32. 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

33. 4 management areas to show CSR
Marketplace
Workplace
Environment
Community at large

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

35. 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.