January/February 2014

COMMUNITIES: CONSTRUCTION
State of Ethics in Construction Industry A Mix of Good and Bad

Workers in the US construction industry are at greater risk of facing workplace ethics issues than those working in other industries, according to a report by the Ethics Resource Center.

Not only do employees in the construction industry feel more pressure to compromise standards than employees in other industries, but they are also more likely to witness misconduct and experience retaliation for reporting misconduct. Despite this, however, employees in the construction industry are more likely to report misconduct than employees in other industries.

The report’s findings were derived from a survey of general contractors, subcontractors, and program managers who work in nonresidential construction.

“Through this survey, we hope to establish a baseline for the state of ethics in the US construction industry,” says Ethics Resource Center President Patricia Harned. “By identifying emerging ethics and compliance issues, industry leaders can identify priorities that enable them to improve conduct in the workplace.”

The report’s recommendations for the construction industry cover individual companies and industry groups. Individual companies are encouraged to prioritize and invest in well-implemented ethics and compliance programs and to measure the effectiveness of their ethics and compliance programs.

“Construction companies should not assume that their existing ethics and compliance program is achieving its intended objectives,” the report reads. “Assessment is a critical tool for identifying specific areas of need, e.g., locations or employee groups that pose particular risk. Regular measurement also serves as a tool to track progress over time and to make continual improvement.”

Industry groups, meanwhile, are encouraged to combat pressures inherent in the industry, establish benchmarks for self-regulation and accountability, and conduct further inquiry into onsite management of misconduct.

Founded in 1922, the Ethics Resource Center is a nonprofit and nonpartisan organization dedicated to independent research that advances high ethical standards and practices in both public and private institutions.