Ethics in construction industry : project managers’ case study

Abstract

Business ethics and corporate governance have taken centre stage globally in the last decade due to the increasing unethical practices by private and public institutions. These unethical practices adversely affect the image of professionals and organisations with a resultant negative impact on the competitive advantage of the organisation. This study aims to assess factors contributing to unethical behaviours of project managers. The study was conducted in five provinces of South Africa including KwaZulu-Natal, Eastern Cape, Cape Town, Limpopo and Gauteng. The sample frame consists of construction project managers registered with South African Council for the Project and Construction Management Professions (SACPCMP) and Construction Industry Development Board (CIDB) Random sampling technique was employed in the selection of samples. A total number of thirty six questionnaires were analysed for the study. Descriptive statistics were employed for the analysis of data.

Findings include personal value, organisational culture and education are very influential factors on ethical decisions of a project manager. Furthermore, corporate value and individual values are the factors which most influence the ethical judgment of a project manager. Improving ethical practice for the professionals could improve ethical performance in construction projects and production efficiency in the construction industry in SA. Based on the findings of the study, ways to mitigate unethical conduct would be; practicing ethical conduct at all times will improve production, the levels of risk on projects will decrease and also an improvement in communication and transparency will minimize the levels of unethical conduct of the project managers in South Africa.