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Construction Law

Research the internet for an instance involving ethics & corruption in the U.S. construction industry. Write a narrative, giving an introduction and brief background, who was involved (companies and people, describing their roles), the nature of the unethical or corrupt behavior and the outcome (fines, lost licenses, penalties, etc).

Sample Answer

Ethics define the the basic or moral principal or rule of conduct of any person’s behavior. The professional ethics apply in the corporate rules where the basic or moral principals applied for the related professions. Corruption is another form of misusing business purposes for own benefits. The construction companies should maintain or follow the ethics, which not only affect their reputation but also help the society to develop their perspective. Volkswagen Emissions and FIFA Corruption Scandal were the most famous case of constructing business in U.S industry where these companies involved with unethical business and corruption.

The basic ethical principles that conduct in construction business includes showing `honesty in the profession, avoid such acts which directly damage someone’s work. They need to maintain work skill, provide services, disclosing any work conflict and providing any information or knowledge related to work.

Corruption means misusing a public office or unethically involvement there for own benefits and extortion in illegal purposes. Construction companies should gain and maintain loyalty to their customers and presents their ethical standards among them. The construction companies always confirms their negotiation either publicly and private or through bidding. Each of contractors has their own ethics to set his specification of works. When two more contactors work together, they called collusion or bid rigging (Fiolleau & Kaplan 2016). Sometimes any unethical conduct may affect the free market process and the construction. Collusion is the process of fixing prices and may eliminate job costs to the owner. Contractors always accused for unethical conducts or corruption towards the employees or industry like bribery, negligence fraud, dishonesty and unfairness. Bribery is an unethical conduct of crime where a sum of money or gift given for alteration of behavior by a person for non-consistent with the duties of that person. The unethical conduct includes offering, giving, and receiving of any item of value like money, goods, property, privilege, or enrollment. Infrastructure service is always collaborating with corruption. Corruption in construction always decreases the productivity, benefits and equity of infrastructure services. Corrupt practices can occur at every phase of a construction project: during planning, inspection, design, bid and contract signing, construction, service delivery and operation and maintenance.

The Volkswagen Emissions Scandal is one of the famous case of corruption, where lost almost 20 billion in market capitalization for selling cars which are not environmentally friendly. For such mistakes it affect the reputation of the company and marketing approaches towards customers are found to be incorrect (Hotten 2015).

FIFA Corruption Scandal is another famous example of corruption, where US recognize that organization did some offences like racketeering, fraud, bribery in worldwide. Some of the committee member used its reputation for own business benefit (Rowe 2016).

ACET- Global Anti-Corruption Education & Training Project, UK Anti-Corruption Forum, and U4 Anti- Corruption Resource Centre are some famous anti-corruption organization, which work actively in worldwide.

The ethics that have been applying nowadays in construction business it is not only affect the business but also changing the basic principles. In United States, ethical perspectives are very important part. On the above essay it is briefly described how the principles of ethics and corruption affect the construction business.

Fiolleau, K., & Kaplan, S. E. (2016). Recognizing ethical issues: An examination of practicing industry accountants and accounting students. Journal of Business Ethics, 1-18.

Murray, M., & Dainty, A. (2013). Corporate social responsibility in the construction industry. Routledge.

Hotten, R. (2015). Volkswagen: The scandal explained. BBC News, 10.

Rowe, D. (2016). Sports Journalism and the FIFA Scandal Personalization, Co-optation, and Investigation. Communication & Sport, 2167479516642206.


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