BISHOP

The recent survey on ethical practices in our industry published by FMI was alarming to me and I suspect to many others. Not alarming so much in the results, which obviously were unflattering, but alarming in that the proposed solutions have not in any earnest fashion been embraced by industry leadership.

To recap, FMI found that:

According to FMI, "It is clear from our survey response that ethics is an important concern among companies in the industry. It is also clear that very few are taking actions to support their ethical values."

Looking for Leadership

We have a problem. Could it be that our problem reflects the fact that no one in a leadership position has stood up and said, "We are immediately going to take substantive steps to bring about change. Here is what we are going to do." Where is that leadership?

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The electronics industry found its leadership in Hewlett-Packard, Dell, and IBM and that industry does not have nearly the issues we have relative to fair play and integrity. These three firms teamed up to recently produce an Electronics Industry Code of Conduct.

Shouldn’t the construction industry be doing the same? Shouldn’t there be in place a Code of Ethics or Code of Conduct that everyone has incentive to abide by?

Some already promote ethical behavior. The National Society of Professional Engineers has a code of ethics that it takes seriously. The American Society of Professional Estimators and the Construction Managers Association of America also publish a code. The Associated General Contractors, Associated Builders and Contractors and Construction Financial Managers Association do not.

Is the leadership needed to do something of this importance in the executive offices of the industry associations? Probably not. Is it in the executive suite of the top, publicly held engineering and construction firms? Maybe. In all likelihood, the leadership is either going to come from the procuring side, which will seek a legislative solution, or from a collective effort brought on by the "rank and file."

Let’s hope that someone on the service-provider side takes a lead before the lawmakers step in. If you argue that the industry is addressing the issues with ethics presentations at conferences and random reports in ENR about those caught in acts of bribery or collusion, my counter would be that it is not enough. The issue demands a collaborative effort unlike any other that we have cobbled together as an industry. We need every person in a leadership position in any size construction-related organization to stand up and shout, "I am mad as hell and I am not going to take it any more."

Moving Ahead

So what’s the work plan? First, listen to your peers. The solutions suggested by respondents to FMI’s survey are straightforward: 1) impose stiffer penalties for those caught in unethical or illegal acts, 2) create an industry-wide code of conduct, 3) put more emphasis on social responsibility in award criteria, 4) have more training.

Call the local chapter of your preferred industry association and ask them what is being done. Don’t accept, "It’s complicated."

Secondly, take care of business at home. Take a look around and make sure you and your leadership team are doing absolutely everything plausible to create a culture of integrity and sound ethical decision making.

Unethical acts are estimated to cost the U.S. construction industry up to $40 billion annually. It is a serious problem. Let’s get serious about addressing it.

Rick Bishop is president of Integribuild, Midlothian, Va.
He can be reached at (804) 639-0529 or via email at rick@integribuild.com.