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AN EVALUATION OF FACTORS INFLUENCING COMPLIANCE
OF CONSTRUCTION PROFESSIONALS TO ETHICAL
STANDARDS
Adeyinka, B. F.
1; Jagboro, G.O.
2 and Ojo, G.K.
3
Abstract:
Physical infrastructure built through construction activity is the nation’s economic backbone as it forms
the arteries for the facilitation of productive activity by enabling goods and services to be distributed
within and outside the country (Hillebrandt, 2000). The industry contributes between 5 and 10% of gross
domestic product (GDP) in all countries, employs up to 10 % of the working population and also
responsible for about half of the gross fixed capital formation as established (Lopes, 2012). Empirical
studies have established that the industry is tainted with various unethical practices which span over
project owners, funding agencies or sponsors, consultants, contractors, subcontractors etc (Tahir and
Amjad, 2013). Common unethical practices that combat with economic growth include corruption, bid
shopping, front end loading, conflicts of interests, cover pricing, payment game, compensation of
tendering costs and negligence, collusive tendering, bribery, professional negligence, fraudulent
behaviour, unfair conduct and a breach of professional responsibilities among architects, quantity
surveyors, consulting engineers and contractors (Pearl, et al., 2007 and Tahir and Amjad, 2013). The
nature of the industry have created many complex linkages between the industry and other sectors of the
economy (Ofori, 2012). Construction professionals should therefore have the sole responsibility to
discharge their duties with utmost care and diligence. These can be achieved by seen a need for heightened
standards of ethics for construction professionals who among others are architects, quantity surveyors and
engineers because their actions can have effects on lives and properties of the general public. Therefore,
ethical behaviour of construction professionals is essential for an industry that have been negatively
stigmatized with poor ethical conducts (Tow and Loosemore, 2009).
RICS (2000a) identified nine core values as a set of moral principles expected to resolve professional
ethical issues that can arise among the professionals, the client as well as the wider community. The codes
on their own are not effective and no amount of control measures put in place can eradicate unethical
behaviour if the people concerned are not willing to comply. There is a wide gap between theory and
practice which show that there are factors that tend to influence compliance of construction professionals
either positively or negatively to the established ethical standards (Knight and Morledge, 2005). In order
to therefore protect the image of the industry, construction professionals should inculcate vital ethical
standards and highest working standards to safeguard the reputation of the industry (Izzo, 2000). The
menace of malpractices in construction sector can be curbed if the factors influencing compliance can be
determined and worked upon. This needed urgent attention to optimally utilize the resources for the
developmental works. Against this background, this paper seeks to establish an empirical study examining
the factors influencing construction professionals' compliance to ethical standards with a view to
improving ethical standards among the construction professionals.
KEYWORDS: PROFESSIONAL ETHICS, CONSTRUCTION INDUSTRY, COMPLIANCE;
ETHICAL STANDARDS
1 Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria. (corresponding author)
[email protected] 2 Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria. [email protected] 3 Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria. [email protected]
230
1. PROFESSIONAL ETHICS: PREVIOUS RESEARCHES
EXAMINED
Adeyinka, Jagboro and Ojo (2015) examined the level of usage of mechanisms for
enforcement of ethical standards. The study found that individual related mechanism is
the frequently used mechanism for enforcement of ethical standards in which the success
of other mechanisms rely on. Ho (2011) investigated the ethics management for the
construction industry. Findings showed that to develop an appropriate ethical decision-
making relationship between individuals; situational/organisational, moral intensity and
employees’ must be determined. Dabson, Kenney, Flimmer and Waters (2007) in UK
established that ethics is very subjective and what some consider being wrong and right
are be very different. However the subjectivity, there should be standards in which the
professionals should strictly follow. Hamzah, Saipo, Mohd, Mohammed and Yap (2007)
in Malaysia investigated the correlation between the quality of construction works and
professional ethics. Findings revealed that unethical practices displayed by construction
professionals had adverse effect on the quality of construction works executed by the
professionals. In addition to these, Tow and Loosemore (2009) identified 27 factors
affecting ethical behaviour of construction professionals to include absence of ethics
training programs, absence of reward systems for those who act ethically within the
industry among others. Gbadegesin and Ojo (2011) only concentrated on property
management and found that lack of ethical standards have eroded the significance of
property management. From related completed researches, there are limited empirical
studies against factors influencing compliance of construction professionals to ethical
standards, which forms the gap filled by this paper.
Factors Influencing Construction Professionals' Compliance to Ethical
Standards
From the literature, factors affecting ethical behavior included; individual, leadership,
systems and procedures, structure and institution, cultural factors, legislations, system
and work procedure, noble values and ethics, code of ethics, recognition, internal control.
Other factors include individual, values in society, government roles and organizational
practices as different spheres of ethical values and action which interact and reinforce
each other (Lawton, 2005). Furthermore, to raise awareness of corporate and individual
responsibilities in construction industry, the prerequisite aspects of professional
education training, leadership, organizational systems and decision processes, auditing,
controls, and penalties were outlined (Paine, 1994).
Fan and Fox (2009) established that when making ethical decisions, one's self, family and
legal requirements were factors influencing decision making that must be taken to
protect public interest. Individual knowledge and professional training have ethical
implications and implies responsibility. Religious and moral education breeds and
enhances individual knowledge which is a constitutive aspect of all social self-
organization. In social systems, individual values, norms, conclusions, rules, opinions,
231
ideas and beliefs can be seen as individual knowledge (Fuchs and Hofkirchner, 2005).
Also, professional education and training were always been a major concern for our
society, especially for academics and professional practitioners. There have been a
dramatic increase in the interest in ethics as applicable to the construction industry which
has always made ethics-related course to be an integral part of both the undergraduate
and professional curriculum. Focus and awareness on the application of applied
professional ethics in relation to the construction education program should be
emphasized. Professional value, integrity and competence of construction professionals
are developed during professional educational training in universities and tertiary
institutions. Chan and Chan (2002) and Mohamad, Abdul Rahman, Usman and Tawil
(2015) echoed that improving ethics in the industry should start from the way the
professionals are educated. Process of learning ethics should not stop at
colleges/universities but should continue during the professionals’ working life.
Researchers have argued that the roles of organization and the influence of the industry
cannot be over emphasized. Effective leadership in the organization articulates a vision
that includes ethical principles, communicate the vision in a compelling way and
demonstrate consistent commitment to the visions of the organization over time.
Leadership is required to develop a culture where ethics and practice can evolve. Good
leadership combined with integrity have positive impact on subordinates which
ultimately improve effectiveness of the industry. Organizational influence get employees
respond positively to the moral values and obligations (Mohamad, et al. 2015). For good
project performance, managers must be honest, display integrity while the clients' interest
are protected (Dainty, Cheng, and Moore 2003). Organizational ethics should be
designed in accordance to the acceptable norms of both the business environment the
general public and the culture of the state and the country where the business operate
(Svensson and Wood, 2004). The system/procedure of the industry are means by which
things are done by the professionals which is a key trust for upgrading ethics in the
construction industry. Improvement on the existing industry practices and the procedure
ultimately affect the performances of the professionals. One of the ways in dealing with
ethical conflicts is fair treatment especially during recruitment and selection. Employers
should check out for individuals who not only subscribe to the corporation’s values but
also values ethical standards (Townley, 1994). Ethical values should be evaluated among
candidates along with other criteria in making selection as well as in promotional
exercises. Contribution on values and behavior should be measured as well as employee's
technical competence for performance assessment. Palalani (2000) emphasized that to
ensure acceptable quality in industry, there should be insistence on enforcement of
standards inform of monitoring strict adherence to specifications or building codes. Also,
benchmarking as a tool provide means of monitoring progress of ethical behavior
towards quality improvement.
The influence of government regulations and professional regulatory bodies are highly
essential in controlling unethical practices. Lawton (2005) noted that to ensure uniformity
in delivery, professionals must regulate themselves and support a performance-oriented
culture. For long-term vision in the industry, Fox and Skitmore (2003) reflected the
crucial role of government on behavioral pattern of the construction stakeholders through
232
legislation and regulation. This can be inform of legality, for instance, in a case when a
client asks a professional to act illegally, this can affect both the professional and the
organizations' in which their license can be in jeopardy. However, when the industry is
bound by a piece of regulations, unethical actions are rejected out rightly. (Holian, 2002).
However, organizations have a duty to their shareholders in protecting public interest.
Their ethical orientation is on the interests and needs of individual clients, their
immediate colleagues and ultimately to make money. The ethical reasoning of managers
should focus on the citizen, the public or the profession (Lawton, 2005). Also,
professional bodies have great impact in influencing construction professionals.
Satisfaction and accountability displayed by the duo are essential both as an example and
for effectiveness in the construction industry. Velayutham and Perera (2004) noted that
sense of accountability imbibed from professional bodies is a rational practice to ensure
responsibility. Accountability should be implemented in all civil societies, economic
institution and organizations and those who exercise the power of government or
corporate office must be publicly accountable for their actions. Measurement of
effectiveness by using key performance indicators and benchmarking are strategies to
achieve excellence by the government construction client. There is a clear spread of
benchmarking worldwide and across various industry sectors and organizational sizes
(Jarrar and Zairi, 2000). Datta (2000) affirmed that the industry has no objective process
for auditing clients' satisfaction which are expected to be echoed by the professional
associations. A client uses customer satisfaction as an important performance indicator of
professional services by construction consultants but this has not been given the necessity
it deserved nor accorded the required importance by the professionals. Government can
influence ethical standards by becoming involved continually in the process of tendering,
project construction and delivery right from the inception of the contract till completion.
These could be achieved through involvement and active participation in procurement
practices, monitoring techniques and accounting procedures as established by Holt and
Rowe (2000). Contractors who are technically competent both in manpower, personnel
and ethical virtues should be selected for a long-term sustainability (House of Commons,
2001). Conclusively, fifty-one (51) factors from those identified from the literature were
used for the purpose of assessment by the respondents for this research.
2. RESEARCH METHODOLOGY
The study assessed the factors influencing compliance of construction professionals to
ethical standards. The study was carried out in Southwestern Nigeria using Lagos State
due to the concentration of construction firms in the state Fagbemi (2008).The research
employed questionnaire as data collection method administered on seven (7) construction
professionals namely; Architects, Builders, Quantity Surveyors, Engineers, Estate
surveyors, Town planners and Land surveyors. Responses from these professionals are
expected to validate and strengthen the research findings. Total of two hundred and
seventy (270) questionnaire was administered with only one hundred and ninety-three
(193) suitable for analysis out of the two hundred and thirty four (234) retrieved. Thus the
response rate represented by 64.07%. The respondents rated the significance and the level
233
of ethical compliance of professionals on likert scale where 5=most significant and1=not
significant. Method of data analysis was factor analysis.
Table 1: Result of Demographical Information of Respondents
Type of Organization
Type of
Organization
Frequency Percentage (%)
Contracting 66 34.19%
Consulting 71 36.78%
Government 43 22.27%
No response 13 6.73%
Total 193 100%
Year of Establishment of Firms
Years of Firms Frequency Mid-Point Fx Percentage (%)
0-10 years 32 5 160 16.58
11-20 years 57 14.5 826.5 29.53
21-30 years 41 24.5 1004.5 21.24
31-40 years 25 44.5 1112.5 12.95
40yearsand above 23 40 920 11.91
No response 15 - - 7.77
Total 193 4243.5 100.0
Mean= 21.9 years
Respondents Profession
Profession Frequency Percentage (%)
Architect 35 18.13
Builder 26 13.47
Quantity Surveyor 31 16.06
Engineer 48 24.87
Town Planner 18 9.32
Estate Surveyor 17 8.80
Land Surveyor 15 7.77
No response 3 1.55
Total 193 100.0
Academic Qualification of the Respondents
Professional Qualification Frequency Percentage (%)
OND 13 6.73
HND 52 26.94
B.Sc./B.Tech. 77 39.89
M.Sc. 17 8.80
Ph.D 9 4.66
PGD 19 9.84
No response 6 3.10
Total 193 100
Professional Qualification of Respondents
Professional Qualification Frequency Percentage (%)
Nigerian Institute of Architects (NIA) 31 16.06
Nigerian Institute of Builders (NIOB) 23 11.91
Nigerian Institute of Quantity Surveyors (NIQS) 29 15.02
Nigerian Society of Engineers (NSE) 43 22.27%
Nigerian Institute of Town Planners (NITP) 16 8.29
234
Nigerian Institute of Estate Surveyors and Valuers (NIESV) 14 7.25
Nigerian Institute of Surveyors (NIS) 12 6.21
Non professionally qualified 15 7.77
No response 10 5.18
Total 193 100
Respondents’ Years of Experience
Years Frequency Mid-Point Fx Percentage (%)
0-10 years 45 5 225 23.31
11-20 years 54 14.5 783 27.97
21-30 years 35 24.5 857.5 18.13
31-40 years 26 44.5 1157 13.47
40 years and above 20 40 800 10.36
No response 13 - 6.73
Total 193 3822.5 100
Mean=19.80 years
Table 1 described the demographical information of the respondents. The respondents
surveyed cut across different construction organizations which include consultancy
(36.78%), contracting (34.19%) and government firms/ministries (22.27%).The average
years of establishment of respondents firms were approximated to be 22years; they
consisted of professionals in the construction industry. They included Architects
(18.13%), Builders (13.37%), Quantity Surveyors (16.05%), Engineers(24.87%), Town
Planners (9.32% ), Estate Surveyors(8.80%) Land Surveyors (7.77%). Also, most of them
(66.29%) had minimum of B,Sc/B.Tech, other academic qualifications included M.Sc.
and P.hD degrees. The respondents surveyed belong to different professional bodies,
which were Nigerian Institute of Architects, (16.06%), Nigerian institute of
Builders(11.91% ), Nigerian institute of Quantity Surveyors(15.02%), Nigerian Society
of Engineers(22.275% ), Nigerian Institute of Town Planners(8.29%), Nigerian Institute
of Estate Surveyor and Valuers (7.25% a), and Nigerian Institute of Surveyors (6.21%).
Respondents’ years of experience indicated the average of 19 years professional
experience. From the biographical information of the respondents, they were well
represented by professional classifications, they had required educational and
professional experience and qualifications to supply reasonable and reliable data for the
study.
Factor Analysis Test
In order to know the major components from the fifty-one factors identified from the
literature, the variables were subjected to factor analysis. These significant components
factors were labeled with a generic name that were used to explain the factors influencing
compliance of professionals to ethical standards. Kaiser – Meyer –Olkin (KMO) measure
of sampling adequacy (MSA) was used to test the appropriateness of the factors
extraction and Bartlett’s test of sphericity. The result of the appropriateness of the tools
was presented in Table 2 which showed that KMO was 0.970. For factor analysis to
analysis to proceed, value of a set of scores should be closer to 1 and measure of
sampling adequacy should be greater than 0.5 (Field,2005). In addition, Bartlett’s test of
sphericity showed that the result was highly significant ( X2 = 1.705E4, P < 0.05). Based
236
Table 3: Extracted Factors from Factor Analysis
Components Factors Loaded Items Loading Variables
Component Factor 1: Individual
Related Factors/professional
training
(% of variance =66.94%)
Individual values
Personal goals
Family upbringing
Respect for human right
Good sense of social responsibility
Personal integrity
Self concept
Personal value system
Faith/religious beliefs
Education training/background
Professional membership status
Years of experience
Type of organisation
Age
Gender
Organisational codes of practice
.797
.809
.764
.754
.790
.822
.781
.778
.730
.705
.741
.678
.760
.669
.694
.729
Component Factor 2: Government
Regulations and Professional
Regulatory bodies
(% of variance =8.06%)
Penal code
Professional bodies regulatory system
Anti corruption crusade
Penalty system
Legal administrative agencies
Societal values
Cultural values
Humanity values
Religious values
Societal status
Professional value
Respect for ones professional status
Professional codes of conduct
Employees performance review
Employment guidelines
Employers awareness campaign against unethical
practices
Job security
Unsatisfied salary
.573
.563
.574
.584
.668
.791
.831
.820
.839
.817
.757
.825
.833
.796
.831
.778
.811
.752
Component Factor 3: System and
Procedure of the Industry
(% of variance =2.85%)
Reward for exemplary character
Condition of service
Remuneration/Motivation
Work environment influence
Superior and Boss relationship
Firmness of practice procedures
Justice delivery procedures
Sanctions on violators
Chain of communication in the system
Level of control from superior
Nature of job
Procurement processes
Clients category e.g government as a client
.540
.560
.584
.522
.540
.576
.662
.607
.639
.645
.652
.665
.639
Note: Only items with factor loadings above 0.500 only were included in this table
237
3. INTERPRETATION AND DISCUSSION OF FINDINGS
The first component factor was individual related factors/professional training which ;
this represented 66.94% of the observed variance loaded with other sixteen (16) items.
The factors included individual values, family upbringing and respects for human right,
faith or religious beliefs etc. The least items were age and gender. This component factor
indentified the roles of individual as regards compliance to ethical standards. The roles of
individual can be traced to the family background, personal values and norms,
educational training such person was exposed to. Each of these factors influences
individuals’ behavioral pattern, that will falls back on the industry at large. The resultant
effect that will be reflected in their professional services. This is in conformity with
Fuchs and Hofkirchner (2005) established that religious and moral education breed and
enhance individual knowledge which is a constitutive aspect of all social self-
organization. In social systems, individual values, norms, rules, opinions, ideas and
beliefs can be seen as individual knowledge. Through education training in universities,
professional values, integrity and competence of construction professionals are nurtured.
Chan and Chan (2002). opined that educational training is not only important but equally
inculcating ethical values into the professionals. Ethical values inform of morals define
personal character, show how an individual should live in society and serve as code for
individual survival. In fact, Kayne (2010) asserted that ethics are standards or codes of
behavior expected by the group to which the individual belong for example they include
nation, social, company, professional or even family ethics. Gibson (2011) was of the
opinion that when personal values and moral are recognized by the professionals,
protection of the public and environment will be highly essential in their professional
services. Therefore this study agreed that individual related factors and professional
training influenced compliance of individual professional to ethical standards.
The second component factor is government regulations and professional regulatory
bodies with 8.06% of the observed variance, with eighteen (18) loading items. Among the
items loaded include; penal code, professional regulatory system, employers guidelines,
job security, professional codes of conduct, anticorruption crusade, employees’
performance review. This shows that legislations and regulations have roles to play in
influencing professionals either positively or negatively. Government at the realm of
instituting laws and regulations for the stakeholders should influence them positively
through different regulations put in place (Fox and Skitmore,2003). For example,
anticorruption crusade, transparency initiatives can also be organized by the governments
to encourage the stakeholders in acting ethically. Also, Holian (2002) affirmed the need
for legality to be in action; when this is active and alive, punished professionals will
serve good examples for others to say no to unethical actions. For example, firm justice
inform of penal code, serves as warnings for professionals to abstain from unethical
practices. This will invariably influence the professionals to comply positively with
ethical standards. Also, code of practice is a code of professional responsibilities that
must be implemented by the government in which failure to comply attracts penalties
like suspension from practice, withdrawal of license or total expulsion from the
professional bodies. According to Fan and Fox (2009),these will promote the awareness
238
of social responsibility and public interest. However, in a situation where the rule of law
is weak, corruption will thrive in such opportunistic environment which will results into
unethical practices among professionals in the industry. Therefore, system of government
administration must be fair and firm to administer justice as at when due, otherwise, if
professionals acts contrarily.
The third major component factor is system and procedure of the industry with 2.85% of
the observed variance with thirteen (13) loading items. The items included procurement
processes, client category, justice delivery processes, remuneration and motivation,
condition of service, firmness of practice procedures, level of control from superior and
nature of job. The least loaded items were superior boss relationship, reward for
exemplary character and work environmental influence. Key trust for upgrading ethics in
the construction industry is to improve existing industry practices that ultimately affect
performance. System of the industry should be firm and fair in tendering processes,
project construction and delivery as well as fairness in justice delivery processes. In
procurement practices, there is need for adequate control and monitoring. Holt and
Rowe (2000) affirmed that there should be fairness in the award and procurements
processes of contracts. Contracts should strictly be awarded only to qualified and
experienced contractors not to relatives or family members that did not have experience
in construction activities .Job security and unsatisfied salary goes hand in hand to
determine the attitude of professionals to ethical standards either positively or negatively.
An employer with sense of job security and good salary will not likely damage his
reputation by acting unethically while an employer might act contrary if there is no sense
of job security and good pay especially in an opportunistic environment. This can occur if
especially approached by clients to acts unethically, e.g approving building plans not
conformed to design standards, which could be harmful and be threats to life, or
construction in danger prone zones. Organization constitutes a climate and a culture
within which professionals operate. The system and procedures therefore, represent
collective acceptances and operations of ethical norms adopted by the groups concerned
and as such, constitute powerful influences over individuals’ behavior. (Cohen 1993).
Employers therefore have prevailing perceptions of organizational signals regarding
norms in making decisions which have moral components. Also, employments guidelines
must be designed to guide the conducts of their employees which makes the employees
understand the goal and dos and don’ts of the company. Velayutham and Perera (2004)
opined that accountability is a practice to ensure responsibility by individuals and
institutions, which should be implemented among other civil societies, economic
institution and organizations. This gives the sense of accountability to all professionals as
it guides their daily activities.
In addition, the work environmental influence is important. System and procedures of the
industry should focus on clients’ satisfaction. The professionals should note that the
industry is interested in clients’ priorities as affirmed by Datta (2000) that the industry
has no objective process for auditing clients’ satisfaction. Client satisfaction should be
monitored because it is a good performance indicator of professional services delivered
by construction consultants used by clients. Also, setting standards and benchmarking for
practicing the profession improves compliance. These conformed to Jarrar and Zairi
239
(2000) that industries should adopt a clear spread of benchmarking worldwide and across
various industry sectors and organizational sizes. The least loaded item was reward for
exemplary character. Tow and Loosemore (2009) confirmed that absence of reward
systems for those who act ethically within the industry from the government, professional
bodies or the industry will serve as an encouragement for other professionals. Finally
Professional regulatory bodies and institutions in collaboration with government and
other prominent stakeholders should address the ethical challenges facing the
construction industry as agreed by Adjei, Sarfo and Sam (2015).
4. CONCLUSIONS
Findings showed that factors influencing compliance of professionals to ethical standards
were significant. It was thereby concluded that individual related factors/professional
training, government regulations and professional regulatory bodies and; system and
procedure of the industry have high influence on the level of compliance of construction
professionals to ethical standards. For the construction industry to act optimally to the
interest of the general public, highest level of ethical behaviour must be effective,
apparent and become a reality among the individuals practicing that profession.
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