Construction Ethics: 7 Examples of Ethical Practices

Times are tough in business right now, and most business owners are trying to cut corners in any way possible. Scaling back on your attention to ethics, however, can have catastrophic consequences.No matter how tough the times are, that kind of risk is simply not worth taking. Tough times can easily make it seem worth trying to cut ethical corners if it looks like there might be some financial gain as a result. Don’t do it! As the saying goes, it’s never the right time to do the wrong thing. Besides, the legal, financial and public relations risks far outweigh any benefit you might imagine to be in store.

Here are some tips on things to do-and not do-to help keep your focus on doing the right thing through both the good times and the bad:

1. Know your company’s values, and let those values dictate each and every business decision you make. Don’t have a values statement? Don’t worry-you’re in good company as very few construction businesses do. Write one, and write it carefully. You want it to include a short list of the most persistent, most important priorities that should drive the behavior of every member of your company. Your values statement needs to be so clear so that any employee, at any moment and in any situation, can decide whether his/her intended actions are aligned with these essential values or not. Writing a great values statement is far more difficult than it sounds. However, taking the time to get it right is one of the best tools you can have for assuring that your entire company is doing what they are supposed to be doing, regardless of any pressure to do otherwise.
2. Know the law. That may sound obvious, but it’s amazing how many construction business owners can’t list many of the laws that apply to their business. Without knowing the relevant business laws and how to ethically apply them, you’re not even in the game.
3. Remember that you’re not the only one going through tough financial times right now. Why does that matter? It’s not just because it might help you feel a little less alone-it’s because there are probably more potential clients than ever out there who would be happy for you to cut ethical or legal corners to help their bottom line. Sweetheart deals are on the rise in many places and conflict of interest actions appear to be at an all time high. Just because another business owner or a local official tells you that something wrong is really okay, that doesn’t make it so. If you are approached about a contract that even feels shady-let alone one that you know to be shady-run, don’t walk, away from that other person or company as fast as you can.
4. Pay attention to your thinking and, in particular, to your rationalizations. If you hear a voice in your head-or words from someone else-trying to make excuses for an action that doesn’t seem right, pay attention; this is one of the easiest ethical “red flags” for ethics problems to identify. If you need to try to justify your actions-especially if it’s before you’ve even done whatever it is-what are the chances that it’s really something right? The chances are low. Of course, trying to rationalize something doesn’t necessarily mean that the behavior is wrong. It’s just the sign of a risk. Once you become aware of a potential legal or ethical problem, though, you can’t ignore it. To do so simply leaves the door open to stepping over the ethical or legal line, however much you may say that doing so isn’t your intention.
5. Pay attention to your gut. If you feel like something may not be right, it probably isn’t. Mind you, our guts can steer us wrong, but it’s usually the other way around. In other words, we can often convince ourselves that something wrong is really okay (that’s why we need to pay such close attention to rationalizations), but we rarely tell ourselves that something okay is actually wrong. If it feels like you’re heading down the wrong path, pay close attention. If your gut is correct, it’s never too soon to keep yourself from stepping over the line, nor is it ever too late to stop something inappropriate that you’ve been doing.
6. Not sure whether or not something is ethical or legal? Seek out knowledgeable peers and ask them. There’s never a problem with being unsure whether or not something is ethical or legal. However, there is a huge program with being unsure and then doing nothing to find out.
7. Everyone is in this together, and the reputation of the construction industry depends on every member of the industry. If you see another construction business owner or one of his/her employees doing something wrong, you can’t simply turn a blind eye. To do so simply isn’t holding up your end of the bargain. Be blunt with the other owner about your concerns-tactful, but honest. Let him/her know the nature of your concern, and give them a chance to explain. After all, you may have misunderstood what he/she is doing or, in fact, may actually be the one doing things incorrectly. You’ll never know, though, unless you have that direct conversation. Will it feel tough to confront them? Maybe. But think of it this way-if someone else had concerns about you or one of your employees, would you rather they alerted you to it or simply ran down your reputation to others?

Ethics are funny. Everyone in business agrees that they (ethics) are critically important but believe that it’s every other company who needs to pay closer attention to them. Most business owners believe that they somehow could not possibly have a problem and that it’s always some other person or some other company doing things wrong. Obviously, though, it can’t always be someone else.

The reality is that each one of us has the potential to cross the line; it’s just a matter of whether or not we land in the perfect storm in which we have a need or wish (usually financial or interpersonal) and the opportunity to try to meet that need by doing something in spite of it being wrong. Especially in the current economy, many more of us are feeling financial and other pressures and that can be fertile ground for thinking about stepping over the line. None of that means that we are bad people-simply that we are human.

Fortunately, sooner or later the business climate will again improve. Like it or not, though, the risks we all carry for potential ethical problems will be with us all along. These seven tips will make it easier to stay on the right side of the ethical line no matter what shape the economy takes.

Construction Business Owner, May 2010