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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)

funmilola20074life@yahoo.com 2 Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria. graceo2010@yahoo.co.uk 3 Department of Quantity Surveying, Obafemi Awolowo University, Ile-Ife, Nigeria. giagboro@yahoo.com

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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