EG7036 Business Procurement and Contractual Practice
Introduction
Construction industries in UK and India struggle to uphold ethical standards for various reasons. Balancing ethical concerns with corporate goals is one of the main difficulties. Sometimes, commercial goals like maximizing profits or hitting targets may conflict with ethical issues, creating ethical problems. According to the research, fostering a strong ethical culture, putting ethical training programs into place, and developing accountability structures are all effective ways to deal with these problems. There are many frameworks and principles that ethical behaviour is guided by, according to the literature on ethics in managerial decision-making. The utilitarian framework is one such framework that aims to maximize the greatest good for the largest number of people. There are various studies have looked at how ethical decision-making affects organizational success. “The Deontological framework” is another one that emphasizes upholding moral rules and values no matter what the repercussions. For instance, research indicates that ethical CEOs often have more devoted and contented workers, leading to greater organizational outcomes.
Summary
Financial Performance: Considering ethical decision-making first may have a favorable impact on an industry’s financial performance. Research by the Ethisphere Institute, for instance, discovered that businesses on its list of the “World’s Most Ethical Companies” had a “10.5% greater return on investment” than the “S&P 500 index”. Data on financial performance measures, including revenue, profitability, and market share, can be gathered through surveys. The financial performance of organizations that prioritize ethical decision-making and those that do not can then be compared using data analysis (Rastogi, Paul and Solanki, 2022).
Stakeholder Trust: Building and retaining trust with stakeholders in a construction industry, such as consumers, investors, and the larger society, can also be facilitated by ethical decision-making. In a construction industry the ethical frameworks and principles used in the decision-making process can vary depending on the organization and the specific decision at hand. Data on stakeholder trust, including indicators like reputation, trustworthiness, and willingness to recommend the organization to others, can be gathered through surveys (Yap, Chow and Shavarebi, 2019). The amount of stakeholder trust in organizations that prioritize ethical decision-making and those that do not can then be compared using data analysis.
Conclusion
Construction industries in UK and India can improve their ethical standards by using technology. For instance, they can set up anonymous reporting systems to entice staff to report ethical transgressions or install automated monitoring systems to spot unethical behaviour. These industries can also work with stakeholders in their supply chains, such as suppliers and customers, to promote ethical behaviour. Furthermore, construction industries that place a high priority on ethics typically enjoy greater stakeholder trust, which can result in greater customer loyalty and repeat business. In large organizations with complicated structures and numerous stakeholders, this can be especially difficult. Since ethics are thought to be a major factor in determining organizational success, scholars and practitioners have given ethics in management decision-making a lot of attention. According to the research, making moral decisions promotes staff morale, stakeholder trust, and financial performance. Thus, it is making unethical decisions can have unfavorable effects as well, including legal liabilities, reputational harm, and lower employee motivation.
Reference list
Rastogi, R., Paul, V. and Solanki, S., 2022. Analyzing the Impact of Challenges in Prefabricated Building Construction Supply Chains. Journal of Engineering Research and Sciences.
Yap, J.B.H., Chow, I.N. and Shavarebi, K., 2019. Criticality of construction industry problems in developing countries: Analyzing Malaysian projects. Journal of Management in Engineering, 35(5), p.04019020.
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