Building Better: Demolishing the myths of ethical leadership in construction

Anyone reading the Grenfell inquiry’s final report last week will have had pause for thought. The catalogue of failures was damning and widespread, implicating everyone from government and councils to manufacturers, architects and contractors. For leaders in the broadest sense, it will have sent a shiver – the case in point of what not to do, how not to behave…of a cataclysmic failure of systems and ethics.

A lot has changed in seven years – Covid, a heightened awareness of our planetary impact and a more conscientious generation of customers, to boot. So surely now the concept of leadership has undergone a profound transformation. Surely the traditional model, which has often emphasised results at any cost, has given way to a new paradigm in which ethics and values are…well…valued.

Indeed, construction standards have come on in spades, thanks to a concerted effort by many authentic developers and leaps forward in regulations. Never have our buildings been so well insulated, sustainable or efficient. Leadership, too has turned a corner, as we know from many excellent companies who are resolutely acting for the greater good, beyond the bottom line. Yet we still hear multiple examples where corners have been cut; from accidents downplayed in the name of reputation, to poor pay, unsafe or exhausting working conditions.?

So, what does it really mean to be an ethical and values-driven construction leader, and how can this be reconciled with the drive for commercial success?

Defining ethical and values-driven leadership

At its core, ethical leadership is about doing the right thing, even when it’s difficult. It’s about making decisions that are not just legally compliant but also morally sound.

To be values-driven is to be guided by a set of core principles such as integrity, transparency and safety. These values act as a compass, guiding a leader’s actions and decisions. This leadership style is not just about personal values but also about aligning the organisation’s values with the actions and behaviours of everyone within it.

Ideally these leadership qualities will happily co-exist and be mutually complementary. In our experience though, several myths and preconceptions loom large when it comes to ethics in the construction industry. These insipid untruths are part of the accepted narrative and are preventing the profound positive change our society so desperately needs.

Myth 1: Ethical leadership is ‘soft’ leadership

One of the most pervasive myths, especially in this male-dominated industry, is that ethical leaders are soft or overly lenient - more concerned with being liked than making tough decisions.

In reality, ethical leadership requires immense strength and courage. It involves making difficult choices that may not always be popular but are in line with moral and ethical principles. Ethics and values can, and do, support business growth.?

Myth 2: Values-driven leadership is idealistic and impractical

Another common misconception is that values-driven leadership is too idealistic and not suited for the "real world" of construction, where tough competition and profit maximisation are the norms.

Critics argue that focusing on values may slow down decision-making or lead to missed opportunities. However, this overlooks the long-term benefits of a values-driven approach. Companies that prioritise ethics often enjoy stronger customer loyalty, better employee retention, the attraction of new talents, and a more resilient and trusted?brand.

Far from being impractical, values-driven leadership is a strategic advantage in today’s marketplace and modern businesses and managers/leaders.

Myth 3: Ethical leadership is only about avoiding scandal

Many believe that ethical leadership is solely about staying out of trouble, avoiding scandals, legal issues, and bad press. While these are important considerations, ethical leadership goes far beyond damage control.

It’s about proactively building a culture of integrity, where ethical behaviour is the norm, not the exception. Ethical leaders don’t just avoid wrongdoing; they actively promote positive values and create environments where everyone is encouraged to act with integrity.

Myth 4: Ethical leaders cannot be competitive

There’s a belief that ethical leaders are at a disadvantage in competitive environments because they refuse to cut corners or engage in questionable tactics. This myth is rooted in a misunderstanding of what drives true competitive advantage.

Ethical leaders foster innovation, build trust, and cultivate loyalty—qualities that give them a unique edge in the market. Companies led by ethical leaders often outperform their peers because they build sustainable, long-term success rather than chasing short-term gains.

The commercial imperative of an ethical approach

Taking an ethical, values-led approach brings tangible commercial benefits. Anyone working with or for the public sector will know that the creation of social value is fundamental to winning work. Meanwhile those who invest in high standards and quality workmanship often reap the benefits in terms of premium pricing and word of mouth recommendations – subject to local markets, of course.

In an industry suffering from a chronic shortage of skills, it pays to invest in ethical practice and a strong workplace culture. It’s no secret that construction is disproportionately affected by mental health issues, burnout and suicide. A values-led approach contributes to future resilience and sustainability of the industry. With fair policies, safe working practices, and strong support frameworks, companies can reduce attrition and absenteeism and increase productivity.

Building a values-driven culture

There are some practical steps that organisations can take to embed ethics and values into the fabric of an organisation. Here are just a few:

• Define core values: Involve employees at all levels in a discussion about your company's core values, what these ought to be versus where you currently are, and what it will take in practical terms to bridge the gap.
• Introduce strategic ‘decision gates’: When a key decision is identified, apply a series of questions that help you evaluate the ethical implications. Consider who might be impacted and how, and the benefits/risks of taking a particular course of action.
• Lead by example: As a leader, your actions and decisions set the tone for the entire organisation. Demonstrate your commitment to ethical leadership through your daily practices.
• Foster open communication: Create an ‘open door’ environment where employees feel comfortable raising concerns and discussing ethical dilemmas. Draw on your middle managers and site managers to encourage two-way feedback – they often cultivate the trust of their team to a greater extent than head office leaders.
• Recruit for values: Pose real-world dilemmas to understand how a candidate would tackle scenarios, weighing priorities, ethics and profit. Look for tangible examples of their values in practice.
• Provide ethical training: Regularly provide training to employees on ethical principles, industry standards, and relevant regulations.
• Review your policies: From Health and Safety to Modern Slavery, Anti-Bribery to Environmental, ensure your policies are not just up-to-date but actively communicated, monitored and reviewed for effectiveness.
• Encourage whistleblowing: Establish a safe and confidential process for employees to report unethical behaviour.

Conclusion

Ethical and values-driven leadership is about more than just making the right decisions; it’s about creating a legacy. Leaders who prioritise ethics and values leave a lasting impact on their organisations, employees, and the broader community. They build organisations that are not only successful but also respected and trusted.

The ethical path may often not be the easiest or most profitable, and leaders will face immense pressure to compromise. However, those who embrace this approach will find themselves not just leading organisations but also shaping the future in a way that benefits everyone. Being an ethical and values-driven leader is not just a choice; it’s a responsibility—one that, when embraced, can lead to profound and positive change.

Social Value Business exists to help organisations like yours understand, measure and grow its social value. Drop us a line at [email protected].