Game Over: How Fair Play Can Rebuild the Construction Industry

In 30 seconds

The recent corruption revelations in the building industry highlight longstanding issues such as kickbacks and bribery, which erode public trust and fair competition. Having witnessed my father face these corrupt practices daily in dealing with the building industry, I understand the personal toll they take. It’s crucial to eliminate corruption and foster ethical business conduct. Leaders must embody integrity, transparency, and accountability, inspiring ethical behaviour throughout their organisations. Sales teams should focus on genuine, trust-based relationships rather than aggressive tactics.

A corruption-free industry requires a multifaceted approach: strong regulations, enhanced transparency, ethical leadership, fair compensation, and public awareness. It also requires the collective effort of all stakeholders.

In 3 minutes

The recent revelations of corruption within the building industry are a stark reminder of the systemic issues plaguing this critical sector. Kickbacks, bribery, and unethical practices not only erode public trust but also undermine the fundamental principles of fair competition and honest trade. This is not new, however. The building industry has been plagued with corruption for as long as I can remember. You see, I grew up in my father’s timber business where he had to deal with corruption from the building sector daily. I saw the toll it took on him. For several months, when I was 14 years old, he had to look under his car every morning to see if it wasn’t wired to explode because of the threats he was receiving due to the stand he took against corruption. It’s time for the building and construction industry to be cleaned up in favour of building a sustainable and prosperous future. It is imperative that we take decisive action to eliminate these corrupt practices and foster a culture of ethical business conduct because the negative impacts of corruption are far-reaching, including:

• Reduced GDP: Corruption distorts economic activity, leading to inefficient allocation of resources and lower overall productivity
• Deteriorating Infrastructure: Bribery and embezzlement divert funds from essential public services like healthcare and education
• Increased Costs: Businesses may face higher operational costs due to bribes, extortion, and regulatory hurdles
• Unfair Competition: Corrupt practices can give dishonest businesses an unfair advantage over legitimate competitors
• Reduced Profitability: Lower revenues, higher costs, and increased uncertainty can erode business profitability
• Reputational Damage: Association with corruption can damage a company’s brand and customer trust

Ethical Leadership and Corporate Culture

At the heart of this crisis lies a fundamental failure of leadership underpinned by a culture of moral disengagement*. Ethical business practices should be at the core of every organisation. Leaders must demonstrate unwavering commitment to integrity, transparency, and accountability. By setting a clear example from the top, they can inspire a workforce that prioritises fair play and ethical conduct over short-term unethical and illegal gains.

Sales teams play a pivotal role in shaping a company’s reputation. It is essential to shift the focus from aggressive and unethical sales tactics to developing genuine relationships based on trust and mutual benefit. A fair exchange of value means specifying and delivering products or services that genuinely meet client needs while providing fair compensation to the business and not switching out quality for cheap shoddy alternatives. By prioritising long-term relationships and real value over quick wins and profiteering, sales teams can contribute to a more ethical and sustainable business environment.

A corruption-free building industry

To achieve a corruption-free building industry, a multi-faceted approach is necessary. This includes:

• Stronger regulatory framework: Implementing regulations with stringent penalties for corruption
• Enhanced transparency: Promoting transparency through mandatory reporting and public disclosure of contracts
• Ethical leadership: Cultivating a culture of integrity at all levels of the industry
• Fair Compensation Models: Incentivising supplier sales teams based on performance, transparency and customer satisfaction
• Public Awareness: Educating the public about the signs of corruption and encouraging reporting that will be actioned

Building a corruption-free construction and building industry requires a collective effort from all stakeholders across the entire value chain. By prioritising ethical leadership, fair business practices, and transparent operations, we can create a sector that benefits both businesses and the community at large. It is time to break the cycle of corruption and build a brighter future based on integrity, fairness, and sustainability because if we don’t, people’s lives still will be put at risk.

* Moral disengagement is the process by which individuals justify their unethical behaviour by convincing themselves that ethical standards don’t apply to them in a specific situation.

Remember, everybody lives by selling something.

Author: Sue Barrett, founder and MD of Barrett

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