Ethics to Sustainable Growth in Engineering Enterprise - Coursework Example

The Importance of Ethics to Sustainable Growth in Engineering Enterprise Contents Government’s Initiatives 3 Establishment and Designing of EthicalRules and Standards 4 Importance of Ethical Standards in the Engineering Company 4 Monitoring Ethical Standards 6 Measures to Maintain Ethical Standards 7 Areas to be considered For Improving Ethical Standards 7 Decision Authority 8 Evaluation of Ethical Standards 8 Experience of Employees in Engineering Companies 9 Reference List 10 Government’s Initiatives The construction industry is responsible for water pollution, air pollution and noise pollution. So this implies that government intervention is necessary (Adams, Tashchian and Shore, 2001). The government also tries to implement National Construction Code to incorporate all plumbing and on-site building requirements into a single code. Government also has a procurement and construction council that is responsible for procurement, structuring and asset management rule. There is also building codes board that develops and manages uniform approach to construction of and standards of buildings through National Construction Code. It has also implemented rules that check level of soil erosion and minimise land troubles so that space is left for vegetation. It also monitors that the waste management system are effective (Basart and Serra, 2013). The figure below shows how much cost government has to bear in order to control environmental pollution. (Source: Carroll and Buchholtz, 2014) Establishment and Designing of Ethical Rules and Standards Professional ethics is considered as one of the top priorities in organisations. There are seven basic ethical principles that the construction companies formulate namely, Honesty, Reliability, Fair Award, Fairness, Objectivity, Integrity and Accountability (Blome and Paulraj, 2013). However, these guidelines will be of no use if they are not reinforced by the employees in real life. So companies try to adopt the Total Quality (TQ) technique to ensure that the rules are effectively followed. TQ presents a model which aims at creation of ethical prospects or expectations into systems and gives organizational support to the workers. This allows the employees to behave according to those expectations. According to TQ approach, it is also essential that the rules are implemented at the top level as well. TQ technique also enables the promotion of safe work environment (Boatright, 2008). To make the ethical codes in reality, the necessary element is motivation. Personal commitment is more vital than the fear of sanctions to understand what is best for the organisation (Carroll and Buchholtz, 2014). The company should identify what elements should constitute ethical behaviour. The engineering companies try to engage all the members so that they subscribe in the companies’ code of ethics and can also be held accountable for. These codes are supposed to transform the formal theories into day to day decision making of the management. Importance of Ethical Standards in the Engineering Company Engineering is a vital and learned career option. This field has a direct impact on the quality of life of the consumers. As a result, the services delivered by the engineers require impartiality, honesty, equity and fairness which must be devoted to the protection of community’s safety, health and welfare. Engineering practise is often termed as a profession since profession implies three features: Work demands sophisticated skills, employment of discretion and judgement, Requires formal education, Significant positive services to the society that results from the practise of this profession. The last point is the main reasons why codes are formulated (Downey, Lucena and Mitcham, 2015). The construction companies essentially carry social responsibility on their shoulders in the sense that they provide primary public services for economic growth, public production and life of the people such as expressway networks, constructions of residential and corporate buildings, etc. Hence, this also points out the fact that the companies are also important in developing the infrastructure of a nation (Harris Jr, et al., 2013). This sector has direct impact on the people so safety is one of the main factors that the companies should focus on. The construction firms also degrade environment. So it broadens the definition of social responsibility. The characteristic of social responsibility is the enthusiasm of a firm to integrate environmental and social considerations in its decision making and be accountable for the impacts that its decisions make on the environment and the society. This essentially calls for the establishment of ethical rules for engineering companies. Engineers are required to deliver under a standard professional behaviour that needs devotion to the main principles of ethical conduct. Recent failures of some companies like Foxconn have lead to the implementation of strict ethical standards (Haws, 2001). The graph below reflects how countries are ranked according to their importance given to improving their ethical standards. The graph shows that UK stands at 14th place while China is in 54th position. Figure: Representing Ethical Capacity of Organisations (Source: Sohail and Cavill, 2008) Not only the companies but also customers prefer the products of those companies who maintain ethical code of conducts in their production. According to research, 30% of customers buy goods of those companies who behave responsibly. While there has been a decrease in the percentage to 36% in 2006, there also has been an increase in the number of customers from 19% to 25% who are willing to pay extra to the companies who behave responsibly. Statistical data reveal that 73% customers believe that employees and suppliers are the most important members of a company. 69% believe that honesty and transparency are significant factors and the other 69% emphasised that senior management need to work with integrity (Stevens, 2008). Monitoring Ethical Standards Employers are often concerned regarding code of conduct and proper employee behaviour. With the advent of new technologies the process of monitoring the employees has become widespread and much easier (Lynch and Kline, 2000). Employee monitoring can be defined as the act of monitoring the actions of the workers during office hours by the application of employer property. However, sometimes these technological benefits distract an employee from his objectives. So the management needs to check such disturbances in the workplace (Sohail and Cavill, 2008). The companies have set up a compliance program. This program is an initiative that guarantees self-governing legal compliance and is supervises by the CEO of the company and a committee of senior executives. It also builds a network of compliance officers who have representatives in every department and are responsible for providing advice on vital policies, direct workers to the essential legal assets, report violations, complaints to the governing committee so that appropriate measures can be taken. This programme also recommends particular guidelines for anti-corruption, fair trade practices, environment and safety, data security and labour & corporate culture (Payan, et al., 2015). Companies can create awareness regarding this programme through their internal communication system. Training and education can also be provided by the companies to provide them knowledge about the compliance programme. The programme is believed to be an effective tool in eradicating any malpractices in workplace since it timely examines project sites and individual offices. It also operates an interdepartmental compliance monitoring system to maintain healthy corporate culture (Rallapalli, Nwachuku and Valle, 2015). Research report suggests that 56% of FTSE100 companies claimed to have implemented ethical policy. However, only 3% of the companies have provided evidence to prove that their employees have understood the rules (Whitbeck, 2011). Measures to Maintain Ethical Standards The ethical standards can be successfully implemented if the management itself follows the rules. The ethical actions of the employees are influenced by both organisational and individual factors. The company can fruitfully maintain the ethical standards if they are properly monitored. One of the measures includes impartment of proper training to instil the sense of personal ethics. It is necessary to develop personal ethics in an employee before building up professional ethics. For example, if a person is honest by nature, he will never be able to engage himself in unfair business activities thus maintaining the ethical code of conducts. The role of management here is of utmost importance. The employees need the support of the leaders and guidance on ethical issues (Stevens, 2008). Communication and awareness campaign is another measure that the management can introduce. To raise awareness and employee engagement in decision making, interesting campaigns are should be enforced (Van de Poel and Royakkers, 2011). Organisations can provide online anti-corruption or anti-bribery training along with qualitative training and practical application of such practices. Developing an ethical architecture can also help the firms. This architecture outlines policies in supplier agreements and employee contracts, identifies employees and board members who will be held responsible, conducting discussions with feedbacks, etc. It also aims at taking actions against ill practices and communicating the actions to the workers (Van de Poel, 2001). Areas to be considered For Improving Ethical Standards The construction companies need to focus on the supply chain management. It is necessary that codes of ethics are maintained in the supply chain management. Engineers extensively work with raw materials and machineries. So the capital and other resources should be of high quality (Van Wee, 2015). Machine failure can also lead to some fatal incidents during any project. Insufficient data can also lead to loss for the company. Before undertaking any project the company needs to perform intensive research. So if the Research segment of the company is corrupt then it would provide fabricated data which will ultimately lead to failure of the project (Vee and Skitmore, 2003). Safety, loyalty and honesty are most essential ethics when considering the purchase of raw materials. Once an ethic rule is embedded in the office, the value chain has to be taken into account. Hence, it is advisable to carry out due diligence on existing and new suppliers and engage them in ongoing code of conducts (Wasserman, Sullivan and Palermo, 2000). Other vital area that needs to be considered is waste management. Since these construction companies tend to adversely affect environment, strong ethical standards need to be implemented in order to reduce environmental pollution which not only affects the society but also causes health issues to the workers (Von Weltzien Hoivik, 2002). Findings show that CSR programmes are sometimes ignored by the firms. Also senior managers fail to take ownership of different training programme (Boatright, 2008). Decision Authority Sometimes, the companies have to face troubles when dealing with their multiple objectives. During the critical situation, the compliance officer or the Chief Social Responsibility (CSR) officer plays an important role (Whitbeck, 2011). They are responsible for ensuring that the internal corporate guidelines are fulfilled along with the external regulatory guidelines. They are regarded as the ethical conscience of the company. They are also supposed to challenge the system in case they find some unethical practices taking place in the workplace. Adams, CSR officer also functions to enhance the performance of the companies (Tashchian and Shore, 2001). They formulate strategies that try to boost the revenue earning of the company without hampering any ethical issue. They try to focus on short term goals and implement policies which will help in the formulation and implementation of ethics in employees. They boost commitment in the workers and guide them in adopting polices. They structure policies in such a way that values are delivered to both shareholders and stakeholders. They also organise various campaigns and programmes to train employees (Blome and Paulraj, 2013). Evaluation of Ethical Standards When a company gets a big project, it requires large labour resource. This also means that the supply chain also starts extending. However, the standard policies and approaches do not undergo much transformation. The three main ethics of safety, welfare and health of the society are the main concerns which are strictly implemented. The monitoring process also becomes stringent. Since the labour base increases, it requires that the company should invest more in campaigning, training and compliance programmes (Carroll and Buchholtz, 2014). Ethical standards become harder. If they are efficiently implemented then they can create a positive impact on the project. More regulations are also needed to support ethical standards. If the employees are loyal and honest then they will provide accurate data and good quality raw materials which will indirectly help in serving public interest. Efficient monitoring will also help the company to establish well-organized waste management system that will follow the government lead polices of maintaining less pollution (Downey, Lucena and Mitcham, 2015). Experience of Employees in Engineering Companies It is essential to acknowledge that development of personal ethics is most important. If the companies can help them to build up their ethics then that will automatically grow the sense of professional ethics in them. Engineering industry basically provides service to the society by structuring various building, roads, etc. However, these industries are recognised as high risk hazard sector. So it requires that the safeties of the employees are maintained. It also characterised as high polluting sector. The Construction Industry is primarily based on raw materials and tools (Lynch and Kline, 2000). So, data advocates that high ethical values have to be formulated in the supply chain stream. If supply chain is corrupted then it can incur loss for the company and risk the lives of general public. However, it has been observed that too many laws can often diminish the productivity of the employees. It is essential that the employees have freedom so that they can give their best efforts. The company must consider this while formulating policies (Rallapalli, Nwachuku and Valle, 2015). Without a good leader, the team always fails. In construction business, working in teams is very common. So the management should emphasise on appointing a good leader or project manager. A good leader should possess the quality of being an honest, ethical and reliable person. He/ she should have good communication skills so that he or she can handle conflicts among the team members. The management is considered as the heart of organisations. So if the management is corrupted, the whole system fails (Boatright, 2008). Reference List Adams, J. S., Tashchian, A. and Shore, T. H., 2001. Codes of Ethics as Signals for Ethical Behavior. Journal of Business Ethics, 29(3), pp. 199-211. Basart, J. M. and Serra, M., 2013. Engineering Ethics beyond Engineers’ Ethics. Science and Engineering Ethics, 19(1), pp. 179-187. Blome, C. and Paulraj, A., 2013. Ethical Climate and Purchasing Social Responsibility: A Benevolence Focus. Journal of Business Ethics, 116(3), pp. 567-585. Boatright, J. R. (2008). Ethics and the Conduct of Business, 6/e. New Delhi: Pearson Education India. Carroll, A. and Buchholtz, A., 2014. Business and Society: Ethics, Sustainability, and Stakeholder Management. Boston: Cengage Learning. Downey, G. L., Lucena, J. and Mitcham, C., 2015. Engineering Ethics and Engineering Identities: Crossing National Borders. In Engineering Identities, Epistemologies and Values. New York: Springer International Publishing. Harris Jr, C., Pritchard, M., Rabins, M. J., James, R. and Englehardt, E., 2013.Engineering Ethics: Concepts and Cases. Boston: Cengage Learning. Haws, D. R., 2001. Ethics Instruction in Engineering Education: A (Mini) Meta‐Analysis. Journal of Engineering Education, 90(2), pp.223-229. Lynch, W. T. and Kline, R., 2000. Engineering Practice and Engineering Ethics. Science, Technology & Human Values, 25(2), pp. 195-225. Payan, J. M., Svensson, G., Wood, G., Singh, J. and Callaghan, M., 2015. Comparing Codes of Ethics Among the Top Companies in Australia, Canada and the USA. In Proceedings of the 2009 Academy of Marketing Science (AMS) Annual Conference. New York: Springer International Publishing. Rallapalli, K. C., Nwachuku, S. and Valle, M., 2015. International Marketing Ethics: Challenges in Developing Global Code of Ethics. In Proceedings of the 1996 Multicultural Marketing Conference. New York: Springer International Publishing. Sohail, M. and Cavill, S., 2008. Accountability to Prevent Corruption in Construction Projects. Journal of Construction Engineering and management, 134(9), pp. 729-738. Stevens, B., 2008. Corporate Ethical Codes: Effective Instruments for Influencing Behavior. Journal of Business Ethics, 78(4), pp. 601-609. Van de Poel, I. and Royakkers, L., 2011. Ethics, Technology and Engineering: An Introduction. New Jersey: John Wiley & Sons. Van de Poel, I., 2001. Investigating Ethical Issues in Engineering Design. Science and Engineering Ethics, 7(3), pp. 429-446. Van Wee, B., 2015. Towards a Code of Conduct for Clients of Research?. Transport Reviews, 35(1), pp. 1-3. Vee, C. and Skitmore, C., 2003. Professional Ethics in the Construction Industry. Engineering, Construction and Architectural Management, 10(2), pp. 117-127. Von Weltzien Hoivik, H., 2002. Professional Ethics–A Managerial Opportunity in Emerging Organizations. Journal of Business Ethics, 39(1-2), pp. 3-11. Wasserman, B., Sullivan, P. J. and Palermo, G., 2000. Ethics and the Practice of Architecture. New Jersey: John Wiley & Sons. Whitbeck, C., 2011. Ethics in Engineering Practice and Research. Cambridge: Cambridge University Press. Read More