Ethical and Corporate Responsibility in Building Industry - Report Example

Introduction

Ethics and corporate social responsibility are essential to any business organization. Businesses cannot isolate themselves from the society that they are in (Barthorpe, 2010: 5). All organizations need to carry their activities in a way that is ethical, and they should embrace the corporate social responsibility to the community that they are in and beyond. Through this way, a business can manage to co-exist well in the environment they are and at the same time take care of that very community.

On that note, I am acting as an ethical and CSR consultant from Greenleaf Company. I was chosen by your company to help in examining ethical and CSR issues concerning environmental sustainability. This report will focus on responsible management and CSR where the focus will be on the benefits of CSR.

The report will focus on the sustainability plan of the company. For instance, your company has adopted some environmental sustainability measures. The measures include proper planning on environmental issues (Mogensen & Schnack, 2010: 66).There is also the use of materials that are eco- friendly and collaborating with suppliers who are responsible environmentally.

The report will then examine ethical theory where two ethical theories will be emphasized. The report will then point out how ethical theory can help your company in adopting responsible management. The topic that will concern ethics and CSR will be environmental sustainability, and it will be explored in detail. The report will then end with a detailed advice on what should be done by your company to maintain ethics and CSR.

Responsible management and CSR

Responsible management is how a company can balance its activities between its employees, the company itself, its customers and the environment such that its activities do not negatively affect each of the above. This involves carrying out activities in an ethical way (Barthorpe, 2010: 8). In line with this, a company must have a corporate social responsibility (CSR). This is how various companies manage their activities in a way that does not affect the community negatively. There are four types of CSR, which include environment based, community-based, human resource-based and charity based CSR.

A business gets many benefits from managing responsibility and adopting CSR. The first one is that the image of the company is improved (Sprinkle & Maines, 2010: 446). The goodwill value of the business is increased. Many people want to get goods and services from a company with an image that is good and clean. Other companies and corporations will also associate in all aspects of a company that has a clean image. The level of prestige of a company will, therefore, increase, as it will be relied on. Consequently, the stature of the company will increase.

A company will have high attraction and employee retention. A company with responsible management and CSR will find no difficulties in recruiting and retaining employees (Barthorpe, 2010: 9). People prefer working in organizations that cater for their welfare and organizations that create conditions that are favorable for working. Such a company is preferred by employees that are new and those that are old. Appraisals and goof financial schemes for the employees are appealing to them (Barthorpe, 2010: 9). It is easier for a company to get the right employees regarding skills and expertise because of responsible management and CSR. This helps in cutting down the cost of training for the new employees. In turn, it helps the firm to get me profits because of the efficiency of its employees.

The regulating authorities become less unfriendly to companies that have CSR programs. Strong, responsible management and CSR programs make a company be less scrutinized by authorities that regulate businesses (Sprinkle & Maines, 2010: 447). This is because they know that the particular company complies with all the regulations that are set by law. Such kind of business always carries out its operations within the law to reap the benefits from the programs of CSR.

The image of a company is very significant with its ability to attract investors. This means that for such a company, chances of attracting more inflow of capital is much easier (Barthorpe, 2010: 10). This is because the investors will be sure of the business making profits. Other companies will also be attracted to the business because of its excellent image, which is a plus in business. In addition, such a company will not have problems in attracting customers or clients. Because of the excellent and clean image, the clients will be assured of getting satisfaction from the services of that particular company.

Responsible management and programs of CSR ensure that clean and energy that is renewable is generated. Investing in a CSR program that focuses on the environment ensure that the operations of that company do not have severe impacts on the environments (Barthorpe, 2010: 13). A company will also be given the opportunity of exploring or considering the use of energy that is renewable in all its activities. This is vital in reducing the production cost.

There is positive publicity that comes with publicity that is positive and serious. Publicity is very vital in an advertisement (Sprinkle & Maines, 2010: 448). This is because it helps in an advertisement of the company. This helps in keeping the ahead of its competitors and the giving the company a competitive advantage over the others.

In as much responsible management and CSR has benefits, there are also disadvantages that are associated with that. One of them is that the CSR makes the cost of production to increase (Barthorpe, 2010: 14). The programs of CSR are costly, and they make the expenditure of the company go high. This makes the companies increase the prices of their goods or services. In addition, the legislation that is involved in establishing the CSR is high. This is because the value of CSR is different and depends on environmental conditions, legal framework, geographical location, and culture.

The reputation of the company is also put at stake. This is because the companies have to reveal the shortcomings of their products, services or packages (Sprinkle & Maines, 2010: 450). In addition, the companies that have adopted responsive management and CSR are expected by their stakeholders to provide results that are instant. When these companies fail to register the results that they are expected of, the customers become wary.

Values underpinned by ethics

Ethics raises questions that touch on morality. It is based on virtues. Many ethical theories provide on insight on the importance of adopting a responsible management and CSR (Koontz, 2010: 56). Our focus will be on two theories namely the Aristotle ethical theory and the pragmatism theory. The Aristotle moral theory tries to define the meaning of morality. According to this theory, the main good to the human race is happiness. This happiness is brought about by activities that are virtuous.

Virtues fulfill the proper function of humans in this world. This function is met by one doing an act that is virtuous (Mahsud, Yukl & Prussia, 2010:563). This implies that a virtuous person is a person that has a good character. Therefore, all humans should strive to do acts that are right. The theory further says that the ability to reason is not enough but rather humans should analyze their actions at all times to ensure that they are in line with excellence and virtue. This means that a person is supposed to do acts that are virtuous all through his or her life.

This theory gives a guideline on ethical conduct. It theory emphasizes the need of behaving in a good way and having a good character (Koontz, 2010: 58). The theory suggests that all the humans are supposed to do acts that are right. Good acts bring happiness to all people. This is very much practical and applicable in the construction industry. This means that all companies are supposed to engage themselves in acts that are right. For them to achieve this, they must have responsible management and embrace CSR. This means that the managers are supposed to behave well by using approaches that are embrace actions that are appealing to the environment.

This virtue-based theory embodies the act of honesty and courage and avoids acts that might bring dishonesty. It calls upon all the managers to reflect on their actions before implementing them (Koontz, 2010: 67). This requires the managers to ask themselves whether their plans serve the best interests of their companies, their stakeholders or investors. They are supposed to ask themselves about the impacts of their company’s actions on the community, the environment, and their employees. This will ensure that they are not acting in their self-interest but rather for the interest of the employees, the stakeholders and the community at large (Mahsud, Yukl & Prussia, 2010: 575). In the end, if they apply this theory, then they are going to manage their companies responsibly and embrace CSR. Through this, they are likely to get more clients because of the image they build and the reputation got through responsible management.

Another theory is the justice-based ethical theory. This theory has three major components, which include impartiality, equity, and fairness (Mahsud, Yukl & Prussia, 2010: 568). This theory reflects that the actions that are taken reveal the treatment taken by the affected group. This theory is based on distributing costs and benefits fairly and equitably among groups and persons. This implies that the managers have a duty in ensuring that the pay that their employees receive including their benefits are fair and balanced. It also the responsibility of the manager to ensure that clients get prices that are fair and that their products are as advertised.

The organizational level relies on the managers to model behaviors and is responsible for its implementation. The management has a role to play in encouraging such behavior (Koontz, 2010: 76). This is through giving rewards to those who behave ethically and ensuring that those who do not behave according to the required behavior are punished. Responsible managers play a huge role in the development of an ethical culture.

Exploring the issue

Environmental sustainability

This is taking care of the world by ensuring that the ecological balance is protected and the natural systems are protected from destruction. It is important to consider the balance of ecology and to save in the consumption of energy that is not renewable (Presley & Meade, 2010: 438). Sustainability of the environment requires resources that are renewable. The requirements of the environment require sensitivity in the usage of renewable resources, conserving life-support systems, ensuring that there is the minimization of harm to the environment and the living things in it, protecting the aliveness and earth diversity.

Human beings need the buildings to sustain life. These houses cause environmental problems throughout their construction process, their maintenance, and their destruction (Fernández-Sánchez & Rodríguez-López, 2010: 1195). One of the issues is building in floodplains. The United Kingdom faces a lot of flooding. Houses are being built on the floodplains despite the adverse effects on such an environment. This issue has raised many questions across all the stakeholders in the construction industry. The shortage of houses has led to the construction in the flood plains.

A committee on the environment was formed to investigate the dangers of building in floodplains. This committee was on change of the climate that was advising the government on how to meet the target on the emission of the greenhouse and how to adapt to the changes in global warming (Presley & Meade, 2010: 440). The committee approved the building of houses in floodplains despite the risks. The challenges that are associated with building on floodplains include flooding which affects the environment and the living things. The construction companies despite the risks prefer the floodplains because they can easily mitigate the effects.

This is because they are flat and therefore building on them is easy, and they are close to amenities. The challenge of flooding is being mitigated by other construction companies by building floating houses (Fernández-Sánchez & Rodríguez-López, 2010: 1199). Another way is by the planting of urban woodland as they reduce the effects of flooding. They also reintroduce beavers. The companies also build drainage systems that drain the excess water.

Another issue is energy, pollution. This issue is important because the construction industry uses energy in constructing buildings and infrastructure in the phase of operation (Ortiz, Castells & Sonnemann, 2009: 30). There is the production of carbon dioxide that pollutes the environment. There are also other pollutants that pollute the environment. During the manufacturing of construction materials and the process of construction itself, there are many gases including other emissions that are emitted. They include gases of greenhouses, which include carbon dioxide, nitrous oxide, water vapor and methane. Synthetic chemicals that are used during construction produce these gases, which are great pollutants of the environment.

Achieving the targets set for the reducing the emission of CO2 is a challenge as energy demand increases. These pollutants can harm the environment and the health of the humans (Presley & Meade, 2010: 445). Due to the recent climate concern, the government has given regulations that require that the emissions of these gases to be reduced completely. This has also made the clients to prefer companies that observe the conservation of the environment. Other companies have adopted programs that reduce the emissions of these gases. Another way is by using building materials that are environmentally friendly.

Another issue is about the management of water. This is important because the construction industry uses high amounts of water (Fernández-Sánchez & Rodríguez-López, 2010: 1199). Some of the water is not used economically leading to wastage. The construction industries also pollute the water resources that are near the construction sites. This is through the excess water that runs off the construction sites during construction. The water from these sites is contaminated and contains harmful chemicals for instance from cement. This becomes a challenge to the resources of water nearby.

On the process of construction, major drainages of water can be broken if care is not taken. Before these pipes are repaired, this water will have been polluted (Fernández-Sánchez & Rodríguez-López, 2010: 1200). This may cause health risks to humans. In taming this problem, companies have adopted ways of recycling the used water to avoid wastage of water. Proper planning also helps in ensuring that the drainage systems are taken care of during the construction process. Measures are also being taken to limit the use of water.

Advice

It is essential for the company to be ethical and responsible. Embracing CSR is also crucial for the company in all its operations in ensuring that environmental sustainability is observed. To achieve that the management of the company should carry out the following steps or efforts that ensure environmental sustainability.

Reduce construction waste

During construction, some wastes are generated. These materials include wastes from drywall, roofing, glass, cardboard, and insulation (Ortiz, Castells & Sonnemann, 2009: 32). These waste materials affect the people in that area and the environment at large. It is ethical to control these wastes because of the health hazards that they cause to the environment. For a company to get rid of the wastes, the company must have a strong CSR program on environmental sustainability.

Through this program, the company can explore ways of reducing the wastes through the development of ways of minimizing the wastes from construction. These are multi-step programs that include coming up with a design for prevention of wastes, proper storage of materials, reusing containers and materials that are old and where possible, recycling should be done (Fernández-Sánchez & Rodríguez-López, 2010: 1198). These programs ensure that there is avoidance of wastes through proper planning and working together with the suppliers to ensure that the materials that go unused are returned. Containers that are not used should also be returned to avid intoxicating the environment. This calls for the company to always go for suppliers who practice environmental responsibility.

Incorporate building materials with low impact

Most of the construction energy originates from the manufacture of the materials that are used in the process of building. This energy pollutes the environment posing huge risks to the people staying in that environment and the surrounding areas (Ortiz, Castells & Sonnemann, 2009: 35). To offset and decrease this usage, it is important for the company always to prefer using building materials that have a low impact on the environment. Materials that originate from elements that occur naturally should be adopted. These elements contain content and waste that have been recycled such as blown paper insulation.

The materials can also be sourced from other construction sites to help in reducing waste. For instance, the Barratt development Plc. can take materials from the other sites of a building that has been completed (Presley & Meade, 2010: 447). This will help greatly in reducing the waste materials in that site which is a good CSR program for controlling environmental pollution. Another way of ensuring sustainability of materials is by using modular buildings. These buildings help in the reduction of waste materials. These components are durable and can be re-used continually and also be recycled (Ortiz, Castells & Sonnemann, 2009: 36). Suppliers are significant in selecting materials that regard environmental performance. Therefore, the company should work closely with all its suppliers to ensure that during the selection of materials, care is taken to ensure that the materials and products that are selected are environmentally friendly.

Designs that meet standards of energy and water

Designs of the buildings are vital because they affect the environmental footprint for a very long time. The buildings that are insulated well require less energy for heating and cooling down. Materials that are energy efficient minimize the usage and the cost of a building at the operational stage (Ortiz, Castells & Sonnemann, 2009: 38). The architectural and engineering departments of the company should design green buildings. This will help the firms in getting more clients because many clients nowadays prefer green buildings.

Floods are increasing as well as storms in the United Kingdom. These factors pose a great challenge to the inhabitants of the houses (Fernández-Sánchez & Rodríguez-López, 2010: 1200). These calls for drainage systems that are sustainable such as green roofs, permeable pavements, filter drains, basins, wetlands, harvesting of water from rains among others. It is therefore important for the designs of the buildings to be in a position of adopting climate change. For this to be enhanced, green buildings are the preferred choice.

Reports on land visibility

Environmental issues affect the people and the environment. For instance, wastes from the building sites can pollute water (Presley & Meade, 2010: 449). Substances such as asbestos are harmful to the employees themselves if not handled well including the people surrounding the site. Therefore, it is important that during the visibility reports, all the issues concerning the environment should be raised. This should be done in the initial stage. This allows measures that are appropriate to be taken, measures that are the best and those that will minimize or control the impacts that are adverse to the environment.