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Management of Ethical issues in Engineering, Procurement & Construction Industries

Paper Type: Free Essay Subject: Engineering
Wordcount: 2122 words Published: 18th May 2020

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1. Abstract

This paper studies how the management of the companies and EPC industry in general should be approaching ethical management. This paper will study latest global trends and what it takes for the industry to place and maintain certain measures to ensure ethical behavior continues to thrive and exist (Wang & Buckeridge, 2015).

Keywords: Engineering, Procurement, and Construction (EPC)

2. Introduction

This paper consists of ethical issues to be discussed in the contemporary world and especially in the Engineering, Procurement, and Construction (EPC) Industry while discussing a problems statement.

Management of Ethical Issues in the EPC industry is an important topic with significance especially due to the fact of Joint Venture existence in the foreign markets where there is always a scope of unethical and corrupt behavior (Wang & Buckeridge, 2015).

It is important for every company in the engineering and construction EPC industry , In the 21st-century, to embrace ethical decision making in their practice. There are a lot of joint venture agreements done by major companies with domestic companies to conduct their business and international and foreign markets (Wang & Buckeridge, 2015).

Values should never be compromised. When there is an ethical dilemma, it is always and better to hold onto one’s values. For example, it is better not to follow dubious orders just to satisfy superiors in an employment setting (Sucher, & Preble, 2017).

Due to commercial aspects of these huge projects the industry is prone to unethical behavior and corruption because of difference in culture and managerial systems In particular countries. Thus, it is important to industry professionals to become aware of all of these vulnerable risks and how to mitigate them (Wang & Buckeridge, 2015).

The central aspect to the construction engineering and management practice is nothing but Ethical decision making. Most Of the companies invest in new ventures whereas some companies farm joint ventures in the international markets. Many companies invest in new ventures whereas some companies form joint ventures in the international markets (Wang & Buckeridge, 2015).

3. Literature

There is always a potential for unethical behavior and corruption to be part of these transactions Involving companies entering international markets. Overall the objective is, for the engineers and professionals of the industry is to you understand ethical standards Involving companies entering international markets (Wang & Buckeridge, 2015).

Overall the objective is, for the engineers and professionals of the industry to understand ethical standards via ethical education. It is also important for the industry to incorporate the ethics education into management curricula, civil and construction engineering (Wang & Buckeridge, 2015).

In United States, Construction Industry is one of the largest industries along with health and education. Construction, EPC Industry in general has both managerial and technical perspectives. It is  a highly risky and volatile industry (Wang & Buckeridge, 2015).

Globalization has only helped enable increase of economic activity, and people of different cultures, countries to travel and seek work opportunities around the world (IHS, 2013). This also meant that there is an increased chance of unethical and corrupt behavior to affect the financial transactions and other aspects of the industry (Wang & Buckeridge, 2015).

Business in a globalized world has, Advantages and expenses are the two advantages. it can possibly people pull out of poverty, spread development, and lessen costs for buyers. On the other hand, it might likewise create job losses, diminish natural and work standards, and dissolve national societies (Lawrence & Weber, 2017). 

A progressing challenge is to stretch out the advantages of globalization to all, while moderating its unfavorable impacts. Multinational corporations work in countries that shift enormously in their political, social, and economic frameworks. They face the test of choosing how to work together in other countries, while staying consistent with their qualities (Lawrence & Weber, 2017).

In a universe of extraordinary imbalances of riches and salary, businesses are gaining ground in understanding how to serve the poor to help social improvement while acquiring a benefit. Businesses can work with governments and common society associations around the globe in collaborative partnerships that draw on the extraordinary capacities of each to address basic issues (Lawrence & Weber, 2017).

Origination of good and bad conduct while characterizing for us when our activities are moral and when they are immoral is called as Ethics. Business ethics is the utilization of general moral thoughts to business conduct (Lawrence & Weber, 2017).

Ethical business conduct upgrades business performance, agrees to legal prerequisites, forestalls or limits hurt, is requested by business stakeholders, and advances individual morality. Ethics issues happen in business for some, reasons, including the self-centeredness of a couple, aggressive weights on benefits, the conflict of individual qualities and business objectives, and cross-cultural logical inconsistencies in worldwide business activities (Lawrence & Weber, 2017).

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Managers’ hands on qualities will in general be company-oriented, doling out high need to company objectives. Administrators frequently esteem being equipped and place significance on having an agreeable or energizing life, among different qualities. Individual spirituality can significantly impact how a chief comprehends moral difficulties; progressively, it is perceived that associations must recognize representatives’ spirituality in the work environment (Lawrence & Weber, 2017).

Individuals reason at different phases of moral improvement, with most directors centering on close to home prizes, acknowledgment from others, or consistence with company runs as guides for their thinking (Lawrence & Weber, 2017).

People in business can dissect ethics dilemmas by utilizing four noteworthy kinds of moral thinking: righteousness ethics, utilitarian thinking, rights thinking, and justice thinking (Lawrence & Weber, 2017).

A company’s culture along with the moral atmosphere will in general shape the frames of mind and activities of all who work there, in some cases bringing about large amounts of moral behavior and at other times adding to less alluring moral performance (Lawrence & Weber, 2017).

Not every moral issue in business are the equivalent, however moral difficulties happen in all major functional areas of business. Professional relationship for each functional territory often endeavors to give a standard of lead to guide practice (Lawrence & Weber, 2017).

Companies can improve their moral performance by making a qualities-based ethics program that depends on top administration initiative and organizational protections, such as ethics policies or codes, ethics and compliance offices and officers, ethics reporting mechanisms, and ethics training programs (Lawrence & Weber, 2017).

Companies that have a thorough, or multifaceted, ethics program often are better ready to advance moral behavior at work and keep away from dishonest activity by representatives. Ethical issues, for example, pay off, are apparent all through the world, and numerous international organizations and national governments are effectively endeavoring to limit such untrustworthy behavior through economic sanctions and international codes (Lawrence & Weber, 2017).


Unitary System

Mechanism of Management – Its Irrationality

Mechanism of Supervision – Absence or Lack of it

Power – Over concentration of it




Government Decrees – Not enforcing them

Policy Making which is Wrong

Degeneration and Corruption




Infrastructure of Transportation and it’s quality of construction

Manpower, Materials, Equipment, and Hardware

Technology for management via Software





Fig. 1 : Unitary Managerial System – Typical Features and How it negatively effects quality of construction (Wang, 2006).

4. Method

5. Research Conclusion and Recommendations

6. References

  • IHS. (2013). Global construction outlook. Retrieved June 14, 2019 from http://www.ihs.com/products/global-insight/industryanalysis/construction/global.aspx.
  • Lawrence, A. & Weber, J. (2017). Business Society: Stakeholders, Ethics, Public Policy, 15th ed. Upper Saddle River, New Jersey: McGraw Hill.
  • Sucher, S., & Preble, M. (2017). Case Study: Follow Dubious Orders or Speak Up? An Intern Contemplates Whether She Should Compromise Her Values for a Job. Harvard Business Review95(4), 139–143. Retrieved from https://search.ebscohost.com/login.aspx?direct=true&AuthType=shib&db=buh&AN=123739385&site=ehost-live
  • Wang, G. (2006). Construction quality of transportation infrastructure and managerial system. The 6th Asia-Pacific transportation development conference. Hong Kong/Macau. 29 May – 1 June 2006.
  • Wang, G.C., & Buckeridge, J.S. (2015). Ethics for Construction Engineers and Managers in a Globalized Market. 10.1007/978-3-319-18260-5_10.


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