2.6 Preventative Strategies for Unethical Professional Practices in Construction Industry
2.6.3 Probing Measures .1 Auditing System
Auditing system is increasingly essential as one of the anti-corruption tools in construction industry (Wu, et al., 2014; Bowen, Edwards and Cattell, 2015;
Brusca, Manes Rossi and Aversano, 2018). DeFlaminis, et al. (2014) further discussed that the auditing system can be categorised into two types, namely construction audits and operational audits. Construction audits can be
performed throughout the project delivery period. It is used to uncover the possible areas that could breed unethical conducts such as fraud. In contrast, operational audit is effective in determining the assess the competency of internal control system and reveal unethical conducts in a construction project.
It is urged that the audit staff shall acquire the construction knowledge especially in the technical part. Auditing a construction project without taking into considerations of construction aspects such as technical issue will create chances to take advantage of it to conduct unethical professional practices for own personal interests (Mathenge, 2009). In a study conducted in South Africa, respondents view auditing as an effective measure in combating collusion (Oke, Aigbavboa and Mangena, 2017). Likewise, in Turkey, the importance of auditing system in combating fraud is highlighted in a study conducted by Gunduz and Önder (2013). It is stressed that a robust audit system shall be developed to forestall unethical professional conducts such as internal fraud. The study further pointed out the considerations that need to be taken while developing audit mechanisms. Such considerations including management supervision and control over operations. Tabish and Jha (2012) further asserted that financial audit shall be conducted by external agencies to ensure accountability.
2.6.3.2 Whistleblowing Mechanism
Whistleblowing is an action to speak out the misconduct or corruption issues to the public or media. It can happen in working environment when an employer provides certain information to the superior or regulator to make them be aware of certain issues (Cartlidge, 2011; Bowen, Edwards and Cattell, 2015). Cartlidge (2011) viewed whistleblowing policy as an intention to provide reassurances to employees that they will be protected for disclosure of information made in good faith at the same time encourage employees to feel confident in raising and questioning issues. Chen and Wang (2017) urged that in order to alleviate unethical practices in construction industry, government should take powerful actions to enhance protection and reward system for whistleblowers. Government can enact robust laws to protect whistleblowers, to eliminate their fear of retaliation to report unethical conducts (Transparency
International, 2020c). It is also vital to ensure friendly reporting mechanisms to encourage citizens to blow the whistle (Transparency International, 2017).
Organisational culture affects effectiveness of the whistleblowing mechanism.
It is pointed out that organisational culture that encourages and facilitates communication is useful in promoting whistleblowing mechanism. To encourage whistleblowing conducts, organisations are recommended to develop anonymous reporting system to protect the whistleblowers. This would reduce reluctance in whistleblowing due to fear of revenge by others. It is also suggested to provide protection scheme such as job security for whistleblowers (Oladinrin, Ho and Lin, 2016). Apart from that, organisation can appoint trusted third party to set up whistle-blower regulations to protect the whistle-blowers (Graafland and Liedekerke, 2011).
2.6.3.3 Rigorous Supervision
Instigating rigorous supervision is effective in preventing unethical conducts (Le, et al., 2014b; Zhang, et al., 2017). In Hong Kong, regular and proper supervision is considered the most efficient probing measures of unethical professional practices especially for corruption practice (Owusu, et al., 2020b).
In a study conducted in Nigeria, it is found out that constant supervision of professional ethics ranked third in practitioners’ perspective on the measures to enhance ethical professional practices among Quantity Surveyors in construction industry (Akinrata and Ogungbile, 2018). Ameh and Odusami (2010) further suggested that rigorous supervision and strict monitoring shall be taken on professional conducts, especially with quantity surveyors. This is because quantity surveyor is particularly susceptible to unethical professional practices such as bribery. Therefore, it is recommended to engage third party to carry out supervisions in conjunction with government anti-corruption agency.
2.6.3.4 Ombudsmen System
Ombudsman system comprises investigation work which aids in enhancement of service delivery and reduces issues such as corruption. Ombudsmen system is said to be more effective compared to internal complaints mechanisms
(Ngeow, 2018). Ombudsmen system shall be enforced in every department and division in construction projects to deal with complains related to professional ethics (Mathenge, 2009). An example of the implementation of the ombudsmen system is in Canada. A procurement ombudsman is set up to enhance the transparency in procurement, which had handled more than 1200 complaints, carried out 6 investigations regarding contract award issues and conducted 12 procurement practice reviews in a duration of nearly three years (Organisation for Economic Co-operation and Development, 2016).
2.6.3.5 Efficient Reporting System
Study conducted by Owusu, et al. (2020b) revealed that efficient reporting system as a mechanism to prevent unethical conducts in construction industry.
DeFlaminis, et al. (2014) further recognised the use of hotlines as a robust tool to detect unethical practices such as fraud. It is recommended to set up whistleblowing hotlines specifically for employees to report suspected unethical conducts at any time. It is proved that organisations with hotline are more likely to detect unethical behaviour such as fraud. To ensure that hotline functions effectively in combating unethical professional practices, APAC Fraud Survey 2017 demonstrated several effective techniques to build employee trust and confidence in hotlines. Organisations need to ensure that the cases reported through whistleblowing hotlines are properly followed up and investigated. Besides, senior management shall make effort in communicating with employees to assure the confidentiality of the report (Ernst & Young Global Limited, 2017).
2.6.3.6 Quality Assurance Group
Quality control is essential in a project which is responsible to ensure quality compliance. Different parties involved in a project might have their own quality inspectors, including the owner, engineer, architect, and contractor (Hendrickson and Au, 1989). Mathenge (2009) asserted that every project team shall have a respective indigenous quality assurance group with the main objective to ensure the project quality in each project stage. The quality
assurance group shall concern with the ethical practices which will impact the quality of project (Mathenge, 2009).
2.6.4 Reactive Measures