Unethical practices and organizational resilience in construction companies: Perspectives from senior executives

Abstract

This paper investigates the intricate relationship between unethical practices and the organizational resilience of construction companies.
Authors analysed the data from semi-structured interviews and surveys with senior managers of large construction companies, as well as theoretical perspectives from the literature. Through a mixed-methods approach, the study explores the impact of unethical behavior on various dimensions of organizational resilience. The findings of the study reveal the detrimental consequences of unethical practices on the financial, operational, reputation, and stakeholder aspects of organizational resilience within the construction industry. Factors contributing to the prevalence of unethical practices in this sector include a lack of ethical leadership, personal gain motivations, inadequate training, pressure to expedite projects, and a perception of impunity.
Senior managers participating in interviews generally agree that unethical practices have a negative impact, the distinctive nature of construction work may, at times, create situations that seemingly justify unethical behavior in practice. By integrating ethical principles into the organizational culture, construction companies can effectively respond to and recover from disruptions, maintain trust and reputation, and foster sustainable relationships with stakeholders.