Improving Anticorruption Codes of Conduct in Project-Based Organizations
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Topics: Construction, Organizational Project Management, Risk Management
This article introduces an anticorruption toolkit aimed at project-based organizations (PBOs) to effectively implement and monitor anticorruption measures. It was developed through empirical research on the codes of conduct (CoCs) of leading construction companies worldwide and the effectiveness of anticorruption measures.
Why should project-based organizations be concerned about corruption?
Corruption poses a significant challenge to society, eroding trust in industries [e.g., the construction company cartels in the Netherlands (Dorée, 2004)]; compromising the governance of companies [e.g., the Siemens corruption scandal (Schembera & Scherer, 2017)]; and leading to significant financial losses on projects (Locatelli et al., 2017).
Estimates suggest that by 2030, US$5 trillion could be lost annually worldwide, representing between 10% and 45% of project costs (depending on the country), without any corrective action taken (RICS, 2021).
Corruption has multiple adverse effects on major infrastructure and real estate programs, including:
- Increased cost for clients and final users
- Reduced quality, leading to problems in the operational phase (such as increased maintenance costs and lower operational performance)
- Reinforcement of corruption behaviors more generally, making this phenomenon more endemic within the public and private organizations …
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