CMG 6405 Construction Law

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Find an example on the internet that involves ethics and corruption in the U.S. Construction industry.

Write a narrative that explains the background and details of the incident. Also, describe the people and companies involved.



The fundamental or moral principle or rule that guides a person’s conduct is ethics.

Professional ethics are applied to corporate rules that apply the basic or moral principles applicable to related professions.

Another way to misuse business for personal gain is corruption.

It is important that construction companies adhere to ethical principles. These not only have an impact on their reputation but also contribute to society’s growth.

Volkswagen Emissions and FIFA Corruption Scandal are two of the most prominent cases in U.S. construction business where these companies were involved with corrupt business and unethical conduct.


It is important to be honest in your work and avoid doing anything that could directly damage another person’s work.

They should maintain work skill, provide service, disclose work conflicts, and give any information or knowledge about work.

Corruption can be defined as the misuse of a public office, unethical involvement there for personal benefits or extortion for illegal purposes.

Building companies must gain and keep loyalty to customers and present their ethical standards to them.

Construction companies must confirm that they have completed their negotiation, whether it is in public or private.

Each contractor sets his work specifications according to his own ethics.

Collusion is the term used to describe two contactors working together.

Sometimes unethical conduct could affect the free-market process and the construction.

Collusion can be used to fix prices and eliminate owner’s job costs.

Contractors are often accused of corrupt conduct towards their employees or industry. This includes bribery.

Bribery is an unprofessional crime that involves the giving of money or gifts to change the behavior of a person in non-conformity with his duties.

It includes giving, receiving, and offering any value such as money, goods or property, privileges, enrollment, or property.

Infrastructural service is always in collaboration with corruption.

Construction corruption always reduces productivity, benefits, and equity for infrastructure services.

Corruption can happen at any stage of a project’s construction: from planning to inspection to design, bid and contract sign, construction, delivery of services, and operation and maintenance.

Volkswagen Emissions Scandal, one of the most notorious cases of corruption, saw almost 20 Billion in market capitalization lost due to selling cars that were not environmentally friendly.

It is a serious offense to the company’s reputation, and it leads to incorrect marketing strategies towards customers (Hotten 2015).

Another example of corruption is FIFA Corruption Scandal. This scandal shows that the US has recognized that FIFA was involved in fraud, racketeering and bribery worldwide.

Rowe 2016 states that some of the members of the committee used its reputation to their own business advantage.

ACET- Global Anti-Corruption Education & Training Project and UK Anti-Corruption Forum are just a few of the many anti-corruption organizations active in global.


It is important to apply ethics in the construction industry. This not only impacts the business but also changes the core principles.

The United States places a high importance on ethical perspectives.

The following essay briefly explains how principles of ethics, and corruption affect construction businesses.


Recognizing ethical issues: A study of accountants in the accounting industry and students.

Journal of Business Ethics. 1-18.

Construction industry social responsibility.

Volkswagen: The scandal explained.

BBC News, 10.

Sports Journalism and The FIFA Scandal Personalization.

Communication & Sport.

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