Unethical business practices and corruption in international construction: A survey of American contractors working overseas

Transparency International has identified public works and construction to be the most corrupt industry sector in the world. It is estimated that up to 10 percent of the global spending on construction is lost to all forms of corruption. Unethical business practices and corruption in international construction has resulted in notable human and financial losses; and destruction of the environment. The purpose of this study is to analyse perceptions of American construction companies about unethical business practices and corruption in international construction. Necessary data was collected via a questionnaire survey. The results indicated that bid shopping, procurement of substandard/defective materials, bribery, and employment of illegal workers are the most prevalent ethics issues in international construction. Cultural practices, political systems, and social norms were found to be the biggest contributors behind these problems. About half of the survey participants were of the opinion that unethical business practices and corruption have slightly decreased during the last five years due to following of strict codes of ethics by many large international contractors.