Gender inequality in a construction industry

There is ample evidence that men predominate among construction employees. This is the ideal time to introduce change in the workforce with the purpose of resolving the gender imbalance in a labor-intensive industry that has been suffering from a severe labor shortage. Women made up 2.9% of the extraction and building trades, and the design industry wasn't much better, according to data reported by Galea, Powell, Looseemore, and Chappell (2015, p. 6). Additionally, according to the survey, only 14% of architects worldwide are women.
Greenleaf consulting looked into Persimmon PLC, a British homebuilding company, because of the gender pay gap in the construction sector. The purpose of the industrial visit was to ascertain whether the company is a responsible and ethical company with respect to human resource management, with a focus on gender balance in their workforce. The consultancy firm reviewed the company’s hiring policies and advised the management team on the importance of having a balanced workforce, especially since it is in the construction industry. The report ends by recommending the company on strategies they can implement to solve the gender imbalance issue in the industry.

Corporate Social Responsibility

Cooperate social responsibility is the continuous commitment of industries to operate within ethical boundaries while contributing to economic development as well as improving the quality of life of their workforce, families and the society at large (Cheng, Ioannou, & Serafeim, 2014, p.13). Based on the theories postulated by Friedman and Carroll CSR can be considered as a continuum with two different meanings depending on the theory used to define it

Friedman (1962) explains that the primary objective of CSR is to increase the value of shareholders to a maximum. Therefore according to him, the firms have a responsibility to maximize profits without using deception or fraud, irrespective of the strategies put in place to meet the objectives. Despite the fact that the argument may appear odd, it is not; it is a classical interpretation of economics that maximizing individual profits of shareholders maximizes the social gains, as illustrated by Adams Smith in his utilitarian view of the world.

Carroll, on the other hand, gives his perspective that CSR is a multi-dimensional construct that considers four key parameters; legal, economic, ethical and philanthropic (1991, p. 42). He represents the four dimensions of a pyramid. He proposes that the four aspects should be considered simultaneously rather than in any particular sequence.

The two ideologies may appear different in several aspects, but they still share a universal perspective that all the companies have a social responsibility of ensuring that all the company’s operations are based on the public good (Aras, & Crowther, 2016 p.17).

Benefits of CSR

Better brand recognition. Cheng et al. (2014, p.56) Businesses that are CSR compliant tend to have a better reputation than those that do not. Building a reputation gives the company significant advantages over its competitors. That is because having socially responsible policies influence how customers view them making them attract and retain customers. Additionally, they are preferred by suppliers, who are also a primary stakeholder in the industry, and their influence cannot be overlooked.

It saves on cost. Implementing CSR policies assists a business to manage the resources through recycling better and reusing waste. Adopting such simple steps in a company plays a significant role in lowering utility bills and also protects the environment (Servaes. & Tamayo 2013, p. 87). These savings can then be reploughed in the industry for its expansion.

Implementing CSR policies helps in retaining talented staff. Servaes & Tamayo (2013, p.88-89) argue that once employees have recognized that a company has responsible practices and sustainable business policies, attracting new skilled employees is easier. Moreover, they will have a higher potential to retain existing staff who will be motivated by the company culture. The net result is that there will be a substantial saving in resources spent in hiring and training of new staff.

It is worth noting that the reputation build from the policies attracts investors, thereby increasing access to finances. It also creates a positive media attention and reduces the burdens associated with dealing with regulatory bodies and local authorities (Richard, Kirby, and Chadwick 2013, p. 2576).

Critiques of CSR

Some critics accuse CSR of allowing business to project a positive image by doing very little. Mullerat (2009, p.54) observes that there are several businesses which engage in minimal CSR activities, but have greatly marketed their brands using CSR compliance as their selling point.

He continues to argue that some businesses which claim to be CSR compliant while their business practices do not reflect the policies CSR. The authors give an example where companies address the issues of equity in gender and salary within their premises but when they outsource labor from other countries fair working conditions is not a guarantee (de Colle, Henriques,& Sarasvathy 2014, p.185)



Reasons why Persimmon PLC should be CSR Compliant

By including CSR practices as part of their company culture, it will take advantage of the numerous benefits outlined above such as increased market share, attract investors and retain high caliber employees, increase their profits and fulfill moral and ethical obligations in society.

Effects of CSR Activities to the Stakeholders

Incorporating CSR in a business improves communication among the key stakeholders as it builds a cohesive social capital in the company. Improving communication is a crucial driver of innovation and can help in identifying new business opportunities. Additionally, it increases shareholders participation in the company activities which can create a risk reduction due to effective communication (Deng, Kang, & Low 2013, p.89-90). However, it is worth noting that being CSR compliant can initially reduce profit since the company will play an active role in giving back to the society through cleaning the environment and donations to the needy members of the community.

Gender Balance from Ethical Theories’ Perspective

Ethics of Care

Virtue ethics is a character based approach to morality. Aristotle explains that ethical reasoning should be based on an individual’s character rather than a set of rules or consequences of their actions (Groenhout 2014, p.481). Ethics of care is a virtue ethics developed by Annestte Baier in the 20th century. According to Grornhout (2014, p.481) ethics of care emphasizes solidarity, relationships, and community development. The feminist ethics theory was developed due to the dissatisfaction with an overemphasis on rights and autonomy claimed to be male dominating to men. The prescriptive use of equality has a close connection to morality and justice and especially distributive justice. Several researchers consider equality a constitutive feature of justice that cannot be assumed. Virtue ethics advocates for gender equality in any organization.

Based on the theory, Persimmon PLC should, therefore, consider having a gender balance in its workforce as an ethical obligation, and a reflection of the management’s character. Emphasis on ethics of care is vital in any business set up because it enlightens people on the importance of gender equality (Slote 2007, p.78). Its relevance in the construction industry cannot be underestimated since historically construction jobs have been a reserve for the men. By incorporating the theory of care to Persimmon PLC organization of care, it will not only be fulfilling the distributive justice but also, a moral obligation. It is worth noting that numerous benefits come with complying the distributive justice through giving equal opportunities to all genders (Petrie & Segal 2015, p.54).

Integrating the theory of care in any company improves the working environment. It is argued that empathy and appreciation women have can create a better working environment. Additionally, having a gender balance creates a perfect environment for innovation and creativity Innovation more so in the construction industry can go a long way in increasing its profitability.

Kantian Theory and Deontological Ethics

Kantians theory or Deontological ethics is an approach developed by Immanuel Kant in his theory of Categorical imperative (Follesdal & Maliks 2013, p.37). Kantianism focuses on rightness or wrongness of an act itself and not its consequence. He argues that what makes an action ‘right’ or ‘wrong’ depends on the social norm. It is also known as an obligation based ethics since its ethical rules bind people to their duty.

The ethical principles discussed by Kant are important especially in the construction industry which has adversely affected by gender imbalance. Follesdal and Maliks (2013, p.39) continue by stating that Kantian approach is built based on humanity and upholding human rights and responsibility. When applied in the Persimmon PLC, the management will have a moral obligation to promote gender balance in their company irrespective of their beliefs they have on the impacts the hiring will have in achieving their goals. Recruiting more female workers won't be based on their output in the company (consequentialism), but instead, they will be fulfilling their moral obligation through hiring them.

Role of Ethical Theories in Decision Making

The theoretical frameworks play an essential role in assisting the management in analyzing the moral dimensions of different situations to make informed and defensible decisions. The checklist contained in the frameworks guides the management to view the problems from both theirs and other people’s perspectives (Crane & Matten 2016, p.94). As a result, it will prevent them from rationalizing their initial moral intuition especially if they are wrong. Applying the ethical theories, therefore, helps management to obtain the best of intuitive thoughts and ideas, as well as fill in the missing rational links.

Ethical theories in a business set up help has numerous advantages to a company as they guide their employees in decision-making processes based on the company’s culture, beliefs, and practices. They explain organizational values and building a corporate culture which:

The theory principles promote integrity in their employees. An organization that aligns its values with ethical theories encourages the employees to conduct themselves accordingly (Adhariani et al. 2017 p.19). The employees will, therefore, act with an honest and consistent behavior.

They also regulate unethical business practices. Most of the poor decisions made within a business often result from the rationalization of ethics involved (Adhariani et al. 2017 p.19). For instance, a person who embezzles funds may justify that he/she is underpaid. However, by instilling ethical values in the employees, they would reconsider such decisions.

Why Persimmon PLC Should Invest in a Gender-Balanced Workforce

Persimmon management agrees to the fact that there are some departments in the company with notable gender disparities. However, the company is one of the thousands of companies within the industry which have been having extensive conversations regarding the gender diversity issue (Noland, Moran, & Kotschwar 2016, para.9). Making diversity a common objective for the companies in the sector is the first step towards achieving their vision for gender balance in the industry. The aggressive push for increasing women in the construction industry is growing at a commendable rate.

There are several studies which suggest that improving gender diversity in a business increases the profits margins. McKinsey consultants surveyed 350 public companies from UK, Latin America, and North America. Their finding showed that companies with a better gender representation in the managerial positions outperformed their counterparts with at least a 15% margin. The McKinsey managing partner, Vivian Hunt reported that every 10% in gender diversity translated to 2-4 percent increase in profit (as documented in Diversity Brings Boost to Profitability 2017, para.3).

Another study conducted in 2015 by Peterson Institute for International Economics (A Washington based think tank) also presented similar results. The organization studied over 22000 public traded companies from ninety-two counties (“Diversity Brings Profitability” 2017, para.6). It is worth noting that over half of these companies did not have a female in the top managerial position. The research findings suggested that these companies were underperforming because they did not have functional skill diversity advantage that comes with female representation in an organization. These companies that discriminated against talented, hardworking women were outperformed by their rival companies with a balanced workforce.

Benefits of Diversifying Workforce in a Business

Diversity Increases Productivity

The ease with which innovative and creative ideas can be developed and implemented depends on the diversity of the teams. In a gender-balanced workforce, there will be more new ideas presented and different perspectives issues affecting the business (Galea et al. 2015, p.382). That is important especially in the construction industry where innovation is a key pillar. Persimmon PLC can take advantage of a diverse workforce to come with more creative ideas which will stand out as their selling points.

Diversity Strengthens a Team

Women possess skills that can be used to unite different people to form a cohesive team. Their excellent communication skills and empathy can play a significant role in increasing the success rates of projects. Persimmon PLC could use more women to help bridge the communication gaps that exist among the many professionals who are actively involved in their construction projects (Noland et al. 2016; Galea et al. 2015). That will increase participation and improve decision-making process when undertaking big projects.

Creating a Better Company Image

By having an equal gender in the company staff, it may prove to the society that the management cares about equality, a common problem in the society. Consequently, people will have a better perception of the company, especially their clients. Apart from that having a gender balance in an industry that is male-dominated is a sure way to get a better media coverage, which can go a long way in marketing the company (Richard et al. 2013, p.2580). People are aware of the gender disparity issues in many sectors of the economy as it is a global issue. By adopting a balanced hiring strategy, the reputation of the company will go a long way in creating a positive image, which will increase its marketability to diverse customers.

It is Morally Right.

Persimmon PLC Company should recognize that gender equality in the workplace is an essential requirement in achieving human development (Groenhout 2014, p.481) that is because it will improve the women’s lives in the society through provision of many opportunities. Additionally, it gives the women a chance to show their talents, skills, and abilities more so in a construction industry where they have such a low representation.

In addition to the above advantages, having women in leadership positions can be an advantage because:

Persimmon PLC is a construction company that can benefit from the role of women in leadership developing their employees (Galea et al. 2015, p.386). That is because developing a new design of structures require a lot of person-hours and dedication. Additionally, construction requires a lot of technical skills which needs years of training. In this respect, the role of women in mentoring, and retaining employees will increase the skilled workforce overtime, and the company will save a lot of money are resources which are committed for hiring and training of staff.

Petrie and Segal (2015, p.43) argue that female leadership is rated highly due to their consistency in building relationships. Their exemplary communication skills are required in especially where there are many professionals needed to complete projects successfully. It is the efficiency of communication between the different professionals such as architects, engineers, and surveyors that will determine the success of projects. Additionally, their desire for self-development can increase the skill and knowledge base for the company.

Stakeholders Affected by Changes in Structure of Workforce.

Society

Aras and Crowther (2010, p. 106) argue that balanced gender representation in the company and construction industry at large plays a vital role in championing for women empowerment in the communities. To get more women to take up jobs in the company, they will have to take necessary steps to ensure that women can access to better education and training, financial, and digital services, especially in the construction industry (Galea 2015, p.379). That can be done by establishing mentorship programs to bring up more women in Engineering. Therefore the society, as a stakeholder will benefit greatly from better women representation in the company as it will be the first step towards increasing the women representations in other sectors of the economy.

Managers

The management is also affected by the policies to implement gender balance in the workforce. That is because they will have to incur additional costs to hire and train more women to join the company, and therefore increase the project costs (Aras, & Crowther 2010, p. 107). However, the benefits of these women entering the workforce will outweigh the costs incurred in hiring and training them since there are lots of women with brilliant ideas and innovative ideas in construction who have never made it to the industry. Additionally, they would improve the company image which will enhance the company’s marketability























The stakeholder map below the effect of promoting gender-balanced workforce on the key stakeholders of Persimmon PLC

Stakeholder Map



Keep Satisfied

Society

Legal regulations





Power

High



Manage Closely

Client

Project Managers

Employees





Monitor

Unions

End users

Low



Keep Informed

Shareholders

Creditors



Low

High

Interest

Recommendations

Persimmon PLC should be proactive when it comes to welcoming women to join their workforce. They should openly and explicitly state that they want to hire, train, support, and promote women (Wittenberg-Cox 2014, para.4). Additionally, salaries and promotions should be monitored to ensure that opportunities are awarded equally.

The company should initiate programs that aim at networking, mentoring and coaching female in engineering schools. Through these programs, they will be able to tap into the talent pool where they can train and help build their confidence. Additionally should consider training, and supporting young people in choosing their jobs.

Persimmon PLC should also rethink how it conducts its job interviews. Galea et al. (2015, p.378) recommend that the company should try as much as possible to avoid asking the interviewees about the amount of money they expect to be paid. The question should be abolished as it is common for women to ask for lesser compensation when compared to their male counterparts, even if they had applied for a similar position.

The company should reassess the job requirements, especially for senior leadership positions. From the company analysis, it was clear that Persimmon had countable women in top leadership positions. To overcome this issue, they should reconsider what exactly is preventing the women from being hired for these positions. For example, it would not dilute the performance of the company if a job position requires 15 years’ experience, and there is a lady who has 12 or 13 years. By including other types of skills and experience, the hiring team broadens the pool of qualified candidates (Servaes, & Tamayo 2013, p.1052)

Lastly, the company should utilize the vacant board seats to address the gender imbalance. Since there are very few people in the human resource department who can consider gender over qualification and performance at the interview, the company can allow more women to join the board, for financial reasons. Boards with more women are less likely to buy other companies or get through with large deals without sufficient considerations (Deng et al. 2013, p. 101).

































References

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