To what extent can we trust our Industry? Catherine Guelbert-Thick 07 February 2018
A philosophical approach • Based on the ideas of Onora O’Neill whose thinking is influenced by Emmanuel Kant • Onora O’Neill has recently been awarded $1m Berggruen prize for her contribution to thinking • Combining rigour with timely prescriptions for what we really need to do • Kantian theory promotes the moral duty to do what is right • The construction industry is challenged at present - What do we need to do?
Why think about this now? The recent collapse of Carillion raises multiple questions about how we know what we can trust about how our industry works and as importantly how robust are the legal, executive and governance processes that are supposed to be in place to give us confidence that we can trust institutions and individuals in society Grenfell raises questions about commitment to people rather than money or vested interests
Whats new? Scandal is everywhere • 1890 Jabez Balfour • 1910 Marconi Insider trading • 1920 Lloyd George honours scandal • 1950 The Suez crisis • 1960 Profumo • 1970 Poulson and Stonehouse fake suicide • 1980 Westland and Jeffry Archer • 1990 David Mellor and Squidygate, Arms to Iraq, cash for questions and Peter Mandelson • 2000 + Keith Vaz and Peter Mandelson, Jo Moore, the Burrell affair, David Kelly, cash for honours • 2010 Cash for influence, David Laws, Jeremy Hunt and Rupert Murdoch, Piggate, Contaminated Blood scandal, Radley and exam cheating
Financial Scandals • 1494 The Medici Bank • 1866 Overend Gurney and Co • 1987 Texaco • 1970 Polly Peck • 1995 Barings bank • 2000 Equitable Life • 2001 Enron • 2005 MG Rover Group • 2008 Northern Rock, Lehman Bros and RBS
Local Authorities • Rotherham • Tower Hamlets • Mansfield Social Services • Jill Stannard CEO Cumbria: pay • Joanna Simons: Paedophile scandal • Bristol rented out nursing home accommodation at 80% of market value
Construction • Consulting Association: The Black List 2009 • Grant Thornton 2013: Construction Fraud derived from a CIOB study that revealed that 49% of respondents believe corruption is common and 50% believed organisations are not doing enough about it: fraud equates to 10% of £6.5Bn turnover = £40,000 per company • Persimmon, Taylor Wimpey and Barratt Homes: profit scandal 2016
A philosophical approach • We trust but we don't trust: we are suspicious • We know we know certain things e.g the sun rises, time, • In order to manage our daily lives we have to have a sense of confidence • Trust does not equal a guarantee • A guarantee does not equal trust
What are the guarantees? • More and more complex laws, policy and guidance aimed at providing confidence • Evidence is that there is more contravention or tests of trust than ever • E.g Data Protection Act, laws of consent, GDPR • The human Rights act states what we can expect to receive but does not state the nature of our obligations? • Radio 4 Today programme 06 Feb reported that Teresa May can be trusted to keep her word! • Saying Sorry is not enough: Carillon 06 Feb 2018
Some questions for you • How do we make sense of this for the construction and development industry? • In the light of Carillion and impending nervousness about Capita and Interserve profit warnings what does the industry need to do to remediate its reputation?
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