EFFECTIVENESS OF ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE ON SUSTAINABLE PERFORMANCE IN THE CONSTRUCTION INDUSTRY

Abstract

ABSTRACT

Environmental, social, and corporate governance (ESG) is a up and coming framework designed to be embedded into an organization’s strategy to consider the needs and ways in which to improve sustainability and performance for all organizational shareholders and this is no exception for the companies in the construction industry as well. The issue of an ever contracting workforce alongside stringent guidelines that have to be followed. Thus, the ESG framework has been adopted by more and more construction companies to better manage and control the workflow in the company by balancing the interests of the many stakeholders involved with the construction companies such as shareholders, management, clients, suppliers, financiers, government, the employees, and the community. With the emphasis on environmental, social, and corporate governance increases it has been encouraged to push for more construction companies to adopt this framework. The aim of this research is to assess the levels of receptivity and willingness towards ESG implementation in Singapore’s Construction Industry by consolidating the viewpoint of individuals working in the construction industry. Challenges affecting the implementation of ESG by construction companies would also be covered in detail. There will also be a combination of qualitative and quantitative research methodologies that will be utilized in this research study. Surveys were conducted to obtain feedback of individuals working in construction companies, to complement that an interview was also conducted with an individual that is working at a construction company that adopts ESG to gain more insights and opinions to substantiate the data that is collected from the survey. From our findings it was concluded that individuals working in the construction industry are generally receptive to the idea of implementing, adopting ESG and are willing to follow the ESG framework agreeing on the positive outlook of the ESG framework. There was common consensus that the ESG framework would benefit the construction industry. Some of the challenges mentioned included resistance to change, increase in financial cost and the lack of expertise and relevant training.