Integrity as performance-increasing factor within the real estate industry

Abstract

Purpose

The purpose of this paper is to examine how the strengthening of integrity within the real estate industry can lead to higher performance. Sticking to restricting ethical standards might be seen as reducing the range of options and consequently performance. However, in a dynamic setting of interactions there is a different outcome due to the performance effect of integrity. This is due to new opportunities that would not exist without integrity.

Design/methodology/approach

A literature review of ethics and the economics of trust is presented along with an analysis why real estate is an industry linked with corruption scandals.

Findings

Fostering integrity has an embedded challenge: integrity is invisible. Most capabilities and skills can be learnt through observation and imitation. However, what you cannot see, you cannot imitate. Consequently, education is central to address this issue and to increase awareness and understanding. Professional bodies have to support life-long education to ensure its members’ integrity.

Practical implications

This paper emphasizes the importance of fostering integrity through higher education and professional bodies within the real estate industry.

Social implications

Integrity is a performance-increasing factor—also in the real estate industry. Thus, the stakeholders forming the real estate industry, including educational institutions and professional bodies, are called upon to examine how they can address this issue.

Originality/value

This contribution is the first paper to link the performance effect of integrity with the real estate industry.

Citation

Piazolo, D. and Förster, G. (2019), "Integrity as performance-increasing factor within the real estate industry", Property Management, Vol. 37 No. 1, pp. 38-51. https://doi.org/10.1108/PM-02-2018-0015