Are real estate practitioners really unethical?
Real estate practitioners probably conduct themselves as honestly as most other professionals. However, the American public perceives that real estate agents are less honest than most. Over the last twenty years, Gallup Poll has surveyed Americans regarding the integrity and honesty of various professions: real estate agents have consistently ranked in the bottom 10 out of 26 groups. We are considered less honest than attorneys but more honest than used car salespeople. [See www.gallup.com.]
More importantly, recent research indicates that real estate practitioners may be less mature in their ethical decision making process than other groups. Even more surprising, more experienced agents tend to be less ethically mature than novice agents.
Do real estate practitioners really face that many ethical dilemmas?
Ethical dilemmas are inherent in many situations in and out of the real estate industry. Our complicated society creates multiple roles for many individuals. Our multicultural communities and work places heighten the sense of differences among us and create conflicts between values and goals. Gender differences and diverse religious beliefs sometimes spark conflicts of interest, hidden agendas, improprieties and perceptual problems.
In addition to conflicts that face us because we live in an increasingly complex society, we also have enormous responsibilities: as real estate agents, we are the gatekeepers of the American dream of home ownership; we act as guardians for the appropriate land use and a clean environment; we provide invaluable service to businesses, citizens, and government; and the results of our work fuel the economy's engine.
Why do real estate practitioners experience moral failure?
A number of reasons cause real estate professionals to fail to use their best judgment: sometimes we lack an ability to know how to deal with an ethical issue; or we do not have the ability to resist temptation and stand up to peer pressure; or we have little practice at being good. Sometimes, however, it is our own misplaced beliefs about ethics that prevents us from acting.
What are those misplaced beliefs?
1. In order to make an ethical decision, we must be morally perfect. Even exceptionally good
people make poor moral judgements or commit unethical acts. Developing character is not a
short- term process but rather a lifelong one.2. Ethical behavior is based on values and one person's values are just as good as another. This
type of thinking is called moral relativism. Its adherents believe that any judgement that puts a rein
on personal freedom is an intolerable restriction. Values have to be measured against a standard,
otherwise we can make no distinction between what we want to do and what we should do.3. The answers to all our ethical problems can be found in our professional code of ethics.
Codes provide a structure for us to understand our behavior but they rarely anticipate every problem
with which we may be faced.4. Making ethical decisions means playing God. It's not up to me to make these decisions. In
most ethical dilemmas, you can rely on rules, policies, and laws that provide you with reasonable
answers to the dilemma. In other cases, you may have to search your soul or conscience. Some
believe our conscience is the divine spark within us. And remember, there are consequences for
not making a decision as well as consequences for whatever decision we make or action we
take. We are not powerless to act. Govern yourself accordingly.5. People are neither ethical or not. Research indicates that people are capable of a variety of
responses to ethical dilemmas, ranging from inappropriate to appropriate, from wrong to right,
from illegal to legal. Whether people behave ethically or unethically is largely a matter of what
they choose to do at that moment in time dependent upon the circumstances.6. Real estate professionals know when they are committing an ethical violation. Many
practitioners don't know. The ethical dilemmas that agents confront are so complicated that they
need all the resources that we have to figure them out.7. If people would just follow the law, we wouldn't have ethical problems. The law sets a
minimum standard for what is acceptable behavior. Living by ethical standards inspires us to do
more than what the law requires.8. Being ethical is great but I still have to earn a living and work in the rat race. Ethics and
business are not mutually exclusive terms. Practical solutions can be ethical, and the pursuit of
ethical excellence can also be valuable. Many firms place a value on loyalty, avoiding harm to
others, being just, and earning trust and respect.
Can real estate practitioners
change and become more ethical? For that matter, can anyone?
Many individuals believe that once we become adults, it is no longer possible to alter our values, our principles, or our behavior. In fact, some believe that these factors are well-established by the time we are five years old. Both of these beliefs are myths. If they were true, we would have to relinquish all hope that education and experience have the power to change us. Most adults experience tremendous ethical growth in their twenties and thirties'?
Can real estate regulators force us to be ethical?
Real estate regulators and state legislators can create laws all the time, but that doesn't mean real estate agents or the public will act any differently. What can make a difference is if regulators and legislators agree that continuing education can be an appropriate vehicle for raising the ethical consciousness of licensees.
By the way, four states--California, Ohio, New Jersey and Iowa--have mandated ethics education for real estate licensees. Other state regulators are exploring the need for integrating ethics into pre- and post-licensing curricula. These are necessary and important first steps.
In the meantime, real estate practitioners can make it a personal challenge to improve their ethical development. Though wrestling with ethical dilemmas is not an everyday experience, ethical dilemmas arc becoming more commonplace. Moral failures--individual and institutional--grab more headlines. As technological, demographic and social changes push us--albeit with reluctant anticipation--into the next century, our talents and skills will be stretched to their limits. But the ultimate challenge that will confront us--as real estate professionals and human beings--will be to do the right thing.
Can a short program on ethical decision making skills really make a difference in the way people conduct themselves?
Realistically, a short program--under three hours--can't do more than inspire and orient individuals toward ethical conduct. Research indicates for an ethics program to be effective --that is, to bring about change--it should be three or four hours or more. But ethical decision making skills can be taught and refined, and certainly even in a short program, adults can become more sensitive to ethical dilemmas.
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