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How ethical are real estate agents in the public’s eye? The results are in, with the property industry far from being the cream of the professional crop.
The Governance Institute of Australia’s annual Ethics Index showed that real estate agents were viewed as one of the least ethical occupations, closing out the bottom three of the pile and ranking only just above federal and state politicians.
Released each year, the index is based on a survey of 1,000 people of various political and socioeconomic backgrounds across the countries and quantifies the Australian adult population’s perception of the overall importance of ethics, as well as what the actual level of ethical behaviour is in society.
This year’s edition revealed that real estate agents also saw a continued downward trend in perceptions of ethical behaviour. The occupation’s annual net score clocked in at -18, falling from -14 last year and a steep decline from the -2 seen in 2020.
However, this is not the first time that real estate agents have floundered in the ethics index. Since the start of the report’s publication in 2016, agents have consistently been named one of the most unethical professions within key business sectors.
In another blow to the sector, the Real Estate Institute was also named by respondents as the most unethical member association, with the body given a net score of four.
Despite the sobering figures for the property industry, the report highlighted that Australia is on an ethical decline as the nation’s overall ethics score tanked for the second year in a row to 42.
The figures are down from 45 last year, and a significant fall from a record high of 52 in 2020.
It’s time for an ‘ethical reset’
Governance Institute chief executive Megan Motto said that direct action is needed to address the ethical backslide.
“A stabilisation in trust and ethics had been hoped for this year, but it was not to be.
“We are now seeing a distinct downward trend in trust and ethics. Given strong ethics are an indicator of a strong, well-functioning society, this is a major concern, and this year’s results must serve as a red flag reminder of the importance of trust and ethics at all levels of our society,” Ms Motto said.
On an annual basis, all sectors have experienced an overall “softening” — with the media sector’s rating falling to a net score of one compared to 22 only two years ago.
On the one hand, health and education maintained a relatively strong ethics score at 73 and 70, respectively.
Notably, social media website TikTok was named as the most unethical organisation in the country, with a net score of -32. The short-form video hosting service was followed by payday lenders (-30) and Facebook (-28).
Despite the poor showing in 2022 overall, Ms Motto reflected that community expectations about ethics had also increased.
The report showed the gap between what Australians believe how ethical something should be and how ethical we think something actually is widened to -37 from -28 in 2021.
“The wider the gap, the bigger the indication that society is not performing the way we want it to,” Ms Motto said.
A closer look at the data showed that when asked about the top ethical questions that should be addressed, respondents named reform of the aged-care sector as the biggest ethical challenge.
Increased local manufacturing to reduce the country’s reliance on overseas supply chains was also seen as the second-biggest ethical challenge, while ethical expectations for action on climate change was also ranked highly as the third priority.
However, Ms Motto highlighted respondents believe that the responsibility to act on these issues does not fall on the mass public’s shoulders.
The index shows that respondents believe the federal government has the highest urgent ethical obligation to take action, whereas individuals register as having the lowest obligation.
Following two years of what she referred to as “poor results”, Ms Motto called for an “ethical reset” for the country.
“Organisations must reaffirm their commitment to ethics and creating a positive culture. If culture is not deeply entwined with your overall strategic plan, then there is more work to be done,” she stated.
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