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Professional ETHICS

HS 3050

Prof. N.Raghavan 24th Sep, 2013

Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Ethics- Definitions

Ethics:

also known as moral philosophy/ rules of conduct

a branch of philosophy that addresses questions about

morality i.e. concepts such as good and evil, right and

wrong, virtue and vice, justice and injustice, etc.

Doing what is RIGHT (according to prevalent set of moral codes)

and not necessarily what is BEST (which is your opinion - likely to be clouded!)

Ethics is also a measure of concern for others & for the

common good, as against the selfish motive

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Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Professional Ethics

Profession Professionalism Professional

Responsibility

Professional Ethics

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Professions

Professions :

"occupations that both require advanced study and mastery of a

specialised body of knowledge, and

undertake to promote, ensure or safeguard some matter that

significantly affects others well-being.

Are usually bound by a set of principles, attitudes or types of

character dispositions that control the way the profession is

practiced. This has been termed as Professional Ethics

In general, professional ethics always include upholding honesty

and respect in the profession over personal needs, conflicts or

biases.

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Professionalism

Core of professionalism: the possession and autonomous

control of a body of specialised knowledge, which when

combined with honorific status, confers power upon its holders.

Denotes efficiency, knowledgeability, thorough familiarity with

work practices, great skill & ability,

Professionalism is about individual modes of behaviour that

command respect and build trust.

The high standard that you expect from a person who is well

trained in a particular job

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Professionalism (Contd)

A focused approach

Having pride in what one is doing

Being confident; competent

Goes with Accountability & Responsibility

Respect for people irrespective of rank, status and gender;

Commitment to word and deed basing business related interactions to facts, figures and purely on the logic and understanding of the situation at hand.

Not getting carried away by the passion of the moment.

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Professional Responsibility

Professional responsibility :: obligation of a Professional ( a

Consultant, an Auditor,) to perform his duties in a

fitting manner.

This includes a professional and legal approach to the

duties + the moral aspect of the profession (which is not

always specified by the law);

ex. Giving the most economical design by a consultant and

not only a safe design.

One key issue is conflict of interest."

This creates a predetermined bias for or against one of the

clients, which the main client is usually unaware of.

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Professional Ethics

Profession Professionalism Professional

Responsibility

Professional Ethics

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Ethics - Categories

Business

Ethics Professional

Ethics

Engineering

Ethics

Corporate

Ethics

Personal Ethics

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Business Ethics

It is often thought that business and ethics should not be mixed! Indeed,

"business ethics could be an oxymoron!!

Ethical business practices: actions and attitudes held by a business and its

employees that are considered professionally and morally responsible

patterns of behaviour.

A business should not do anything to make money and get ahead; many

companies are successful while still acting in a way that is ethical &

serving the common good as well as the corporate good.

Good Practices are best implemented & established as a top down

program.

Right of Conscientious Refusal: right of an employee to refuse to

partake in unethical conduct when forced to do so by an employer. This

may occur in work or non-work situations and may not necessary

involve breaking the law

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Corporate Ethics

Corporate Ethics: codes of conduct followed by a corporate in the course of doing its business & outside it towards the Society at large

To ensure that business incentives do not conflict with morality and responsibility to stakeholders. Stakeholders: shareholders, fellow employees, anyone affected by the companys practices & the environment.

The code usually has a mission statement that sets out the overarching goals and beliefs, & set of guidelines on acceptable and unacceptable workplace behaviour and proper procedure and management.

How much the code is enforced depends on the management, and often on the transparency and oversight of company dealings.

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Role of the Organisation

Often cause of ethical failure in an organisation can be traced to its organisational culture & failure on the part of the leadership to actively promote ethical practices

Personal Ethics are a reflection of beliefs, values, personality and background, but often propensity of a person towards ethical conduct is strongly influenced by value systems of the employing organisation. This often results in ones personal sense of what is right and wrong becoming buried amongst an organisations non-observance of professional ethics.

Unethical conduct may not eventuate from a persons upbringing, but rather is part of the process of learning practical business or being inducted into the practice

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Some Basic Issues

Conflict of Interests

Gift vs Bribery

Clarity of Perceptions

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Conflict of Interest

Professionals are expected to uphold professional ethics by not getting involved in any type of conflict of interest.

A conflict of interest situation may occur when an individual tries to accomplish personal goals as a result of being in a certain profession.

An interest which, if pursued, could keep professionals from meeting one of their obligations

For example, a Consultant giving advice to the owner and the contractor for the same project (with or without the knowledge of each other)!

Ex. Gifts and bribes, interests in other companies, insider information.

Unchecked conflicts of interest may also lead to serious problems! Ex. Meryl Lynch,

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Gift Vs Bribery

Following two actions have to be satisfied to transform

gift giving to the illegal practice of bribery:

1. The person receiving the gift may, consciously or otherwise,

be disposed, predictably, to favour the interests of the gift giver

2. The gift must be of a non-token nature that it is reasonable to

think that it may put the interests of the giver in a privileged

status even when all else is equal.

Consequently, some corporations have allowed gift giving

to their clients or potential clients only as long as these

two conditions do not apply.

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What is the Right Thing to do?

Warren Buffet once devised a creative solution:

Assess all future business judgments using this rule:

If your business decisions and motives were

published on the front page of a large circulation

newspaper the day after you make your decision, and

you will still feel comfortable, then do it.

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Ethical Conduct Personal qualities

Honesty Fairness Fair Reward

Reliability Integrity Objectivity

Accountability

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Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Engineering Ethics

Developing the best possible design for the given specs & the committed framework

Give the best possible quality for product/ services for the given specs & the committed framework

Not overdesigning just because you are consultant to Owner, not dumping materials in a cost plus contract

Design with user-orientation, for the environment, safety, sustainability

Design with client benefit in mind, not to promote your own CV or sense of self-importance!

Respect Intellectual Property Rights

Bring out the potentialities for failure, if any.

Check your work/ get it checked.

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Institution Of Engineers (India) -

Code of Ethics

www.ieindia.org

1.1.1 Concern for ethical standard;

1.1.2 Concern for social justice, social

order and human rights;

1.1.3 Concern for protection of the

environment;

1.1.4 Concern for sustainable

development;

1.1.5 Public safety and tranquility.

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Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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CONSTRUCTION INDUSTRY

Second largest industry after agriculture in India

Employs over 3 crore persons

Annual monitory value (2006)

Rs. 310,000 Crore

Investment planned in Infrastructure alone in XII FYP

(2013-18): total of Rs 3,88,000 Cr for Urban Transport

(Rs. 3.88 Trillions)

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Projected Investment in Construction

Industry in India Rs. Crores

Years Base

year

Total

(200607

of Tenth

Plan)

200708 200809 200910 2010-11 2011-12 Total

Eleventh

Plan

GDP 41,45,810 45,18,933 49,25,637 53,68,944 58,52,149 63,78,843 2,70,44,506

Public

Investment

1,75,388 192107 2,27,327 2,73,543 3,32,355 4,11,226 14,36,559

Private

Investment

49,858 78166 94,252 1,15,724 1,46,762 1,84,687 6,19,591

Total

Investment

2,25,246 2,70,273 3,21,579 3,89,266 4,79,117 5,95,913 20,56,150

Source: Planning commission of India Report 25

India's Construction Spending Outlook

(IHS 2010) IHS Global Insight - India construction: importance of infrastructure construction in India 26

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Future Development of Indias Construction Industry

India GDP

Construction

Growth

Construction industry

will exceed the overall

GDP growth

http://www.bcindia.com/en/p.21730941/Exhibitors/India 27

Civil Engg. Infrastructure vast coverage

Housing & Buildings- Commercial, Residential, Public, Sports,...

Transportation - Roads, Bridges, Airports, Railways, Ports & Harbours, Metros; Traffic engineering

Power- Thermal, Hydro, Nuclear & Non-conventional

Plants & Factories -General industrial structures; Core sector industries steel, paper,

Water -Hydraulics & Hydrology, Ocean engineering

Underground: Soil mechanics, Foundation engineering, Underground structures (Tunnels, Caverns)

Environmental: Environmental engineering, Water & Effluent Treatment Plants

Management: Construction Management, Project Management, Quality Management,...

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Construction & Ethics

An Opinion Poll indicates that various forms of unethical

conducts have significant impact on construction quality

Only when professional ethics are well practiced,

professionalism will be enhanced and thus eliminating the

quality-related problems directly.

People working in the construction industry are twice as

likely to sustain a major injury and five times more likely to

be killed, than the average for all industries.

Hence ethical conduct is key element in construction

contracting

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Construction & Ethics (Contd.)

One such study analyzed the probable effect of

corruption on the death tolls from earthquakes,

particularly those resulting from the collapse of buildings.

It says that poor building practices can turn even

moderate earthquakes into major disasters.

It says that 83% of all deaths from building collapses in

earthquakes over the past 30 years occurred in countries

perceived to have abnormally high levels of corruption!

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Some Construction Ethics breaches

Fraud in Government Contracts

Defective Pricing

Antitrust Violations: Collusive Bidding and Price Fixing,

cartels

Cost Mischarging

Product Substitution

Fixing the Testing process

Progress Payment Fraud

Bribery, Gratuities, and Conflicts of Interest

Commercial Bribery and Kickbacks

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Main Stakeholders in Construction

Designer/ Architect/ Consultant

Contractor

Vendors

Sub.

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Owner/Client

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Architects & Ethics

Architects are generally rated high in Ethics

In contrast with architects, however,

construction contractors have a reputation for

unethical behaviour

The main problem being, according to a poll ,

the high level of disputes between owners and

builders

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Architect/ Designer/ Consultant &

Non-Ethics

Tweaking experience list, CVs

Offering one particular candidate in the bid for the work but actually providing another

Concealing of construction errors

Stealing someone elses drawings/ designs

Exaggerating experience and academic achievements in resumes and applications

Charging clients for work not done, costs not incurred or overstated (manhour-based billing)

Misleading clients in project management

Involvement in conflict of interest

Consultants and builder discussing client details

Improper information flow, internally and externally, within a practice

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Contractor & Non-Ethics

Frequently identified as the main source of all corruption!

Collusive tendering

Colluding with Clients officers to make money (undue

claims, overpayment, inflating quantities, passing off poor

quality/ safety, etc) Rampant misdemeanors in public

works

Will calling him a Constructor instead of Contractor

(Tekedar) help to get more respect/ responsibility?!!

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Contractor (Contd.)

Collusive Tendering:

illegal agreements between tenderers that result in seemingly competitive bids

price fixing (quoting high thro a cartel)

schemes that circumvent spirit of free competition and defraud clients

cover pricing (quoting high price to lose tender)

hidden fees ( the small print)

compensation for unsuccessful tenderers (for support bids)

withdrawal where a tenderer withdraws his bid after consultation with other tenderers.

Bid cutting : (negotiating down S/Cs by M/Cs)

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The Client & Non-Ethics Coercing contractors for kick-backs

Turning a blind-eye to poor performance by agencies

Confidentiality and propriety information infringements

Using Architects drawings to complete projects with other parties

Revealing tendering/ product information

Not being transparent w.r.t difficult conditions ex. Cavern project

Bid shopping: divulging solicited bids as leverage to encourage contractors to lower their prices; showing L1 quote to others to get lower price

Reverse auction: (asking bidders to openly keep quoting against others to get the lowest price often in blind e-auction) also considered to be unethical, as it is more or less another form of bid shopping.

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LPG Storage Cavern 200m below GL

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Client (Contd.)

Procurement is often the basic cause!

Selecting knowledge-based services on price basis

Encouraging cut-throat competition among consultants

Selecting contractors by reverse auction

Changing qualification criteria arbitrarily & at last minute

Harassment of honest contractors

Rampant moonlighting by public organisation employees!

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Client-related lapse

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Babylons Building Code!

Hammurabis Code:

If a builder has built a house for a man and has not made his work sound, and the house which he has built has

fallen down and so caused the death of the house-holder, the

builder should be put to death

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Some interesting Issues

Environmental breaches

Negligence

Deficiencies in State-of-the- Art

Negligence in Engineering

Negligence in Construction

Whose Responsibility?

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Environmental breaches

Bad practices:

Contamination of the soil

Degradation of vegetation

Soil erosion

Inadequate perimeter fencing on construction sites

Careless execution of demolition and construction

Storage of construction waste products offsite

Inadequate protection for public from debris

Issues:

Did Client/ Consultant specify proper measures in tender?

Did Client procure proper land for debris disposal?

Is the Contractor following bad practices?

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Negligence

Negligence: failure to exercise that degree of care which, in

the circumstances, the law requires for the protection of

those interests of other persons which may be injuriously

affected by the want of such care.

The main sources are design negligence, design defect,

production defect, construction defect or a combination of

these factors

Negligence is major cause of many accidents

Is Negligence an Unethical Practice?

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Primary Causes of Engineering

Disasters

The primary causes of engineering disasters are usually considered to be

human factors (including both 'ethical' failure and accidents)

design flaws (many of which are also the result of unethical practices)

materials failures

extreme conditions or environments, and, most commonly and importantly

combinations of these reasons

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Recent study by Swiss Federal Institute of Technology:

800 cases of structural failure -- 504 people killed, 592 people

injured, millions of dollars of damage.

Primary Causes of Engineering

Disasters (Contd.)

Cause of Failure Percentage( %)

Insufficient knowledge 36

Underestimation of influence 16

Ignorance, carelessness, negligence 14

Forgetfulness, error 13

Relying upon others without sufficient

control

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Objectively unknown situation 7

Un-precise definition of responsibilities 1

Choice of bad quality 1

Other 3

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State-of-the-Art not being good

enough!

Sometimes the existing knowledge levels themselves are

low; many intricacies had not yet been explored &

understood

Whose responsibility is it when something engineered as

state-of-the-art fails?

Ex. The Titanic to some extent!

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Tacoma Narrows Bridge, USA

Galloping Gertie www.youtube.com/watch?v=P0Fi1VcbpAI -

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Tacoma Narrows Bridge

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Ronan Point Flats

Collapse, UK

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Ferry Bridge Cooling

Towers, UK

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Negligence in construction

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Negligence in Construction!!

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Negligence during Construction

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Negligence in Engineering &

Construction

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The Failure Sequence

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Amazing negligence!

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Examples

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Examples

Examples

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Negligence in Construction the Safety Aspect

Hardly any concern for safety in any field! ---- Construction, Traffic, Diwali crackers!! Preventable Accidents, if not prevented due to our negligence, are nothing short of murder - Dr S.Radhakrishnan Safety in Construction has to be Designed and is not merely wearing a helmet! Forensic Engg is now a solution to fix the root causes!

Moot Questions!!

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Is there any awareness of Quality and Safety at all ??!!

Does anyone care?

Whose responsibility is it?

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Responsibility Dilemmas!

Who is responsible for encouraging lapses in Ethical practices -

Client/ Consultant/ Contractor?? (Chicken & egg analogy?!)

Client: expressed/ veiled/ passive expectations, lack of

competence, poor specifications

Contractor: too much competition, pressure on margins, client

inducements, pressure of time, difficulties in job, unexpected

problems in project

Consultant: too much competition, lack of competence, pressure

of time

Circumstances/ national culture/ apathy??!

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Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Questionnaire- 1 (USA)

31 (42%) valid responses (Avg. experience of 21 ys in field)

61%:Architects, 16%:Contractors, 16%:Project Managers, 6%:

Construction Managers

90% subscribed to a professional Code of Ethics

45% had an Ethical Code of Conduct in their organisations

84% considered good ethical practice to be an important

organisational goal.

93% agreed that Business Ethics should be driven or

governed by Personal Ethics,

84% stated that a balance of both the requirements of the

client and the impact on the public should be maintained.

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Questionnaire 1 (Contd.)

All the respondents had witnessed or experienced some degree

of unethical conduct:

unfair conduct (81%),

negligence (67%),

conflict of interest (48%),

collusive tendering (44%),

fraud (35%),

confidentiality and propriety breach (32%),

bribery (26%)

violation of environmental ethics (20%).

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Questionnaire 2 (USA)

Questionnaires on ethical state of construction industry

from 270 architects, engineers, construction managers,

general contractors and subcontractors.

An opinion: The majority of contractors who do engage

in corrupt practices tend to do so not because they

want to, but because they feel they are forced to by the

way the industry and the political environment operate.

..(Rationalisation!!)

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Five most Critical Ethical issues

Bid Shopping Change Orders Payment Games Unreliable Contractors Claims Games

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Bid Shopping is Unethical

Reverse Auction is Unethical

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Call for More regulations, Ethics Training,

Codes of Conduct

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Survey 3 - in Malaysia

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Breakdown of response by type of

company.

Type of Firm Sent Responded Percent(%)

Contractor 275 40 14.55

Architectural 80 11 13.95

Developer 45 6 13.33

Quantity

Surveying

100 7 7.00

Total 500 66 13.20

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Classification for frequency scale Non-ethical instances

Options Mean

None 0.00 Mean score < 0.75

Sometimes 0.75 Mean score < 1.50

Often 1.50 Mean score < 2.25

Very often 2.25 Mean score < 3.00

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Ranking of unethical conducts by

construction players

Rank no. 1 = Most frequent; Rank no.11 = Least frequent.

Categories of unethical conducts Mean Rank

Under bidding, bid shopping, bid cutting 1.67 1

Bribery, corruption 1.61 2

Negligence 1.48 3

Front loading, claims game 1.42 4

Payment game 1.32 5

Unfair and dishonest conduct, fraud 1.30 6

Collusion 1.26 7

Conflict of interest 1.17 8

Change order game 1.12 9

Cover pricing, withdrawal of tender 1.06 10

Compensation of tendering 0.74 11

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Whether unethical conducts contribute

to quality-related problem

Unethical conducts contribute to

quality-related problem

Frequency Percent (%) Score

Strongly agree (score- 0) 27 40.91 0.00

Somewhat agree (score- 1) 35 53.03 35.00

Somewhat disagree (score- 2) 3 4.55 6.00

Strongly disagree (score- 3) 4 1.51 3.00

Total 66 100.00 110.00

Mean 0.67

Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Ethics ----the Professional

A person who will not propagate incorrect information/

knowledge

A person who will not steal someone elses work

A person who will practice what he preaches

A person who will not cheat in tenders (cartels,

bribing), in quality (poor materials, poor workmanship),

in claims (falsified documentation,), industrial espionage

A person who will not pass off a substandard design or

product or workmanship;

Does not overprice services/ goods taking advantage of a

situation (black marketing, hoarding, opportunity pricing)

Subscribes to Engineering Registration 77

Ethical working a practical guide

Check out if a set of Ethical Codes is available for ethical

practices in your chosen profession as set forth by an

independent body

Follow your organization's spelt-out set of business ethics if

available and if strictly followed

If neither is available, set up your own code of ethics to suit

the various contexts

Developing Personal Ethics

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Carl Houston was a welding supervisor for a nuclear power facility in Virginia (1970) for Stone & Weber

He saw

Improper welding procedures

Use of wrong materials

Welders were not trained properly

The situation was dangerous

He reported to Stone & Webers Manager, who ignored him. He threatened to write to Stone & Webers Headquarters. Shortly thereafter he was fired on trumpedup charges.

Finally he wrote to Senators Howard's Baker and Albert Gore. The Senators prompted the Atomic Energy Commission to investigate, which confirmed his allegations.

An Example of personal ethics Whistle blowing

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Personal Work Ethics! (recommended)

Constant quest for Perfection any less is not your best!

Sincerity/ commitment is your best in what you do

Search for a better solution, the Best possible!

Study, Learn, Discuss, Explore, Try out alternatives till

you get the best solution INNOVATE!

Not compromising even if it involves more work from

yourself, tirade from the top! (not to be confused with

being a workaholic!)

To say I dont know when in ignorance, instead of

putting out a defective design/ product./ work

Taking responsibility and not finding scapegoats

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Structural Engineer Bill LeMessurier faced a big design

problem when he worked on the Citicorp Centre, N.Y then the fifth highest skyscraper in New York.

The 900 feet bank would rise from 9-storey (114) high columns. The columns are positioned as follows: one at the

center and the other at the CENTER OF EACH SIDE OF THE

TOWER and not at the CORNERS OF THE TOWERS (as is

usual)

This was because of a corner of the plot belonged to a

church and the church had to be accommodated there.

The building was completed in 1977. An engineering

student questioned: what will happen when the wind loading

is oblique?

Personal Ethics - CITIGROUP CENTER

BUILDING

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y

x

Calculations should show that in Case (c) the

resultant force is 40% larger.

While LeMessurier designed welded joints, the

contractor, Bethlehem Steel changed them to bolted joints.

Recalculation was not done to check what the construction

change would do.

Wind Tunnel Tests proved that the diagonal wind

loading (with a return period of 16 years) can lead to the

failure of the critical bolted joints and therefore the building.

(a) (b) (c)

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LeMessurier was deeply troubled. He considered his options

Silence

Suicide

Then he told himself:

I have information that nobody else in the world had. I have power to effect extraordinary events that only I

could initiate.

He explained the problem to his client Citicorp.

The building was strengthened by welding two-inch

thick steel plates over each of the 200 bolted joints. With only

welding half the number of bolts hurricane Ella was

threatening to strike the building. Luckily Ellas direction changed.

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Despite the fact that nothing happened as the result of the

engineering gaffe, the crisis was kept hidden from the public

for almost 20 years.

LeMessurier was criticized for

Insufficient oversight leading to bolted rather than

welded joints.

For misleading the public about the extent of the danger

during the reinforcement process

For keeping the engineering insights from his peers for

decades.

However his act of alerting Citicorp to the problem

inherent in his own design is now used as an example of

ethical behavior in several engineering textbooks.

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Road Map

Basic Definitions

Professional Ethics & other categories

Engineering Ethics

Ethics in Construction

Survey findings

Role of Personal Ethics

Conclusions

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Conclusion - the IIT Way?!!

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Ethics is taking the high (and possibly, lonely) ground! Construction has many potentialities for Unethical acts and a lot of care has to be exercised by all the players to avoid

them.

Developing a strong sense of Personal Ethics could help! IITMs GN 5001 Course on Self Awareness could help towards this!

How would you like to project the IIT Brand? as having an Ethical Value?

In your Workplace? In your Professional Circles? In the Society? In your Personal Life? To your own inner Self??

It is your call !!

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References

en.wikepedia.org

Ethics in Engineering- M.W.Martin & R.Schinzinger, McGraw-Hill

Engineering Ethics, National Institute for Engineering Ethics, USA

www.ieindia.org

Engineering Ethics, http://repo-nt.tcc.virginia.edu/ethics/

Engineering ethics: concepts and cases C. E. Harris, M.S. Pritchard, M.J.Rabins

Vee, C. and Skitmore, R.M. (2003) Professional ethics in the construction industry.

Engineering Construction and Architectural Management 10(2):pp. 117-127.

Citigroup center- Wikipedia

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THANK YOU