Ethics:CoreValuesinAction

Transcript

Introduction
LearningObjectives
Bytheendofthiscourseyouwillbeableto:
Identifytheimportanceofethicalbehavior.
Distinguishworkplacebehaviorthatisethicalorunethical.
AndsummarizeCDMSmith'scodeofethicsandstandardsforbusinessconduct.
CourseOutline
OurclientsrelyonCDMSmithforhonest,objective,andunbiasedadviceandservices.
CDMSmith'sreputationforintegrityandtrustworthinessisourmostvaluableasset.
Thiscourseisdividedintothethreesections.Inthefirstsection,welldefineethicsand
reviewsomedifficultethicalsituations.Inthesecondsection,wellreviewourcorevalues
andhowtheyrelatetoethicalbehavior.Inthethirdsection,wellcoverourcodeofethics
andscenariosthatdemonstrateethicaldilemmastoguideyouthroughdifficultsituations
thatinvolvecarefuldecisionmaking.

Section1
Introduction
EthicalOverview
Inthissectionofthecourse,welldefineethicalbehavior.Wellalsocoveryourpersonal
responsibilityasitrelatestoconductingbusinessethicallyatCDMSmith.Finally,well
addresstheimportanceofethicstoCDMSmithandreviewsomeofthedamaging
consequencesthatcanresultfromunethicalbehavior.

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WhatAreEthics
Ethicsisasetofmoralprinciplesorvaluesbywhichwebehave.Ethicalconductisacting
incompliancewithcommonlyacceptedrulesandstandards,suchaslaws,moral
principles,communitynormsandexpectations,companycorevaluesandpolicies,and
businessandprofessionalstandards.Mostsimplystated,ethicsisknowingrightfrom
wrongandchoosingright,evenunderdifficultcircumstances.
Dr.MartinLutherKingJr.oncesaid:
Theultimatemeasureofamanisnotwherehestandsinmomentsofcomfort,butwhere
hestandsattimesofchallengeandcontroversy.
EthicalOverview:
Haveyoubeentempted,implicitlyexpected,orexplicitlyaskedtobelessthanaccurate
onyourtimesheet?
Beentemptedtoshareinformationaboutaclientwithathirdpartyoutsidethefirm?
Discoveredanerrorinplansorspecificationsforaprojectthatwasunderconstruction
andwereunsureifyoushouldbringitup?Observedunfairtreatmentofacoworkerand
wonderedwhetherornottogetinvolved?
Ineachofthesesituations,whatwouldyoudo?Whatshouldyoudo?Whatisright?
Whatiswrong?
Eachofthesesituationspresentsanethicaldilemma.
WhatAreEthics
CDMSmithhasacodeofethicsthatsetsforththebasicprinciplesofethicalconductto
guideusinhonestandfairinteractionswithothersbothwithinandoutsideCDMSmith.
Incorrectlychargingyourtimeonaproject,sharingconfidentialinformation,anddoing
nothingwhenyouknowsomethingiswrong,areallexamplesofunethicalbehaviorthat
candiscreditthereputationofthefirmandyourownintegrity.
PersonalResponsibility
CDMSmith'scodeofethicssetsforththebasicprinciplesofethicalconducttoguideus
inhonestandfairinteractionswithothersbothwithinandoutsideCDMSmith.All
employeeshaveapersonalresponsibilitytounderstandandpracticeourcodeofethics
andtoabidebythelaws,regulations,andclientrequirementsgoverningpersonal,
business,andprofessionalconduct.Itisuptoeachofustoensureacultureofintegrity
andethicalconductthroughourindividualactions.

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Whilethecoderequireseachemployeetoberesponsibleforimplementingthe
company'sethicspolicies,allmanagersareresponsibleforensuringthatemployeesunder
theirsupervisionknowandcomplywiththestandardssetforthinthecode.
ProfessionalCodeofEthics
MostprofessionsinCDMSmith'sareasofpracticehaveethicscodespublishedby
professionalorganizations,suchastheNationalSocietyofProfessionalEngineers,
AmericanInstituteofArchitects,AmericanGeologicalInstitute,andothers.Wealso
respectindividuals'rightstofulfilltheirethicalobligationsregardinganyothercodesof
ethicsoftheirindividualprofessionsortheirspecialtylicensesorcertifications.Linksto
someoftheprofessionalorganizationstowhichemployeesmaybelongcanbefoundin
theresourcessectionofthiscourse.
WhyisEthicalBehaviorImportanttoCDM?
WhyisethicalbehaviorimportanttoCDMSmithsbusiness?
TheValueofEthics
Thevalueofethicstoourbusinesstodayisperhapsmostobviouslymeasuredbythe
potentialeconomicimpactandlastingdamagethatcouldresultfromactualorperceived
unethicalbehaviorbyemployees.Anyperceptionbyourexistingorpotentialclientsthat
employeescannotbetrustedtoservethebestinterestsofourclientsandthepublic,or
thatCDMSmithispursuingintereststhatconflictwiththoseofourclients,couldhavea
rangeofseriousconsequencesforthecompany.
Selecttheconsequencesthatmayresultfromunethicalconductbyemployees.
Section1Summary
Inthissection,wecoveredadefinitionforethicsandwhatbehavinginanethicalmanner
means.Wealsoreviewedyourpersonalresponsibilityasitrelatestoethicalconduct.
Additionally,wediscussedtheimportanceofethicalbehaviortoCDMSmithsbusiness
andtheconsequencesofunethicalbehavior.Glossarytermsintroducedinthissectionare
shownhere.Clickatermtoviewitsdefinitionintheglossary.

Section2
Introduction
Inthissection,wellcoverourcorevaluesanddescribehowtheyrelatetoethical
behavior.Wellalsoreviewourstatementofcommitmenttoethicalconduct.

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CDMSmithsVision
CDMSmithscorevaluesarethefundamentalprinciplesthatguideourcollectiveand
individualdecisions,strategies,andactions.Theydefinewhatthecompanyandthe
peoplestandforthroughouttime,regardlessofchangestoourinternalstructureand
leadershiportoexternalfactorsandmarketconditions.
Coupledwithourvision,ourcorevaluesprovideanimportantfoundationforourcodeof
ethics.Theyalsoprovideuswithafundamentalsenseofprideandownership,aswellasa
strongfoundationforcontinuedgrowthanddiversification.Livingbyourcorevaluesand
byalllaws,regulations,companypolicies,andstandardsofprofessionalconductguides
theethicalbehaviorforeachandeverymemberofthefirminourpersonal,business,and
professionalconduct.
EthicsandCoreValues
CDMSmithscorevaluesarethefundamentalprinciplesthatguideourcollectiveand
individualdecisions,strategies,andactions.Ourcorevaluesareasfollows.
Excellencemeansthebestandbrightestpeopledeliveringpreeminentclientservice,
technicalinnovation,andbusinesssuccess.Thishasalwayssetusapartfromour
competitors,allowingustoattractandretainthebeststaffandclients.
Initiativemeansexhibitingabiasforactionandbeingresponsive,anticipatingclients,
market,andbusinessneeds,andtakingpromptactiontodeliverresults.Italsomeanswe
upholdcommitmentstoclients,fellowstaff,andoutsidevendorswithpromptnessin
bothdecisionmakingandexecution,andwedelegateeffectivelytogetthingsdone.
Further,itmeanswecontinuouslystriveforfreshapproachesandinnovativesolutions.
Byencouragingcreativity,newideas,andnimbleactionthroughouttheentire
organization,wedriveourmarketandbusinessadvantage.
SharedcommitmentisthemutualrelationshipbetweenCDMSmithandouremployees
basedonsharedgoals,trust,andrespect.Weareaccountabletoeachotherforexcellent
performanceandarecommittedtolearningandgrowingtogether.Thefirmmustprovide
theenvironmentandopportunitiesforoutstandingperformanceandgrowth,andthe
employeesmusttakeadvantageoftheseopportunities.
Thisrelationshipofsharedcommitmentallowsustobetheverybestasindividualsand
asacompany.
Integritymeanswewillbehonorableinalldealingswithemployees,clients,stockholders,
businessassociates,andthecommunitythroughhonestyandrespect,andwewillseek
guidancefrommanagementwhenconfrontedwithanyethicaldilemma.Integritybinds
allofustoabidebythelaws,regulations,andclientrequirementsaffectingpersonal,
business,andprofessionalconduct.Thefirmrespectsallindividualsrightstofulfilltheir

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ethicalobligationstotheirbusinessandprofessionalorganizations.Ourreputationfor
integritydefineswhoweareasindividualsandasafirm.Itreinforcesourcommitmentto
serve,andbuildstrustandconfidencewithothers.
Teamworkisthecommitmenttoworktogetherwitheachotherandwithourclients
inaspiritofcooperationtoachieveresultsandbuildpositiverelationships.Working
togetheracrossboundariesastotallyintegratedteamsisthefoundationofsuccessina
diversifiedandglobalservicesfirm.
Teamworkenablesustodelivertherightsolutiontoourclientsandisthesourceofour
enthusiasm,support,andlearning.
Rollovereachcorevaluetoviewitsinspiredactions.
ActionsExamples
CDMSmithscorevaluesaresoimportanttothefirmanditssuccessthatithas
establishedtheValuesinActionAwardsthatrecognizesemployeesacrossallbusiness
unitswhodemonstrateourcorevaluesthroughexemplaryperformanceandoutstanding
contributionstothegoalsofthefirm.Clickthecorevaluestoviewexamplesof
employeesdemonstratingthem.Manyoftheseexamplesaretakendirectlyfromthe
ValuesinActionAwards,however,nameshavebeenchanged.
Initiative
Thefollowingareexamplesofinitiative.
Juantookituponhimselftocreateanautomateddatabasegeneratorsystemthatreduced
databasedevelopmenttime.Heindependentlytroubleshotandresolvedseveralsystem
issueswhiletheleadengineerwasonmaternityleave.
Ronda,afoundationlevelengineer,volunteeredforadditionaldesignresponsibilitieson
theprojectbecauseshecouldseehercoworkerwasoverloadedandneededhelptofinish
herassignmentontime.
Jane,aleadengineer,independentlyproposedandimplementedasolutiontotheclients
problemtoexceedtheirexpectations.
Alackofresourcesandanacceleratedprojectschedulethreatenedtostallthewastewater
plantconstructionproject,butBillsteppedupandprovidedthenecessarytechnical
supporteventhoughhehadaheavyworkload.

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Integrity
Thefollowingareexamplesofintegrity.
Whenworkingfromhome,Maryhadtostopworkunexpectedlywhenherbasement
begantofloodfromaheavyrainstorm.Shewashonestonhertimesheetanddidnt
includethehoursshedidntwork.
WhenaformerCDMSmithcoworkerandfriendcalledChrisandaskedhimtosendsome
oftheplansheworkedonwithChrisatCDMSmith,ChrissaidNo,Icantdothat.
Jeffstransparentandhonestcommunicationwiththeclientaboutdelaysinschedule,
andtheimportanceheplacedonweeklymeetings,causedtheclienttotrusthim
explicitlyandtowillinglyextendthedeliverableduedate.
SharedCommitment
Thefollowingareexamplesofsharedcommitment.
RaywantedtolearnmoreabouthowCDMSmithsolvesstormwaterproblemsandwas
abletoattendalunchtimetechnicalseminardeliveredbythewaterresourcesdiscipline.
ThefirmprovidedthetrainingactivityandRaycontributedhistimeoverlunch,
benefittingbothRayandthefirm.
ThehonestfeedbackEdwardreceivedonhisperformancereviewallowedhimto
significantlyimprovehiscommunicationskillsandearnapromotiontoaclientservice
managerposition.WhenaskedtoprovidefeedbackonaPFDFor360degreeevaluation,
itiscriticallyimportanttoprovideopenandhonestfeedback.
Janewantedtogobacktoschoolandearnabachelorsdegree.CDMSmithprovided
tuitionassistanceandapprovedaflexibleworkschedulethatallowedJanetoattend
classeswhilestillworkingfulltime.Thedegreesheearnedmadeitpossibleforherto
advancefromhermanualworkinthemailroomtoanexecutiveassistantpositionthat
involvedcriticalthinking,allowinghertomakeanevengreatercontributiontoCDM
Smith.
Excellence
Thefollowingareexamplesofexcellence.
Ronsdiversetechnicalskillsallowedhimtodeliverinnovativemembranetreatment
technologiesthatincludedthoroughevaluationsofdesignalternativesandstrong
attentiontodetail.

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Jennysattentiontodetailallowedhertocatchamistakeinhermanagerstravelschedule
andensurethathewasbackintheofficeontimetoattendanimportantclientmeeting.
Jennyscommitmenttoexcellenceinexecutingherroutinejobresponsibilitiesis
exemplary.
Richardsstrongwritingandvisualdesignskillsallowedhimtoassembleastellar
proposalthathelpedussecurethemultimilliondollarwatertreatmentproject.Richard
wentthroughseveraldraftstohonehisproposalsectionsanddidnotquituntilitwasthe
bestitcouldbe.Hiscommitmenttoexcellencedirectlycontributedtowinningthejob.
Teamwork
Thefollowingareexamplesofteamwork.
Theteammemberscollaboratedandworkedwelltogethertostayonscheduleandmeet
establishedgoalsbyholdingweeklymeetingsandreviewingeachothersworkalongthe
way.Eachmemberoftheteamlookedbeyondhisorherindividualalreadyfullworkloads
andofferedtohelptheirteammembers.
Jackwastaskedwithpreparingwatershedmodelsfortheclient.HeknewRichhad
experienceinthisareaandaskedhimforassistance.RichwashappytohelpJackand
eventaughthimhowtousespecializedsoftwareforthetask.
Kendrawastheprojectmanagerforacomplexmultidisciplinaryprojectwithatight
schedule.Atthekickoffmeeting,sheemphasizedtheimportanceofworkingasateamto
coordinateandcompletealltechnicalaspectsoftheprojecttomeetthetightschedule.
Kendrawasabletogetbuyinfromallteammembersandtheprojectwascompletedon
timewithoutanydisconnectsbetweenthevarioustechnicaldisciplines.Teammembers
paidcloseattentiontointerfacesandcoordinationtomaketheprojectasuccess.
CoreValuesMatchingExercise
Matcheachcorevaluetoanexampleofanemployeedemonstratingit.
CDMSmithsStatementofCommitment
CDMSmithiscommittedtoethicalconductinourbusinesspractices.Sincethefirm's
foundingin1947,wehavealwaysupheldapolicytoconductallbusinessinalawfuland
ethicalmanner.ThestandardsofconductsetforthinCDMSmith'scodeofethicsreflect
thefirm'scorevaluesofexcellence,initiative,sharedcommitment,integrity,and
teamwork.ThesecorevaluesaredemonstratedinCDMSmith'sinteractionswithclients,
employees,shareholders,subcontractorsandvendors,andthecommunitiesinwhichwe
work.

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CDMSmith'scontractswiththeUnitedStatesfederalgovernmentcarrywiththemsome
additionalrulesandregulationsrequiringanevenhigherstandardofcareandethical
behavior.
Rollovereachcommitmenttoreaditsdescription.
Section2Summary
Inthissection,wecoveredourcorevaluesofexcellence,initiative,teamwork,shared
commitmentandintegrityandhowtheyrelatetoethicalconduct.Wealsoreviewedour
statementofcommitmenttoconductbusinessinanethicalmanner.

Section3
Section3Introduction
Inthissection,wellsummarizesomeofthemainpointsfoundinourcodeofethics.
Wellalsoreviewscenariosthatillustratethesepointsbyposingcommonethical
dilemmas.Finally,wellreviewhowtoreportethicalviolations.
CodeofEthicsCategories
Althoughitseemseasytodo,tellingrightfromwrongandknowingwhatislegalin
certainsituationsisoftendifficult.ThecategoriesonscreenrepresentsectionsofCDM
Smithscodeofethics.Rollovereachtoviewadescription.Notethatthecompletecode
ofethicscanbefoundintheresourcessectionofthiscourseandonourintranet,inSite.
EthicsScenarios
Clickeachcategorytoviewscenariosdemonstratingethicaldilemmas.Notethatthe
lessonswithinthescenariossummarizethemainpointscontainedwithinourcodeof
ethics.ClickthelinkonscreentoviewCDMSmithscompletecodeofethics.
TimeTracking:RogersScenario
Rogerisanewemployeeandrecentgraduatewithanengineeringdegree.Barry,Rogers
manager,hasassignedRogertoaprojectnearingcompletionforalongtermmunicipal
client,WastewaterExpress.Overlunch,duringRogersfirstweekofwork,Barrytells
RogerthattheWastewaterExpressprojecthasrunbeyonditsplannedscheduleandthat
anoverrunontheprojectwouldaffectRogersimpendingperformanceappraisaland
raise.

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Barrymentionsthathehasanotherclient,WaterWorks,whoseprojectisjustbeginning
andthebudgetiswideopen.Hecontinuestosaythat,incaseslikethis,itsperfectlyokay
todirectminorchargestoanothersimilarclient.
Barrysays,IfitsokaywithyouRoger,letsshowyourtimeonWastewaterExpress
projectasachargetoWaterWorks.Thinkaboutitandletsgetbacktogethertomorrow
totalk.
Rogergoesbacktohiscubicleandimmediatelyfindshimselfquestioningtherequestby
Barryandwonderingwhomhecantalktoforadvice.Ultimately,hedecidestosleeponit.
Inthemorning,BarrydropsbyandRogertellshimthatheisuncomfortablecharging
WaterWorksonworkdoneontheWastewaterExpressproject.
BarryvehementlydisagreeswithRogersassessmentofthesituationandaddsthathehas
beenatthecompanyforaverylongtime,thatitisgoodforeveryonetodothis,and
finally,thatthiskindofminorgiveandtakeonprojectshappensallthetime.
Rogerfinallygivesinandfillsouthistimesheetaccordingly,whichBarryapproves
promptly.Overthenextcoupleofdays,Rogerbeginstoquestionwhathehasdoneand
whattodonextsinceheobviouslycannotgotohismanager,Barry,aboutthesituation.
WhatshouldRogerdo?
TimeTracking:Sarah
SarahhasbeenworkingwithCDMSmithforalmostfiveyearsasanenvironmental
engineer.Shewasrecentlyrequestedtoprovidesupportinthepreparationofalarge
proposalthatwasultimatelyawardedtoCDMSmith.Shewasprovidedabidand
proposal(B&P)numberfortimechargingpurposeswhilesupportingtheproposaleffort.
Duringlunchwithhermanager,Rebecca,itwasnotedthatSarahhadmissedthe
utilizationtargetfortheweek,whichmightimpactmakingthetargetforthemonth.
RebeccasuggestedmovingherrecentB&Prelatedactivitiestoaprojectunderthe
recentlywoncontractsinceitwouldeliminatethisproblem.Itwouldalsobeappropriate
sincetheproposalpreparationhadresultedinthecontractwin.
ThisguidanceseemedinconsistentwiththetimechargingpracticesandguidanceSarah
hadfollowedoverthepastfiveyears.Additionally,Sarahknewherworkontheproposal
efforttobegeneralinnatureandunrelatedtoanyspecifictaskaward.Beforeleavingfor
theday,SarahapproachedherManagerandrequestedtodiscusshercommentsfurther
butwastoldthatitwasOKtomovethetimeasdiscussed.Noonewouldquestion
increasedutilization.
Underthesecircumstances,Sarahshould.

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ClientConfidentiality
CDMSmithsclients,bothgovernmentandnongovernment,oftenrequireintheir
contractsthatwenotdiscloseinformationabouttheworkCDMSmithisperformingfor
theclientbecausetheclienteitherconsiderstheinformationconfidentialtoits
organizationorwishestocontrolthereleaseofinformationtoensuretheaccuracyofthe
informationorforotherreasons.Employeesworkingoncontractsmayonoccasionbe
approachedbymembersofthepublic,pressorothermediatocommentontheworkwe
areperforming.Letslistentoascenariothatillustratesthissituation.
CDMSmithhasbeenconductingfieldactivitiesatasitelocatedinaresidentialarea.
Heavyequipment,includingdumptruckshaulingsoilanddebris,arebeingdriven
throughtheresidentialneighborhoodandtheresidentsareworriedthematerialsare
beingblownoffthetrucksandpotentiallyexposingtheirfamiliestotoxicorhazardous
materials.Acitizensgroupholdsameetinganddecidesthebestwaytodealwiththis
potentialproblemistoinviteaninvestigativereporterfromthelocalnewspapertolook
intothesituationbecausethesiteownersandtheonsiteworkersarentwillingtodiscuss
theactivitiestakingplace.
Thelocalreporter,Edward,seesthisashisopportunitytomakeaheadlineandnamefor
himself,sohestartsinvestigatingandlearnsthatthesitehasbeendeclaredaSuperfund
hazardouswastesiteandthatthecontractor,CDMSmith,isremovingmaterialsfromthe
sitethathethinkscouldbecontaminatingthegeneralneighborhood.Heapproaches
Linda,aCDMSmithemployeewhoistakingalunchbreakjustoutsidethesitefence.
WhenLindaisapproached,shebelievesshecanrespondtothereporterforanyoneof
thefollowingreasons:
1. Lindahasonlygoodthingstosayabouttheworkandhiscommentswillonly
enhancetheworkfortheclient.
2. Allpublicityisgoodpublicity.
3. Lindaconsidersherselftheexpertonthesubjectnoonebettertocomment.
4. LindathinksshehastheauthoritytospeakonbehalfoftheclientorCDM.
5. Animmediateresponseisneededtocounteractnegativepublicitygetitonthe
6:00[Pronounceassixoclock]newstoday.
6. Lindaiswellversedinthework,hasalotofexperienceandisconfidentthatshe
canrelieveanyconcernstheresidentshaveconcerninghowthematerialsremoved
fromthesitearebeinghandledintransport.
7. Freedomofspeech:everycitizenhastherighttoexpresshis/heropinion.

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Lindaagreestoanswerthereportersquestionsandlaterseesthatsheisnotonlyquoted
inthelocalnewspaper,butthatthelocalTVchannelhasalsodecidedtoinvestigatethis
breakingnewsstory.Lindaisthentargetedforfollowupcommentsfromthemedia.
ShouldLindaanswerEdwardsquestions?
MarksScenario
CompanyConfidentialandBusinessConfidentialInformation(CBI)isany
information,facts,data,records,etc.whichcontaininformationthatacompany
considerscriticaltoprotectitspositionintheopenmarketplaceandtherebyremainin
businessandisnotrequiredtodisclosepubliclybylaw.Thisincludespricingorother
financialinformationsuchaslaborrates,overheadorindirectrates,profits,etc.While
someofthisinformationisgovernedbyvariouslawssuchastheSecurities&Exchange
Commission(SEC),patentlaw,etc.othercompanyorbusinessconfidentialinformation
isonlyprotectedwhenthecompanythatownsittakesappropriatestepstosecure,
maintain,properlymarkandcontroldistributionoftheinformation.Suchsafeguarding
measuresincludemaintainingtheinformationinsecureplacesmarkingtheinformation
withappropriatelegendssuchasCompanyConfidentialorConfidentialBusiness
Information,limitingdistributiontotrustedindividualswhounderstandhowtohandle
companyandbusinessconfidentialinformation,requiringthirdpartiestoenterinto
NonDisclosureorConfidentialityAgreementsbeforepermittingaccesstothe
information,andproperlystoringanddisposingoftheinformation.
ThemaindistinctionbetweenCompanyConfidentialandBusinessConfidential
InformationisthatCompanyConfidentialinformationshouldnotbedisclosedoutside
oftheimmediatecompanywhileCBImaybedisclosedtoalimitednumberofthird
partiesoperatingunderNonDisclosureAgreements(NDAs)orconfidentialitytermsof
anagreementsuchasaTeamingAgreement,butonlywhenthethirdpartyhasagreed
nottofurtherdisclosetheinformationexceptinaccordancewiththetermsofthe
agreement.ThelegendConfidentialBusinessInformationshouldappearonthetopof
eachpagecontainingCBIsothatthereceivingpartyrecognizestheinformationtobe
governedbythetermsoftheconfidentialityclause.
Mark,aCDMSmithemployee,isinapositiontoaccessalistofCDMSmithsclientsand
projects,includingitsconfidentialclients.Marknoticesthatthelistismarked
CompanyConfidential,indicatingthatitisconsideredconfidentialtothefirmandits
clients.WhenMarksgovernmentclient,GreenWorld,asksforreferencesforsimilar
workthatwehaveperformedforotherclients,Markignoresthefactthatitisconfidential
information,sortsthroughthelist,andsendsasmallportionofittoGreenWorldbut
failstomarkitasCompanyConfidentialorevenBusinessConfidentialInformation.
GreenWorldreceivesthelistandstartscontactingseveraloftheCDMSmithclients
directlyaboutCDMSmithsworkforthoseclients.Whiletheyaredoingthis,another
governmentemployeeasksGreenWorldaboutCDMSmithspastperformanceandthe
GreenWorldsupplieshimwithacopyofthelist.

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Whatviolationshaveoccurredinthisexample?
CDMCompetitorScenario
ItiscommonforCDMSmithtojoinforcesandworkcollaborativelywithanother
engineeringfirmthathasacomplimentaryskillsetinordertocompeteforaproject.
CDMSmithhasenteredintodiscussionswithseveralpotentialteamingpartnersforan
upcomingbusinessopportunitytopursueworkinthehotAsianmarket.Oneofthese
potentialteamingpartners,LexEngineering,isanxioustoimmediatelyproceedfrom
preliminaryteamingdiscussionstotheactualdetailsofwhetherthetwocompaniescan
developpricingthatiscompetitivewiththeotherteams.
Everyoneisworkingonashortfuse,sothefirmsdecidetoskiptheNonDisclosure
AgreementandTeamingAgreementandjustforgeaheadwithratesfortheproject.
Becausetheymustblendtheirrates,bothcompaniesdecidetoprovideactuallaborrates,
overheadsandotherindirectratestoacombinedpricingteamtocrunchthenumbers.
UnknowntoCDMSmith,LexEngineeringhasapolicyofcollectingallthecompetitive
pricingdataitcanfromvariouscompetitorsandmaintainingthatdatainaseparate
databaseforlateruseonotherproposalswheretheteamingpartnermayactuallybe
competingagainsttheircurrentteamingpartner.CDMSmithhasprovided
LexEngineeringactuallaborratesandproposedindirectrateswithoutprotectingthat
datawithaNonDiscloserAgreement(NDA)and/orTeamingAgreement.Additionally,
theyfailedtomarkthedataasConfidentialBusinessInformationamarkingusedto
indicateinformationthatCDMSmithconsiderssensitivedata.Therefore,theteaming
partnermayuseanddisclosetheinformationwithoutfearofliabilityfromCDMSmith.
CDMSmithmayhavelostitscompetitiveedgeinfuturecompetitiveprocurementswhere
thecurrentteamingpartnerisadirectcompetitororonacompetingteam.
ExpenseReports:Marla
Marla,aseniorengineer,pickedupthetabforlunchwithherclient.Marlasubmitsan
expensereporttohermanagerforapprovalseekingreimbursementforthelunchtab.
MarlanotesonherexpensereportLunchwithM.Smithon6/2/10andattachesthe
receipt.
Trueorfalse,theinformationprovidedbyMarlaonherexpensereportissufficientto
allowhermanagertoreviewandapprovetheexpensereport.
Inorderforhermanagertoreviewtheexpensereport,whichofthefollowinginformation
mustMarlainclude?

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ExpenseReports:Aaron
AaronisaCEDemployeeworkingonafederalassignment.Heisspendingseveralnights
inahotelonbusiness.Backattheoffice,heneedstofilloutanexpensereportforhis
hotelstay.
Trueorfalse,AaronshouldgototheGSA(USGeneralServicesAdministration)tolook
uphowmuchoftheexpenseisallowablesincethegovernmentwillpayasumofmoney
forhisstay.
Whenfillingouttheexpensereport,Aaronshould?
ExpenseReports:Patrick
Patrick,ageochemistintheConsultingandEngineeringDivisions(CED),attendsthe
annualWEFTECconferenceinSanDiego.Overthecourseofhistriptotheconference,
Patrickpaysforseveralbreakfastsandluncheswithcash.
Whentheconferenceends,Patrickreturnstohisofficeandfillsoutanexpensereport.
BecausePatrickdidnotsaveanyofthereceiptsfromhisbreakfastsandlunches,hehas
norecordoftheactualamounthespentoneachmeal.
Trueorfalse,Patrickcannotsubmithisexpensereportwithoutdetailedreceiptsforhis
mealexpenses.
ExpenseReports:Carlos
CarlosisamanageratCDMSmith.SinceJonahishisnewemployee,heistakingJonah
outtolunchtowelcomehimtothefirm.Whenthebillarrives,hediscoversthatthe
restaurantdoesnottakeAmericanExpress.Therefore,insteadofusinghiscorporate
AmericanExpresscreditcardaspolicydictates,CarlosuseshispersonalVisacard.
Trueorfalse:Backattheoffice,Carlosrisksnotbeingreimbursedifhedoesnotmarkon
hisexpensereportthathisAmericanExpresswasnotacceptedattherestaurant.
ExpenseReports:Bradley
Bradleyisanewemployee.Sinceheandhisteamareataregionalbusinessmeeting,
Bradleyhasofferedtopayforlunchandexpenseit.Bradleydoesnotyethavehis
corporateAmericanExpresscard,acardemployeesarerequiredtouseforcorporate
expenses.Trueorfalse:Bradleymustaskanothercoworkertousehisorhercorporate
AmericanExpresscardtopayforlunch.

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GivingGifts:GeorgesScenario
George,aclientservicemanager,decidestogoonahuntingtrip.Hewantstoinvitehis
client,theDirectorofEngineeringforNocity.Thehuntinglicenseshaveafacevalueof
$150.00.
WhatshouldGeorgeconsiderbeforeinvitingtheDirectorofEngineeringforNocity?
BecauseNocityisamunicipalclient,SamshouldconsultthePublicServicesGiftand
EntertainmentPolicytodetermineifitisallowableforhimtoinvitetheDirectorof
Engineeringhunting.
Inthiscase,theinvitationtotheDirectorofEngineeringisallowablebecause:
ItisincompliancewithNocityspolicyand
Theticketpriceof$150doesnotexceedthemaximumdollarvalueof$150
establishedbythePSGpolicy.
GivingGifts:Lucy
Lucyisaclientservicemanager.Sheloveswatchingbaseballgamesandwantstotakeher
federalclient,aprojectmanagerforWaterSavestheWorld,toaRedSoxvs.Yankees
game.Theticketshaveafacevalueof$70each.CanLucyinvitetheprojectmanager?
Kickbacks:ChucksScenario,Domestic
Chuck,aProjectManager,ismanagingafieldprojectthatwillrequireCDMSmithto
subcontractavarietyoffieldservicesincludingwelldrilling,sampleanalysis,surveying
services,fencing,andsecurity.Chuckknowsthathisgovernmentclienthasagenerous
budgettocompletetherequiredwork.Theclientcontacthasalsoindicatedindirectly
thatperhapsChuckcouldarrangetosubcontractwithcompanies,especiallysmall
businesses,whomightbewillingtoreturnsomeoftheirsubcontractpaymentsin
appreciationforbeingselectedtoperformtherequiredservices.Thiswillrequirethatthe
subcontractorsincreasetheirpricestocovertheamountofpaymentthatwillbereturned
totheclientcontactthroughCDMSmith.
Chuckapproachestheclientcontacttoconfirmhisunderstandingthatsuchan
arrangementwouldbeconsideredbeneficialtotheclientandperhapsindirectly
beneficialtothefirmintheformoffuturecontractsorfavoredtreatmentinhowclaims
forincreasedcostaretreatedbytheclient.TheclientcontactispleasedthatCDMSmith
hascorrectlyinterpretedthehintsthathewouldbereceptivetothekickbacks.
Chuckcontactsseveralpotentialvendorslocatednearthefieldprojectsite.Hefinds
severalwillingtocooperateinthekickbackscheme,understandingthatthekickbacks

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willgototheclientcontactandnotCDMSmith.Chuckrecommendstotheprocurement
staffthatConstructionWorks,oneofthevendorsinagreementwiththekickbackscheme,
shouldbehiredforthejob.
Evenbeforesubcontractawardsaremade,thereareseveralviolationsoftheAnti
KickbackActbyboththegovernmentclientcontactandtheCDMSmithproject
manager.Identifyalltheviolations:
Kickbacks:GlendasScenario,International
Glendasresponsibilitiesasaclientservicemanagerhavebeenexpandedtoinclude
Noname,acountryoverseas,aspartofthecompanysglobalgrowthstrategy.Excitedby
thisnewopportunity,Glendaundertakesseveralbusinesstripstomeetwithpotential
clientsandexplaintheservicesCDMSmithprovidesandtoexploremarketconditions.
Duringonevisit,GlendameetswithacommissioneroftheBoardofPublicWorksand
learnsthattheBoardwillbeissuingaRequestforProposal(RFP)foradesignbuild
projectforawatertreatmentplant.
ThecommissionermentionsthatifCDMSmithweretobidontheprojectanduse
GoodWorkasubcontractor,wewouldmostassuredlywinthecontract.WhenGlenda
pressesthecommissioneraboutGoodWorkandthisarrangement,thecommissioner
explainsthatGoodWorkwillnotactuallyperformanyservicesorworkbutwillfulfilla
vitalroleontheCDMSmithteambyinvoicingusasetamounteachmonth,whichCDM
Smithwillpay;thisishowcontractsareawardedinNoname.Thecommissionerfurther
explainsthatCDMSmithshouldaddamilliondollarstoitspricetocovertheGoodWork
invoices.Glendaisunsureifsheshouldagreetodothis.GoodWorkappearstobea
devicetheCommissionerisusingtocollectadditionalmoneyforpersonalbenefit.
WhatshouldGlendado?
Glendagoestohermanagerforguidance.Glendasmanagertellsherthatthisistheway
thingsaredoneinNoname,andthereforeGlendamustagreetothecommissioners
termstogetthecontract.
GlendabelievedthattheCommissionerssuggestionwasaviolationofCDMSmithsCode
ofEthicsandconfirmedthatbyreviewingtheCodepostedoninSite.
Whattheaidehadsuggestedwasbothillegalandclearlyinviolationofthecode.
Additionally,Glendarealizedthatbyfollowinghermanagersinstructionsshewouldbe
behavinginamannercountertothecodeofethicsandourcorevalues.However,based
onherconversationwithhermanager,Glendafeltthathermanagerexpectedhertodo
so.
Atthispoint,whatshouldGlendado?

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AcceptingGifts:William
Williamhasjustbeenpromotedtoprojectmanagerhavingpreviouslyworkedasa
residentprojectrepresentative(RPR)inthefield.WhileworkingasanRPR,William
developedprofessionalrelationshipswithmanycontractorsandsubcontractorswhose
workheoversaw.WhenWilliamwasanRPR,onecontractor,Bob,offeredWilliamfour
ticketswithafacevalueof$75.00toasoldoutFalloutBoyconcert.Bobknewthat
WilliamsdaughterwasabigfanofFalloutBoy.WhenWilliamofferedtopayforthe
tickets,BobtoldWilliamthathehadreceivedthemforfree.Williamgraciouslyaccepted
theticketsandsubsequentlytookhisdaughterandtwoofherfriendstotheconcertand
hadagreattime.
ShouldWilliamhaveacceptedtheconcerttickets?
Recently,aclienthiredCDMSmithtodesignnewsewerlinesandcatchbasinsandto
assistwiththecompetitiveprocurementofasubcontractortoinstallthesewerlinesand
catchbasins.Williamwasaskedbytheclienttohelpdeveloptheengineersestimatefor
theRFPandcasuallymentionedthistoafriend.ThefriendwasalsoacquaintedwithBob
andtoldBobthatWilliamwasdevelopingtheengineersestimateandthatBobmight
wanttocontactWilliam.BobgivesWilliamacallandduringthatconversationtells
Williamthatbusinesshasbeenslow,competitionisfierce,heistiredoflosingbidsby
veryclosemargins,anditwouldbegreattoknowtheengineersestimateonthepending
projectwhichisconfidential.
WhatshouldWilliamdo?SinceBobgaveWilliamagift,shouldhetellBobtheengineers
estimate?
BobhasgottenholdofWilliamshomephonenumberandhasbeencallinghimseveral
timesintheevening.HecontinuestoinsistthatWilliamprovidehimwiththeengineers
estimatefortheworkandisstartingtosoundthreatening.WhatshouldWilliamdo?
CopyrightLaws:JoesScenario
Joe,aCDMSmithemployee,wishestodistributetohiscolleaguesaninterestingarticle
relatingtowastewaterdesignthatwaspublishedinarecenteditionofatrade
publication.Joecansimplyphotocopythearticleandpassitouttohiscolleagues.
CopyrightLaws:TheCityOfPewter
CDMSmithhasagreedtoprovidethecityofPewterwithareportregardingprojected
demandsonthecityswatersupplysystem.Gold,Pewterscounty,producedamaster
planinthepreviousyearthatcontainspopulationstatisticsandprojectionsforeach
municipalityinthecounty,includingPewter.Thesestatisticsandprojectionsare
importantdataforouranalysisofdemandsonthecityswatersystem.Becausethe
statisticsandprojectionsareinareportofapublicagency,theyareconsideredtobein

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thepublicdomain,andCDMSmithisfreetoincludetheminitsreportwithoutseeking
thecountyspermission.
CopyrightLaws:LocalNewspaper
AlocalnewspapercarriesaphotographoftwoCDMSmithemployeesmeetingwithacity
mayorregardingahighprofileprojectthatweareworkingonforthecity.BecauseCDM
Smithemployeesareinthepicture,thereisnorestrictiononourabilitytoreprintthe
photographontheinSiteorinaproposal.
CopyrightLaws:JillsScenario
Jill,aCDMSmithemployee,wroteanarticlewhatwaspublishedintheWEF,Waste
EnvironmentalTechnology,Journal.Shecanmake50copiesanddistributethemto
variousclients.
CopyrightLaws:AbbysScenario
Abbyispreparingaproposalforaclientandneedstouseamapoftheclientsproposed
projectsite.ShecanuseamapfromGoogleEarthintheproposal
CopyrightLaws:MarksScenario
Mark,aCDMSmithemployee,downloadedanAWWAManualthroughCDMSmiths
subscriptiontoTechstreet.Hecansendaclientacopyofitinprintordigitalformat.
ReportingViolations
Managersareresponsibleforensuringthatemployeesadheretotheprovisionsofthe
code.Forclarificationorguidanceonanypointinthecode,employeesshouldconsult
theirmanagerortheOfficeofGeneralCounsel.
EmployeesarealsourgedtofamiliarizethemselveswithallofthesectionsoftheHuman
ResourcesPolicyManual,whichsetsforthpoliciesthatfurthergovernthebehaviorof
employees,includingguidelinesforappropriateconduct,zerotolerancepolicy,andthe
firm'spoliciespromotingdiversityandprohibitingdiscriminationandharassment.
ReportingViolations
Itistheresponsibilityofanyemployeehavingknowledgeofanyviolationofthecodeto
disclosesuchactivitytoeithertheemployee'smanager,CorporateHumanResources,or
theOfficeofGeneralCounsel.Suchreportsmaybemadeanonymously.However,ifyou
wouldliketoremainanonymous,theCDMSmithethicshotline,managedbyanoutside
vendor,enablesemployeestoexpressaconcernregardingapotentialethicsviolationand

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providethespecificstofacilitateresponsiblefollowup.Clickthelinkonscreentolearn
moreaboutit.
Anymanagerreceivingareportfromanemployeeregardingaviolationshallpromptly
reportthemattertoseniormanagementandtotheOfficeofGeneralCounsel.Noadverse
actionorretributionofanykindwillbetakenagainstanemployeebecauseheorshe
reportsasuspectedviolationofthecode.
Violationsofthecodemayresultindisciplinerangingfromwarningstodischarge.
Ethicalviolationsassociatedwithgovernmentcontractsandprocurementscarrystiff
consequencesincluding:criminalandcivilpenalties,contractcancellationand
suspensionordebarment.AllCDMSmithemployeesandtheirmanagersworkingon
governmentcontractsmustbeawareoftheadditionalrequirementsandconsequencesof
noncompliance,mostofwhichhavebeenaddressedinthiscourse.
Section3:Summary
Inthissection,wereviewedscenariosthatillustratesomeofthemaintopicsinCDM
Smithscodeofethics.Wealsocoveredhowtoproperlyreportethicalviolations.Glossary
termsintroducedinthissectionareshownhere.Clickatermtoviewitsdefinitioninthe
glossary.