UNIT – I PROFESSIONAL PRACTICE AND ETHICS

ETHICS INTRODUCTION
Ethics is very significant in the world of business. The word “Ethics” originates from the
Greek word “ethos” meaning “character”. Ethics are a set of rules or principles that are
generally considered as standards or good and bad or right and wrong, which are usually
imposed by an external group or a society or a profession or so.

It is the study of morally appropriate behavior and decisions, and examining what should
be done. Ethics helps to mold and shape human behavior. It aids employees to perform
their roles. However, ethics cannot be instilled unless we ‘practice what we preach’.
Otherwise, the effect of preaching will last only as long as a house of cards.

Corporate social responsibility (CSR), on the other hand, is the process by which
businesses negotiate their role in the society. The two terms—ethics and CSR—are
intertwined. In fact, in many firms, ethics and CSR are interlinked. In some cases, CSR
is also considered to be a guarantee of ethical behavior.

CSR has now become a global issue and has gained prominence in the language and
strategy of every business. Today, the image of an organization is judged by the CSR
activities that it performs. Governments and many international organizations are
increasingly encouraging CSR and forming CSR partnerships.

ETHICS – DEFINITION AND CHARACTERSTICS

“Ethics is the science of judging specifically human ends and the relationship of means
to those ends. In some way it is also the art of controlling means so that they will serve
human ends.” — Thomas Garret

“‘Ethics’ is the discipline that examines one’s moral standard or moral standards of
society. It asks how those standards apply to our life and whether these standards are
reasonable or unreasonable — that is, whether these are supported by good reason or
poor one.” — Manuel G. Velasquez

“Ethics refer to a set of moral principles which should play a very significant role in
guiding the conduct of managers and employees in the operation of any enterprise.” —
Dale S. Beach

“Ethics is that discipline which deals with what is good and bad and also deal with moral
duty and obligation. Ethics are set of moral principles or values.” — Carol Buchholtz

These definitions reveal the following characteristics of ethics:

(i) Ethics is a set of moral standards and values acceptable in a society. It is relevant in
the context of a society only.
(ii) Ethics guides human conduct or behavior. If any member of the society behaves
contrary to the norms and customs, society disapproves it. Moral principles serve as a
guide for personal and professional conduct. Ethics checks people from taking decisions
and actions which are harmful to society.

(iii) Ethical principles are universal in nature. These prescribe obligations and virtues for
everybody in a society. Ethics is important not only in business and politics but in every
human endeavor.

(iv) Ethical standards differ from society to society. What is considered ethical behavior
in one society might be considered unethical in another. For example, abortion and
artificial birth control is a taboo in most of the Islamic countries and catholic Christian
communities. But these practices are fully ethical in China, Russia, Japan and many
other countries. Similarly, euthanasia (mercy killing) is permitted in some countries but
is strictly unethical in most countries.

(v) Ethics is normative or prescriptive in nature. It deals not with what is but what ought
to be. It does not rest on feelings of approval or disapproval but on principles. For
example, it may be unpleasant to fire an employee but morality may require it.

ETHICS – 6 BASIC ETHICAL PRINCIPLES

Beneficence, Least Good, Autonomy, Non-Violence or Peace, Justice and Truthfulness

Principle # 1. Beneficence:

The beneficence principle enunciates a fundamental principle of ethical conduct. This

essentially means doing well to others. According to this principle, all our thoughts and
actions must be directed to ensure that others benefit from these thoughts and actions.
This can be done without much difficulty. People generally tend to care more about
themselves than others. Even small actions performed by us can be based on this
principle.

As an example, consider a person parking his/her motor vehicle, a car or a motor cycle.
He/She must park the vehicle in such a way that it does not block pedestrians walking
on the road, prevent smooth flow of traffic, or obstruct another person‘s parked vehicle.
Many times, people park their vehicle oil the road without caring about the inconvenience
caused to others.

Principle # 2. Least Good:

The second ethical principle to keep in mind is that our actions must result in the least
harm to others. There can be situations where, even if we intend to do well to others,
our actions may cause some harm to them. In such a situation, it is necessary to ensure
that our actions are such that we cause the least harm to others.

Consider another example of a day-to-day occurrence. Young people travelling in a city

bus are often seen grabbing a seat as soon as it is vacant, while a senior citizen or a
woman accompanying a small child has to travel standing. It is your duty to offer your
seat to such people if you are sitting.

If you are standing and a seat falls vacant, do not jump to catch that seat, taking
advantage of their frailty or inability to move fast. Allow them to occupy that seat. This
is the least that you can do.
Principle # 3. Autonomy:

This principle essentially states that we need to respect the autonomy of others for
performing actions. We should not impose our views on others. This principle assumes
that every person knows what is good for himself/herself. One can also look at it from
the point of view of the person performing the action, who decides that what he/she is
going to do is good for himself/herself.

As an example, consider your own case. As a student you may have opted for a course
based on your love for the subject. On the other hand, some of you may have taken up
the course because your parents took the decision for you. They have invaded your
autonomy to take decisions about yourself.
This is a very common occurrence and many students end up pursuing a course for
which they have no aptitude or do not like.

Principle # 4. Non-Violence or Peace:

This principle has become very relevant today. Violence has now pervaded all sections
of society and has become its greatest bane. One of the basic ethical principles is to stop
violence and to not support those who resort to it.
In a case that was reported by the press, a group was collecting donations for a festival.
The group approached a small shopkeeper and demanded Rs. 1000. The shopkeeper
refused to pay more than Rs. 250. The group resorted to violence, beat him up, and
ransacked his shop. It is to be remembered that donations, by their very nature, are
voluntary.

However, extortion of money in the name of religious festivals and, in case someone
refuses to pay, resorting to violence and causing bodily harm have become common
nowadays. As a society, we have become violence- prone and there is an urgent need
to curb this to prevent further damage.

Thus, commitment to peace and non-violence is a fundamental principle of ethics. There

should be a commitment to not resort to violence and explore other better options to
solve a problem.

Principle # 5. Justice:

The principle of justice states that our actions must be such that they are fair to everyone
concerned. All ethical decisions must be based on the principle of fairness. There can be
situations where a deviation from past practice is required. All such cases must be
analyzed and justified before a decision different from earlier decisions is made.

For example, consider the many development-induced displacements that make

headlines in the newspapers these days. The building of a dam, the requirement of a
weapon-testing ground, the need for a nuclear power plant, or the need for an
expressway might necessitate displacement of a community to clear land for such a
purpose.

If you take the specific case of a dam, it is a necessary part of infrastructure development
as it provides water for irrigation and electric power generation. The construction of a
dam is, thus, for the common good of a large section of the society. However, thousands
of people are displaced from their land and their means of livelihood threatened because
of such a project.

It is generally found that the rehabilitation of people affected by such projects is shoddy.
They are left in the lurch at the end of the project with, in some cases, inadequate
compensation and in others, no compensation, land, or means to earn a living. Here,
injustice is done to the thousands affected.

Principle # 6. Truthfulness:
Truthfulness is the quality of telling, adhering to, or upholding the truth. This appears to
be a universal principle. Truthfulness also leads to other values such as trustworthiness
and honesty. Mahatma Gandhi highlighted this principle when he undertook the freedom
struggle and named it Satyagraha, desire for truth.

PROFESSIONAL ETHICS

Professional ethics: Profession is a commitment to a designated and organized

occupation by virtue of being an authority over a body of knowledge with requisite skills
acquired through specialized training. An occupation becomes a profession when a group
of people sharing the same occupation work together in a morally acceptable way with
members setting and following a certain ethics code. A professional is a practitioner
belonging to a specific profession. Professional ethics, as opposed to personal values and
morality, is a set of ethical standards and values a practicing engineer is required to
follow. It sets the standards for professional practice, and is only learned in a
professional school or while practicing one’s own profession.

Today, it is an essential part of professional education because it helps students deal

with issues they will face.

The scope of engineering ethics envelopes diverse activities like

1. Engineering as a social experimentation
2. Engineers responsibility for safety
3. Role of engineers, managers, consultants etc.
4. Rights of engineers
5. Moral reasoning and ethical theories
6. Responsibility to employers
7. Global issues and concerns

The best way to teach engineering ethics is by using case studies—not just the disaster
cases that make the news, but the kinds of cases that an engineer is more likely to
encounter. Many real time cases are available or some hypothetical cases can be
constructed and there are methods for analyzing them.

Engineering ethics can be taught in a free-standing course, but there are strong
arguments for introducing ethics in technical courses as well. If the subject of
professional ethics is how members of a profession should, or should not, affect others
in the course of practicing their profession, then engineering ethics is an essential aspect
of engineering itself and education in professional responsibilities should be part of
professional education in engineering, just as it is in law and medicine.
Professional Codes of Ethics: A code of ethics prescribes how professionals are to
pursue their common ideal so that each may do the best at a minimal cost to oneself
and those they care about. The code is to protect each professional from certain
pressures (for example, the pressure to cut corners to save money) by making it
reasonably likely (and more likely then otherwise) that most other members of the
profession will not take advantage. A code is a solution to a coordination problem. A
professional has obligations to the employer, to customers, to other professionals-
colleagues with specific expectations of reciprocity.

Individual Responsibility: An individual in his professional capacity has responsibility for

the regular tasks he is assigned, for the outcomes of the actions and decisions. A
professional is answerable and liable for the actions. He should have the capacity and
moral strength to defend his actions/decisions.

Individuals may fail for one or the other of the following reasons:
1. Failure to meet minimum appropriate standards or falling very much below
expectations due to negligence,
2. Deliberate underperformance, human values; morals, values and ethics for
understanding of how in order for individuals, organizations and societies to endure and
function effectively, it is essential that an individual's positive exalting forces be
rediscovered and revitalized.

Human values embrace the entire range of values pertinent to the human condition,
interest, behavior, and aspiration. While laws are a set of rules for personal or corporate
behavior and working against such rules will attract recrimination and punishment,
morals on the other hand are a set of standards for personal behavior and ethics are a
set of standards for professional behavior.
Morals and ethics are self-imposed or regulated and voluntary when broadly interpreted.
Work ethic Work ethic is a set of values based on hard work and diligence. It is also a
belief in the moral benefit of work and its ability to enhance character. A work ethic may
include being reliable, having initiative, or pursuing new skills.

ETHICS IN ENGINEERING/ ENGINEERING ETHICS

Engineering ethics is the field of system of moral principles that apply to the practice
of engineering. The field examines and sets the obligations by engineers to society, to
their clients, and to the profession. As a scholarly discipline, it is closely related to
subjects such as the philosophy of science, the philosophy of engineering, and the ethics
of technology.
Ethics are principles followed depending upon the moral responsibility that a person
feels. The study of related questions about moral ideals, character, policies and
relationships of people and organizations involved in technological activity, can be
termed as engineering ethics.
An engineer whether he works individually or works for a company, has to go through
some ethical issues, mostly under the conditions such as, conceptualization of a product,
issues arising in design and testing departments, or may be on the issues involving the
manufacturing, sales and services. Questions related to morality also arise during
supervision and team works.
The ethical decisions and moral values of an engineer need to be considered because
the decisions of an engineer have an impact the products and services - how safe they
are to use, the company and its shareholders who believe in the goodwill of the
company, the public and the society who trusts the company regarding the benefits of
the people, the law which cares about how legislation affects the profession and
industry, the job and his moral responsibilities and about how the environment gets
affected, etc.
Not only an engineer, but everyone has to follow a set of morals in order to keep away
from getting morally degraded. Our behavior should include the following –
 Respecting others and ourselves.
 Respecting the rights of others.
 Keeping promises.
 Avoiding unnecessary problems to others.
 Avoiding cheating and dishonesty.
 Showing gratitude towards others and encourage them to work.
 Engineers shall hold paramount the safety, health and welfare of the public
and shall strive to comply with the principles of sustainable development in
the performance of their professional duties.
 Engineers shall perform services only in areas of their competence.
 Engineers shall issue public statements only in an objective and truthful
manner.
 Engineers shall act in professional matters for each employer or client as
faithful agents or trustees, and shall avoid conflicts of interest.
 Engineers shall build their professional reputation on the merit of their
services and shall not compete unfairly with others.
 Engineers shall act in such a manner as to uphold and enhance the honor,
integrity, and dignity of the engineering profession and shall act with zero-
tolerance for bribery, fraud, and corruption.
 Engineers shall continue their professional development throughout their
careers, and shall provide opportunities for the professional development of
those engineers under their supervision.
 Engineers shall, in all matters related to their profession, treat all persons
fairly and encourage equitable participation without regard to gender or
gender identity, race, national origin, ethnicity, religion, age, sexual
orientation, disability, political affiliation, or family, marital, or economic
status.

Most national engineering associations, the same that allow you to practice engineering
have their own set of rules, pretty similar to this one.
Morality commands respect for persons, both others and ourselves. It involves being
fair and just, meeting obligations and respecting rights and not causing unnecessary
harm by dishonesty and cruelty or by hubris.
PERSONAL ETHICS
Personal ethics defined

Personal ethics are ethical principles that a person uses when making decisions and
behaving in both personal and professional settings. These ethics influence various
aspects of a person’s life and help individuals develop their work ethic, personal and
professional goals, and values. Individuals use their ethics to determine between right
and wrong and influence how someone behaves in challenging situations. Each person’s
code of ethics varies, but many people share common ethics such as honesty and
respect.
Personal ethics in the workplace

Personal ethics refers to a person's beliefs about what's right and wrong and guides
individuals in the decisions they make both in and out of the workplace. Your unique
ethics will determine how you handle certain situations at work as well as how you grow
and develop within your career. Here we explore what personal ethics are, why they are
important, the difference between personal and professional ethics, and common
examples of personal ethical principles.
Examples of personal ethics

The following are examples of a few of the most common personal ethics shared by
many professionals:

Honesty
Many people view honesty as an important ethic. This ethic transfers from an individual’s
personal life into their professional life and ensures they are truthful in all scenarios.

Loyalty
Loyalty is another common personal ethic that many professionals share. People who
have a personal ethic of loyalty demonstrate trustworthiness and fidelity in all of their
dealings and can be trusted by others to maintain their loyal behavior no matter the
situation.

Integrity
Integrity refers to a person’s commitment to upholding their moral principles in any
situation and is an important component of trustworthy and sound relationships both in
and out of the workplace. People with integrity are reliable, responsible, and hold
themselves accountable for their actions.

Respect
People with sound personal ethics demonstrate respect for those around them both at
work and in their personal lives. They respect others’ autonomy, rights, and interests,
and do not discriminate based on someone’s religion, sex, or race.

Selflessness
People who are selfless put others first and do not act in selfish or self-serving ways.
They consider the needs and situations of others and prioritize these needs before their
own.

Responsibility
Someone with a strong moral code is willing to take responsibility for their actions and
make changes or amends when necessary.

Why are personal ethics important?

A person’s personal ethical principles are important for several reasons, including that
they:

 Allow leaders to more effectively lead their teams: When a leader

regularly follows a predictable and respectable code of ethics, their team is more likely
to follow their lead and feel confident in the contributions they make to the organization
as a whole.

 Instill a sense of trust and support in leaders: Leaders and other

professionals who regularly behave in the same way no matter the situation are more
likely to be trusted and supported by colleagues and employees. Individuals who follow
a sound ethical code are easier to believe in and are more likely to establish credibility
among others.

 Give individuals a solid basis of which to determine the most

appropriate action in any given situation: When a person has solid personal ethics,
they are better able to make decisions and take action in situations that may otherwise
seem challenging.

 Improve the decision-making process: A professional’s ability to make

decisions is based on their personal and professional ethics and what they believe to be
good or bad. Having strong ethics makes the decision-making process easier and more
streamlined.

 Set a standard of behavior: In the workplace and in life, ethics help establish
an appropriate standard of behavior for individuals. This behavior is called ethical
behavior and refers to a person’s ability to make sound decisions based on their ethical
nature.

 Support motivation: Individuals with strong ethics are often easily self-
motivated and willing to go the extra mile to accomplish a task or goal on time and in
the correct manner.

How to identify your personal ethics?

The following are steps you can take to identify your unique personal ethical beliefs so
you can improve upon them and demonstrate them in your daily life:
1. Get clear on your priorities. Knowing what means the most to you can help
you determine your personal set of ethics. For example, if you regularly put others first,
you likely have a personal ethic of selflessness. Make a list of your personal priorities in
life and see if you can connect each priority with a unique ethic.
2. Write down your goals. Having a concrete idea of your personal and
professional goals will help you establish your unique ethics. For example, if your goal is
to maintain honesty and integrity in everything you do, these are likely two of your
personal ethics.
3. Consider your practices and beliefs. What you believe in and the things
you practice will shed light on your unique ethics. For example, if you believe that one
should be willing to take responsibility for their actions no matter the situation, you likely
have responsibility as a personal ethic.

CODE OF ETHICS

Code of Ethics Sample Template:

This Code of Ethics sets forth legal and ethical standards for directors, officers and
employees of [company name]. This Code is intended to deter wrongdoing and to
promote the ethical conduct of all Company business.

Compliance with Laws, Rules and Regulations

[Company name] requires that all employees, officers and directors comply with all laws,
rules and regulations applicable to the business. You are expected to use sound
judgment and common sense to comply with all applicable laws, rules and regulations.

If you become aware of the violation of any law, rule or regulation by the Company,
whether by its officers, employees, directors, or any third party doing business on behalf
of the Company, it is your responsibility to promptly report the matter to your supervisor.

Conflicts of Interest
Employees, officers and directors must act in the best interests of the Company. You
must refrain from engaging in any activity or having a personal interest that presents a
"conflict of interest." It is your responsibility to disclose any transaction or relationship
that reasonably could be expected to give rise to a conflict of interest.

Confidentiality
Employees, officers and directors must maintain the confidentiality of confidential
information entrusted to them in their capacity with [Company name]. Unauthorized
disclosure of any confidential information is prohibited. Additionally, employees should
take appropriate precautions to ensure that confidential or sensitive business
information, whether it is proprietary to the Company or another company, is not
communicated within the Company except to employees who have a need to know such
information to perform their responsibilities.

Honest and Ethical Conduct and Fair Dealing

Employees, officers and directors should deal honestly, ethically and fairly with the
[Company name]'s suppliers, customers, competitors and employees. Statements
regarding the Company's products and services must not be untrue, misleading,
deceptive or fraudulent. You must not take unfair advantage of anyone through
manipulation, concealment, abuse of privileged information, misrepresentation of
material facts or any other unfair-dealing practice.

Protection and Proper Use of Corporate Opportunities

Employees, officers and directors must advance the Company's legitimate interests when
the opportunity to do so arises. You must not take for yourself personal opportunities
that are discovered through your position with the Company or the use of property or
information of the Company.

Accuracy of Books and Records and Public Reports

Employees, officers and directors must honestly and accurately report all business
transactions. You are responsible for the accuracy of your records and reports. Accurate
information is essential to the Company's ability to meet legal and regulatory obligations.

Reporting and Compliance Procedures

Every employee, officer and director has the responsibility to ask questions, seek
guidance, and report suspected violations and express concerns regarding compliance
with this Code. Any employee, officer or director who knows or believes that any other
employee or representative of the Company has engaged or is engaging in Company-
related conduct that violates applicable law or this Code should report such information
to his or her supervisor or to the General Counsel. Such reports should be made without
any fear of retaliation. The Company will not discipline, discriminate against or retaliate
against any employee who reports such conduct, unless it is found that the report was
made with knowledge that it was false, or who cooperates in any investigation or inquiry
regarding such conduct.

What to Include Your Code of Ethics:

A code of ethics consists of four key sections detailed below. You can cover all of them
in a short summary Code of Ethics as we have above, or expand on them in detail so
employees are clear on how to handle many common situations.

1. The work environment.

Employees should act with integrity, comply with laws, maintain a professional work
environment and comply with company policies. They should treat customers,
colleagues, and partners ethically at all times.

2. Conflicts of interest.
A company's reputation depends on the actions and integrity of its employees. It is
essential that they avoid relationships and activities that hurt, or appears to hurt, their
ability to make objective and fair decisions.

3. Protecting company assets.

Employees should always act to protect company assets, including physical, intellectual,
and electronic or digital properties.

4. Anti-bribery and corruption.

A company's integrity is essential for maintaining trustworthiness and reputation.
Employees should always do their work fairly, honestly, and legally.
5. Attendance and punctuality.
Employees are expected to be regular and punctual in attendance. This means being in
the office, ready to work, at starting time each day. Absenteeism and tardiness burden
other employees and the company.

6. Absence without notice.

Employees who are unable to work due to illness or an accident should notify their
supervisor. This allows the company to arrange for coverage of their duties and helps
others continue to work in their absence. If an employee does a report for work and the
company is not notified of an employee's status for 3 days, it is typically considered a job
abandonment.

7. General harassment and sexual harassment.

This company is committed to providing a work environment free of discrimination and
unlawful harassment. Actions, words, jokes, or comments based on an individual’s sex,
race, ethnicity, age, religion, or any other legally protected characteristic are not
tolerated.
8. Cell phone use at work.
Personal cell phone usage during work hours is discouraged, except in extreme cases
such as an emergency.
9. Dress code.
A professional appearance is important when employees work with customers or
potential customers. Employees should be well groomed and dressed appropriately for
the business and for their position.

10. Substance abuse.

The manufacture, distribution, possession, sale, or purchase of controlled substances of
abuse on company property is prohibited. Being under the influence of illegal drugs,
alcohol, or substances of abuse on company property is prohibited. Working while under
the influence of prescription drugs that impair performance is prohibited.

11. Tobacco products.

The use of tobacco products on company property, outside of permitted areas, is
specifically prohibited.

12. Internet use at work.

Employees may use the Internet when appropriate to access information needed to
conduct a business company business. Use of the Internet must not disrupt or injure the
company computer network. Use of the Internet must not interfere with an employee's
productivity.

RESPONSIBILITIES OF THE ENGINEERING PROFESSION/

PROFESSIONAL RESPONSIBILITY

Engineering is an important and learned profession. As members of this profession,

engineers are expected to exhibit the highest standards of honesty and integrity.
Engineering has a direct and vital impact on the quality of life for all people. Accordingly,
the services provided by engineers require honesty, impartiality, fairness, and equity,
and must be dedicated to the protection of the public health, safety, and welfare.
Engineers must perform under a standard of professional behavior that requires
adherence to the highest principles of ethical conduct.

I. Fundamental Canons
Engineers, in the fulfillment of their professional duties, shall:
 Hold paramount the safety, health, and welfare of the public.
 Perform services only in areas of their competence.
 Issue public statements only in an objective and truthful manner.
 Act for each employer or client as faithful agents or trustees.
 Avoid deceptive acts.
 Conduct themselves honorably, responsibly, ethically, and lawfully so as to
enhance the honor, reputation, and usefulness of the profession.

II. Rules of Practice

1. Engineers shall hold paramount the safety, health, and welfare of the public.
 If engineers' judgment is overruled under circumstances that endanger life or
property, they shall notify their employer or client and such other authority as may be
appropriate.
 Engineers shall approve only those engineering documents that are in conformity
with applicable standards.
 Engineers shall not reveal facts, data, or information without the prior consent of the
client or employer except as authorized or required by law or this Code.
 Engineers shall not permit the use of their name or associate in business ventures
with any person or firm that they believe is engaged in fraudulent or dishonest
enterprise.
 Engineers shall not aid or abet the unlawful practice of engineering by a person or
firm.
 Engineers having knowledge of any alleged violation of this Code shall report thereon
to appropriate professional bodies and, when relevant, also to public authorities, and
cooperate with the proper authorities in furnishing such information or assistance as
may be required.

2. Engineers shall perform services only in the areas of their competence.

 Engineers shall undertake assignments only when qualified by education or
experience in the specific technical fields involved.
 Engineers shall not affix their signatures to any plans or documents dealing with
subject matter in which they lack competence, nor to any plan or document not prepared
under their direction and control.
 Engineers may accept assignments and assume responsibility for coordination of an
entire project and sign and seal the engineering documents for the entire project,
provided that each technical segment is signed and sealed only by the qualified engineers
who prepared the segment.

3. Engineers shall issue public statements only in an objective and truthful manner.
 Engineers shall be objective and truthful in professional reports, statements, or
testimony. They shall include all relevant and pertinent information in such reports,
statements, or testimony, which should bear the date indicating when it was current.
 Engineers may express publicly technical opinions that are founded upon knowledge
of the facts and competence in the subject matter.
 Engineers shall issue no statements, criticisms, or arguments on technical matters
that are inspired or paid for by interested parties, unless they have prefaced their
comments by explicitly identifying the interested parties on whose behalf they are
speaking, and by revealing the existence of any interest the engineers may have in the
matters.

4. Engineers shall act for each employer or client as faithful agents or trustees.
 Engineers shall disclose all known or potential conflicts of interest that could influence
or appear to influence their judgment or the quality of their services.
 Engineers shall not accept compensation, financial or otherwise, from more than one
party for services on the same project, or for services pertaining to the same project,
unless the circumstances are fully disclosed and agreed to by all interested parties.
 Engineers shall not solicit or accept financial or other valuable consideration, directly
or indirectly, from outside agents in connection with the work for which they are
responsible.
 Engineers in public service as members, advisors, or employees of a governmental
or quasi-governmental body or department shall not participate in decisions with respect
to services solicited or provided by them or their organizations in private or public
engineering practice.
 Engineers shall not solicit or accept a contract from a governmental body on which a
principal or officer of their organization serves as a member.

5. Engineers shall avoid deceptive acts.

 Engineers shall not falsify their qualifications or permit misrepresentation of their or
their associates' qualifications. They shall not misrepresent or exaggerate their
responsibility in or for the subject matter of prior assignments. Brochures or other
presentations incident to the solicitation of employment shall not misrepresent pertinent
facts concerning employers, employees, associates, joint ventures, or past
accomplishments.
 Engineers shall not offer, give, solicit, or receive, either directly or indirectly, any
contribution to influence the award of a contract by public authority, or which may be
reasonably construed by the public as having the effect or intent of influencing the
awarding of a contract. They shall not offer any gift or other valuable consideration in
order to secure work. They shall not pay a commission, percentage, or brokerage fee in
order to secure work, except to a bona fide employee or bona fide established
commercial or marketing agencies retained by them.

III. Professional Obligations

1. Engineers shall be guided in all their relations by the highest standards of

honesty and integrity.
o Engineers shall acknowledge their errors and shall not distort or alter the facts.
o Engineers shall advise their clients or employers when they believe a project will not
be successful.
o Engineers shall not accept outside employment to the detriment of their regular work
or interest. Before accepting any outside engineering employment, they will notify their
employers.
o Engineers shall not attempt to attract an engineer from another employer by false or
misleading pretenses.
o Engineers shall not promote their own interest at the expense of the dignity and
integrity of the profession.

2. Engineers shall at all times strive to serve the public interest.

o Engineers are encouraged to participate in civic affairs; career guidance for youths;
and work for the advancement of the safety, health, and well-being of their community.
o Engineers shall not complete, sign, or seal plans and/or specifications that are not in
conformity with applicable engineering standards. If the client or employer insists on
such unprofessional conduct, they shall notify the proper authorities and withdraw from
further service on the project.
o Engineers are encouraged to extend public knowledge and appreciation of
engineering and its achievements.
o Engineers are encouraged to adhere to the principles of sustainable development1 in
order to protect the environment for future generations.
o Engineers shall continue their professional development throughout their careers and
should keep current in their specialty fields by engaging in professional practice,
participating in continuing education courses, reading in the technical literature, and
attending professional meetings and seminars.

3. Engineers shall avoid all conduct or practice that deceives the public.
o Engineers shall avoid the use of statements containing a material misrepresentation
of fact or omitting a material fact.
o Consistent with the foregoing, engineers may advertise for recruitment of personnel.
o Consistent with the foregoing, engineers may prepare articles for the lay or technical
press, but such articles shall not imply credit to the author for work performed by others.
4. Engineers shall not disclose, without consent, confidential information
concerning the business affairs or technical processes of any present or former client or
employer, or public body on which they serve.
o Engineers shall not, without the consent of all interested parties, promote or arrange
for new employment or practice in connection with a specific project for which the
engineer has gained particular and specialized knowledge.
o Engineers shall not, without the consent of all interested parties, participate in or
represent an adversary interest in connection with a specific project or proceeding in
which the engineer has gained particular specialized knowledge on behalf of a former
client or employer.

5. Engineers shall not be influenced in their professional duties by conflicting

interests.
o Engineers shall not accept financial or other considerations, including free
engineering designs, from material or equipment suppliers for specifying their product.
o Engineers shall not accept commissions or allowances, directly or indirectly, from
contractors or other parties dealing with clients or employers of the engineer in
connection with work for which the engineer is responsible

6. Engineers shall not attempt to obtain employment or advancement or

professional engagements by untruthfully criticizing other engineers, or by other
improper or questionable methods.
o Engineers shall not request, propose, or accept a commission on a contingent basis
under circumstances in which their judgment may be compromised.
o Engineers in salaried positions shall accept part-time engineering work only to the
extent consistent with policies of the employer and in accordance with ethical
considerations.
o Engineers shall not, without consent, use equipment, supplies, laboratory, or office
facilities of an employer to carry on outside private practice.

7. Engineers shall not attempt to injure, maliciously or falsely, directly or

indirectly, the professional reputation, prospects, practice, or employment of other
engineers. Engineers who believe others are guilty of unethical or illegal practice shall
present such information to the proper authority for action.
o Engineers in private practice shall not review the work of another engineer for the
same client, except with the knowledge of such engineer, or unless the connection of
such engineer with the work has been terminated.
o Engineers in governmental, industrial, or educational employ are entitled to review
and evaluate the work of other engineers when so required by their employment duties.
o Engineers in sales or industrial employ are entitled to make engineering comparisons
of represented products with products of other suppliers.

8. Engineers shall accept personal responsibility for their professional activities,

provided, however, that engineers may seek indemnification for services arising out of
their practice for other than gross negligence, where the engineer's interests cannot
otherwise be protected.
o Engineers shall conform to state registration laws in the practice of engineering.
o Engineers shall not use association with a no engineer, a corporation, or partnership
as a "cloak" for unethical acts.

9. Engineers shall give credit for engineering work to those to whom credit is due,
and will recognize the proprietary interests of others.
o Engineers shall, whenever possible, name the person or persons who may be
individually responsible for designs, inventions, writings, or other accomplishments.
o Engineers using designs supplied by a client recognize that the designs remain the
property of the client and may not be duplicated by the engineer for others without
express permission.
o Engineers, before undertaking work for others in connection with which the engineer
may make improvements, plans, designs, inventions, or other records that may justify
copyrights or patents, should enter into a positive agreement regarding ownership.
o Engineers' designs, data, records, and notes referring exclusively to an employer's
work are the employer's property. The employer should indemnify the engineer for use
of the information for any purpose other than the original purpose.

PROFESSIONALISM

What Is Professionalism?

As the saying goes, "Professionalism is not the job you do, it's how you do the
job."

Professionalism is skill or behavior that goes beyond what an ordinary person would have
or behaving in a more formal or business-like manner.

Professionalism is how you display your behavior, attitude and level of skills in the
workplace. Being professional at work can be described in many ways, with one of the
most agreed-upon definitions being a person’s ability to demonstrate a conscientious,
courteous and business-oriented manner while on the job. Professionalism is typically
always expected within the workplace and is a quality that all employees should strive
to embrace and exhibit.

Examples of professional behavior at work

The following are a few specific examples of professionalism in the workplace:

 You have a disagreement with a coworker on how to best complete a project. The
coworker has upset you and refuses to hear your ideas as to how the project should be
done. Rather than gossiping about your coworker to others or sending your coworker an
unprofessional email, you ask to speak with your manager in private about the best way
to address the situation.

 You have a meeting with your manager that is set to begin at 9 a.m. Rather than
arriving exactly at 9 a.m., you arrive no later than 8:45 a.m. to prepare for the meeting
and go over your notes.

 You have made a mistake on a project that will impact when the project is able to be
turned in. Instead of trying to place the blame on other members of your team who are
also working on the project, you approach your manager and let them know that you
have made a mistake. You then ask your manager what you can do to fix the mistake
and let them know that you will strive to ensure it doesn’t happen again.
 In a meeting, you raise your hand to share an educated opinion on what is being
discussed. You keep your share to a few minutes so that others in the meeting will also
have the opportunity to provide input.

8 CHARACTERISTICS OF PROFESSIONALISM

What are the attributes that will mark you out as a professional? Let's look at eight key
characteristics:

1. Competence
As a professional, you get the job done – and done well. Your abilities match the
requirements of your role, and you often produce results that exceed expectations.
But you never plow on simply for the sake of appearances. Instead, your professionalism
allows you to manage your own and others' expectations, and to ask for support when
necessary.

2. Knowledge
Professionalism involves developing detailed, up-to-date knowledge, which is often
highly specialized . At every stage of your career you can strive to master your role –
and keep adding to what you know.
It's also important to put your knowledge into action. Being professional means feeling
confident to show what you know – not for self-promotion, but to help yourself and
others to succeed.

3. Conscientiousness
Professionalism involves being reliable, setting your own high standards, and showing
that you care about every aspect of your job. It's about being industrious and organized,
and holding yourself accountable for your thoughts, words and actions. But don't confuse
conscientiousness with working longer hours than everyone else, or obsessing about
details. True professionals plan and prioritize their work to keep it under control, and
they don't let perfectionism hold them back .

4. Integrity
Integrity is what keeps professional people true to their word. It also stops them
compromising their values, even if that means taking a harder road. Integrity is bound
up with being honest – to yourself, and to the people you meet. Your beliefs and
behaviors are aligned, and everyone can see that you're genuine.

5. Respect
Professionalism means being a role model for politeness and good manners – to
everyone, not just those you need to impress. What's more, you show that you truly
respect other people by taking their needs into account, and by helping to uphold their
rights.

6. Emotional Intelligence
To be a true professional you need to stay professional even under pressure. This takes
strategies for managing your emotions, plus a clear awareness of other people's feelings.
In short, emotional intelligence is essential. Sometimes, professionalism means keeping
your emotions in check. But at other times it's important to express your feelings, in
order to have meaningful conversations or to stand up for what you believe in.
7. Appropriateness
A big part of being professional is knowing what's appropriate in different situations. It
avoids awkwardness or upset, boosts your credibility, and helps you to feel secure in
your role. Appropriateness relates to outward appearances, such as dress, personal
grooming and body language. But it also covers the way you speak and write, the topics
you choose to discuss, and how you behave with others.
8. Confidence
Well-founded confidence reassures and motivates other people, boosting your ability to
influence and lead . It also pushes you to take on new challenges, because you don't
fear damaging your professional reputation if things go wrong.
Professionalism makes you confident about what you’re doing now, but always eager to
do it better and achieve more.

Professionalism in the Workplace

How can you show your professionalism? Follow these dos and don'ts:

Make It a Priority to Be on Time

When you arrive late for work or meetings, it gives your boss and co-workers the
impression you don't care about your job and, if it affects them, it's like saying you don't
value their time. Pay attention to the clock. Set alarms if you have to. Show up at least
a few minutes before you are supposed to start work and return from your breaks on
time.

Don't Be a Grump
Leave your bad mood at the door when you come to work. We all have days when we
aren't feeling our best. Remember not to take it out on your boss, your co-workers, and
especially your customers. If work is the thing that is causing your bad mood, it may be
time to think about quitting your job.

Dress Appropriately
Whether you have to dress up for work or you can wear more casual clothes, your
appearance should always be neat and clean. A wrinkled suit looks no better than a
ripped pair of jeans does.

Choose the type of clothing your employer requires. If there isn't a dress code, pick
attire that is the norm for your place of employment.

Watch Your Mouth

Swearing, cursing, or cussing—whatever you call it—has no place in most workplaces.
Unless you know it is okay in yours, refrain from using foul language, particularly if those
who you might offend are present. Here's a good rule of thumb to follow: If you wouldn't
say it to your grandmother, don't say it at work.

Offer Assistance to Your Colleagues

A true professional is willing to help their co-workers when they are overburdened or
facing a challenge at work. They aren't afraid to share knowledge, opinions, or simply
an extra pair of hands. One person's success reflects well on everyone in their workplace.
Don't Gossip
While you may be tempted to tell your cubicle neighbors what you heard about Suzy or
Sam down in accounting, gossiping makes you look like a middle school student. If you
know something you simply must share, tell someone who has nothing to do with your
workplace, like your sister, mother, or best friend.

Try to Stay Positive

Negativity is contagious. If you complain incessantly about your workplace, it will bring
others down. Your boss certainly will not appreciate a drop in morale among their
employees. That does not mean you shouldn't speak up about things you think are
wrong. If you see something that should be fixed, give your boss feedback along with a
plan for how to make improvements. If you are just complaining for no reason, stop.

Don't Hide From Your Mistakes

As hard as it may be to do, own your mistakes and then do your best to correct them.
Make sure you don't make the same one twice. Never blame others for your errors, even
if they deserve it. Instead, set an example so that those who share responsibility for the
mistake can step forward and admit their part.

Always Fight Fair

You will inevitably have occasional disagreements with your co-workers or even your
boss. You may think that something should be done one way while someone else will
believe another way is better. Don't let yourself get angry. It doesn't matter how upset
you are or how strongly you believe you are right, screaming in the workplace isn't
allowed, nor is name-calling or door slamming. Calmly explain your opinion and be ready
to walk away if you cannot sway the other person or if they begin to lose control.

Don't Lie
Dishonesty always makes you look bad, whether it's lying on your resume or calling in
sick when you aren't. A true professional is always upfront. If you are unqualified for a
job, you have two choices. Don't apply for it at all or submit an application that reflects
your real skills. If you choose the second option, explain how your other strengths
compensate for the missing requirement. As for lying about being sick, if you need a day
off, take a personal or vacation day.

CONFLICT OF INTEREST

A conflict of interest (COI) is a situation in which a person or organization is involved in

multiple interests, financial or otherwise, and serving one interest could involve working
against another. Typically, this relates to situations in which the personal interest of an
individual or organization might adversely affect a duty owed to make decisions for the
benefit of a third party.

A conflict of interest is a condition in which a person has competing for loyalties or

interests. It includes an individual who has two relationships which are against each
other when it comes to the loyalty of the person.

For example, a person can be loyal to a family business as well as being faithful to his
employer. These businesses expect a person to pursue his or her best interest first.
An "interest" is a commitment, obligation, duty or goal associated with a particular social
role or practice. By definition, a "conflict of interest" occurs if, within a particular
decision-making context, an individual is subject to two coexisting interests that are in
direct conflict with each other. Such a matter is of importance because under such
circumstances the decision-making process can be disrupted or compromised in a
manner that affects the integrity or the reliability of the outcomes.

Hence, the situation of conflict rises. A conflict of interest can occur in various situations.
Let us understand the conflict of interest with the help of a few examples.

1. A supervisor in an organization has a close family relationship with an

employee he is supervising.
2. An employee participating in any promotion, recruitment, evaluation,
reclassification, or grievance process prospective or present employees with whom they
had or have a close financial or personal relationship or the spouse of an employee is
involved in the official work.
3. A person is holding a position of authority in one organization which causes
conflicts with his or her interests with another organization.
4. A purchasing manager of a company hires his relative, such as brother in law
to provide retailing services for the lunch area of the company.
5. An employee is working part-time for a company which is in direct
competition with the company where the employee has a full-time job.
6. A purchasing manager’s decisions are influenced by the gifts and trips given
by vendors.
7. A trainer who is hired by a company to provide training related to the software
made used by employees of the company and if the trainer starts giving online classes
to use software would be a conflict of interest.

Types of Conflicts of Interest

Several common activities that can create a conflict of interest include:

 Nepotism
 Self-dealing
 Excess compensation

 Nepotism is the practice of giving favors to relatives and close friends in matters of
hiring, promotion, transfer, or termination. The term comes from the word for "nephew,"
and it was common practice in ancient times. Nepotism is considered a conflict of interest
because the relative may not be the best person for the job.

Self-dealing is an action taken by a corporate fiduciary for that person's personal
gain, rather than for the benefit of the company. Examples including using corporation
funds as a personal loan, or buying company stock based on insider information—which
is also an insider trading violation.

In a non-profit organization, setting compensation or benefits for officers, directors,
or trustees may result in a conflict of interest. For instance, paying an employee in a
position or substantial authority excessive compensation serves a private interest.
Conflicts of Interest in the Workplace
Conflicts of interest in the workplace can take on many different forms. There are
business-related situations, such as an employee having a side business that competes
with the employer, and there are personal matters, such as a manager in a romantic
relationship with an employee. The latter presents a conflict because the manager has
the power to give raises or promotions to the employee, and discussions about the
company between the two people may also breach confidentiality restrictions.

For companies that rely on a supply chain, conflicts of interest are more likely to happen.
For instance, an employee who has a friendship with a supplier may allow them to go
around the bidding process and win contracts with little to no competition.

Many organizations have policies and procedures that don't allow a conflict of interest,
such as regulations against hiring relatives in certain situations.

Conflict of Interest after Employment

Even after someone leaves a position, a conflict of interest can occur, though many
institutions have specific restrictions against this kind of conflict. Non-compete
agreements are often required of executives and business owners to avoid situations
such as someone taking their former company's customer list and directly competing.

5 Steps to overcome the conflict of interest

#1 Design a process in your organization to deal with different types of

conflicts of interests

The easiest and best way to deal with a conflict of interest is by having an already
established process to manage it. If you know how to deal with specific conflicts of
interests, you can avoid their repercussions.

To do this, you should imagine all possible conflicts of interest that might happen in the
organization and decide beforehand how to handle these conflicts and who should be
involved to deal with these conflicts.

#2 Predict the conflict of interest members can have before involving them in
major events

Though it is difficult to implement, certainly it is not impossible. If implemented

strategically, it will save you a lot of efforts later. Let us understand this with the help
of an example of school boards. School boards are usually made from parents of students
and current students of the school.

Inboards like this, it can be difficult to take decisions related to students in years to
come. It can be difficult for board members to decide whether to raise the fees so that
future students can have a playground in school.

Most of the members of the school board will be against this idea as they are the ones
who are paying the school fees.
Increase in the school fees will also increase the burden on their pockets. Such conflicts
help board members to acknowledge that their personal preferences influence their
decisions, and they are not best for the school.

#3 Educate your employees about the different types of conflict of interest and
their repercussions:

You cannot blame an employee if you don’t teach them what is right or wrong to do. At
this point, training can be helpful to provide the required education. Training should be
provided to all board members and employees of the organization.

In the training session, people can become familiar types of conflicts and their terms,
and also learn that how to avoid conflicts from taking place in the organization or what
actions to take when a conflict takes place in the organization.

#4 Make a policy to state all possible conflicts of interest that might happen:

In case you are already aware of the conflict situation, then it will be good for you if you
declare it beforehand. For example, if you are a hiring manager and you come across a
potential candidate with whom you have a personal relationship than it will be in favor
of you to declare your interest in open and make your seniors aware of it.

So that later, you can save yourself from any kind of conflicts.

#5 Ask for the opinion of other employees or members

One of the best code of conduct is when a member not only think about himself but also
think about others.

Employees of an organization should be full of people who think that they can do, and
they think in favor of others and maintain “I can help kind of attitudes” and in case
people forget their duties and responsibilities and take actions which solely interests
them than the help of board members of legal court can be taken to resolve the issues.

GIFT VS BRIBERY

A gift is something of value given without the expectation of return. A bribe on the
other hand, is the same thing but with the expectation of influence or benefit. Both can
be monetary, actual items or they can be tickets to an event, like different sporting
events or entertainment, such as dinners or concerts.

Georgia law defines bribery as giving someone a benefit, reward, or consideration that
they are not entitled to influence his or her performance of any act related to functions
of his or her office or employment.

The first significant difference between a gift and a bribe is that a gift comes with no
strings attached. When someone gives someone else a gift, it’s given freely and with
no expectations for getting something in return.
If a gift is given with the intent of getting something in return, it’s no longer a gift but
a trade at best and a bribe at worst. Bribes, unlike gifts, come with strings attached.

BRIBES ARE ILLEGAL

There is nothing wrong with getting a gift for someone you care about. In fact, there’s
nothing wrong with giving a business associate a gift to show them that you care.
However, that gift turns into a problem when its goal is to influence someone’s
decision.

Therefore, if someone offers a “gift” to influence someone’s decision, it’s no longer a

gift but a bribe.

Bribe is given with expectation of favor toward giver. Its economic value are
incoherent to closeness in relation, timing (inappropriate timing) and costly. Business
gifts may be a Costly Cricket match ticket, desk clock, sweets or even a cash envelope.
Timing of such gifts makes them bribe. Suppose a gift from someone just before you
are going to roll-out a tender, a calendar and desk accessories with bold name of
pharma companies to doctor. Such things are actually bribe and not gift. Many MNC
organizations have come up with norms and structures already.

Some norms which are still needed are:

 Reporting to department about any gifts that is received from whom, value and
date details. This part is already applicable to judicial judges in India.
 Any gifts above certain monetary values should be avoided.
 No gifts received with brand name should be put on desk as it will tarnish the image
of official/public servant for lenient toward certain brand.
 Provision of filing gift tax by receiver. IT department should tally the gift received
as mentioned in department books and filed by receiver. Failure to file tax for gift
should be taken seriously.
 Scrutiny of gifts received by officials regularly and checking of property declaration
regularly. Repeated gift from same person should be brought under Directorate
Enforcement radar.

Bribes are complex thing for receiver because it puts him into moral dilemma for how
to return the favor and makes them corrupt once they receive.

What do gifts and bribes have to do with ethics?

Political decisions are supposed to be made on the merits of the case, not based on
whether or not the decision maker has received a lovely case of wine from one of the
parties. This is a simple matter of fairness. When decision makers take gifts, even if
their votes are not influenced, they give the appearance of being on the take, which
undermines public confidence in government.

ENVIRONMENTAL BREACHES

Breach means infraction or violation of a law, obligation, tie, or standard.

Maintaining a safe and healthy workplace is essential for every business. But what are
the key environmental issues which are likely to arise in your place of work?

An environmental violation/ environmental breach is something that violates

environmental law or regulation. It could include for example: improper emissions, the
improper treatment of hazardous waste, or the improper dredging of wetlands.

Environmental breach means any activity, occurrence or condition that violates or

threatens (if the threat requires remediation under any Environmental Law and is not
remediated during any grace period allowed under such Environmental Law) to violate
or results in or threatens (if the threat requires remediation under any Environmental
Law and is not remediated during any grace period allowed under such Environmental
Law) to result in noncompliance with any Environmental Law.

1) Poor air quality and ventilation

Bad air quality and ventilation is a major concern for the health of employers and their
employees. Besides from being unpleasant, poor air quality and ventilation has a
number of negative health consequences. Some short-term health effects of poor air
quality and ventilation include inflamed airways, eye irritation and damage to the
respiratory tract. This can cause coughing, mucus secretion and long-term infections.
Long-term exposure to poor air quality can result in reduced lung functions and breathing
problems, as well as lung cancer or cardiovascular disease. For those suffering from
asthma or compromised immune systems, poor air quality is especially problematic.

2) Asbestos
Another environmental issue, which can be harmful to your workplace is asbestos-
contamination. Although asbestos was banned in Australia many years ago, it continues
to be an ongoing threat to public health. This is because breathing in asbestos fibers can
cause asbestosis, lung cancer and mesothelioma. For those who smoke cigarettes, these
risks of inhaling asbestos fibers is even greater.

3) Mold

The presence of mould is something no one wants to discover in their workplace.

Exposure to damp and mouldy environments can produce various health problems such
as throat irritation, coughing or wheezing, eye irritation, and nasal congestion and, in
some cases, skin irritation.

To treat or prevent these environmental issues, it’s essential that you contact an
environmental and occupational hygiene solutions specialist. At Alpha Environmental,
we offer a “boutique” style service to treat and prevent the environmental issues in your
workplace. We can also offer you professional advice and recommendations with all
matters regarding Asbestos, Soil, Groundwater and Mould.

4. Noise

Noise may not be the first environmental issue that comes to mind – after all, ambient
noise is present in nearly every workplace. However, consistently excessive noise levels
can increase stress and decrease quality of work. Employees may find it hard to
concentrate on tasks or understand their co-workers, which can quickly affect
productivity.

Noise pollution also carries short- and long-term health risks for employees. Not only
can excess noise cause headaches or migraines, but repeated exposure can lead to
hearing loss and even heart disease.

A breach can also be indirect, such as not providing adequate training, so if you are in
any doubt about your compliance, now’s the time to undertake compliance training for
yourself and your employees.
The types of training that you should be implementing include:
 Induction training for new employees
 Hazard identification and control
 Safe manual handling
 Office safety
 Mandatory training such as first aid and certificates of competency
 On-the-job training for specialized roles
Injuries are not only physical. They can be psychological as well, so make sure your
anti-bullying and sexual harassment procedures are adequate and up to date. Again,
compliance training as part of a learning management system is the best way to manage
such risks to your business.

NEGLIGENCE

Definition
A failure to behave with the level of care that someone of ordinary prudence would
have exercised under the same circumstances. The behavior usually consists of
actions, but can also consist of omissions when there is some duty to act (e.g., a duty
to help victims of one's previous conduct).
Negligence can be defined as a breach of that duty. Issue arises when injury is the
result of a breach of duty. Injury as a result of negligence therefore arises when proper
steps were not taken to reasonably eliminate or minimize risks.
In legal terms, Negligence is when someone that is responsible for another person’s
care, acts in a way that can or has resulted in harm. In medical situations, daycare, or
home care, negligence is a top concern, as those receiving care are often unable to
protect themselves, making them more susceptible to negligence.

What are the four types of negligence?

GROSS NEGLIGENCE
Gross Negligence is the most serious form of negligence and is the term most often
used in medical malpractice cases. These cases are highlighted by reckless behavior
that a reasonable person would not commit.

An example could be a home care nurse not providing a patient with food or water for
several days.
CONTRIBUTORY NEGLIGENCE
Contributory negligence is when a person isn’t 100% at fault for a crime, but did
contribute in some way. An example is someone texting and driving that gets into an
accident with another driving that made an illegal turn.

COMPARATIVE NEGLIGENCE
Comparative negligence is when a party is partially responsible for the harm they’ve
experienced. In these situations, even being 1% responsible may make the person
unable to receive compensation. Maryland is one of only four states where contributory
negligence is practiced.

An example could be someone injuring themselves on a wet floor, even though there
was a wet floor sign present. In this scenario, the injured person is usually deemed
responsible for knowing their surroundings and isn’t due any damages.

VICARIOUS NEGLIGENCE
Vicarious Negligence is when someone is indirectly responsible. The most common
example is a dog bite. Though the person themselves did not injure someone, their
dog did, and thus they are responsible to cover any injuries caused by their dog.

Engineers work in many different sectors and their expertise often underpins the
success of a project, such as a residential or commercial construction project or a
commercial engineering project.

What is Negligence in Employment?

Negligence in employment is an area of law wherein an employer is held responsible
for an employee’s acts that cause injury to others. This can happen if the employer
acted negligently in allowing the worker to take a certain position or to perform a
particular task. Negligence in employment shares similar principles as vicarious
liability and negligent entrustment, although it’s also different from these violations.

An employer who is found liable for negligence in employment may face legal
consequences, such as being required to pay the victim a damages award for their
injuries or losses. Also, in cases of widespread negligence throughout the business,
the court can sometimes require a company to re-draft their employment policies and
handbooks.

What are Some Examples of Negligence in Employment?

An employer may be held liable for negligence at many different points in the hiring
and employment process. Some examples of negligence in employment may include:

 Negligent Hiring– For instance, if a customer was injured because the

employer hired a person who lacked the necessary training, credentials, or experience
 Negligent Retention- Keeping an employee “on board” when the worker
should have been terminated can also create various hazards and risks
 Negligent Supervision- If the employer breached their duty of care to provide
proper supervision of a worker, they may be found liable for any resulting injuries
 Negligent Training- Haphazard, incomplete training methods and programs
can compromise client and customer safety. It’s important that employers understand
the type of training necessary to maintain safe working standards for employees

Some of these types of negligence may be more difficult to trace to the employer than
others. For instance, negligent hiring can often easily be detected if the worker
doesn’t have the proper license to perform their tasks. However, it may be more
difficult to trace negligent training to a specific supervisor especially if many different
persons actually trained the employee.

DEFICIENCIECS IN STATE-OF-THE-ART

Definition of state of the art: The level of development (as of a device,

procedure, process, technique, or science) reached at any particular time usually as
a result of modern methods.
The state of the art (sometimes cutting edge or leading edge) refers to the highest
level of general development, as of a device, technique, or scientific field achieved at a
particular time. However, in some contexts it can also refer to a level of development
reached at any particular time as a result of the common methodologies employed at
the time.
The term has been used since 1910, and has become both a common term
in advertising and marketing, and a legally significant phrase with respect to
both patent law and tort liability.
In advertising, the phrase is often used to convey that a product is made with the best
or latest available technology, but it has been noted that "the term 'state-of-the-art'
requires little proof on the part of advertisers", as it is considered mere puffery. The
use of the term in patent law "does not connote even superiority, let alone the
superlative quality the ad writers would have us ascribe to the term".

VIGIL MECHANISM
A vigil mechanism provides a channel to employees and Directors to report to the
management concerns about unethical behavior, actual or suspected fraud or violation
of the Codes of Conduct or any Policy of the Company. The Company is committed to
adhere to the highest standards of ethical, moral and legal conduct of business
operations and in order to maintain these standards, the Company encourages its
employees who have genuine concerns about suspected misconduct to come forward
and express these concerns without fear of punishment or unfair treatment.

Scope of Vigil Mechanism

• To act as a key constituent of the Company’s compliance and integrity policies.
• It is not a substitute for other arrangements and procedures that govern and further
transparency and ethics.
• Seeks to ensure that anyone who is aware (Director or employee of the company) of
a breach of Company policies and procedures, suspected or actual fraud and
embezzlement, illegal, unethical behavior or violation of the Company’s code of conduct
feels free to bring this to the attention of appropriate personnel in the Company without
fear of victimization, harassment or retaliation.

Applicability This Mechanism applies to the following:

• All Directors of the Company and its subsidiaries;
• All employees and ex-employees and their representative bodies
• All business associates of the Company

Compliance with Laws, Rules and Regulations Section 177 of the Companies Act, 2013
and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 provide for all listed companies to establish a 'Vigil Mechanism' to
enable Directors and employees to report to the Management instances of unethical
behavior, actual or suspected fraud or violation of the Company's code of conduct or
ethics policy.

This Vigil Mechanism must provide adequate safeguards against victimization of persons
who use such mechanisms and also ensure direct access to the Ethics Committee or
Chairperson of the Audit Committee in appropriate or exceptional cases.

Vigil Mechanism encourages employees to report unethical business practices at

workplace without fear of reprisal as part of Corporate Governance. The policy aims at
the following:
 To allow and encourage the employees and business associates and other
stakeholders to brings to notice of the management concerns about suspected unethical
behavior, malpractice, wrongful conduct, fraud, violation of the Company’s Polices,
violation of law or questionable Accounting or Auditing matters by any Employee /
Director in the company (hereinafter referred to as Wrongful Conduct) without fear or
reprisal.
 To ensure timely and consistent organization response and thereby ensuring
complete transparency in the organization.
 To prohibit initiation of adverse action against an employee as a result of the
disclosure of obligatory information or information in general course of employee’s day
to day work.
 To build and strengthen a culture of transparency and trust in the organization.

Any employee who becomes aware of suspected wrongful conduct of any employee or
associate etc. is encouraged to send his/her observations/concrete facts to the
management either through phone or written communication complete with related
evidence (to the extent possible) without fear of reprisal or retaliation of any kind.

The information on suspected wrongful conduct is such information which the employee
in good faith, believes and /or evidences and inter alia includes:

a) A violation of any law or regulation, including but not limited to corruption, bribery,
theft, fraud, coercion and willful omission
b) Pass back of Commissions/ benefits or conflict of interest
c) Procurement frauds
d) Mismanagement, Gross wastage or misappropriation of the Company’s funds/ assets
e) Manipulation of the Company’s data / records
f) Stealing cash/the Company’s assets; leaking confidential or proprietary information
g) Unofficial use of Company’s materials /human assets
h) Activities violating Company policies
i) A substantial and specific danger to public health and safety
j) An abuse of authority
k) An act of discrimination or sexual harassment

WHISTLE BLOWING

Origin of the Term

The use of the term "whistleblower" dates back to the 19th century. However, Ralph
Nader's coining of the term shifted its connotation from negative to positive. The term
combines "whistle," a device used to alert or call attention to, and "blower,"
referencing the person issuing the alert by the blowing of the whistle.

Definition of Whistle Blowing:

Whistle blowing basically is done by an employee where he finds that the ethical rules
are broken knowingly or unknowingly and an imminent danger for the company,
consumers or the public. When an employee is working in an organization is part of the
group where the decisions are made and executed.
The whistle blowing needs a relook at the same work and requires breaking with the
very group that the whistle-blower viewed as critical to financial success of the group
and the company or very survival of the company. The decision of whistle blowing may
involve destabilizing one’s life and placing the entire organization under scrutiny.

Definition: A whistleblower is a person, who could be an employee of a company, or a

government agency, disclosing information to the public or some higher authority
about any wrongdoing, which could be in the form of fraud, corruption, etc.

The attempt of an employee or former employee of an organisation to disclose what he

or she believes to be wrong doing in or by the organisation. Whistle blowing can be
internal, external, personal, and impersonal. Whistle blowing goes against the strong
bonds in Indian companies and culture norms of showing loyalty.

A moral dilemma can occur when a loyal employee observes the employer committing
or assisting in an illegal or immoral act and must decide what to do. The whistle
blowing may not only lose his or her job but may also experience negative effect on his
career and personal life. The pressure on the whistle-blower may range from outright
termination to more subtle pressures.

The conditions in which whistle blowing is morally justified are:

1. A product or policy that will commit serious and considerable harm to the public.

2. When the employee identifies a serious threat of harm to the consumers,

employees, other stakeholder, state and things against his or her moral concern.

3. Immediate supervisor does not act, should exhaust the internal procedures and
chain of command to the board of directors. No action is taken in spite of best
Efforts of the employees to remedy the situation of unethical actions.
4. The employee must have documented evidence that is convincing to a reasonable
level so that the facts can be proved to the outside public and to the test of the law.

5. Valid reasons to believe that revealing the wrongdoing to the public will result in the
changes in the organization are necessary to remedy the situation. The chance of
succeeding must be equal to the risk and danger the employee takes to blow the
whistle.

The whistle blower should take care that the action should not be simple mudslinging
or raising alarm on inaccurate or unjustifiable grounds.

The areas of special importance are:

i. Confidential information of the company to maintain its competitive edge or perform

work efficiently.

ii. Whistle blower should not involve himself in personal acquisitions or bringing down
the morale of the organization.

iii. Accusing manager about incompetent decisions that do not involve ethical issues.

iv. Whistle blowing against violations of code of conduct of the company.

From the above it may be seen that a whistle-blower has to do his homework well and
consider the real consequences before blowing the whistle. It involves conflict between
company goals, legal, moral, personal issues. Before whistle-blowing one has to think
of what alternatives available to him and thereafter, follow proper guidelines in
reporting the wrongdoing.

Freedom of speech is a fundamental right. But how far an employee can use this
against own employer depends upon the topic of grief, knowledge and maturity of the
employee.

Under what circumstances and against what type of activities can an employee below
whistle against his seniors or employer is important. Whistle blowing can be treated as
questionable loyalty or strongly worked suggestion. How to treat it depends upon the
way it is presented and the broad minded attitude of the management.

There are two types of whistleblowers: internal and external. Internal

whistleblowers are those who report the misconduct, fraud, or indiscipline to senior
officers of the organization such as Head Human Resource or CEO.

External whistleblowing is a term used when whistleblowers report the wrongdoings to

people outside the organization such as the media, higher government officials, or
police.

Wrong Types of Whistle Blowers:

There are certain types of whistle blowers who do it on false accusations and with ill
intentions. Such employees should not be protected.

Following instances show how freedom of speech is misutilised by the whistle

blowers:
(1) In case of disclosing business secrecy, inventions, future plans and some specific
specialized practices which may be confidential and of exclusive company usage.

(2) Whenever an employee remarks are irrelevant to the organizations work and
product.

(3) In case of wrong accusations which cannot be proved and which are made in
vengeance only end up demoralizing the employees.

(4) When an employee is complaining against transfer, demotion or discharge when

such action is taken on the basis of routine performance appraisal.

Precautions before Whistle Blowing:

Whistle blowing has consequences of moral, legal, personal, economic, family and
career demands. It is a serious step with definite consequences.

Hence before blowing the whistle an employee should take following

precautions:

i. Be clear about your intensions and likely consequences. Go ahead only if you are
convinced that the situation warrants whistle blowing.
ii. Compile documents to support your case. Do not depend upon hearsay.
iii. Allegations should be stated appropriately with documents and to be sent to the
right person/ position.
iv. Preferably take the internal route. If this does not work then try external route.
v. Whistle blowing can be done openly or anonymously. If identity is disclosed are
should be prepared to face the consequences.
vi. Decide if it is appropriate to take action immediately after sometime later or during
the service.
vii. Consult a lawyer about possible legal battle and defense mechanism.

Advantages of whistleblowing

1. Personal honor

Some people are driven by honor and they want to do what they feel is right even if they
have to face the existing system alone and defy conventions. Individuals who decide to
act as a whistleblower are offended by the actions of other people.

They cannot turn and look another way when they come to know about wrongdoings in
the workplace that could have an impact on lots of people. The act of whistleblowing is
a personal honor for them through which they can fulfill their duty to themselves and
their country. Doing the right thing lifts a heavy burden from their chest.

2. Exposes malpractice

Whistleblowing plays an essential role in curbing the actual wrongdoings in

organizations, government offices, and federal agencies. When someone steps over the
legal or ethical line, it is the whistleblower that makes such an act a public knowledge
so that the people involved in the misgivings can be held accountable.

3. Is offered protection

The person who has shown the courage of whistleblowing is appreciated by the common
masses and adjudged a hero. He has shown immense courage in bringing out the corrupt
practices so that the guilty can be punished.

4. Financial reward

If the evidence from the whistleblowing results in a lawsuit and the government can
recover the lost funds, the whistleblower is eligible to receive an award up to 30% of the
recovered funds. This is often a considerable amount and can set up that person for life
in financial terms.

Disadvantages of whistleblowing

1. Reduced prospects of employment

The most common disadvantage of whistleblowing is that the person who is responsible
for this act garners a lot of attention. This makes him infamous and acts as a blot on his
credibility. The organization that he works for terminates his employment because for
them he is a Judas or a traitor and they will not keep him within the company after this.

Even in the outside world, no one is ready to give employment to such an infamous
person as his reputation might rub on that company and make them infamous by
association.

2. Notoriety

The act of whistleblowing brings notoriety because of the investigations, legal

testimonies, and media interviews. In the eyes of a common man, the whistleblower is
a hero but for the industry players, he is considered as a disloyal person without any
discretion who had exposed his own company to the outside scrutiny.

He is unofficially even blacklisted in his profession because no one is now going to trust
him with any company secrets.

3. Unnecessary complications

A whistleblower generally assumes that he has taken this step for the greater good, but
in fact, it can lead to several challenges. The media starts digging into his personal and
professional life and can come out with a secret that he is not comfortable sharing with
the world. Any past grievances can come to light that can portray him as a negative
character.
4. Your finances will suffer

Legal action is expensive, and until the case is resolved, a whistleblower will have to
shoulder the financial burden for the situation. He has been fired from his post; it could
mean extra expenses for him and can cause severe financial worries.

5. Stress

Threats, blackmail and anguish can lead to stress and anxiety in the life of a
whistleblower after he has decided on whistleblowing. His co-workers might not agree
with his actions and the people he thought as friends could leave him alone as no one
wants to be associated with an infamous person.

This can be bad for his physical as well as mental health and can cause cracks n both
personal and professional relationships.

PROTECTED DISCLOSURE
“Protected Disclosure” means any communication made in good faith that discloses or
demonstrates information that may evidence unethical or improper activity

The Act provides that if a disclosure is made by a worker in line with the channels set
out in the legislation, a worker is protected from penalization by the employer.
Penalization is defined in the Act and includes for example:

 Suspension/Layoff/Dismissal;
 Demotion;
 Transfer of duties, change of location, change in working hours, reduction in
wages;
 Imposition of reprimand, discipline or other penalty;
 Unfair treatment;
 Discrimination;
 Harassment, threat of reprisal.

The motivation for making a disclosure is irrelevant as to whether or not it is a

protected disclosure. What is required is that a worker has a reasonable belief as to
wrongdoing and that this wrongdoing has come to the worker’s attention in connection
with his/her employment.

It is important to note that in situations where a worker makes a disclosure not in

compliance with the Act, the protections under the Act will not be available to the
worker. It is also important to note that deliberate false disclosure will not be protected
and that a worker could leave him or herself open to disciplinary action in that regard.

Who is covered?

The Act protects workers in all sectors of employment, both public and private,
including:

 Employees;
  Civil and Public Servants;
 Members of an Garda Síochána and the Defense Forces;
 Contractors and Consultants;
 Agency Workers;
 Trainees, temporary workers, interns, and those on work experience.

How are protected disclosures made?

Whether a disclosure is protected or not will depend on the way in which the disclosure
is made. The Act provides for a number of channels for those who wish to make a
protected disclosure.

Channels of Disclosure

The Act sets out a number of distinct disclosure channels for potential whistle blowers.
It provides for a tiered or “stepped” disclosure regime with a number of avenues open
to workers, internal and external to the workplace. The first tier in the disclosure
regime is internal, namely disclosure to the employer or some other responsible
person. However there may be circumstances where this may not always be
appropriate. The channels are as follows:

Disclosure to an Employer

It is in the best interests of all concerned in the workplace — management, workers

and their representatives — that disclosures about wrongdoing are managed internally.

The Act provides for direct disclosure to the employer and this Code recognizes the
strong value to this route. A worker may make a protected disclosure to his/her
employer where he/she reasonably believes that information being disclosed shows or
tends to show wrongdoing.

It is recommended, therefore, that all organizations should have an agreed

whistleblowing policy in place to ensure that:

 Workers are assured of a safe and confidential avenue to make their

disclosures;
 Employers are given the opportunity to address issues arising at the earliest
possible opportunity or where the discloser is mistaken or unaware of all the facts
surrounding the issues raised, and to take the opportunity to assure the worker that
his/her concerns are unfounded;
 There is a clearly understood procedure governing the protected disclosure of
information.

An effective policy helps workers understand how to make a disclosure and can make it
easier for employers to find out when something goes wrong. It also makes it more
likely that persons making disclosures will make disclosures “in house” and look to
internal resolutions. The risk of not having a policy is that a worker will not feel
protected and will be inclined to go an external route.

Disclosure to a Minister
A worker employed in a public body may make a protected disclosure to a Minister of
the Government on whom any function relating to the public body is conferred rather
than to their immediate employer. The evidential criteria for making a disclosure to the
appropriate Minister is the same as that which applies to a disclosure made internally
to an employer i.e. the worker reasonably believes that the information being disclosed
shows or tends to show wrongdoing.

Other Channels — Disclosure outside of the Workplace

While this Code places a strong emphasis on the value of addressing whistleblowing
concerns within the workplace, there is no obligation on a worker to disclose to the
employer in the first instance. There may be circumstances where it is appropriate for
a worker to make a disclosure externally. These circumstances include the employer
failing to act on the information being disclosed or the worker does not wish to avail of
the internal channel route. This is provided for in the Act.

It should be noted that the evidential criteria for making an external disclosure is set
at a higher level than that applying to internal disclosure. Disclosure to a prescribed
person (e.g. Regulatory Bodies) will only be protected when the person making the
disclosure believes that the information disclosed, and any allegation contained in it, is
substantially true.

Other Persons

There is also provision for disclosure in other circumstances i.e. disclosure potentially
in the public domain, such as to the media. The evidential qualifying criteria are set at
a higher level. In order for such a disclosure to be protected a worker must:

 Reasonably believe that the information disclosed and any allegation is

substantially true;
 The disclosure is not made for personal gain;
 The making of the disclosure in public is in all the circumstances, reasonable.

INTRODUCTION TO GST- VARIOUS ROLES OF VARIOUS STAKE

HOLDERS.
Introduction to GST

GST is considered as an indirect tax for the whole nation that would make India one unified common
market. It is a tax which is imposed on the sale, manufacturing and the usage of the goods and services.
It is a single tax that is imposed on the supply of the goods and services, right from the manufacturer
to the customer. The credits of the input taxes that are paid at each stage will be available in the
subsequent stage of value addition which makes GST essentially a tax only on the value addition on
each stage. The final consumers will bear only the tax charged by the last dealer in the supply chain
with the set of benefits that are at all the previous stages.
It is charged at the national and state level at similar rates for the same products and it also replaces
almost all the current indirect taxes that are imposed separately by the Centre and the States. Goods &
Services Tax is a destination based tax which means that the tax is paid at the place of supply.

Components Of GST

There are three taxes applicable under this system: CGST, SGST & IGST.

 CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
 SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction
happening within Maharashtra)
 IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra
to Tamil Nadu)

Proposed benefits of GST:

The implementation of GST is expected to bring in various benefits as discussed below:

1. Dynamic common market:

GST would make India a dynamic common market and result in generation of positive externalities.
By ensuring uniformity of indirect tax rates across the country, it will substantially improve the ease
of doing business.

2. Elimination of cascading effect:

Under GST, provision of seamless input tax credit across transactions will avoid tax cascading,
eliminate double taxation, and improve resource allocation.

3. Efficiency:

Subsuming of all major indirect taxes will result in the removal of inefficient taxes. With as single tax
to be paid, manufacturers will become more competitive, and this could lead to growth in exports.

4. Reduced compliance costs:

Harmonization of tax rates and laws along with seamless input tax credits and a sound IT infrastructure
is expected to lead to reduced compliance costs. As all the taxpayer services like registrations,
payments, returns etc. will be available online, the compliance process would become simpler.
5. Reduction in tax evasion:

Uniform rates of taxation would reduce the incentive for tax evasion by eliminating rate arbitrage
opportunities between neighboring states and that between intra-State and inter-State sales.

6. Benefits to consumers:

The final price of goods is expected to be lower due to seamless flow of input tax credit between the
manufacturer, retailer, and supplier of services. Average tax burden on companies is likely to come
down which is expected to reduce prices and hence benefit the consumer.

Roles of a Stakeholder:

What is a Stakeholder?

In business, a stakeholder is any individual, group, or party that has an interest in an organization
and the outcomes of its actions. Common examples of stakeholders include employees,
customers, shareholders, suppliers, communities, and governments.

Impact of GST on Stakeholders Goods & Service Tax (GST) or VAT serves the purpose to impose a
broad-based tax on final consumption by households. Hence, GST is a comprehensive tax levy on
supply of goods and services.
 Both Government and Industry are keen to implement GST
Governments are looking at increasing the tax base and tax collections (i.e. increase revenue
buoyancy) through GST
 State is looking at GST as a window for taxing services
 Centre is looking at GST to go beyond the point of manufacture
 Industry wants GST to eliminate the cascading effect of taxes
 Harmonization of taxes.
This revolutionary reform is necessary to be introduced to perceive the following benefits for the
intended stakeholders:
(A) To Trade
 Reduction in multiplicity of taxes
 Mitigation of cascading/ double taxation
 More efficient neutralization of taxes especially for exports
 Development of Common National Market or Common Economic Market
 Simpler tax regime with fewer rates and exemptions
 Increase in cost competitiveness' for domestic industries with reduction in tax cost and also
reduced cost of compliance
(B) To Government
 Simpler tax system
 Broadening tax base
 Improved compliance and revenue collections
 Efficient use of resources

 Investments out of savings by consumers - due to mitigation of cascading effect, contributes to

increase in availability of funds out of savings of consumer - which may be used for financing
developmental activities.
(C) To Consumer
 Reduction in cost of goods and services due to elimination of cascading effect of taxes
 Increase in purchasing power and real income
 Increase in savings due to decrease in cost
 Increase in investments due to increase in savings.

The following stakeholders will pay a key role in establishing an effective e-payment network in the
proposed GST scenario:

a) GSTN (Goods and Service Tax Network);

b) e- FPBs (Electronic Focal Point Branches) of authorized banks;

c) e-Kuber of RBI;

d) Central Accounts Section (CAS) of RBI, Nagpur;

e) e-PAOs (Electronic Pay and account Offices) / e-Treasuries of State Governments;

f) Pr. CCA, CBEC (Principal Chief Controller of Accounts) / Accountant General of the States;
g) Tax authorities of Centre and States.