GE6075 PROFESSIONAL ETHICS IN ENGINEERING

Unit 5
 UNIT V GLOBAL ISSUES

Multinational Corporations Environmental Ethics Computer

Ethics Weapons Development Engineers as Managers
Consulting Engineers Engineers as Expert Witnesses and
Advisors Moral Leadership Code of Conduct Corporate
Social Responsibility
 5.GLOBALIZATION
Globalization means integration of countries through commerce, transfer of technology,
and exchange of information and culture.
In a way, it includes acting together and interacting economies through trade, investment,
loan, development schemes and capital across countries.
In a different sense, these flows include knowledge, science, technology, skills, culture,
information, and entertainment, besides direct human resource, tele-work, and
outsourcing.
This interdependence has increased the complex tensions and ruptures among the
nations.
For the engineers, the issues such as multinational organizations, computer, internet
functions, military development and environmental ethics have assumed greater
importance for their very sustenance and progress.
 5.1 MULTINATIONAL CORPORATIONS
Organizations, who have established business in more than one country, are called Multinational
Corporation. The headquarters are in the home country and the business is extended in many
host countries.
The Western organizations doing business in the less-economically developed (developing, and
overpopulated) countries gain the advantage of inexpensive labor, availability of natural
resources, conducive-tax atmosphere.
At the same time, the developing countries are also benefited by fresh job opportunities, jobs
with higher remuneration and challenges, transfer of technology, and several social benefits by
the wealth developed.
But this happens invariably with some social and cultural disturbance. Loss of jobs for the home
country, and loss or exploitation of natural resources, political instability for the host countries
are some of the threats of globalization.
MULTINATIONAL COMPANIES
 WHAT IS A MULTINATIONAL CORPORATION???
It is a corporation that:

Manages Delivers
And/or
production services

In more than
one country
 DEFINITION
Multinational corporation (MNC) is a enterprise that manages
production or delivers services in more than one country can also be
referred to as an international corporation.
 EXAMPLES OF MNCS:
The largest MNCs:
Ford
Wal-Mart Stores
IBM
Exxon Mobil
British Petroleum
Royal Dutch Shell
Mc Donalds
These companies have
turnovers in excess of the GNPs
Phillips of some
countries.
 HOW IS A COMPANY CLASSIFIED AS AN
MNC?

Subsidiaries in Stakeholders are

foreign countries; from different
Operations in a countries.
number of countries; High proportion of
assets in or/ and
revenues from global
operations;
 HISTORY AND EVOLUTION OF MNCS:

These corporations originated early in the 20th century and expanded

after World War II.

A multinational corporation developed new products in its native

country and manufactured them abroad.

Almost all the earliest and largest multinational firms were either
American, Japanese, or West European.
 HISTORY AND EVOLUTION OF MNCS:

During the last three decades, many smaller corporations

have also become multinational.

Such enterprises maintain that they create employment,

create wealth, and improve technology in countries.
MNC IN INDIA
MNC in India represent a diversified portfolio of companies representing different
nations.
MULTINATIONAL CORPORATION STRUCTURE:
 ORGANIZATION OF MULTINATIONAL
CORPORATIONS

Subsidiaries

Joint Ventures Companies

Franchise Holders

Turn Key Project.

 SWOT Analysis of MNCs:

Strengths Weakness
Low Cost Location is often very distant
Well Developed Infrastructure Lack of Transportation facilities
Relative Inflexibility

Opportunities
Leverage Government
Threats
Attract new industries Govt. restrictions
Quotas
REASONS FOR THE ESTABLISHMENT OF MNCS
To increase market share.

To secure cheaper premises and labour.

Employment and Health & Safety Legislations in other countries may

be more relaxed.

To avoid or minimise the amount of tax to be paid.

To take advantage of government grants available.

Conti...
 To save on costs of transporting goods to the market place.

To develop an international brand.

 Advantages

To the Host To the Home

Country Country
 ADVANTAGES OF MNCS TO THE HOST
COUNTRY:
Transfer of technology, capital and entrepreneurship.

Increase in the investment level and thus, the income and

employment in the host country.

Greater availability of products for local consumers.

Increase in exports and decrease in imports.

 ADVANTAGES OF MNCS TO THE HOME
COUNTRY.
Acquisition of raw materials from abroad.

Technology and management expertise acquired from competing in

global markets.

Export of components and finished goods for assembly or distribution

in foreign markets.

Inflow of income from overseas profits, royalties and management

contracts.
 DISADVANTAGES OF MNCS:
Trade restrictions imposed at the government-level

Limited quantities (quotas) of imports.

Effective management of a globally dispersed organization.

Slow down in the growth of employment in home countries.

Destroy competition and acquire monopoly.

WORLDS TOP MNCS:
FORTUNE GLOBAL 500 LIST 2011: TOP 10
RANK COMPANY COUNTRY FIELD
1 Wal-Mart Stores United States Retail

2 Royal Dutch Shell Netherlands Petroleum

3 Exxon Mobil United States Petroleum

4 BP United Kingdom Petroleum

5 Sinopec China Petroleum

6 China National Petroleum China Petroleum

7 State Grid China Power

8 Toyota Motor Japan Automobiles

9 Japan Post Holdings Japan Diversified

10 Chevron United States Petroleum

FORTUNE GLOBAL 500 2011: COUNTRY WISE:
RANK COUNTRY NUMBER OF
COMPANIES
1 United States 133

2 Japan 68

3 China 61

4 France 35

5 Germany 34

6 United Kingdom 30

7 Switzerland 15

8 South Korea 14

9 Netherlands 12

10 Canada 11
 Indias Big Dream

Harnessing the global trends by encouraging the MNCs to engage in

product innovation for local consumers represents a big challenge in India.

Policy-makers, industry leaders and academic institutes need to work

together to create and disseminate a list of "dream innovations" that will
inspire people.

The development of Tata Motor's Rs 1 lakh car provides a powerful

example
MNCs in India have a long history and tradition:
 WHAT INDIA OFFERS???
One billion plus population.

India is ranked as the 10th largest economy, 4th largest in terms of Purchasing
Power Parity.

250-300 million middle class.

Gross Domestic Product (GDP) is growing at over 7-9 %, making it one of the
fastest growing economies in the world.

Opportunities for U.S. exporters with the right products or services.

Easier access to capital.

INDIAN COMPANIES IN FORTUNE GLOBAL 500
LIST 2011:
COUNTRY COMPANY GLOBAL 500 CITY REVENUE
RANK RANK ($ millions)
1 Indian Oil 98 New Delhi 68,837
2 Reliance Industries 134 Mumbai 58,900
3 Bharat Petroleum 272 Mumbai 34,102
4 State Bank of India 292 Mumbai 32,450
5 Hindustan 336 Mumbai 28,593
Petroleum
6 Tata Motors 359 Mumbai 27,046
7 Oil & Natural Gas 361 Dehradun 26,945
8 Tata Steel 370 Mumbai 26,065
 TRENDS OF MNCS IN INDIA:

First MNC in India was the EAST INDIA Company. in 1600.

American companies account for around 37% of the turnover of the top 20
firms operating in India.

Oil companies and Infrastructure builders from the Middle East are also
flocking in India to catch the boom.

Contd.
 Increasing flocking of Europian Union companies to India.
Finnish mobile handset manufacturing giant Nokia is the largest
Multinational Corporation In India.
Italian automobile giants like Fiat, Ford Motors, Piaggio etc
expanded their operations in India with R&D wing attached.

South Korean Electronics giants Samsung and LG Electronics and

small and mid-segment car giant Hyundai Motors are doing
excellent business and using India as a hub for global delivery.
KEY ADVANTAGES OF EXISTENCE OF MNCS IN
INDIA
Work culture for employees.

Training and Learning.

Technology especially concept of working with better technologies.

Safety, Health and Environmental Learning.

Excellent training grounds for many entrepreneurs.

 KEY CHALLENGES THAT INDIAN MNCS FACE:
Domestic market like India vis - a - vis International expansion.

Language.

Culture.

Autonomy to local managers .

Styles of doing business.

Handling of potential liabilities related to Labor, IPR etc.

 5.1.1 International Human Rights
To know what are the moral responsibilities and obligations of the multinational corporations
operating in the host countries, let us discuss with the framework of rights ethics.
Common minimal rights are to be followed to smoothen the transactions when the engineers
and employers of MNCs have to interact at official, social, economic and sometimes political
levels.
At international level, the organizations are expected to adopt the minimum levels of

(a) Values, such as mutual support, loyalty, and reciprocity,

(b) the negative duty of refraining from harmful actions such as violence and fraud, and

(c) basic fairness and practical justice in case of conflicts.

 5.1.1 International Human Rights
The ten international rights to be taken care of, in this context are:
1. Right of freedom of physical movement of people (working hours)

2. Right of ownership of properties

3. Freedom from torture (dont take leave)

4. Right to fair trial on the products (bisleri cost-20 rs)

5. Freedom from discrimination on the basis of race or sex. If such discrimination against

women or minorities is prevalent in the host country, the MNC will be compelled to accept.
MNCs may opt to quit that country if the human rights violations are severe.
 5.1.1 International Human Rights
6. Physical security. Use of safety gadgets have to be supplied to the workers even if the laws

of the host country do not suggest such measures.

7. Freedom of speech and forming association.

8. Right to have a minimum education.

9. Right to political participation.

10. Right to live and exist (i.e., coexistence).

 5.1.2 Technology Transfer
It is a process of moving technology to a new setting and implementing it there.

Technology includes hardware (machines and installations) and the techniques (technical,

organizational, and managerial skills and procedures).

It may mean moving the technology applications from laboratory to the field/factory or

from one country to another.

This transfer is effected by governments, organizations, universities, and MNCs.

 5.1.3 Appropriate Technology
Identification, transfer, and implementation of most suitable technology for a set of new
situations, is called appropriate technology.
Technology includes both hardware (machines and installations) and software (technical,
organizational and managerial skills and procedures).
Factors such as economic, social, and engineering constraints are the causes for the
modification of technology.
Depending on the availability of resources, physical conditions (such as temperature,
humidity, salinity, geographical location, isolated land area, and availability of water),
capital opportunity costs, and the human value system (social acceptability) which
includes their traditions, beliefs, and religion, the appropriateness is to be determined.
 5.1.4 How Appropriate is Appropriate Technology?
1. A case against the technology transfer is that the impact of borrowed or transferred technology
has been threatening the environment beyond its capacity and sustainable development of the host
countries. Large plantations that orient their efforts to exports leave the small farmers out of jobs
and at the mercy of the foreign country. For example, genetically modified cotton have shown
sufficient disturbance in Europe and Africa. This has made the European Union to oppose the entry
of G.M. cotton into Europe.
2. The high technology has contributed to large-scale migration from villages to the cities where
corporations are located, leading to the undesirable side-effects of overcrowding of cities, such as
the scarcity of water, insanitation, poverty, and the increase in crimes.
3. The term appropriate should emphasize the social acceptability and environmental protection of
the host countries, and this need to be addressed while transferring technology. Thus, we confirm
the view that engineering is a continual social experimentation with nature.
 5.1.5 MNCs and Morality
The economic and environmental conditions of the home and host countries may vary. But the multinational institutions have
to adopt appropriate measures not to disturb or dislocate the social and living conditions and cultures of the home countries.
A few principles are enlisted here:
1. MNC should respect the basic human rights of the people of the host countries.
2. The activities of the MNC should give economic and transfer technical benefits, and implement welfare measures of the
workers of the host countries.
3. The business practices of the multinational organisations should improve and promote morally justified institutions in the
host countries.
4. The multinationals must respect the laws and political set up, besides cultures and promote the cultures of the host
countries.
5. The multinational organisations should provide a fair remuneration to the employees of the host countries. If the
remuneration is high as that of home country, this may create tensions and if it is too low it will lead to exploitation.
6. Multinational institutions should provide necessary safety for the workers when they are engaged in hazardous activities
and informed consent should be obtained from them. Adequate compensation should be paid to them for the additional risks
undertaken.
5.1.5 Case Study: Bhopal Gas Tragedy
 5.1.6 Ethical Balance
Should an organization adopt the rules and practices of the host country fully and face
dangers and other serious consequences or adopt strictly their own countrys standards and
practices in the host country?
There is a saying, When in Rome do as Romans do. Can this be applied in the case of
MNCs? This is called ethical relativism. The actions of corporation and individuals that are
accepted by law, custom and other values of a society can be morally right in that society. It is
morally false, if it is illogical. It means, the corporation (and the engineers) functioning in
other countries must understand their law, customs, and beliefs and act in line with those
prevailing in that country.
This will lead to disaster if the country is a developing one where the safety standards are
given a go-bye. Laws and conventions are not morally self-sustaining.
 5.1.6 Ethical Balance.
In a overpopulated country, the loss of human lives may not physically affect them, but the
tragedy cast shadow for over decades, as it happened in Bhopal in 1984. This will be criticized
from the points of view of human rights, public welfare, and respect to people.
On the other hand, the organizations may practice laws of the home country, without
adjustments to the host culture. This stand is called ethical absolutism. This is again false, since
the moral principles in a different culture come into conflicts, and implementation in the
hostile culture is almost impossible.
Hence, MNCs may adopt ethical relationalism (contexualism) as a compromise. Moral
judgments are made in relation to the factors prevailing locally, without framing rigid rules. The
judgments should be contextual and in line with the customs of other cultures. The ethical
pluralism which views more than one justifiable moral solution is also adaptable. This principle
accepts cultural diversity and respects the legitimate cultural differences among individuals and
groups, of the host country.
 5.2 ENVIRONMENTAL ETHICS
Environmental ethics is the study of
(a) moral issues concerning the environment, and
(b) moral perspectives, beliefs, or attitudes concerning those issues.
Engineers in the past are known for their negligence of environment, in their activities. It has
become important now that engineers design eco-friendly tools, machines, sustainable
products, processes, and projects.
These are essential now to
(a) ensure protection (safety) of environment
(b) prevent the degradation of environment, and
(c) slow down the exploitation of the natural resources, so that the future generation can
survive.
 5.2 ENVIRONMENTAL ETHICS
The American Society of Civil Engineers (ASCE) code of ethics, has specifically requires that
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 professional
duties
The term sustainable development emphasizes on the investment, orientation of technology,
development and functioning of organizations to meet the present needs of people and at the
same time ensuring the future generations to meet their needs.
Compaq Computer Corporation (now merged with HP) was the leader, who exhibited their
commitment to environmental health, through implementation of the concept of Design for
environment on their products, unified standards all over the world units, and giving
priority to vendors with a record of environmental concern.
 5.2 ENVIRONMENTAL ETHICS
Engineers as experimenters have certain duties towards environmental ethics,
namely:
1. Environmental impact assessment: One major but sure and unintended effect of
technology is wastage and the resulting pollution of land, water, air and even space.
Study how the industry and technology affects the environment.
2. Establish standards: Study and to fix the tolerable and actual pollution levels.
3. Counter measures: Study what the protective or eliminating measures are available
for immediate implementation
4. Environmental awareness: Study on how to educate the people on environmental
practices, issues, and possible remedies.
 5.2.1 Disasters

1. Plastic Waste Disposal

2. e-Waste Disposal

3. Industrial Waste Disposal

4. Depletion of Ozone Layer

5. Global Warming

6. Acid Rain
 1. Plastic Waste Disposal
In our country, several crores of plastic bottles are used as containers for water and
oil, and plastic bags are used to pack different materials ranging from vegetables to
gold ornaments. Hardly any of these are recycled.
They end up in gutters, roadsides, and agricultural fields. In all these destinations,
they created havoc.
The worse still is the burning of plastic materials in streets and camphor along with
plastic cover in temples, since they release toxic fumes and threaten seriously the
air quality.
Cities and local administration have to act on this, collect and arrange for recycling
through industries.
 2. e-Waste Disposal
The parts of computers and electronic devices which have served its useful life present a
major environmental issue for all the developing countries including India. This scrap
contains highly toxic elements such as lead, cadmium, and mercury.
Even the radioactive waste will lose 89% of its toxicity after 200 years, by which time it will
be no more toxic than some natural minerals in the ground.
It will lose 99% of its remaining toxicity over the next 30,000 years. The toxic chemical
agents such as mercury, arsenic, and cadmium retain toxicity undiminished forever. But these
scraps are illegally imported by unscrupulous agencies to salvage some commercially
valuable inputs.
Instead of spending and managing on the scrap, unethical organizations sell them to
countries such as India. This is strictly in violation of the Basel Convention of the United
Nations Environment Program, which has banned the movement of hazardous waste.
 2. e-Waste Disposal
A recent report of the British Environment Agency has revealed that the discarded
computers, television sets, refrigerators, mobile phones, and electrical equipments have
been dispatched to India and Pakistan in large quantity, for ultimate disposal in
environmentally-unacceptable ways and at great risk to the health of the labour.
Even in the West, the electronic junk has been posing problems. Strong regulation including
(a) pressure on industries to set up disassembling facilities,
(b) ban on disposal in landfill sites,
(c) legislation for recycling requirements for these junk and
(d) policy incentives for eco-friendly design are essential for every country.
Every country needs regulations to define waste, measures to stop illegal imports, and
institutional structures to handle safe disposal of domestic industrial scrap.
 3. Industrial Waste Disposal
There has been a lot of complaints through the media, on
(a) against the Sterlite Copper Smelting Plant in Thuthukkudi (1997) against its
pollution, and
(b) when Indian companies imported the discarded French Warship Clemenceau
for disposal, the poisonous asbestos compounds were expected to pollute the
atmosphere besides exposing the labor to a great risk, during the disposal.
The government did not act immediately.
Fortunately for Indians, the French Government intervened and withdrew the ship,
and the serious threat was averted!
 4. Depletion of Ozone Layer
The ozone layer protects the entire planet from the ill-effects of ultraviolet
radiation and is vital for all living organisms in this world.
But it is eaten away by the Chloro-fluro-carbons (CFC) such as Freon emanating
from the refrigerators, air conditioners, and aerosol can spray.
This has caused also skin cancer to sun-bathers in the Western countries. Further
NO and NO2 gases were also found to react with the ozone.
Apart from engineers, the organizations, laws of the country and local
administration and market mechanisms are required to take up concerted efforts to
protect the environment.
 5. Global Warming
Over the past 30 years, the Earth has warmed by 0.6 C. Over the last 100 years, it has
warmed by 0.8 C. It is likely to push up temperature by 3 oC by 2100, according to
NASAs studies.
The U.S. administration has accepted the reality of global climate change, which has been
associated with stronger hurricanes, severe droughts, intense heat waves and the melting of
polar ice.
Greenhouse gases, notably carbon dioxide emitted by motor vehicles and coal-fired power
plants, trap heat like the glass walls of a greenhouse, cause the Earth to warm up.
Delegates from the six countries Australia, China, India, Japan, South Korea and US met
in California in April 2006 for the first working session of the Asia- Pacific Partnership on
Clean Development and Climate.
These six countries account for about half of the worlds emissions of climate-heating
greenhouse gases.
 6. Acid Rain
Large emissions of sulphur oxides and nitrous oxides are being released in to the air

from the thermal power stations using the fossil fuels, and several processing
industries.

These gases form compounds with water in the air and precipitates as rain or snow

on to the earth.

The acid rain in some parts of the world has caused sufficient damage to the

fertility of the land and to the human beings.

 5.2.2 Human-centered Environmental Ethics
This approach assumes that only human beings have inherent moral worth duly to be taken
care of.
Other living being and ecosystems are only instrumental in nature. Utilitarianism aims to
maximize good consequences for human beings. Most of the goods are engineered products
made out of natural resources.
Human beings have also (a) recreational interests (enjoy leisure through mountaineering,
sports, and pastimes), (b) aesthetic interests (enjoy nature as from seeing waterfalls and
snow-clad mountains), (c) scientific interests to explore into nature or processes, and (d) a
basic interest to survive, by preservation as well as conservation of nature and natural
resources.
Rights ethicists favor the basic rights to live and right to liberty, to realise the right to a live
in a supportive environment.
 5.2.2 Human-centered Environmental Ethics
Further, virtue ethics stresses importance of prudence, humility, appreciation of natural
beauty, and gratitude to the mother nature that provides everything.
However, the nature-centered ethics, which ensures the worth of all living beings and
organisms, seems to be more appropriate in the present-day context.
Many Asian religions stress the unity with nature, rather than domination and exploitation.
The Zen Buddhism calls for a simple life with compassion towards humans and other
animals.
Hinduism enshrines the ideal of oneness (advaitha) in and principle of ahimsa to all living
beings. It identifies all the human beings, animals, and plants as divine.
The eco-balance is the need of the hour and the engineers are the right experimenters to
achieve this.
 5.3 COMPUTER ETHICS
Computer ethics is defined as
(a) study and analysis of nature and social impact of computer technology,
(b) formulation and justification of policies, for ethical use of computers.
This subject has become relevant to the professionals such as designers of computers,
programmers, system analysts, system managers, and operators.
The use of computers have raised a host of moral concerns such as free speech, privacy,
intellectual property right, and physical as well as mental harm.
There appears to be no conceptual framework available on ethics, to study and understand
and resolve the problems in computer technology.
 5.3.1 Types of Issues
Different types of problems are found in computer ethics.

1. Computer as the Instrument of Unethical Acts

2. Computer as the Object of Unethical Act

3. Problems Related to the Autonomous Nature of Computer

 1. Computer as the Instrument of Unethical Acts
(a) The usage of computer replaces the job positions. This has been overcome to a large
extent by readjusting work assignments, and training everyone on computer
applications such as word processing, editing, and graphics.
(b) Breaking privacy. Information or data of the individuals accessed or erased or the
ownership changed.
(c) Defraud a bank or a client, by accessing and withdrawing money from others bank
account.
 2. Computer as the Object of Unethical Act
The data are accessed and deleted or changed.
(a) Hacking: The software is stolen or information is accessed from other computers. This
may cause financial loss to the business or violation of privacy rights of the individuals or
business. In case of defense information being hacked, this may endanger the security of the
nation.
(b) Spreading virus: Through mail or otherwise, other computers are accessed and the files
are erased or contents changed altogether. Trojan horses are implanted to distort the
messages and files beyond recovery. This again causes financial loss or mental torture to the
individuals. Some hackers feel that they have justified their right of free information or they
do it for fun. However, these acts are certainly unethical.
(c) Health hazard: The computers pose threat during their use as well as during disposal.
3. Problems Related to the Autonomous Nature of Computer
(a) Security risk: Recently the Tokyo Stock Exchange faced a major embarrassment. A seemingly casual mistake by a
junior trader of a large security house led to huge losses including that of reputation. The order through the
exchanges trading system was to sell one share for 600,000 Yen. Instead the trader keyed in a sale order for
600,000 shares at the rate of one Yen each. Naturally the shares on offer at the ridiculously low price were lapped
up. And only a few buyers agreed to reverse the deal! The loss to the securities firm was said to be huge, running
into several hundred thousands. More important to note, such an obvious mistake could not be corrected by some
of the advanced technology available. For advanced countries like Japan who have imbibed the latest technology,
this would be a new kind of learning experience.12
(b) Loss of human lives: Risk and loss of human lives lost by computer, in the operational control of military weapons.
There is a dangerous instability in automated defense system. An unexpected error in the software or hardware or
a conflict during interfacing between the two, may trigger a serious attack and cause irreparable human loss
before the error is traced. The Chinese embassy was bombed by U.S. military in Iraq a few years back, but
enquiries revealed that the building was shown in a previous map as the building where insurgents stayed.
(c) In flexible manufacturing systems, the autonomous computer is beneficial in obtaining continuous monitoring and
automatic control.
 5.3.2 Computers In Workplace
The ethical problems initiated by computers in the workplace are:
1. Elimination of routine and manual jobs. This leads to unemployment, but the
creation of skilled and IT-enabled service jobs are more advantageous for the people.
2. Health and safety: The ill-effects due to electromagnetic radiation, especially on
women and pregnant employees, mental stress, wrist problem known as Carpel Tunnel
Syndrome, and back pain due to poor ergonomic seating designs, and eye strain due to
poor lighting and flickers in the display and long exposure, have been reported
worldwide.
3. Computer failure: Failure in computers may be due to errors in the hardware or
software. Hardware errors are rare and they can be solved easily and quickly. But
software errors are very serious as they can stop the entire network.
 5.3.3 Property Issues
The property issues concerned with the computers are:
1. Computers have been used to extort money through anonymous telephone calls.
2. Computers are used to cheat and steal by current as well as previous employees.
3. Cheating of and stealing from the customers and clients.
4. Violation of contracts on computer sales and services.
5. Conspiracy as a group, especially with the internet, to defraud the gullible, stealing the
identity and to forge documents.
6. Violation of property rights: Is the software a property? The software could be either a
Program (an algorithm, indicating the steps in solving a problem) or a Source code (the
algorithm in a general computer language such as FORTAN, C and COBOL or an Object code
(to translate the source code into the machine language). How do we apply the concept of
property here? This demands a framework for ethical judgments.
 5.3.4 Computer Crime
The ethical features involved in computer crime are:
1. Physical Security
The computers are to be protected against theft, fire, and physical damage. This can be
achieved by proper insurance on the assets.
2. Logical security
The aspects related are (a) the privacy of the individuals or organizations, (b)
confidentiality, (c) integrity, to ensure that the modification of data or program are done
only by the authorized persons, (d) uninterrupted service. This is achieved by installing
appropriate uninterrupted power supply or back-up provisions, and (e) protection
against hacking that causes dislocation or distortion.
 5.3.4 Computer Crime
The ethical features involved in computer crime are:
1. Physical Security
The computers are to be protected against theft, fire, and physical damage. This can be
achieved by proper insurance on the assets.
2. Logical security
The aspects related are (a) the privacy of the individuals or organizations, (b)
confidentiality, (c) integrity, to ensure that the modification of data or program are done
only by the authorized persons, (d) uninterrupted service. This is achieved by installing
appropriate uninterrupted power supply or back-up provisions, and (e) protection
against hacking that causes dislocation or distortion.
 5.3.4 Computer Crime.
Major weaknesses in this direction are:
(a) the difficulty in tracing the evidence involved and
(b) absence of stringent punishment against the crime.
The origin of a threat to the Central Government posted from an obscure browsing
center, remained unsolved for quite a long time.
Many times, such crimes have been traced, but there are no clear cyber laws to punish
and deter the criminals.
 5.3.5 Privacy and Anonymity
The data transmission and accessibility have improved tremendously by using the computers, but
the right to privacy has been threatened to a great extent. Some issues concerned with the
privacy are listed hereunder:
1. Records of Evidence
Service records or criminal records and the details of people can be stored and accessed to prove
the innocence or guilty. Records on psychiatric treatment by medical practitioners or hospital,
or records of membership of organizations may sometime embarrass the persons in later years.
2. Hacking
There are computer enthusiasts who willfully or for fun, plant virus or Trojan horses that may
fill the disc space, falsify information, erase files, and even harm the hardware. They
breakdown the functioning of computers and can be treated as violation of property rights.
 5.3.5 Privacy and Anonymity..
3. Legal Response
In the Indian scene, the Right to Information Act 2005 14 provides the right to the citizens
to secure access to information under the control of public authorities, including the
departments of the central government, state governments, government bodies, public
sector companies and public sector banks, to promote transparency and accountability
of public authorities.
Right to information: Under the Act, section 2 (j), the right to information includes the
right to (1) Inspect works, documents, records, (2) take notes, extracts or certified
copies of documents or records, (3) take certified samples of material, and (4) obtain
information in the form of printouts, diskettes, floppies, tapes, video cassettes or in any
other electronic mode.
 5.3.5 Privacy and Anonymity..
4. Anonymity
Anonymity in the computer communication has some merits as well as demerits. While
seeking medical or psychological counseling or discussion (chat) on topics, such as
AIDS, abortion, gay rights, the anonymity offers protection (against revealing their
identity). But frequently, anonymity is misused by some people for money laundering,
drug trafficking and preying upon the vulnerable.
 5.3.6 Professional Responsibility
The computer professionals should be aware of different conflicts of interests as they transact
with other at different levels.
The IEEE and Association for Computing Machinery (ACM) have established the codes of
ethics to manage such responsibilities.
5.3.7 The Big Net
Almost all the countries are now connected by the internet. But there are no international laws to
regulate the issues of freedom of speech, intellectual property rights, privacy rights etc.
Another development in this direction is, the universities offering degrees-on-line. Third World is
certainly gaining knowledge and education.
Even Google.com has announced plans to publish research papers through the World Wide Web.
Knowledge is power.
Knowledge is internationalised! Will this lead to empowerment of the Third World and promotion of
World peace? Only the future can answer this question.
 5.4 WEAPONS DEVELOPMENT
Military activities including the world wars have stimulated the growth of technology. The
growth of Internet amply illustrates this fact.
Engineers involve in weapons development because of the following reasons:
1. It gives one job with high salary.
2. One takes pride and honor in participating in the activities towards the defense of the nation
(patriotic fervor).
3. One believes the he fights a war on terrorism and thereby contribute to peace and stability of
the country. Ironically, the wars have never won peace, only peace can win peace!
4. By research and development, the engineer is reducing or eliminating the risk from enemy
weapons, and saving ones country from disaster.
5. By building-up arsenals and show of force, a country can force the rogue country, towards
regulation.
 5.5 ENGINEERS AS MANAGERS
5.5.1 Characteristics
The characteristics of engineers as managers are:
1. Promote an ethical climate, through framing organization policies, responsibilities
and by personal attitudes and obligations.
2. Resolving conflicts, by evolving priority, developing mutual understanding,
generating various alternative solutions to problems.
3. Social responsibility to stakeholders, customers and employers. They act to develop
wealth as well as the welfare of the society.
 5.5.2 Managing Conflicts
In solving conflicts, force should not be resorted. In fact, the conflict situations should be
tolerated, understood, and resolved by participation by all the concerned. The conflicts in case
of project managers arise in the following manners:
(a) Conflicts based on schedules: This happens because of various levels of execution, priority and
limitations of each level.
(b) Conflicts arising out of fixing the priority to different projects or departments. This is to be
arrived at from the end requirements and it may change from time to time.
(c) Conflict based on the availability of personnel.
(d) Conflict over technical, economic, and time factors such as cost, time, and performance
level.
(e) Conflict arising in administration such as authority, responsibility, accountability, and logistics
required.
(f) Conflicts of personality, human psychology and ego problems.
(g) Conflict over expenditure and its deviations.
Most of the conflicts can be resolved by following the principles listed here:
 5.5.2 Managing Conflicts
1. People
Separate people from the problem. It implies that the views of all concerned should be
obtained. The questions such as what, why, and when the error was committed is more
important than to know who committed it. This impersonal approach will lead to not
only early solution but also others will be prevented from committing errors.
2. Interests
Focus must be only on interest i.e., the ethical attitudes or motives and not on the
positions (i.e., stated views). A supplier may require commission larger than usual
prevailing rate for an agricultural product. But the past analysis may tell us that the
material is not cultivated regularly and the monsoon poses some additional risk towards
the supply. Mutual interests must be respected to a maximum level. What is right is
more important than who is right!
 5.5.2 Managing Conflicts
3. Options
Generate various options as solutions to the problem. This helps a manager to try the next
best solution should the first one fails. Decision on alternate solutions can be taken
more easily and without loss of time.
4. Evaluation
The evaluation of the results should be based on some specified objectives such as
efficiency, quality, and customer satisfaction. More important is that the means, not only
the goals, should be ethical.
 5.6 CONSULTING ENGINEERS
The consulting engineers work in private. There is no salary from the employers. But they charge fees from the
sponsor and they have more freedom to decide on their projects. Still they have no absolute freedom, because they
need to earn for their living. The consulting engineers have ethical responsibilities different from the salaried
engineers, as follows:
1. Advertising
The consulting engineers are directly responsible for advertising their services, even if they employ other consultants
to assist them. But in many organisations, this responsibility is with the advertising executives and the personnel
department. They are allowed to advertise but to avoid deceptive ones. Deceptive advertising such as the following
are prohibited:
(a) By white lies.
(b) Half-truth, e.g., a product has actually been tested as prototype, but it was claimed to have been already introduced
in the market. An architect shows the photograph of the completed building with flowering trees around but
actually the foundation of the building has been completed and there is no real garden.
(c) Exaggerated claims. The consultant might have played a small role in a well-known project. But they could claim to
have played a major role.
(d) Making false suggestions. The reduction in cost might have been achieved along with the reduction in strength, but
the strength details are hidden.
(e) Through vague wordings or slogans.
 5.6 CONSULTING ENGINEERS.
2. Competitive Bidding
It means offering a price, and get something in return for the service offered. The
organizations have a pool of engineers. The expertise can be shared and the bidding is made
more realistic. But the individual consultants have to develop creative designs and build their
reputation steadily and carefully, over a period of time. The clients will have to choose
between the reputed organizations and proven qualifications of the company and the
expertise of the consultants. Although competent, the younger consultants are thus slightly at
a disadvantage.
 5.6 CONSULTING ENGINEERS.
3. Contingency Fee
This is the fee or commission paid to the consultant, when one is successful in saving the
expenses for the client. A sense of honesty and fairness is required in fixing this fee. The
NSPE Code III 6 (a) says that the engineers shall not propose or accept a commission on a
contingent basis where their judgment may be compromised.
The fee may be either as an agreed amount or a fixed percentage of the savings realized. But
in the contingency fee-agreements, the judgment of the consultant may be biased. The
consultant may be tempted to specify inferior materials or design methods to cut the
construction cost. This fee may motivate the consultants to effect saving in the costs to the
clients, through reasonably moral and technological means.
 5.6 CONSULTING ENGINEERS.
4. Safety and Clients Needs
The greater freedom for the consulting engineers in decision making on safety aspects, and
difficulties concerning truthfulness are the matters to be given attention. For example, in
design-only projects, the consulting engineers may design something and have no role in the
construction. Sometimes, difficulties may crop-up during construction due to non-
availability of suitable materials, some shortcuts in construction, and lack of necessary and
adequate supervision and inspection. Properly-trained supervision is needed, but may not
happen, unless it is provided. Further, the contractor may not understand and/or be willing
to modify the original design to serve the clients best. A few on-site inspections by the
consulting engineers will expose the deficiency in execution and save the workers, the
public, and the environment that may be exposed to risk upon completion of the project.
 5.7 ENGINEERS AS EXPERT WITNESS
Frequently engineers are required to act as consultants and provide expert opinion and
views in many legal cases of the past events.
They are required to explain the causes of accidents, malfunctions and other technological
behavior of structures, machines, and instruments, e.g., personal injury while using an
instrument, defective product, traffic accident, structure or building collapse, and damage to
the property, are some of the cases where testimonies are needed.
The engineers, who act as expert-witnesses, are likely to abuse their positions in the
following manners:
 5.7 ENGINEERS AS EXPERT WITNESS.
1. Hired Guns
Mostly lawyers hire engineers to serve the interest of their clients. Lawyers are permitted
and required to project the case in a way favorable to their clients. But the engineers have
obligations to thoroughly examine the events and demonstrate their professional integrity to
testify only the truth in the court. They do not serve the clients of the lawyers directly. The
hired guns forward white lies and distortions, as demanded by the lawyers. They even
withhold the information or shade the fact, to favor their clients.
2. Money Bias
Consultants may be influenced or prejudiced for monitory considerations, gain reputation
and make a fortune.
 5.7 ENGINEERS AS EXPERT WITNESS.
3. Ego Bias
The assumption that the own side is innocent and the other side is guilty, is responsible for
this behavior. An inordinate desire to serve ones client and get name and fame is another
reason for this bias.
4. Sympathy Bias
Sympathy for the victim on the opposite side may upset the testimony. The integrity of the
consultants will keep these biases away from the justice. The court also must obtain the
balanced view of both sides, by examining the expert witnesses of lawyers on both sides, to
remove a probable bias.
 5.7 ENGINEERS AS EXPERT WITNESS.
5.7.1 Duties
1. The expert-witness is required to exhibit the responsibility of confidentiality just as they do in the
consulting roles. They can not divulge the findings of the investigation to the opposite side, unless it
is required by the court of law.
2. More important is that as witness they are not required to volunteer evidence favorable to the
opponent. They must answer questions truthfully, need not elaborate, and remain neutral until the
details are asked for further.
3. They should be objective to discover the truth and communicate them honestly.
4. The stand of the experts depends on the shared understanding created within the society. The
legal system should be respected and at the same time, they should act in conformance with the
professional standards as obtained from the code of ethics.
5. The experts should earnestly be impartial in identifying and interpreting the observed data,
recorded data, and the industrial standards. They should not distort the truth, even under pressure.
 5.9 MORAL LEADERSHIP
Moral leadership is essentially required for the engineers, for the reasons listed as follows:
1. It is leading a group of people towards the achievement of global and objectives. The goals as well
as the means are to be moral. For example, Hitler and Stalin were leaders, but only in an
instrumental sense and certainly not on moral sense.
2. The leadership shall direct and motivate the group to move through morally desirable ways.
3. They lead by thinking ahead in time, and morally creative towards new applications, extension and
putting values into practice. Morally creative means the identification of the most important values
as applicable to the situation, bringing clarity within the groups through proper communication, and
putting those values into practice.
4. They sustain professional interest, among social diversity and cross-disciplinary complexity. They
contribute to the professional societies, their professions, and to their communities. The moral
leadership in engineering is manifested in leadership within the professional societies. The
professional societies provide a forum for communication, and canvassing for change within and by
groups.
 5.9 MORAL LEADERSHIP.
5. Voluntarism: Another important avenue for providing moral leadership within
communities, by the engineers is to promote services without fee or at reduced fees (pro
bono) to the needy groups. The professional societies can also promote such activities among
the engineers. This type of voluntarism (or philanthropy) has been in practice in the fields of
medicine, law and education. But many of the engineers are not self-employed as in the case
of physicians and lawyers. The business institutions are encouraged to contribute a percentage
of their services as free or at concessional rates for charitable purposes.
6. Community service: This is another platform for the engineers to exhibit their moral
leadership. The engineers can help in guiding, organizing, and stimulating the community
towards morally- and environmentally-desirable goals. The corporate organizations have
come forward to adopt villages and execute many social welfare schemes, towards this
objective.
 Code of Conduct
Engineering is an important and learned profession. As members of this
profession, engineers are expected to exhibit the higher 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 then public
health, safety, and welfare.
Engineer must perform under a standard of professional behavior that requires
adherence to the highest principles of ethical conduct.
 Code of Conduct
I Fundamental Canons
Engineers in the fulfillment of their professional duties shall
1. hold paramount the safety, health, and welfare of the public.
2. perform services only in areas of their competence.
3. issue public statements only in objective and truthful manner.
4. act for each employer or client as faithful agents or trustees.
5. avoid deceptive acts.
6. conduct themselves honorably, responsibly, ethically, and lawfully so as to
enhance the honor, reputation, and usefulness of the profession.
 Code of Conduct
II Rules of Practice
1. Engineers shall hold paramount the safety, health, and welfare of the public.
2. Engineers shall perform services only in the areas of their competence.
3. Engineers shall issue public statements only in an objective and truthful
manner.
4. Engineers shall at for each employer or client as faithful agents or trustees
5. Engineers shall avoid deceptive acts
 Code of Conduct
III Professional Obligations
1. Engineers shall be guided in all their relation by the highest standards of
honesty and integrity.
2. Engineers shall at all times strive to serve the public interest.
3. Engineers shall avoid all conduct or practice that deceives the public.
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.
5. Engineers shall not be influenced in their professional duties by conflicting
interests.
 Code of Conduct
III Professional Obligations
6. Engineers shall not attempt to obtain employment or advancement or professional
engagements by untruthfully criticizing other engineers, or by other improper
methods.
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 resent
such information to the proper authority for action.
8. 8. Engineers shall accept personal responsibility for their professional activities,
provided, however, the engineers may seek indemnification for services arising out
of their practice for other than gross negligence, where the engineers interests can
not otherwise be protected.
9. Engineers shall give credit for engineering work to those to whom credit is due,
and will recognize the proprietary interests of others.
 Corporate Social Responsibility
A company has an economic responsibility: it must earn a return for its
stockholders within the confines of the law.
However, corporate social responsibility means that organizations have also
ethical and societal responsibilities that go beyond their economic
responsibilities.
CSR requires organizations to expand their understandings of their
responsibilities to include other stakeholders such as employees, customers,
suppliers, local communities, state governments, international organizations, etc.
Ethics could be seen as a crucial component of individual and group behaviors
at the heart of organizations responsibilities.
 Thank You

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