Avoid Conflicts of Avoid Conflicts of InterestInterest

Group 23 PresentationGroup 23 Presentation

Kyle Terry, Alex Schilling,

Tim Burke, Tom Canataro

CIEG 125 Professor McNeil

Chapter 14

4 December 2005

The Situation (part one):The Situation (part one): Joe calls you into his office with Sarah explaining he needs you to make Joe calls you into his office with Sarah explaining he needs you to make a trip to Atlanta to negotiate a contract with P20 (a large consulting a trip to Atlanta to negotiate a contract with P20 (a large consulting engineering and construction company)engineering and construction company) you remember the engineer Gina from your days at Lehigh and you are you remember the engineer Gina from your days at Lehigh and you are also familiar with her husbandalso familiar with her husband in effort to get back on good terms, Joe has arranged for you to stay the in effort to get back on good terms, Joe has arranged for you to stay the weekend taking into consideration your love for baseball and potential weekend taking into consideration your love for baseball and potential invite to two gamesinvite to two games Sarah briefs you on the job explaining P20 isn’t doing the work in-Sarah briefs you on the job explaining P20 isn’t doing the work in-house because they landed more big projects than they can handlehouse because they landed more big projects than they can handle Gina invites you to both games, you acceptGina invites you to both games, you accept business goes smoothly all Friday and you attend game one of two that business goes smoothly all Friday and you attend game one of two that eveningeveningOver lunch on Saturday, Gina explains a problem with her husband, Over lunch on Saturday, Gina explains a problem with her husband, Sherman:Sherman:

Sherman is simultaneously a consultant for the Costal Commission and Sherman is simultaneously a consultant for the Costal Commission and working for a client that wants to build a marinaworking for a client that wants to build a marina last month Sherman got a letter from the State of Georgia Board of last month Sherman got a letter from the State of Georgia Board of Professional Registration addressing a complaint that Sherman was dealing Professional Registration addressing a complaint that Sherman was dealing with a conflict of interestwith a conflict of interest Gina isn’t sure that the coastal commission knows Sherman is also working Gina isn’t sure that the coastal commission knows Sherman is also working for a developerfor a developer everyone wants Sherman to help out with insider informationeveryone wants Sherman to help out with insider information

The Situation (Part 2): Sherm feels as though he can handle the multi-taskingSherm feels as though he can handle the multi-tasking

He has hired an attorney to write letters to the state board disputing the letters He has hired an attorney to write letters to the state board disputing the letters sent to himsent to him

The Board has stalled on the case, getting advice from ethics consultants on The Board has stalled on the case, getting advice from ethics consultants on what they should dowhat they should do

You tell Gina that he has a choice to make because of a conflict with the Code of You tell Gina that he has a choice to make because of a conflict with the Code of EthicsEthics

You agree with his attorney in that board will give Sherm an adequate amount You agree with his attorney in that board will give Sherm an adequate amount of time to resolve this before they bring this to court and punish himof time to resolve this before they bring this to court and punish him

You think Sherm should back off of the one end of environmental activism, or he You think Sherm should back off of the one end of environmental activism, or he may loose credibility with both sides of his workmay loose credibility with both sides of his work

The next day you go to the baseball game with Gina and ShermanThe next day you go to the baseball game with Gina and Sherman You and Sherm talk about the conversation you had with Gina yesterday You and Sherm talk about the conversation you had with Gina yesterday

during an inning break when Gina goes to the bathroomduring an inning break when Gina goes to the bathroom Sherm thinks he can handle both jobs, and is the best suited man for both of Sherm thinks he can handle both jobs, and is the best suited man for both of

themthem You tell Sherm that it is the perception of the conflict, not the action of it, You tell Sherm that it is the perception of the conflict, not the action of it,

therefore he should back off the one endtherefore he should back off the one end Sherm responds loudly and aggressively, disagreeing with what you had saidSherm responds loudly and aggressively, disagreeing with what you had said He says he has worked to hard to back off of one end now just because the He says he has worked to hard to back off of one end now just because the

perception isn’t right. Sherm thinks he is now cashing in on his hard work, and perception isn’t right. Sherm thinks he is now cashing in on his hard work, and doesn’t want to back outdoesn’t want to back out

You are left not knowing what to do or how to respondYou are left not knowing what to do or how to respond

SafetySafety

How safe is safe?How safe is safe? ““If the risks judged are to be If the risks judged are to be

acceptable”acceptable” Communication of risksCommunication of risks The Ford Pinto- unethicalThe Ford Pinto- unethical Safety of streets in AtlantaSafety of streets in Atlanta

Professional RegistrationProfessional Registration

1500-1600’s – long apprenticeship1500-1600’s – long apprenticeship Modern Engineering- Ecole Modern Engineering- Ecole

PolytechniquePolytechnique Accredited schoolingAccredited schooling Fundamentals of Engineering ExamFundamentals of Engineering Exam 4 year apprenticeship4 year apprenticeship Professional Engineering ExamProfessional Engineering Exam Alternative RouteAlternative Route

Conflict of Interest IConflict of Interest I

““the servant of two masters”the servant of two masters” ““Chinese Wall”Chinese Wall” Avoid Conflicts of InterestsAvoid Conflicts of Interests Be seen acting ethicallyBe seen acting ethically

Conflict of Interest 2Conflict of Interest 2 The American Society of Civil Engineers (ASCE) Code of Ethics The American Society of Civil Engineers (ASCE) Code of Ethics

does not define conflict of interest directly. It gives important does not define conflict of interest directly. It gives important generalities about the issue, but no true definition.generalities about the issue, but no true definition.

CANON 4 in the Code states:CANON 4 in the Code states: a. Engineers shall avoid all known or potential conflicts of interest a. Engineers shall avoid all known or potential conflicts of interest

with their employers or clients and shall promptly inform their with their employers or clients and shall promptly inform their employers or clients of any business association, interests, or employers or clients of any business association, interests, or circumstances which could influence their judgment or quality of circumstances which could influence their judgment or quality of their services.their services.

b. Engineers shall not accept compensation from more than one b. Engineers shall not accept compensation from more than one party for services on the same project, or for services pertaining to party for services on the same project, or for services pertaining to the same project, unless the circumstances are fully disclosed to the same project, unless the circumstances are fully disclosed to and agreed to by all parties.and agreed to by all parties.

d. Engineers in public service as members, advisors, or employees d. Engineers in public service as members, advisors, or employees of a governmental body or department shall not participate in of a governmental body or department shall not participate in considerations or actions with respect to services solicited or considerations or actions with respect to services solicited or provided by them or their organization in private or public provided by them or their organization in private or public engineering practice.engineering practice.

g. Engineers shall not accept professional employment outside of g. Engineers shall not accept professional employment outside of their regular work or interest without the knowledge of their their regular work or interest without the knowledge of their employers.employers.

The National Institute for Engineering The National Institute for Engineering Ethics (NIEE) states:Ethics (NIEE) states: Engineers shall act as faithful agents for their Engineers shall act as faithful agents for their

employers or clients and maintain employers or clients and maintain confidentiality; they shall avoid conflicts of confidentiality; they shall avoid conflicts of interest whenever possible, disclosing interest whenever possible, disclosing unavoidable conflicts.unavoidable conflicts.

There is not a definition for conflict of There is not a definition for conflict of interest but just farther explains ethics interest but just farther explains ethics relating to itrelating to it

For Sherman, him not telling his companies For Sherman, him not telling his companies that he is working for another breaks ethics that he is working for another breaks ethics in the ASCE Canon 4 Part a. If a project with in the ASCE Canon 4 Part a. If a project with both employers came up then it is a conflict both employers came up then it is a conflict of interest and that breaks the ethics of of interest and that breaks the ethics of ASCE and NIEE.ASCE and NIEE.

Why Be a Good Engineer?Why Be a Good Engineer? In addition to being good at technical skill, to be a good In addition to being good at technical skill, to be a good

engineer, one must have high moral standards, obey the engineer, one must have high moral standards, obey the law, and obey the code of ethics.law, and obey the code of ethics.

In order to maintain a viable engineering profession, In order to maintain a viable engineering profession, engineers should demonstrate good professional manners engineers should demonstrate good professional manners and warn others for crude behavior. They shouldn’t be and warn others for crude behavior. They shouldn’t be criminals and should have high morals and abide by the lawcriminals and should have high morals and abide by the law

All engineers have a responsibility to uphold the honor of All engineers have a responsibility to uphold the honor of professional engineering and create a culture where all professional engineering and create a culture where all engineers con flourishengineers con flourish

Bad manners result in ridicule and immoral conduct can Bad manners result in ridicule and immoral conduct can result in the loss of a client or business. Law breaking may result in the loss of a client or business. Law breaking may result in jail time or fines.result in jail time or fines.

All engineers are from a community, the engineering All engineers are from a community, the engineering community, which they all benefit from when all act community, which they all benefit from when all act ethically. ethically.

Any antisocial act has a personal cost. Every lie or antisocial Any antisocial act has a personal cost. Every lie or antisocial act by a person reduces one’s standing as an honorable act by a person reduces one’s standing as an honorable human being. human being.