ethics forum: spring series 2015 part 3 ethical issues

Ethics Forum: Spring Series 2015Part 3

Ethical Issues:

Employer/Employee RelationsMay 13, 2015

Arthur E. Schwartz, CAEDeputy Executive Director & General Counsel

National Society of Professional EngineersAlexandria, Virginia

[email protected]

pg. 1

Engineering Ethics

Introducing Ethics Forum Team:

– Mark H. Dubbin, P.E., NSPE

– Michael L. Shirley, P.E., F.NSPE

– Samuel G. Sudler III, P.E., NSPE

– William J. Lhota, P.E., NSPE, Former BER Chair

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Engineering Ethics

Three Basic Ethical Obligations – (1) Public, (2) Employer/Client and (3) Other Professionals...– Never Mutually Exclusive - Reciprocal– Not A “Zero Sum Game”– All Need To Be Considered At All Times– Should Be Complementary And Integrated With

One Another To The Fullest Extent Possible– Ethical Integration = Professional Integrity

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Engineering Ethics

Seven Principles Impacting Each Obligation

1. Protecting The Public Health, Safety and Welfare2. Demonstrating Professional Competence3. Maintaining Objectivity/Truthfulness4. Addressing Conflict of Interest5. Preserving Confidentiality6. Receiving and Providing Valuable Consideration7. Emerging Areas/Emerging Challenges

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Engineering Ethics

Objectivity and Truthfulness– Public Statements– Professional Reports– Testimony– Relevant and Pertinent– Founded on Knowledge of Facts– Founded on Technical Competence– Disclosure of Interested Parties–

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Engineering Ethics

Conflicts of Interest– Faithful Agent/Trustee– Disclosure– Appearances– Services to More Than One Party– Accepting Compensation from Outside Agents– Serving on Governmental Bodies– Accepting Contracts from Governmental Bodies on

Which Principal or Officer Serves

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Engineering Ethics

Confidentiality– Business Affairs/Technical Processes of Present or

Former Employer or Client– Promote or Arrange New Employment After Gaining

Particular/Specialized Knowledge– Represent an Adversary Interest After Gaining

Particular/Specialized Knowledge– Consent

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Engineering Ethics

NSPE Deputy Executive Director and General Counsel Arthur Schwartz and a panel of engineering ethics experts will explore a series of cases relating

to a government engineer performing part-time consulting, failure to provide notice as a reason to

deny employment verification, obligation to former employer and former client following acceptance of state employment and a former employee’s use of a former employer’s firm name and other materials.

pg. 8

Engineering Ethics

Conflict of Interest – Assistant Director of Public Works – Part-Time Consulting

Case No. 14-1

pg. 9

Engineering Ethics

Facts: Engineer A is an assistant director of public works in

Somecity. As part of his job, Engineer A is involved in selecting and

hiring engineering consultants for projects in Somecity. These projects may involve local, state, and federal funds. Engineer A also works part-time as an independent

consulting engineer and has teamed with Engineer B on federal and state-funded projects in another city in the same state.

pg. 10

Engineering Ethics

Question:

Is it ethical for Engineer A to work with Engineer B as a consultant on federal and

state funded projects under these circumstances?

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Engineering Ethics

Section II.4. - NSPE Code of Ethics:

Engineers shall act for each employer or client as faithful agents or trustees.

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Engineering Ethics

Section II.4.a. - NSPE Code of Ethics:

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.

pg. 13

Engineering Ethics

Section II.4.d. - NSPE Code of Ethics:

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.

pg. 14

Engineering Ethics

Section II.4.e - NSPE Code of Ethics:

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.

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Engineering Ethics

Section III.1.c. - NSPE Code of Ethics:

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.

.

pg. 16

Engineering Ethics

Section III.4.a. - NSPE Code of Ethics:

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.

pg. 17

Engineering Ethics

Section III.6.b. - NSPE Code of Ethics:

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.

pg. 18

Engineering Ethics

Conclusion: Based on the limited facts presented, it was unethical for Engineer A to work with Engineer B as a consultant on federal and state projects. Engineer A’s working with Engineer B as a consultant on federal and state-funded projects could create the appearance of a conflict of interest. Before Engineer A undertakes any work as an independent consultant, Engineer A must advise and secure the permission of the appropriate authorities in Somecity; and because the work in question involves local, state, and federal resources, Engineer A must also make absolutely certain that his actions are consistent and in conformance with applicable local, state, and federal procurement laws and conflict-of-interest provisions as well as with state engineering licensure laws and regulations.

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Engineering Ethics

In my experience conflicts of interest in employment present the most significant ethical issues face by most engineers and engineering companies.

1. Yes2. No3. Not Sure

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Engineering Ethics

Employment – Failure to Provide Notice as Reason to Deny Employment Verification

Case No. 14-3

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Engineering Ethics

Facts: Engineer A was employed full-time by the engineering firm ABC

Engineering for 12 years. ABC Engineering is led by Engineer B. Engineer A decides to depart

from the firm to work for another firm. While at the new firm, Engineer A decides to seek comity licensure in

another state. Engineer A contacts Engineer B seeking assistance with his comity

application. Engineer B responds to Engineer A’s request and refuses to submit the

employment verification for Engineer A’s comity application and sends Engineer A the following e-mail:

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Engineering Ethics

Facts:

“Considering the fact that after 12 years of employment with my company, you failed to provide a standard two-week notice of your departure (even though your termination letter specified you would do so), does not make us feel compelled to complete your verification. The only notice you provided was given about 10 minutes before the end of your last working day in which you stated you were leaving.”

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Engineering Ethics

Facts:

“In addition, you said there were things you would follow up on, but never called us back. You didn’t even have the consideration to inform the president of the company you were leaving.”

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Engineering Ethics

Facts:

“Customarily, when someone requires their former employer to make any kind of recommendation, the person making the request should also have the common courtesy to call to make the request. Based on the above, we do not feel in any way obliged to support your application for your license in state x. Please contact me with any questions concerning the above.”

pg. 25

Engineering Ethics

Question:

Were the actions of Engineer A and Engineer B ethical in connection with this employment

matter?

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Engineering Ethics



pg. 27

Engineering Ethics

Section III.1. - NSPE Code of Ethics:

Engineers shall be guided in all their relations by the highest standards of honesty and

integrity.

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Engineering Ethics


Engineers shall not attempt to obtain employment or advancement or professional engagements by untruthfully criticizing other

engineers, or by other improper or questionable methods.

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Engineering Ethics


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.

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Engineering Ethics


Engineers shall conform with state registration laws in the practice of engineering.

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Engineering Ethics

Conclusions:1. It was unethical for Engineer A to fail to provide

timely and sufficient notice as promised to ABC Engineering.

2. It was unethical for Engineer B or ABC Engineering to fail to meet the ethical, legal, and regulatory requirements, and be factually accurate in providing the necessary information, including employment verification, required for Engineer A’s comity application.

. pg. 32

Engineering Ethics

In my opinion, Engineer A’s failure to provide adequate notice of resignation was more serious that Engineer B’s failure to provide employment verification of Engineer A’s employment:

1. Yes2. No3. Not Sure

pg. 33

Engineering Ethics

Obligation to Former Employer andFormer Client Following Acceptance of

Position with State

Case No. 14-8

pg. 34

Engineering Ethics

Facts: Engineer A worked for a private engineering

company in the field of water rights. The firm was hired by a client to complete a water-

rights analysis in which Engineer A participated. Engineer A, along with one other employee at the

firm, stamped the final document. These types of analyses quantify water and provide

terms and conditions for future use that must be approved by the local courts.

pg. 35

Engineering Ethics

Facts: Typically, the court process takes years to complete

and, in short, it includes the following steps:1. Application (proposal)2. Engineering to support application3. Objections from the public/other water users4. Rebuttal of objector’s comments5. Mediation or trial

pg. 36

Engineering Ethics

Facts: Engineer A worked on the project through step No. 2 and

resigned from the firm to work for the State, who is an objector in this specific analysis (the State is typically an objector in most cases).

Engineer A feels that he can and should support the work he performed and which was included in the stamped report, but he is concerned about the remaining steps in the court process.

In his current employment with the state, he has been isolated from the State’s case in the matter, and his current position does not include opposing this or other cases.

pg. 37

Engineering Ethics

Question:

What are Engineer A’s ethical obligations under the circumstances?

pg. 38

Engineering Ethics



pg. 39

Engineering Ethics

Section II.4.a. – NSPE Code of Ethics:

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.

pg. 40

Engineering Ethics


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.

pg. 41

Engineering Ethics


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. pg. 42

Engineering Ethics

Conclusion:

Engineer A clearly has an ongoing duty to honor his obligations both to his former employer and the private client. Engineer A should be assigned other duties by the state, remain isolated from the State's water rights case involving Engineer A's former employer and its client—and the state should recognize and respect Engineer A's ethical obligations in this matter.

pg. 43

Engineering Ethics

Engineer A in his new role as an employee of the state should never be assigned any work in the future concerning his former employer or client.

1. Agree2. Disagree3. Not Sure

pg. 44

Engineering Ethics

Former Employee’s Credit for Engineering Work - Use of Former Employer’s Firm

Name and “Statement of Firm Principles”

Case No. 14-10

pg. 45

Engineering Ethics

Facts: Engineer A is hired by PXL Engineering to serve as an

associate engineer in State Y. Engineer B, a partner in PXL Engineering mentors Engineer

A, and Engineer A eventually establishes himself within the firm as a generally well-regarded practitioner.

PXL Engineering pays for Engineer A’s tuition to obtain a graduate degree, and Engineer B submits recommendations for Engineer A to become licensed as a professional engineer.

pg. 46

Engineering Ethics

Facts: A few years later, Engineer A decides to establish his own engineering

practice in State Z and decides to call the firm “PXL Engineering of State Z.”

Engineer A’s firm has no affiliation with PXL Engineering located in State Y, but upon investigation, Engineer B observes that the website developed by PXL Engineering of State Z has strikingly similar “Statements of Firm Principles” to the ones included on PXL Engineering’s website.

Engineer B contacts Engineer A regarding the name of his firm as well as his use of PXL Engineering’s “Statement of Firm Principles” on PXL Engineering of State Z’s website.

pg. 47

Engineering Ethics

Questions:1. Was it ethical for Engineer A to call his firm

“PXL Engineering of State Z”?

2. Was it ethical for Engineer A to use similar “Statements of Firm Principles” on PXL Engineering of State Z’s website?

pg. 48

Engineering Ethics

Section I.5. - NSPE Code of Ethics:

Engineers, in the fulfillment of their professional duties, shall avoid deceptive acts.

pg. 49

Engineering Ethics

Section I.6. - NSPE Code of Ethics:

Engineers, in the fulfillment of their professional duties, shall conduct themselves

honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and

usefulness of the profession.

pg. 50

Engineering Ethics


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.

pg. 51

Engineering Ethics


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 venturers, or past accomplishments.

pg. 52

Engineering Ethics

Section III.1.e. - NSPE Code of Ethics:

Engineers shall not promote their own interest at the expense of the dignity and integrity of the

profession.

pg. 53

Engineering Ethics


Engineers shall give credit for engineering work to those to whom credit is due, and will recognize the proprietary interests of others.

pg. 54

Engineering Ethics


Engineers shall, whenever possible, name the person or persons who may be individually responsible for

designs, inventions, writings, or other accomplishments.

pg. 55

Engineering Ethics

Conclusion:1. It was unethical for Engineer A to call his firm

“PXL Engineering of State Z.”2. In view of the use of the PXL identity, it was

unethical for Engineer A to use a strikingly similar “Statements of Firm Principles” on PXL Engineering of State Z’s website. In addition, Engineer A’s actions may raise serious legal issues for Engineer A.

pg. 56

Engineering Ethics

It would have been ethical for Engineer A toutilize the “Statements of Firm Principles” from his former firm for his new firm provided Engineer A gave credit to his former firm:

1. Agree2. Disagree3. Not sure

pg. 57

Engineering Ethics

Discussion

Questions and Answers

pg. 58

Engineering Ethics

“The social responsibility of business is to increase profit within the bounds of the law which is to say, engage in open and free competition, without deception or fraud…”– Milton Friedman, Nobel Prize Winning

Economist

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Engineering Ethics

“Ethics is knowing the difference between what you have a right to do and what is

right to do…”

- Potter Stewart, Former Justice, US Supreme Court

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Engineering Ethics

“The reputation of a thousand years may be determined by the conduct of one hour”

– Japanese proverb

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Engineering Ethics

Questions & Answers

Arthur E. Schwartz, CAEDeputy Executive Director & General Counsel

National Society of Professional EngineersAlexandria, [email protected]

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Engineering Ethics

To receive credit for this course site managers should send a roster to [email protected] and each participant should use this link http://www.nspe.org/quiz/021710_engineering_ethics.asp to take the quiz.

pg. 63

mailto:[email protected]

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and Facebook http://bit.ly/19Rfak

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NOTICEThe NSPE Online Seminar series is presented and copyrighted by the National Society of Professional Engineers®. All rights are reserved. Any transmission, retransmission or republishing of the audio or written portions of this program without permission of the National Society of Professional Engineers® is prohibited.

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THANK YOU !

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ethics forum: spring series 2015 part 3 ethical issues

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