NSPE Board of Ethical Review National Society of

NSPE Board of Ethical Review National Society of Professional Engineers 1420 King Street Alexandria, Virginia 22314

Today’s presenters Michael Aitken, P. E. , F. NSPE National Society of Professional Engineers President-elect Tricia Hatley, P. E. , F. NSPE National Society of Professional Engineers SW Region Director

Table of Contents / Agenda n n n n n Engineering Ethics Overview of BER Background of BER Current Activity of BER Overview of Ethics Cases Example Case 1 – Duty to Report Example Case 2 – Advertising Example Case 3 – Conflict of Interest Example Case 4 – Misrepresentation Example Case 5 – Quid Pro Quo

Engineering Ethics n A code of professional ethics results when a field organizes itself into a profession. The resulting code is central to advising those professionals how to conduct themselves, to judge their conduct and to understand the profession. As a Professional Engineer or consulting in the State of Wyoming, your clients obtain your services based upon your experience, professionalism and truthful performance of your services. Your professional ethics continue to build this trust between you and your client. Through the review of several NSPE Board of Ethical Review case studies, we will discuss and explore your ethical responsibility as professional engineers.

NSPE Board of Ethical Review n n n What is the Board of Ethical Review (BER)? Who is on the BER? What is the purpose of the BER?

Overview of the NSPE Board of Ethical Review n n n The Board of Ethical Review (BER) is a panel of engineering ethics experts that has served as the profession's guide through ethical dilemmas. The board consists of seven licensed members who are appointed by the NSPE president. The purpose of the BER is to render impartial opinions pertaining to the interpretation of the NSPE Code of Ethics, develop materials, and conduct studies relating to ethics of the engineering profession.

Background of the NSPE Board of Ethical Review History of Engineering Ethics The engineering profession's emphasis on ethics dates back to the end of the 19 th century.

Background of the NSPE Board of Ethical Review History of NSPE Code of Ethics In 1946, NSPE released its Canons of Ethics for Engineers and Rules of Professional Conduct, which evolved to the current Code of Ethics, adopted in 1964.

Background of the NSPE Board of Ethical Review Creation of the BER While these statements of general principles served as a guide, many engineers requested interpretations of how the Canons and Rules would apply to specific circumstances. These requests ultimately led to the creation of the BER in 1954.

Background of the NSPE Board of Ethical Review Ethics Cases Ethics cases rarely have easy answers, but the BER's nearly 500 advisory opinions have helped bring clarity to the ethical issues engineers face daily.

Background of the NSPE Board of Ethical Review Evolution of BER Since 1954, the BER and its work has evolved with the profession. In the early years there was an emphasis on advertising and competitive bidding, self-promotion, collective bargaining, and supplanting.

Background of the NSPE Board of Ethical Review Evolution of Laws and Public Health & Safety But as a result of changes in the law, especially antitrust laws and commercial-free speech laws, the emphasis shifted to professional competence issues, such as the signing and sealing of work, whistleblowing, conflicts of interest, and the engineer's obligation to protect the public health and safety.

Background of the NSPE Board of Ethical Review Current Status of the NSPE BER Today, NSPE’s dedication to professional ethics is integral to the mission, values, goals outlined in the organization’s strategic plan. Vision: NSPE is a member-centric, nimble, future-focused and responsive organization, serving as the recognized voice and advocate of licensed Professional Engineers. Mission: NSPE, in partnership with the State Societies, is the organization of licensed Professional Engineers (PEs) and Engineer Interns (EIs).

Current Activity of the NSPE Board of Ethical Review Engineering Ethics Activity Besides producing advisory opinions on ethics cases, the seven licensed member BER is involved in many other engineering ethics activities.

Current Activity of the NSPE Board of Ethical Review Gilbane Gold Ethics Video It participated in the development of the ethics video Gilbane Gold, which shows the dilemma of an engineer caught between doing what he feels is right and remaining loyal to his company.

Current Activity of the NSPE Board of Ethical Review Code of Ethics Exam and “You Be The Judge” It also established a Code of Ethics Exam on the NSPE Web site and began the "You Be the Judge" column in Engineering Times in 1987.

Current Activity of the NSPE Board of Ethical Review Milton F. Lunch Ethics Contest The BER, which meets multiple times a year (once face-to -face and others by teleconference) to discuss ethics issues and decide cases, also administers the annual Milton F. Lunch Ethics Contest. The contest gives members an opportunity to test their ethics knowledge by applying it to a fictional scenario and was recently revised to permit increased submission options.

Current Activity of the NSPE Board of Ethical Review NSPE Ethics Reference Guide & Publication of BER Cases Other BER projects include the development of the NSPE Ethics Reference Guide and the translation to Japanese of the most recent three volumes of BER cases.

Current Activity of the NSPE Board of Ethical Review Continuing the Legacy of Providing Guidance NSPE's Board of Ethical Review is approaching 50 years of service to the profession, and it continues to be a place where engineers openly discuss tough questions and provide guidance to others.

Overview of Ethics Cases n What are the most common subject areas? – Would anyone like to guess?

Overview of Ethics Cases n The Most Common Subject Areas are… – Advertising, Confidentiality, Conflict of Interest (largest), Contingent Contracts, Disclosure, Duty to Report, Employment, Expert Witness, Gifts, Misrepresentation, Professional Competence, Public Health, Safety and Welfare.

Overview of Ethics Cases n Examples of Ethics Cases… – The following are summary examples of the types of cases considered by the NSPE Board of Ethical Review. – This will provide you with the opportunity to step in to the shoes of the Board of Ethical Review and consider some typical cases that are submitted to the BER, discuss your views and then comment on the conclusions reached by the BER.

Example Case 1 – Duty to Report (BER Case 05 -4) n n M. S. Errey, P. E. , is retained by Mawadepro Inc. for a major waterfront development project in Harbortown. As part of the process for approving Mawadepro's project, Errey is required to attend a public hearing and present the proposed design for the Harbortown waterfront to the Harbortown Planning Board. Errey makes a presentation and responds to questions by members of the Harbortown Planning Board. Errey highlights the improved environmental effect of converting the waterfront from an industrial facility to a parkland.

Example Case 1 – Duty to Report n n n This anticipated commercial development could increase traffic, as well as air and noise pollution. Errey is aware of these factors but was not specifically questioned about them and does not volunteer this fact. Had Errey been questioned by the Harbortown Planning Board, Errey would have provided testimony concerning these issues. Later, other witnesses attending the public hearing (including other engineers) testify about the increased traffic, noise, and air pollution issues.

Example Case 1 – Duty to Report n n n What do you think? Was it ethical for Errey to fail to volunteer the fact that the anticipated commercial development could significantly increase traffic, as well as air and noise pollution? Group Discussion

BER Reference

Example Case 1 – Duty to Report n n It was not unethical for Errey to fail to volunteer the fact that the anticipated commercial development could increase traffic, as well as noise and air pollution. Comments

Example Case 1 – Duty to Report n Engineers role when testifying

Example Case 1 – Duty to Report n Technical insight

Example Case 1 – Duty to Report n Affect of public policy

Example Case 1 – Duty to Report n Obligations of this engineer

Example Case 1 – Duty to Report n Differing engineering opinions

Example Case 1 – Duty to Report n Subjectiveness and policy considerations

Example Case 1 – Duty to Report n Relevant and pertinent information

Example Case 1 – Duty to Report n What is M. S. Errey obligated to provide?

Example Case 1 – Duty to Report Errey's ethical obligation does not require him to disclose such information if, in his professional judgment, it is not "relevant and pertinent. "

Example Case 1 – Duty to Report Comments?

Example Case 2 – Advertising (BER Case 05 -9) n n n n Sheeza Schmoozer, P. E. , is employed in private practice and is approached by a networking and referral organization that has multiple chapters around the world. Only one person from any given profession or line of business can join any individual chapter. The chapter that approached Schmoozer includes a lawyer, contractor, investment advisor, and insurance agent. At each weekly meeting, there is usually a presentation on how to market a business and one member gives a detailed presentation about his or her business. Finally, members may exchange any referrals that they have obtained for each other during the week. The referral organization earns its revenue though annual membership fees. The members do not pay any fees to each other, and the organization does not make any referrals nor require that members make referrals to each other. Schmoozer describes the organization's role as helping to bring people together to make "free referrals among themselves. "

Example Case 2 - Advertising n n n What Do You Think? Would it be ethical for Schmoozer to participate in the networking and referral organization? Group Discussion

BER Reference

Example Case 2 - Advertising n Use of consortium and associations

Example Case 2 - Advertising n Must review each situation and facts

Example Case 2 - Advertising n Established advertising models

Example Case 2 - Advertising n Comparison to this networking circle

Example Case 2 - Advertising n Follow the money

Example Case 2 - Advertising n Obligations to circle

Example Case 2 - Advertising Comments?

Example Case 3 – Conflict of Interest (BER Case 05 -10) n n Cole Laborator, P. E. , performs design services on a designbuild joint venture project with contractor QRS for private client Loyal. Later, Loyal retains Laborator on another unrelated design-bidbuild project to review the submissions and construction work performed by QRS.

Example Case 3 – Conflict of Interest n n n What Do You Think? Would it be ethical for Laborator to review the submissions and construction work performed by QRS after having participated in a joint venture with QRS for the same client? Group Discussion

BER Reference

Example Case 3 – Conflict of Interest n What do the facts say?

Example Case 3 – Conflict of Interest n Conflicts of interest

Example Case 3 – Conflict of Interest n Judgement and interests

Example Case 3 – Conflict of Interest n One of the most widely discussed topics

Example Case 3 – Conflict of Interest n Assumptions?

Example Case 3 – Conflict of Interest n Unpopular doesn’t equal conflict of interest

Example Case 3 – Conflict of Interest n Recommendations?

Example Case 3 – Conflict of Interest n It would be ethical for Laborator to review the submissions and construction work performed by QRS after having participated in a joint venture with QRS for the same client.

Example Case 3 – Conflict of Interest Comments?

Example Case 4 – Misrepresentation (BER Case 05 -12) n n n Dee Seaving, an engineering student at State University, is enrolled in the engineering college. Toward the end of the semester, while studying in a university library, Seaving discovers a folder on a table with the previous year's final examinations, some of which are in Seaving's areas of study. Using the library copier, Seaving makes copies of the examinations and then brings the originals to the engineering college office, where she is complimented by the engineering dean for bringing the matter to her attention, Seaving is not questioned any further. It turns out that an administrative staff person inadvertently left the examinations on the table while making copies for faculty. During the examination study period, Seaving uses the copies of those examinations to study for the final examination in her areas of study. The engineering college does not generally distribute copies of prior year examinations, and Seaving is aware of this policy.

Example Case 4 – Misrepresentation n What Do You Think? Was it ethical for Seaving to make copies of the examinations and use those examinations to prepare for the final examination in her areas of study? Group Discussion

BER Reference

Example Case 4 – Misrepresentation n Fundamental ethical obligations

Example Case 4 – Misrepresentation n Conduct of Students

Example Case 4 – Misrepresentation n Trust and Honesty

Example Case 4 – Misrepresentation n Honor Codes

Example Case 4 – Misrepresentation n What should be the appropriate action?

Example Case 4 – Misrepresentation n Using the NSPE Code of Ethics as a guidance document for engineering students, it was unethical for Seaving to makes copies of the examinations and use those examinations to prepare for the final examination in her areas of study.

Example Case 4 – Misrepresentation Comments?

Example Case 5 – Quid Pro Quo (BER Case 06 -1) Learn N. Buy, P. E. , receives the following solicitation from a company: n n n EFG Building Supply Company invites you to participate in a new program tailored for engineers of septic/drainage systems. To qualify for this plan, attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems. If you are convinced of the value of the EFG products, simply note on your future septic/drainage system plans that “EFG carries septic and drainage products”. For the EFG Building Supply Company Reward Program, your client makes discounted purchases of EFG septic/drainage products and those are noted on your EFG Rewards account (this is strictly a pay-as-you-go basis). Every month when one of your clients makes a purchase, you will receive a Rewards Certificate. The value of the Certificate is based on a percentage of monthly sales to your clients. Rewards Certificates may be redeemed for cash at EFG or at the East Westville Resort and Country Club.

Example Case 5 – Quid Pro Quo n n n What Do You Think? Would it be ethical for Buy to attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems? Would it be ethical for Buy to participate in the EFG Building Supply Company Reward Program? Group Discussion

BER Reference

Example Case 5 – Quid Pro Quo n Is attendance okay?

Example Case 5 – Quid Pro Quo n Value of Information?

Example Case 5 – Quid Pro Quo n Is attending considered a gift?

Example Case 5 – Quid Pro Quo n Value of gift?

Example Case 5 – Quid Pro Quo n Is participation in the program okay?

Example Case 5 – Quid Pro Quo n Are kickbacks okay?

Example Case 5 – Quid Pro Quo n NSPE Code of Ethics Sections III. 5. a and III. 5. b prevent this. Section III. 5. a. - Engineers shall not accept financial or other considerations, including free engineering designs, from material or equipment suppliers for specifying their product. Section III. 5. b. - 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.

Example Case 5 – Quid Pro Quo n Do purchase discounts for buyers matter?

Example Case 5 – Quid Pro Quo

Example Case 5 – Quid Pro Quo n Would it be okay to participate in the EFG Rewards Program?

Example Case 5 – Quid Pro Quo n It would be ethical for Buy to attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems, but it would not be ethical for Buy to participate in the EFG Building Supply Company Rewards Program.

Example Case 5 – Quid Pro Quo Comments?

NSPE Board of Ethical Review Final Comments