Engineering Ethics

Professor João Ponciano

CPE, LLB (Hons), M.Eng (Hons) , M.A. (Distinction), Ph.D.
MIET, C.Eng, MBCS, CITP, SFHEA, MIEEE, FInstLM

Co-Director Centre for Educational Development and Innovation

STEM Ambassador
 Lecture Outline

• RAE Ethical Principles

• Defining Ethics
• Critical issues and Purpose
• Making Tough Decisions
• Ethical Power 5Ps
• Volkswagen Case Study
 Engineering ethics

• the study of moral issues and decisions confronting

individuals and organizations involved in engineering

• the study of related questions about moral conduct,

character, ideals and relationships of peoples and
organizations involved in technological development

(Martin and Schinzinger, Ethics in Engineering).

 RAE Statement of Ethical
Principles

• By Engineering Council and the Royal Academy of Engineering.

• Engineers are required to maintain and promote high ethical

standards and challenge unethical behaviour.

• Four fundamental principles for ethical behaviour and decision-

making. (in the following slides)

• Engineering professionals should read these in conjunction with their

relevant Code of Conduct or Licence to Practise.

• The Statement by itself is not prescriptive: it is neither a Regulation

nor a Standard.
 RAE Statement of Ethical
Principles

There are four fundamental principles for ethical

behaviour and decision-making

1. Honesty and integrity

2. Respect for life, law, the environment and public good

3. Accuracy and rigor

4. Leadership and communication

 1. Honesty and integrity

• Engineering professionals have a duty to uphold the

highest standards of professional conduct including
openness, fairness, honesty and integrity.
 1. Honesty and integrity

• Act in a reliable and trustworthy manner

• Be alert to the ways in which their work and behaviour
might affect others and respect the privacy, rights and
reputations of other parties and individuals
• Respect confidentiality
• Declare conflicts of interest
• Avoid deception and take steps to prevent or report
corrupt practices or professional misconduct
• Reject bribery and improper influence
 2. Respect for life, law, the
environment and public good

• Engineering professionals have a duty to obey all

applicable laws and regulations and give due weight to
facts, published standards and guidance and the wider
public interest.
 2. Respect for life, law, the
environment and public good

• Hold paramount the health and safety of others and draw attention to
hazards

• Ensure their work is lawful and justified

• Recognise the importance of physical and cyber security and data

protection.

• Respect and protect personal information and intellectual property

 2. Respect for life, law, the
environment and public good

• Protect, and where possible improve, the quality of built and natural
environments

• Maximise the public good and minimise both actual and potential
adverse effects for their own and succeeding generations

• Take due account of the limited availability of natural resources

• Uphold the reputation and standing of the profession

 3. Accuracy and rigour

• Engineering professionals have a duty to acquire and use

wisely the understanding, knowledge and skills needed to
perform their role.
 3. Accuracy and rigour

• Always act with care.

• Perform services only in areas in which they are currently

competent or under competent supervision.

• Keep their knowledge and skills up to date.

• Assist the development of engineering knowledge and

skills in others.
 3. Accuracy and rigour

• Present and review theory, evidence and interpretation

honestly, accurately, objectively and without bias, while
respecting reasoned alternative views.

• Identify, evaluate, quantify, mitigate and manage risks.

• Not knowingly mislead or allow others to be misled.

 4. Leadership and
communication

• Engineering professionals have a duty to abide by and

promote high standards of leadership and communication
 4. Leadership and
communication

• Be aware of the issues that engineering and technology

raise for society, and listen to the aspirations and
concerns of others
• Promote equality, diversity and inclusion
• Promote public awareness and understanding of the
impact and benefits of engineering achievements
• Be objective and truthful in any statement made in their
professional capacity
• Challenge statements or policies that cause them
professional concern
 Ethics

• Formal definition – the branch of philosophical enquiry

that evaluates human conduct in the light of principles and
standards or as a body of social obligations and duties
• Ethics – the applications of these principles to behaviour
in the workplace and the design of Engineering Products
and Services
• What it is essentially about is how businesses treat
their stakeholders (owners, employees, customers,
partners and society at large), and how they ought to be
treated
 Ethics

An oxymoron?
• Business not possible without ethics (Weber and crony
capitalism)
• Firms have a culture and a mission (values)
• The relationship with law
• The relationship with morality

The study of what is wrong and what is right in

business action/ practice
 A prominent business
topic

• Elkington Three Bottom Line:

Economic goals Social goals

(i.e.poverty etc) (i.e. gender)

Environment
 The critical issues

There are two critical issues which make business ethics such a difficult area of
management:

• Managers may find that they are forced to choose between what’s best for
the business and their personal principles,

And
• Sometimes individuals have to choose between two alternatives that are
both right

• Business ethics does not deal with what is legal or illegal but with what
is right and wrong. Unfortunately, this is not always clear cut
 The purpose of ethics

• To provide some guidance for organisations and individuals, in order to help

them make difficult decisions

• Most businesses now recognise that they need this guidance:

• In a joint PWC/Financial Times study of Europe’s most respected companies,
Chief Executives said that ethics was second only to recruiting skilled staff as
a future challenge
• A recent UK Government survey revealed that 83% of small and medium
sized businesses thought that ethics would become more important to their
organisation over the next five years
 There are two courses of action that
any organisation concerned about ethics
should take

• Implement an organisation-wide ethics strategy

And,
• Provide guidance for individuals on how to make the
tough decisions
 How to make the tough decisions

• Follow these steps and answer the following questions when facing
a tough decision:

What are the consequence of my actions?

• Who will be helped?
• Who will be hurt?
• What are the benefits?
• What are the long-term effects of my actions?
• What are the short-term effects of my action?
 How to make the tough decisions II
Consider your actions
• Are my actions intrinsically right?
• Are they honest and trustworthy?
• Do they respect the rights of others?

Make a decision
• Think about all your answers, consider all the information, and make the
most equitable choice
 Leading Thinking – Ken
Blanchard and Norman Peale

• Is it legal?

• Is it balanced?

• How will it make me feel about myself?

Kenneth Blanchard & Norman Vincent Peale, The Power of Ethical Management
 The Five Foundations (5P’s)

Ethical power has five foundations:

• Purpose
• Pride
• Patience
• Persistence
• Perspective

Kenneth Blanchard & Norman Vincent Peale, The Power of Ethical Management
(Fawcett Crest, 1996).
The business benefits of an ethics strategy

An ethics strategy can:

• Strengthen your brand and improve customer loyalty. 17% of British

adults have boycotted a product for ethical reasons. 19% have bought a
product or service just because of the moral reputation of an
organisation

• Improve employee retention and loyalty. This will make it easier to

recruit the best people, and will save money on the training budget
 The business benefits of an ethics strategy II
An ethics strategy can:

• Help your organisation to avoid litigation and fines from regulatory bodies

• Improve other organisational policy such as diversity

• Add moral weight to managerial decisions

• Improve teamwork and productivity. Happy, loyal employees will work

harder
 Ethics - The future?

• Ethical business is likely to become more and more important in the future

• Continuing globalisation means that brand decisions are becoming hugely

important to consumers. The value of an ethical brand is difficult to overstate

• Recruitment and retention of the best people will be a huge managerial

challenge. An ethical reputation is an immensely attractive proposition

• Media coverage of ethical problems (e.g. ‘fat cat’ bonuses, insider dealing, third
world exploitation) is ubiquitous. In the coming years, an ethical strategy may
be an organisation’s best insurance policy.
 Volkswagen (VW)
Case Study

Watch the movie (30 min long) about

the VW emissions scandal and then evaluate/analyse it
based on the RAE statement of Ethical Principles
 Engineering ethics

Volkswagen (VW) Car Company Case Study

Watch the movie (30 min long) about

the VW emissions scandal and then evaluate/analyse it
based on the RAE statement of Ethical Principles
 Case analysis of the Scandal of VW

In preparation for the exercise, you should give some thought and consideration about
the following questions.
1- What was Volkswagen accused of?

2- How their action was threatening People's Health?

3- You are the Head of Volkswagen (USA). What would you do?

4- What factors led Volkswagen’s managers to make the decision to try to cheat environmental
tests via a “defeat device?”

5- Explain how each of the following models was obvious in this decision:

ethical fading, incentive gaming, framing, bounded ethicality, bounded rationality, obedience to
authority, and conformity bias.

5- You are the head of Volkswagen group worldwide. What would you do?
 Enron Corporation,
Case Study

Homework:

Watch the movie (20 min long) about

the ENRON Company scandal and then evaluate/analyse it
based on the RAE statement of Ethical Principles
 ENRON Corporation, an American energy
company, Scandal Case Study

Watch the movie (20 min long) about

the ENRON Company scandal and then evaluate/analyse it
based on the RAE statement of Ethical Principles
 Case analysis
of the Scandal of ENRON

In preparation for the lecture, you should give some thought and consideration
about the following questions.
.

1- The causes of Enron’s bankruptcy

2- Who was morally responsible for the collapse of ENRON?

3- What are the warning of Enron’s scandal?