PPLE UNIT-1 - Copy.pptx

Professional Practice Law and Ethics
ECE IV Year I Semester
UNIT I
Dr.B.Uma Rani

Topics-Unit i- Professional Practice and Ethics
1.1Definition of Ethics
1.2 Professional Ethics
1.3 Engineering Ethics
1.4 Personal Ethics
1.5 Code of Ethics
1.6 Profession, Professionalism
1.7 Professional Responsibility
1.8 Conflict of Interest
1.9 Gift Vs Bribery
1.10 Environmental breaches
1.11 Negligence
1.12 Deficiencies in state-of-the-art
1.13 Vigil Mechanism/ Whistle blowing
1.14 protected disclosures.
1.15 Introduction to GST
1.16 Various Roles of Various Stake holders

1.1 Definition of Ethics
Greek word “ETHOS” - character, habit, customs,
behaviour.
Also called ‘moral philosophy’
Mackenzie defines ethics as ―
● the study of what is right or good in human conduct or
the science of the ideal involved in conduct‖.

“ethics may be defined as the
systematic study of human actions
from the point of view of their
rightfulness or wrongfulness, as
means for the attainment of the
ultimate happiness”

ORIGIN -
What are
they?
At what
level they
exist
Where do
they come
from?
Why we
follow it?
Flexibilit
y and
Acceptabil
ity
ETHICS
Greek Word Ethos - Character
Accepted set of principles and standards
to guide thoughts , behaviour and
actions
Society, Institution and Individual
Social System - External
Because society says its the right thing
to do
The principles and standards are
supported by consistent and well founded
reasons; rational and objective; hence
general/universal acceptance
MORALS
Latin Word Mores - customs habit
Values,ideas and beliefs which are
used to determine the
goodness/badness or
rightness/wrongness of
thoughts,behaviour and action
Individual
Individual- Internal
Because we believe in something
being right or wrong
Intuitive and subject; varies from
individual to individual; lesser
acceptance

Importance of Ethics
1.Intrinsic Value:
● As a guide to a good and fulfilling life
● Being ethical is a part of what defines us as
human beings
● We have capacity to make conscious choices
● Every rational human being has a reason to
cultivate virtues and develop a strong moral
character.
● Self-realization and self-actualization

2. Instrumental value:Knowledge of ethics helps in resolving
ethical dilemmas
3.Societal level:
• Societies and civilizations rise and fall due to
ethical/unethical behaviour of either the leaders or
commoners (Roman empire, Mughals, Arab Spring, case of Japan)
• Without ethics, society would be reduced to the type of
animal behaviour that is seen in nature. Hunt,kill, feed and
fornicate.

Concepts of Ethics
Ethics, also known as philosophical ethics, ethical theory, moral
theory, and moral philosophy, is a branch of philosophy that involves
systematizing, defending and recommending concepts of right and wrong
conduct, often addressing disputes of moral diversity.
The term comes from the Greek word ethos, which means "character". The
super field within philosophy known as Axiology includes both ethics and
Aesthetics and is unified by each sub-branch's concern with value.
Philosophical ethics investigates what is the best way for humans to
live, and what kinds of actions are right or wrong in particular
circumstances.

Scope of Ethics
Ethics deals with voluntary actions. We can distinguish between
human actions and actions of human.
human actions are those actions that are done by human
consciously, deliberately and inview of an end.
Actions of human may not be willfully, voluntarily, consciously
and deliberately done but all the same they are done by human
(e.g. sleeping, walking, etc.).
It is the intention which makes the difference between human
action and action of human. In ethics we deal only with human
actions.

A brief history of ethics
Ethics is as old as humanity.
The first ethical precepts were certainly passed down by word of mouth
by parents and elders, but as societies learned to use the written word,
they began to setdown their ethical beliefs. These records constitute
the first historical evidence of the origins of ethics.
Natural Behaviour:Even when observing the animal kingdom, there are
clear signs of rules of behaviour.The young monkey does not mess with
the “big daddy” and when lions are feeding off a freshly killed carcass
the hyenas keep a good distance. All of this behaviour appears to be
instinctual or intuitive but it serves the very clear purpose of
maintaining order within the animal kingdom.

Human Behaviour: Human ethical behaviour has been observed from the earliest
recorded data and anthropological and archeological studies have indicated
that all primitive tribes have very definite rules of behaviour.
Christopher Boehm (1982) has hypothesized that the incremental development
of moral complexity throughout hominid evolution was due to the increasing
need to avoid disputes and injuries in moving to open savannah and developing
stone weapons.
Human morality, though sophisticated and complex relative to other
animals, is essentially a natural phenomenon that evolved to restrict
excessive individualism and foster human co-operation.
Group morality develops from shared concepts and beliefs and is often
codified to regulate behaviour within a culture or community.
Mythology Perhaps the existence of mythology arose out of the need to
regulate society and this was much easier to do when the stories were
fascinating and the members of the community could identify with the
mythological characters. Out of these myths grew rules of behaviour and
conduct which contributed towards controlled and ordered living.

Areas of Ethical study
There are three broad areas of ethical study:
•Meta-ethics, which focuses on the meaning of ethical terms themselves (for
instance, ‘what is goodness?’), and on questions of how ethical knowledge is
obtained (for instance, ‘how can I distinguish what is good from what is bad?’),
rather than on the more applied question of ‘what should I do in a particular
situation?’
•Meta-ethics is therefore concerned with the nature of ethical
properties,statements, attitudes and judgments. Meta-ethics examines such themes
as what moral questions mean,and on what basis people can know what is ‘true’ or
‘false’.
• It is the branch of ethics that deals with the philosophical questions about
the nature of ethical theory itself
• It addresses questions such as ‘what is good?’; ‘what is bad?’; ‘what is
right?’; ‘what is wrong?’;

•Normative ethics, in contrast, is the study of ethical acts. It therefore
focuses explicitly on questions of ‘what is the right thing to do?’ in
general.
Normative ethics is concerned with questions of what people ought to do, and
on how people can decide what the ‘correct’ moral actions to take are.
• It is the branch of ethical philosophy that examines how one should act
• It investigates the standards and principles to assess the
rightness/wrongness or goodness/badness of actions
• It entails different ethical theories and principles that help us to assess
the goodness/badness or rightness/wrongness of thoughts, behaviour and
actions; they guide us to make right decisions in cases of ethical dilemmas
• Knowledge of normative ethical theories neither necessary nor sufficient for
ethical conduct ; however,normative theories have the same relation with
ethical decision making that the study of grammar has with the ability to
speak a language
• Knowledge of normative ethics facilitates the process of ‘Ethical/Moral
Reasoning’

•Applied ethics,which is concerned with how people can achieve moral
outcomes in specific situations.Therefore, it is concerned with the
philosophical examination of particular – and often complex – issues
that involve moral judgments.
Areas such as bioethics, environmental ethics, development ethics and
business/corporate ethics may be regarded as areas of applied ethics.
(The distinction between normative and applied ethics, however, is
becoming increasingly blurred.)
• Environmental ethics: Balance between development and environment;
ethics of climate change
• Bio-ethics: Abortion (pro-life v/s pro choice), Euthanasia, Embryonic
StemCell Research
• Social Ethics (LGBT, Prostitution, betting, prohibition, juvenile
justice act)
• Ethics of death penalty

Case 1- Media ethics vs Public Safety
You are a struggling reporter of a news channel and have been under
severe pressure from your Editor-in-Chief to bring some sensational
news to boost Television Rating Points (TRPs).
You have interviewed a famous religious leader of a minority faction on
the recent Ayodhya verdict of Supreme Court. In the interview, the
religious leader used a provocative statement and urged the members of
the community to rebel against the court ruling. If the interview is
aired, it might spark communal tensions and law and order problem in
society. You are very well aware that if the interview is presented to
the Editor-in-Chief, he will definitely air it to boost TRPs. The
interview may lead to the exponential growth of your career.
In such circumstances, would it be right to present the interview to
Editor-in-Chief?
● (a) Identify the moral dilemma faced by you.
● (b) Analyse your role and duties as a responsible reporter, also
suggest your course of action.

1.2
Professional Ethics:
Engineering Ethics,
Personal Ethics

Professional Ethics
• Professional ethics are standards set by professional organizations for the behavior and
values of people working within a specific field.
• Codes of professional ethics are established in order to provide guidance to
professionals, usually to not abuse client relationships and preserve the integrity and
reputation of the applicable profession.
• When a person violates one or more of these promulgated ethics, he or she is subject to
disciplinary action by the governing body of the profession.
• A high level of adherence to a code of professional ethics is needed so that the public
will be confident in the moral standards of those working in the field.
• Codes of professional ethics are commonly applied to professionals in the fields of
accounting, law, and medicine.

components
A number of professional organizations define their ethical
approach as a number of discrete components. Typically these
include:
● Honesty "Honesty is the best policy" is a famous
statement. Honesty refers to a facet of moral character
and connotes positive and virtuous attributes such as
integrity, truthfulness and straightforwardness along
with the absence of lying, cheating or theft. Honesty is
revered in many cultures and religions.

• Integrity
• Integrity is a concept of consistency of actions, values,
methods, measures, principles, expectations, and
outcomes.
• In ethics, integrity is regarded as the honesty and
truthfulness or accuracy of one's actions.
• “ Who You Are When No One's Looking”
• Choosing Consistency, Resisting Compromise” Giving
without giving out. Enduring through the struggle to do
the right thing.
• Reputation is what others think we are.
• Our integrity is based on who we really are and how we
respond.

A Story of A Seed
● A successful business man was growing old and knew it was
time to choose a successor to take over the business.
Instead of choosing one of his Directors or his children, he
decided to do something different. He called all the young
executives in his company together. He said, 'It is time for
me to step down and choose the next CEO.
● 'I am going to give each one of you a SEED today - one very
special SEED. I want you to plant the seed, water it, and
come back here one year from today with what you have grown
from the seed I have given you. I will then judge the plants
that you bring, and the one I choose will be the next CEO.'

● One man, named Jim, was there that day and he, like the
others, received a seed. He went home and told his wife
the story. She helped him get a pot, soil and compost and
he planted the seed.
● Everyday, he would water it and watch to see if it had
grown.
● After about three weeks, some of the other executives
began to talk about their seeds and the plants that were
beginning to grow.
● Jim kept checking his seed, but nothing ever grew. Six
months went by -- still nothing in Jim's pot. He just
knew he had killed his seed.

● Everyone else had trees and tall plants, but he had
nothing. Jim didn't say anything to his colleagues, however.
He just kept watering and fertilizing the soil - He so
wanted the seed to grow.
● A year finally went by and all the young executives of the
company brought their plants to the CEO for inspection. Jim
told his wife that he wasn't going to take an empty pot...
●
But she asked him to be honest about what happened. It was
going to be the most embarrassing moment of his life, but he
knew his wife was right. He took his empty pot to the
boardroom.
● When Jim arrived, he was amazed at the variety of plants
grown by the other executives. They were beautiful -- in all
shapes and sizes.

● Jim put his empty pot on the floor and many of his
colleagues laughed, a few felt sorry for him!
● When the CEO arrived, he surveyed the room and greeted
his young executives
● Jim just tried to hide in the back. 'My, what great
plants, trees, and flowers you have grown,' said the CEO.
'Today one of you will be appointed the next CEO!'
All of a sudden, the CEO spotted Jim at the back of the
room with his empty pot. He ordered the Financial
Director to bring him to the front.
● When Jim got to the front, the CEO asked him what had
happened to his seed - Jim told him the story. The CEO
asked everyone to sit down except Jim. He looked at Jim,
and then announced to the young executives, 'Behold your
next Chief Executive Officer!

• His name is Jim!' Jim couldn't believe it. Jim couldn't even
grow his seed.
• 'How could he be the new CEO?' the others said. Then the CEO
said, 'One year ago today, I gave everyone in this room a
seed. I told you to take the seed, plant it, water it, and
bring it back to me today. But I gave you all boiled seeds;
they were dead - it was not possible for them to grow.
• All of you, except Jim, have brought me trees and plants and
flowers. When you found that the seed would not grow, you
substituted another seed for the one I gave you. Jim was the
only one with the courage and honesty to bring me a pot with
my seed in it. Therefore, he is the one who will be the new
Chief Executive Officer!'
• Moral of the Story:
• Integrity never passes up the opportunity to do the right
thing.

● Transparency
Transparency, as used in science, engineering, business, the
humanities and in a social context more generally, implies
openness, communication, and accountability. Transparency is
operating in such a way that it is easy for others to see
what actions are performed.

● Accountability In ethics and governance, accountability is
answerability, blameworthiness, liability, and the
expectation of account-giving. As an aspect of governance,
it has been central to discussions related to problems in
the public sector, nonprofit and private (corporate) worlds.
In leadership roles, accountability is the acknowledgment
and assumption of responsibility for actions, products,
decisions, and policies including the administration,
governance, and implementation within the scope of the role
or employment position and encompassing the obligation to
report, explain and be answerable for resulting consequences

Leadership Story-
Accountability

Dr Abdul Kalam , India’s former President, was second in command to Professor
Satish Dhawan on a secret mission to launch an Indian satellite in to outer space.
By all accounts, Professor Dhawan was a fine man who trusted his colleagues and
subordinates and brought out the best in them. In this case, therefore, Professor
Dhawan left much of the nittygritty functional duties of the project to Dr Kalam.
The project was interdisciplinary in nature and understandably difficult. Dr Kalam
had been trained as an aeronautical engineer but had to lead a team of highly
talented physicists and world-class scientists and engineers from diverse fields.
The mission of the entire team was to put an Indian satellite into the earth’s
orbit—one of the first projects of its kind in India. The project moved according
to plan right from inception till countdown and could in fact have been regarded as
a classic case of sound project management. Dr Kalam led his team well. He
supported his team leaders ably and was much loved and admired by the men and women
working on the project. Understandably, the project moved forward with clockwork
precision.
On D-Day, halfway through countdown, the main control computer bleeped a red alarm.
Dr Kalam checked with the team leaders. Everyone gave a big ‘yes’ and the launch
went ahead. The rocket shot up ramrod straight into the deep azure sky. And then,
midway, it shuddered, tilted and then nosedived into the Bay of Bengal. The mission
was doomed within minutes of the rocket being launched.

One of India’s most prestigious early scientific projects thus fizzled out,
gobbling up years of effort, energy, man-hours and money. The shocking spectacle
sent many of the team members into tears.
The very next day, a calm, collected Professor Dhawan received Dr Kalam in his
room. Kalam explained what had happened.
‘Don’t worry,’ Professor Dhawan said, ‘I’ll try and explain it to the press.’
But the media was unforgiving. They butchered the team and leadership of the
organization, accusing it, in Kalam’s own words, ‘of dumping thousands of crores of
rupees into the Bay of Bengal.’
Within a week, Professor Dhawan got a categorial ‘yes’ from the government’s top
brass. The central leadership was clear in its instruction: Relaunch! Thus, the
team started all over again. This time, there was no glitch. The rocket took off
and stayed on course through its trajectory till the last stage, delivered the
payload into the orbit and then jettisoned itself into outer space.
The people who had helped with the project had gathered at the rocket station. They
all heaved a huge sigh of relief. Simultaneously, they greeted the launch with wild
cheering and applause. They had at last succeeded in redeeming their lost pride and
reputation.

Professor Dhawan had life-long admirers in Kalam and his team. Yet,
this admiration was not without a cost. He faced a barrage of criticism
when the organization failed to deliver. He squarely took the rap for
having wasted billions of rupees of public money. Even when the failure
was collective, he personally shouldered the blame. Dr Kalam and his
team could not forget that. And yet, when the mission succeeded, he did
not hesitate to let Dr Kalam address the press conference alone.
Professor Satish Dhawan was a man of true humility. Occasionally, we
come across successful people like him in different walks of life—
scientists, engineers, doctors, professors, captains of industry,
statesmen, writers, artists, etc.—and then we tell ourselves, ‘God,
what humility!’

It seems as if such people are following a law of nature.
A fruit-laden tree, after all, has a natural tendency to bend with the weight
of its fruit. One of the reasons for this phenomenon is that as they rise in
life, unless they are absolutely drunk with power, people realize their own
limitations. They cannot achieve organizational goals alone. In fact, the
higher they travel in the hierarchy, the greater is their dependence on other
people.
Professor Dhawan needed all manner of experts—material scientists,
physicists, telecom, electrical, electronic and aeronautical engineers for
his mission to succeed. He knew instinctively that he could deliver results
only if each and every one of them performed to their full capability and
gave it their best. For the mission to succeed he had to communicate his
urgency to them, and this would be much easier if they felt that he was one
of them rather than some remote, distant and aloof figure. That is why he
shouldered the blame when they failed and let them take the credit when they
succeeded.
This is leadership.

Confidentiality
● Confidentiality is a set of rules or a promise that
limits access or places restrictions on certain types of
information.
● Confidentiality is ensuring that information is
accessible only to those authorized to have access.

Objectivity
● Objectivity means taking decisions based upon established
facts and figures rather than personal opinion or bias.
● Objective Ethics refers to a view that a person’s action
can always be seen as right or wrong, regardless of the
situation or the consequences. It focuses on rules for
governing what is considered to be morally right, wrong,
or obligatory.

Respectfulness
● Respect gives a positive feeling of esteem or deference
for a person or other entity (such as a nation or a
religion), and also specific actions and conduct
representative of that esteem.
● Specific ethics of respect are of fundamental importance
to various cultures and therefore key to success in any
organization is Respectfulness.

Obedience to the law
● Law is a system of rules and guidelines which are
enforced through social institutions to govern behavior.
Laws are made by governments, specifically by their
legislatures and in organizations, by the Top Management.
● And the employees working in an organization are bound to
obey the Laws & Regulations of that organization.

Need For Professional Ethics
● Henry Kravis had to say about professional ethics:
“If you don't have integrity, you have
nothing. You can't buy accountability.
You can have all the money in the
world, but if you are not a moral and
ethical person, you really have
nothing.”

https://www.nspe.org/sites/default/files/resources/pdfs/Ethic
s/CodeofEthics/NSPECodeofEthicsforEngineers.pdf

Principles of Professional Ethics
Policies around ethical behavior in the workplace often revolve around several key principles.
Ethical companies are often described in the following ways.
● Honest: Good work ethics are characterized by honesty in how companies communicate with
employees and other stakeholders, and how they handle standard business practices like
accounting.
● Trustworthy: Honesty results in trust. Furthermore, if companies are consistent in doing what
they say they are going to do, trust grows.
● Loyal: Ethical companies defend ethical employees and vice versa. They do not participate in
sabotage, slander, and other disloyal and destructive behaviors.
● Fair: Hiring practices and compensatory systems treat people fairly based on their
qualifications and performance. Discrimination due to race, gender, religion, and other
demographics is strictly prohibited, as is nepotism, which is the favoring of friends and
relatives over other candidates or co-workers.
● Respectful: Basic courtesy and kindness are expected among ethical companies. They set
protocols and an overall tone for communication and business dealings.
● Responsible: Employees who ascribe to workplace ethics are concerned about how their
individual work affects the well-being of the company as a whole. They take responsibility
for their actions toward others and the decisions they make.
● Conscientious: Ethical companies respect their place in the bigger picture. They are socially
conscious (e.g., pay fair wages, do business with other ethical companies) and
environmentally conscious (e.g., purchase earth-friendly office equipment and reduce waste
and pollution).

Case Study – Integrity and Professional Behaviour
A junior member of staff has just returned to work after taking
special leave to care for her elderly mother. For financial
reasons she needs to work full-time.
She has been having difficulties with her mother’s home care
arrangements, causing her to miss a number of team meetings
(which usually take place at the beginning of each day) and to
leave work early. She is very competent in her work but her
absences are putting pressure on her and her overworked
colleagues.
You are her manager, and you are aware that the flow of work
through the practice is coming under pressure. One of her male
colleagues is beginning to make comments such as “a woman’s
place is in the home”, and is undermining her at every
opportunity, putting her under even greater stress.

Possible Solution
• The case reflects the following issues:--
--Male bias and opportunism in reinforcing the gender stereotypes
--Lack of sensitivity and that of moral support from colleagues as noticed through undue
comments
--Efficiency in work culture and performance being affected
---Dual challenges before working women: work and personal life balance
--weak social support for elderly etc
There are several ways through which the professional efficiency and integrity can be
maintained without discrediting self or profession. A few options which are:--
• Attitudinal changes
among male colleagues which can be brought through sensitization. A visit to elderly home or
mental asylum can be organized. The staff can take turn to visit the home of female colleague and
offer help when required. This will motivate her for better performance and instill goodwill in
office.
• Counseling
The lady can be convinced to opt for a residence near to the office so that her commutation load
is eased and punctuality is ensured. She can even be offered room in office building itself if
feasible on rent. Similarily she can be assisted in seeking better medical care and hiring in a
domestic help so that she is emotionally secured while on work.
• Flexibility
Use of video-conferencing, flexible assignment and option of weekend work can be allowed for the
lady so that work load is distributed evenly.
Finally, the lady is bearing her professional and family responsibility and thus needs moral as
well peer group support. The above mentioned options provide a way out for a balanced official
cum family productive environment without inviting any discredit of any sort.

Images reveal large amounts of data, so remember: use an
image instead of long texts
A Picture Is A Good Idea

Engineering Ethics
● Engineering ethics refers to the set
of moral principles and values that
guide engineers and other
professionals in their decision-
making process while practicing
engineering.

Engineering Ethics
● Engineering ethics is important as it ensures that
engineers follow moral principles while designing,
constructing, and operating engineering projects.
● It helps in protecting public safety, health, and the
environment.
● It also helps in building trust and credibility in the
engineering profession.
● Adhering to ethical standards is crucial to maintaining
the public's trust and ensuring the safety and well-being
of society.

However, there are various factors that can influence the
ethical standards of engineers, here some of those factors
are listed below.
● Engineering as experimentation for the good of mankind is
a notable factor involving far-reaching consequences
● Ethical dilemmas make engineering decisions relatively
difficult to make.
● Risk and safety of citizens as social responsibility is a
prime concern of an engineer
● Technological advancement can be very demanding on the
engineering skill in the global context
● Moral values and responsible conduct will play a crucial
role in decision-making.

● Professional engineering bodies like
IEEE, ASME, IEI, etc., have evolved
comprehensive ethics codes relevant
to their respective professions,
based on the rich experience of their
members.

Comparison Between Ethics and Engineering Ethics
• Ethics is a branch of philosophy
that deals with moral principles,
values, and codes of conduct that
govern human behavior.
• Study of right or wrong.
• Good and evil.
• Obligations & rights.
• Social and Political Deals.
● Engineering ethics, on the other hand,
is a specialized branch of ethics that
focuses on the ethical issues and
considerations that arise in the field
of engineering.
● Study of the moral issues and decisions
confronting individuals and
organizations engaged in
engineering/profession.
● Study of related questions about the
moral ideals, character, policies, and
relationships of people and
corporations involved in technological
activity.
● Moral standards/values and system of
morals.

What are some common ethical issues in engineering?
Some common ethical issues in engineering include conflicts
of interest,
● use of unsafe materials,
● environmental impact,
● intellectual property rights,
● privacy,
● confidentiality,
● and responsibility towards society.

Ford Pinto
● Not all engineering mistakes are associated with large-scale feats or
impressive architectural marvels. From 1971 through 1976, the Ford Motor
Company produced and sold more than 2.2 million Ford Pintos. The automaker
set out to make a competitive, affordable car, but late into the
development of its design, engineers discovered an issue with the fuel
tank. Located between the rear axle and the bumper, the tank punctured and
ruptured easily due to the car’s design. Ford’s engineers recommended an
easy fix to the problem, one that would cost an additional $11 for each
vehicle. In spite of this, the company decided to continue with the design
as is, both to keep the cost low and to not delay production.
● After just a few years on the road, the National Highway Traffic Safety
Administration began investigating accidents involving the small car
catching fire, but it took an article from the magazine Mother Jones to
bring to light the Pinto’s danger to the public as well as Ford’s previous
knowledge of it. After losing a lawsuit, Ford recalled the Pinto in 1978
and fixed vehicles with the original suggested solution. Some estimate
that between 27 and 180 people died from the fuel tank issue.1

● After the ghastly accident on the newly inaugurated Biodiversity flyover at
Raidurgam that killed a hapless bystander, structural engineers and road experts
have pointed flaws in the design and suggested that authorities immediately
improve signages and increase the height of crash barriers.
Speaking to TOI, civil engineers and road safety experts said the structure has
been planned poorly, thus making the ride on it a risky one. Incidentally,
Saturday’s crash was the second fatal accident since its opening on November 4.
Professional body Structural Engineers World Congress-India vice-president and
infrastructure expert Dr SP Anchuri said: “The structure is very strong and
durable but when you look at the design aspect, it is very poorly designed. The
increase and decrease of speed on a straight road will not affect stability of
the vehicle, but when you have a curve and the vehicle is at a speed, the curve
goes outwards because of the centrifugal force and there is a huge risk of
skidding even at a minimum speed.”
Read more at:
http://timesofindia.indiatimes.com/articleshow/72214503.cms?utm_source=contentof
interest&utm_medium=text&utm_campaign=cppst

Love Canal
● The saga of the Love Canal is one of the first major environmental
disasters in the U.S. The project originally began in 1894 when an
entrepreneur attempted to build a canal in Niagara Falls, New York, to
bring water and hydroelectric power to the city. The project was never
completed, but in 1947, the canal was sold to Hooker Chemicals and Plastic
Corporation. The company lined the unfinished canal with clay and began
dumping chemicals and waste into the then isolated site. In 1953, the site
was sold again, but this time to build an elementary school and houses.
● Controversy remains over whether Hooker or the Niagara Falls Board of
Education, which chose the site in spite of strict restrictions detailed
in the land deed, is responsible for the consequences from building on the
site. During the construction of the school, homes and a sewer line were
built on and through the canal. The clay lining broke and chemicals began
seeping into the ground. Eventually a state of emergency was declared by
New York. Residents reported miscarriages, birth defects, cancer and other
disorders and continued to fight to keep the site vacant years after they
were evacuated. Today, the ramifications of this environmental and
engineering failure still impacts building and policy today.2

The Titanic
● More than 1,500 people died when the Titanic struck an iceberg in 1912. Over the
years, many have researched and investigated the details of its sinking, and it
has been determined that a number of design issues and poor decisions led to its
sinking in just over two and-a-half hours.
● As one of the biggest ocean liners of its day, the Titanic featured 16
watertight compartments. If four of those flooded, the ship would still be able
to stay afloat. Six compartments flooded though because the bulkheads were not
tall enough to hold the water.5 Some potential causes behind the ship’s sinking
include designs that failed to take into account its size and mobility, the
speed the ship was traveling, ignored warnings about the likelihood of icebergs
and other factors.6
● One flaw that is undisputed though: There were not enough lifeboats for everyone
on board. The 20 lifeboats would only have had space for roughly 1,200 people,
while more than 2,200 passengers and crew were on board the ship. Additional
lifeboats had been removed from the design because the ship owners were worried
that it made the ship look unsafe and seemed packed on the deck.

What is the role of an engineer in ethical decision-making?
● Engineers have a responsibility to ensure that their
designs and practices are safe and ethical. They should
consider the impact of their decisions on society, the
environment, and future generations. They should also
uphold professional codes of ethics and be transparent
and accountable for their actions.

How can engineers ensure ethical behavior?
● Engineers can ensure ethical behavior by following
professional codes of ethics, practicing transparency and
accountability, avoiding conflicts of interest,
respecting privacy and confidentiality, considering the
impact of their decisions on society and the environment,
and continuously educating themselves about ethical
issues.

Models of Professional Engineers
An engineer who is a professional, has some tasks to perform by which he acts
as any of the following, which can be termed as Models of Professional
Engineers.
Savior − A person who saves someone or something from any danger is called a
Savior. An engineer who saves a group of people or a company from a technical
danger can also be called a Savior. The Y2K problem that created problems for
computers and computer networks around the world was solved by engineers who
were the saviors.
Guardian − A person who knows the direction towards a better future is known
to be the Guardian for the same. An engineer who knows the direction in which
there is scope for the technology to develop can also be called a Guardian.
This engineer provides the organization with innovative ideas for
technological development.
Bureaucratic Servant − A person who is loyal and can solve problems when they
occur using his own skills, is a Bureaucratic servant. An engineer who can be
a loyal person to the organization and also the one who solves the technical
problems the company encounters, using his special skills can be termed as a
Bureaucratic servant. The company relies on his decision-making capability for
the future growth.

Social Servant − A person who works for the benefit of the society
without any selfish interest and does not work on any business grounds,
is called a Social servant. An engineer who receives a task as part of
the government’s concern for the society considering the directives laid
by the society and accomplishes the assigned tasks can be termed as a
Social Servant. He knows what the society needs.
Social Enabler or Catalyst − A person who makes the society understand
its welfare and works towards the benefits of the people in it, is a
Social Enabler. An engineer who plays a vital role in a company and
helps company along with society to understand their needs and supports
their decisions in work can be termed as a Social Enabler or Catalyst.
This person quickens the procedure and helps maintain good environment
in the company.
Game Player − A person who plays a game according to the rules given is
a Game player in general. An engineer who acts as neither a servant nor
a master, but provides his services and plans his works according to the
economic game rules in a given time, can be termed as a Game player. He
is smart enough to handle the economic conditions of the company.

Engineering Ethics-Quiz
● An engineer designs a small structural steel building for a client, using
pirated structural design software obtained from the Internet. The
engineer later learns that the software gives accurate stress analysis for
tension, but does not properly predict the buckling of columns in
compression. The computer program is patched, and a revised analysis shows
that the building is not as safe as first believed. An extreme snowfall
could cause the supporting columns to buckle, and the building might
collapse completely. Such severe snowfall occurs about once every 10
years. What should the engineer do?
○ Destroy all evidence of the revised analysis and hope for good weather.
○ Contact the client, disclose the problem, and tell the client to sue the software
developer.
○ Hire a good defense lawyer for the Association's disciplinary hearing against the
engineer for negligence and unprofessional conduct.
○ Contact the client, disclose the problem, and try to negotiate a way to reinforce the
columns.

● The main purpose of the code of ethics is to
○ conform to the tradition established by technical societies.
○ conform to the tradition established by other professions.
○ protect the public.
○ improve the image of the engineering profession.
● Occasionally, a conflict of interest may occur accidentally
or unavoidably. In such cases, the best course of action is
to
○ keep the conflict of interest secret, but try not to let it affect your
decisions.
○ disclose the conflict to a fellow engineer and ask for advice.
○ ignore the conflict of interest; it is one of the benefits of a
professional job.
○ disclose the conflict to your employer and anyone else directly involved.

● Which of the following reprehensible actions is clearly a conflict
of interest?
○ Accepting a secret commission from a supplier for buying the supplier's
products.
○ Making public statements that are not based on firm knowledge and conviction.
○ Sealing a drawing by an unlicensed person, not under your direct supervision.
○ Failing to correct or report a situation that may endanger the public.
● Which of the following is a basis for disciplinary action under the
professional engineering licensing Act in your province or
territory?
○ Physical or mental incapacity.
○ Incompetence and Negligence.
○ Conviction of a serious criminal offense.
○ All of the above

● Codes of ethics state the engineer's duties to society, to
employers, to clients, to colleagues, to subordinates, and to the
profession. However, when these duties conflict, which group should
take precedence?
○ Colleagues and subordinates.
○ Employers and clients.
○ Society (the public).
○ The profession.
● When rough drafts of drawings or reports are prepared and circulated
for information or discussion, how should they be marked?
○ They should be signed, but marked as "preliminary" or "not for construction".
○ They should be signed, sealed, and dated the same as the final drawings.
○ They should simply be signed by the engineer who is the author.
○ They should be signed but marked as "confidential".

● Which of the following activities is an offense for a
person who is not licensed under the professional
engineering Act in your province or territory?
○ Using a seal that leads to the belief that the person is licensed.
○ Practicing professional engineering.
○ Using a term or title to give the belief that the person is licensed.
○ All of the above.

● The code of ethics in your provincial licensing Act is
○ a voluntary guide to professional conduct.
○ a voluntary guide, but strongly recommended by the licensing
Association.
○ a compulsory guide to professional behavior, enforced by the law
courts.
○ a compulsory guide to professional behavior, enforced by the
licensing Association.

● A person who has graduated from an engineering program at
an accredited university, but has not obtained a license
to practice engineering
○ must follow the code of ethics of a technical society if the person
practices engineering.
○ must not practice engineering.
○ must not practice engineering, except under the supervision of a
licensed engineer.
○ must follow the code of ethics, if the person practices engineering.

Personal ethics is a person’s morals and code of conduct. These
principles are ingrained in a person by their parents, relatives, and
friends from the beginning of their awareness.
Human existence is inadequate and superficial if there is no personal
ethics.
It is the ethical standard that a person applies when making
decisions and acting in both personal and professional situations.
These ethics have an impact on many facets of a person’s life and aid in
the development of a person’s work ethic, personal and professional
objectives and values.
Individuals use ethics to distinguish between what is good and wrong and
to influence how others act in difficult situations.
• Examples of Personal Ethics-
○ Honesty
○ Loyalty
○ Integrity
○ Respect
○ Selflessness

Why are personal ethics important?
A person’s personal ethical principles are important for
several reasons, including that they:
• Allow leaders to more effectively lead their teams: When a
leader regularly follows a predictable and respectable code
of ethics, their team is more likely to follow their lead
and feel confident in the contributions they make to the
organization as a whole.
• Instill a sense of trust and support in leaders: Leaders and
other professionals who regularly behave in the same way no
matter the situation are more likely to be trusted and
supported by colleagues and employees. Individuals who
follow a sound ethical code are easier to believe in and are
more likely to establish credibility among others.

● Give individuals a solid basis of which to determine the
most appropriate action in any given situation: When a
person has solid personal ethics, they are better able to
make decisions and take action in situations that may
otherwise seem challenging.
● Improve the decision-making process: A professional’s
ability to make decisions is based on their personal and
professional ethics and what they believe to be good or bad.
Having strong ethics makes the decision-making process
easier and more streamlined.
● Set a standard of behavior: In the workplace and in life,
ethics help establish an appropriate standard of behavior
for individuals. This behavior is called ethical behavior
and refers to a person’s ability to make sound decisions
based on their ethical nature.
● Support motivation: Individuals with strong ethics are often
easily self-motivated and willing to go the extra mile to
accomplish a task or goal on time and in the correct manner.

Case Study-Personal relations vs Ethical values
Pawani is pursuing B.tech and shares a room with you in the private
hostel. He desperately needs a job after completing his course because
of educational loan and weak economic background. In his last two
semesters, he couldn’t secure good grades due to serious illness. In
current semester he has to secure good marks at any cost to satisfy
minimum criteria for placements.
• Few days before the final semester exam, he comes to you and asks
for money. He is stressed and nervous. He tells you about his plan
to purchase semester papers to clear the exam and convinces you for
the same by giving reference to his bad health, family status and
his education loan.
• In such circumstances, would it be right to lend money to him?
(a) Identify the moral dilemma faced by you.
(b) Analyse your role and duties as a friend, also suggest your course
of action.

Case Study - 27: Emotional Intelligence in Corporate Offices
Ranbir is the Chief executive officer of a company. The Company has been
growing and has recruited quite a few specialists recently. The functional
heads in the company have to meet their staff in an open meeting every two
months. Ranbir detested these meetings. It was open to everyone in the
office. The staff came up with a long list of trivial and tiresome complaints
and grievances. They repeated the same things and spoke at length. Even when
the staff knew of the constraints, they went on with their complaints. They
wanted more space for lounge, for bathrooms and crèche. Ranbir pointed to
lack of space, and yet the staff continued to complain. Ranbir cultivated a
habit of sitting through the meeting with a cheerful face, but with his mind
switched off from the proceedings. The meeting became a tiresome ritual he
had to get through.
• Due these issues many employees had left the company and its further
hampering the Business of the company.
Q. In Ranbir’s situation what action would you have taken and why?

Ethical codes are adopted by organizations to assist members in
understanding the difference between 'right' and 'wrong' and in applying
that understanding to their decisions.
An ethical code generally implies documents at three levels:
○ codes of business ethics,
○ codes of conduct for employees,
○ and codes of professional practice.
FUNCTIONS OF CODE OF ETHICS:
1) It can express a shared commitment on the part of a professional
society’s members to strive to satisfy certain ethical standards and
principles.
2) It can help foster an environment in which ethical behavior is the
norm
3) It can serve as a guide or reminder in specific situations
4) A code can be a valuable academic and educational legacy for an
organization.

Types of Codes of Ethics
1.Compliance-Based Code of Ethics
For all businesses, laws regulate issues such as hiring and
safety standards. Compliance-based codes of ethics not only set
guidelines for conduct but also determine penalties for
violations.
In some industries, including banking, specific laws govern
business conduct. These industries formulate compliance-based
codes of ethics to enforce laws and regulations. Employees
usually undergo formal training to learn the rules of conduct.
Because noncompliance can create legal issues for the company as
a whole, individual workers within a firm may face penalties for
failing to follow guidelines.

2.Value-Based Code of Ethics
A value-based code of ethics addresses a company's core value
system. It may outline standards of responsible conduct as
they relate to the larger public good and the environment.
Value-based ethical codes may require a greater degree of
self-regulation than compliance-based codes.
Some codes of conduct contain language that addresses both
compliance and values.

• The engineering codes of ethics are simply compilations of
ethical actions that act as a guide in professional
practice.
• Every engineering code of ethics leaves room for an
engineer to make virtuous choices within his profession
while instructing the engineer in the most ethical actions
and procedures.
• It is critical that all engineers comply with the various
accepted codes.
• Although most of the different engineering codes share
similar ideals, nearly every major engineering association
has its own code that specifically addresses the issues
that its members are likely to encounter in the course of
their duties.

The engineering societies such as ABET, NSPE, IEEE, and AICTE have framed these
codes of ethics which are helpful to engineers to strengthen the moral issues on
their work. The codes of ethics play at least eight important roles such as the
following.
1. Serving and Protecting the Public : Engineers are in a responsible position
where trust and trustworthiness, both are essential. A code of ethics
functions as a commitment to the profession as a whole that engineers will
serve the public health, safety, and welfare. All the remaining ones
contribute to this function in some or other way.
2. Guidance: Codes are written in brief yet effective to offer general guidance
to the engineers. More specific directions may be given in supplementary
statements or guidelines, which tell how to apply the code. If needed, the
assistance is obtained for further specification.
3. Inspiration :Codes of ethics, which specify a collective commitment towards a
profession, helps in motivation for ethical conduct. Actually, these codes
make one feel really responsible and proud to be a professional thus
motivating towards the commitment one should have towards one’s profession.
4. Shared Standards:The standards established should be applicable to all
individuals, in their particular professions. With the codes of ethics, the
public is assured of engineers with a minimum standard of excellence and the
professionals are provided a fair way to compete.

5. Support for Responsible Professionals: The professionals who act ethically have more
positive support through these codes. A professional engineer who has the intention to stand
by the codes of ethics can have no harm from immoral professional obligations, as he can
reject smoothly yet formally. As well, these codes can provide legal support to engineers
who are criticized for living up to work-related professional obligations.
6. Education and Mutual Understanding:The codes which are widely circulated and officially
approved by professional societies promote a shared understanding among professionals, the
public and government organizations about the moral responsibilities of engineers. These
codes prompt discussion and reflection on moral issues.
7. Deterrence and Discipline:The professionals those who fail to follow the codes exhibit
unethical conduct, which is evident from the disobedience. Such an investigation generally
requires paralegal proceedings designed to get at the truth about a given charge without
violating the personal rights of those being investigated.This might lead to the expulsion
of those whose professional conduct has been proven unethical, which also leads to loss of
respect from colleagues and the local community.
8. Contributing to the Profession’s Image:Codes project the engineers as the professionals
of an ethically committed profession, which inspires them to work with great commitment and
more effectively to serve the public. It can also win greater powers of self-regulation for
the profession itself while lessening the demand for more government regulation.

INSTITUTION OF ENGINEERS INDIA : Code of Ethics -A corporate member shall-
1. practice his profession with integrity, conscience, dignity and honour and follow the best traditions
of the profession.
2. be aware that the principles of ecosystemic interdependence, diversity maintenance, resource recovery
and inter-relational harmony form the basis of our continued existence and that each of these poses a
threshold of sustainability that should not be exceeded.
3. hold paramount the safety, health and welfare of the people and the protection of the environment and
promote health and safety within the work place.
4. offer services, advise on or undertake engineering assignments only in the areas of his competence and
furnish information of his qualifications and experience to concerned clients.
5. uphold and maintain confidentiality and respect for secrets confided in him by the clients, employers
and employees in connection with any professional work undertaken by him.
6. keep informed and updated in his area of professional activity and strive to provide opportunities for
professional development of his subordinates.
7. conduct without consideration of caste, creed, sect, social status and shall not perform and act
against the interest of the nation.
8. present clearly to all concerned the possible consequences of ignoring, overruling or discarding
technological and engineering decisions or judgments without proper justification.
9. not directly or indirectly injure the professional reputation of another Corporate Member.
10. not accept any unauthorised commission, discount, allowance or profit direct or indirect to himself in
connection with any work under his charge or for any professional business entrusted to him.
11. not act in a manner which may injure the reputation or the image of the Institution or may cause damage
to the Institution financially or otherwise.

What Is the Difference Between a Code of Ethics and a Code of
Conduct?
A code of ethics is broader in its nature, outlining what is
acceptable for the company in terms of integrity and how it
operates.
A code of conduct is more focused in nature and instructs
how a business' employees should act daily and in specific
situations.

1.6
Profession and
Professionalism

Profession
Profession means a job or an occupation, that helps a person earn his living.
The main criteria of a profession involves the following.
Advanced expertise − The criteria of a profession is to have sound knowledge
in both technical aspects and liberal arts as well. In general, continuing
education and updating knowledge are also important.
Self-regulation − An organization that provides a profession, plays a major
role in setting standards for the admission to the profession, drafting codes
of ethics, enforcing the standards of conduct and representing the profession
before the public and the government.
Public good − Any occupation serves some public good by maintaining high
ethical standards throughout a profession. This is a part of professional
ethics where each occupation is intended to serve for the welfare of the
public, directly or indirectly to a certain extent.
–

Professional:relates to a person or any work that a person
does on profession and which requires expertise (skills and
knowledge), self-regulation and results in public good. The
term professional means a ‘Person’ as well as a ‘Status’.

Professionalism
Professionalism: It is the status of a professional which implies certain
attitudes or typical qualities that are expected of a professional.
According to Macintyre, Professionalism is defined as the services related
to achieving the public good, in addition to the practices of the knowledge of
moral ideas.
The short definition is that professionalism means behaving in an ethical
manner while assuming and fulfilling your rightful responsibilities in every
situation every time, without fail.
Professionalism covers comprehensively all areas of practice of a particular
profession. It requires skills and responsibilities involved in engineering
profession. Professionalism implies a certain set of attitudes.

Features of professionalism
1. Competence As a professional, you get the job done – and done well. Your
abilities match the requirements of your role, and you often produce results
that exceed expectations. The professionalism allows you to manage your own
and others’ expectations, and to ask for support when necessary.
2. Knowledge Professionalism involves developing detailed, up-to-date
knowledge, which is often highly specialized. At every stage of your career
you can strive to master your role – and keep adding to what you know. It’s
also important to put your knowledge into action. Being professional means
feeling confident to show what you know – not for self-promotion, but to help
yourself and others to succeed.
3. Conscientiousness Professionalism involves being reliable, setting your own
high standards, and showing that you care about every aspect of your job. It’s
about being industrious and organized, and holding yourself accountable for
your thoughts, words and actions. But don’t confuse conscientiousness with
working longer hours than everyone else, or obsessing about details. True
professionals plan and prioritize their work to keep it under control, and
they don’t let perfectionism hold them back.

4. Integrity Integrity means what keeps professional people true to
their word. It also stops them compromising their values, even if that
means taking a harder road. Integrity is bound up with being honest – to
yourself, and to the people you meet. Your beliefs and behaviours are
aligned, and everyone can see that you’re genuine.
5. Respect Professionalism means being a role model for politeness and
good manners – to everyone, not just those you need to impress.
6. Emotional Intelligence To be a true professional you need to stay
professional even under pressure. This takes strategies for managing
your emotions, plus a clear awareness of other people’s feelings. In
short, emotional intelligence is essential. Sometimes, professionalism
means keeping your emotions in check. But at other times it’s important
to express your feelings, in order to have meaningful conversations or
to stand up for what you believe in

7. Appropriateness A big part of being professional is knowing
what’s appropriate in different situations. It avoids
awkwardness or upset, boosts your credibility, and helps you to
feel secure in your role. Appropriateness relates to outward
appearances, such as dress, personal grooming and body language.
But it also covers the way you speak and write, the topics you
choose to discuss, and how you behave with others.
8. Confidence Well-founded confidence reassures and motivates
other people, boosting your ability to influence and lead. It
also pushes you to take on new challenges, because you don’t
fear damaging your professional reputation if things go wrong.
Professionalism makes you confident about what you’re doing now,
but always eager to do it better and achieve more.

https://timesofindia.indiatimes.com/blogs/voices/the-role-of-
ethics-in-engineering-education/

1.7
Professional
responsibility

Professional responsibility
Professional Managers tasks includes the following:
(i) Providing Direction to the Firm:The first task, envisioning goals, is one of the tasks that
should never be delegated. It is the ability to define overarching goals that serve to unify people
and focus energies. It’s about effectively declaring what’s possible for the team to achieve and
compelling them to accomplish more than they ever thought it was possible.
(ii) Managing Survival and Growth:Ensuring survival of the firm is a critical task of a manager.
The manager must also seek growth. Two sets of factors impinge upon the firm’s survival and growth.
The first is the set of factors which are internal to the firm and are largely controllable. These
internal factors are choice of technology, efficiency of labour, competence of managerial staff,
company image,financial resources, etc. The second set of factors are external to the firm, like
government policy, laws and regulations, changing customer tastes, attitudes and values, increasing
competition, etc.
(iii) Maintaining Firm’s Efficiency:A manager has not only to perform and produce results, but he
has to do so in the most efficient manner. The more output a manager can produce with the same
input,the greater will be the profit.

(iv) Meeting the Competition Challenge:A manager must anticipate and
prepare for the increasing competition. Competition is increasing in
terms of more producers, products, better quality, etc.
(v)Innovation:Innovation is finding new, different and better ways of
doing existing tasks. To plan and manage for innovation is an on-going
task of a manager. The manager must maintain close contact and relation
with customers. Keeping track of competitor’s activities and moves can
also be a source of innovation, as can improvements in technology.
(vi)Renewal:Managers are responsible for fostering the process of
renewal. Renewing has to do with providing new processes and resources.
The practices and strategy that got you where you are today may be
inadequate for the challenges and opportunities you face tomorrow.
(vii)Building Human Organization:Man is by far the most critical
resource of an organization. A good worker is a valuable asset to any
company. Every manager must constantly look out for people with
potential and attract them to join the company.

(viii)Leadership:Organizational success is determined by the quality of leadership that is
exhibited. “Aleader can be a manager, but a manager is not necessarily a leader,” says Gemmy Allen
(1998). Leadership is the power of persuasion of one person over others to inspire actions towards
achieving the goals of the company. Those in the leadership role must be able to influence/motivate
workers to an elevated goal and direct themselves to the duties or responsibilities assigned during
the planning process. Leadership involves the interpersonal characteristic of a manager’s position
that includes communication and close contact with team members. The only way a manager can be
acknowledged as a leader is by continually demonstrating his abilities.
(ix)Change Management:A manager has to perform the task of a change agent. It’s the manager’s task
to ensure that the change is introduced and incorporated in a smooth manner with the least
disturbance and resistance.
(x) Selection of Information Technology:Today’s managers are faced with a bewildering array of
information technology choices that promise to change the way work gets done. Computers, the
internet, intranets,telecommunications, and a seemingly infinite range of software applications
confront the modern manager with the challenge of using the best technology.
Some of the critical responsibilities of a professional manager are towards customers,
shareholders, employees, suppliers, distributors and retailers, industry and competition, union,
government and society. Therefore in brief it is the responsibility of a manager to take care of
the above mentioned things by handling or directing them with a degree of skill

1.5 Conflict of Interest
A conflict of interest arises when what is in a
person's best interest is not in the best
interest of another person or organization to
which that individual owes loyalty. ...
A conflict of interest can also exist when a
person must answer to two different individuals
or groups whose needs are at odds with each
other.
Example: A person might have a loyalty to an
employer and also loyalty to a family business.
Each of these businesses expect the person to
have its best interest first.

A conflict of interest occurs when an individual's personal
interests – family, friendships, financial, or Social factors
– could compromise his or her judgment, decisions, or actions
in the workplace.

Conflict of Interest:
A conflict of interest arises when what is in a person’s best interest is not in the best interest
of another person or organization to which that individual owes loyalty.
For example, an employee may simultaneously help himself but hurt his employer by taking a bribe to
purchase inferior goods for his company’s use.
What is a Conflict of Interest?
A conflict of interest happens when an individual involved in multiple interests finds themselves
in a decision-making situation where serving one of those interests would harm another.
Interests include many different types of commitments, duties, obligations, and values, such as:
● Contractual or legal obligations (to business partners, vendors, employees, employer, etc.)
● Loyalty to family and friends
● Fiduciary duties
● Professional duties
● Business interests

Three Common Types of Conflicts of Interest
Many different types of corruption stem from conflicts of interest that arise between an
individual’s professional duties and direct or indirect interests.
Nepotism Nepotism happens when an individual in charge of a hiring process chooses to award a job
offer to someone in their own family or with whom they have a personal relationship. In this case,
the individual’s duty to their employer (choosing the most qualified or best candidate for the
role) may conflict with their loyalty to a family member (choosing a family member to receive the
benefits of the job instead of an unknown person).
Self Dealing A corporate fiduciary is legally obligated to act in the best interests of the
corporation and its shareholders. When a fiduciary acts in their own best interests instead of in
the best interests of their client, this is known as self-dealing. Self-dealing involves a conflict
of interests between an individual’s fiduciary duties (legal obligation to the client) and
financial interests (desire for personal financial gain).
Business Relationships Many conflicts of interest stem from personal business interests. An
individual who works for two businesses in the same industry, or who works for the public sector
while maintaining interests in companies that bid on government contracts may experience a conflict
of interest when their job duties and business interests come into competition. In addition, a
conflict of interest could be sitting on the board of another company, owning stock in another
company, and deciding which vendor gets a contract.

What is an Example of a Conflict of Interest?
Conflicts of interest can appear in any decision-making process where
the individual making the decision has multiple interests at stake.
Some common situations could include:
● Hiring an unqualified friend or relative to fill a position instead
of the most qualified candidate.
● Preferentially awarding a government contract to an organization in
which you or someone you know owns stock.
● Performing part-time or contract-based work for a competitor
organization
A famous conflict of interest took place in 1967 when a group of Harvard
scientists were paid by the Sugar Association to publish a paper that
minimized the relationship between heart health and sugar consumption.
These scientists violated their obligation to publish truthful and
reputable research in order to support their personal financial
interests.

How to Handle an Employee Conflict of Interest
Organizations should establish a clear Conflict of Interest
policy that describes how such conflicts will be handled.
Employees should be encouraged to talk to their managers and
voluntarily disclose any perceived conflicts of interest.
When a public or private sector employee experiences a conflict
of interest, they may resolve the situation by choosing to
either:
1. abandon one of the conflicting roles, or
2. rescue themselves from the relevant decision-making process
A conflict of interest can also exist when a person must answer
to two different individuals or groups whose needs are at odds
with each other. In this case, serving one individual or group
will injure the other

1.7 Gift Vs Bribery
● Gift is given to someone without any expectation in return.
Value of gift are often based on closeness in relation,
time of gifting, economic condition of giver and receiver.
● Bribe is given with expectation of favour toward giver.
● A gift is something of value given without the expectation
of return; a bribe is the same thing given in the hope of
influence or benefit. ... These rules can vary
significantly from locality to locality, indicating
disparities in each legislature's understanding of when a
gift becomes a bribe.

● Examples: Active bribery can also include bribing police
officers to escape fines or criminal persecution, bribing
customs officials to enter a country with prohibited
goods, or bribing public officials to award an undeserved
license or bias the public sector procurement process.
● Bribe is something (usually money) given in exchange for
influence or as an inducement to dishonesty while bribery
is the making of illegal payment, or bribes, to persons
in official positions as a means of influencing their
decisions.

● These terms are used to indicate a wide range of things from a harmless small gift to
bribery. In between is a grey area that is difficult to judge.
● A professional should not act against his/her professional conscience or judgment.
● He/ She should avoid situations that have the potential to force him/her to act against
his/her judgment.
● He/ She should not accept any material gift of any value from someone or some agency if
he/she has to make a business decision involving that person or agency
● No guidelines can be laid down to clearly indicate the distinction between a harmless
gift and a bribe. A bribe, essentially has an ulterior motive and is given with an
expectation of return for the material or service given.
● A professional has to develop his/her own yardstick to decide on an acceptable form of
gift in a given context.
● It is not possible to place a value on a gift as small or not. A professional
has to decide this based on the context and his/her conscience.
● A professional should completely avoid accepting any consideration, however
small it may be, given with an intent to bribe and ask for favors.
● It is not the fear of being caught, implicated, or fined that should prevent the
professional from such actions. It is a fact that such acts are against his/her
professional conscience and judgment, which should be the deciding factor.

Some norms which are still needed are:
1. Reporting to department about any gifts that is received from whom,
value and date details. This part is already applicable to judicial
judges in India.
2. Any gifts above certain monetary values should be avoided.
3. No gifts received with brand name should be put on desk as it will
tarnish the image of official/public servant for lenient toward certain
brand.
4. Provision of filing gift tax by receiver. IT department should tally
the gift received as mentioned in department books and filed by
receiver. Failure to file tax for gift should be taken seriously.
5. Scrutiny of gifts received by officials regularly and checking of
property declaration regularly.Repeated gift from same person should be
brought under Directorate Enforcement radar.Bribes are complex thing for
receiver because it puts him into moral dilemma for how to return the
favour and makes them corrupt once they receive.

Environmental Breaches
Environmental Violation means (a) any direct or indirect discharge, disposal,
spillage, emission, escape, pumping, pouring, injection, leaching, release,
seepage, filtration or transporting of any Hazardous Substance at, upon, under,
onto or within the Leased Premises, or from the Leased Premises to the
environment, in violation of any Environmental Law.
An environmental Breach occurs when an activity or an existing condition does not
comply with an environmental law or regulation. Environmental violations can
include (but are not limited to):
● Smoke or other emissions from local industrial facilities;
● Tampering with emission control or air conditioning systems in automobiles;
● Improper treatment, storage, or disposal of hazardous wastes;
● Exceedances of pollutant limits at publicly-owned wastewater treatment
plants;
● Unpermitted dredging or filling of waters and wetlands;
● Any unpermitted industrial activity;
● Late night dumping or any criminal activity including falsifying reports or
other documents.

Environmental crimes may include but are not limited to:
■ Littering
■ Improper waste disposal
■ Oil spills
■ Destruction of wetlands
■ Dumping into oceans, streams, lakes, or rivers
■ Groundwater contamination
■ Improperly handling pesticides or other toxic chemicals
■ Burning garbage
■ Improperly removing and disposing of asbestos
■ Falsifying lab data pertaining to environmental regulations
■ Smuggling certain chemicals, such as CFC refrigerants, into the U.S.
■ Bribing government officials
■ Committing fraud related to environmental crime

Environmental Breaches
There are potential penalties and other implications for a business if it
breaches environmental legislation. Understanding the regulator’s approach to
the enforcement and prosecution of environmental offences should enable
businesses to minimise their risk of being prosecuted. It should also help to
reduce the level of any penalties if the business is prosecuted and minimise
any reputational damage to the business.
Environmental law violators are usually hit with criminal fines, probation,
jail time, or a combination of these punishments. While jail time may be the
most formidable punishment for individuals who commit environmental crimes,
fines are intended to deter large corporations from violating environmental
laws and regulations. Without the threat of heavy monetary punishment, some
corporations might find that noncompliance is more cost-effective than obeying
the law. Environmental crime fines are meant to offset the financial allure of
activities such as illegal dumping.

GOOD -Violation of environmental laws subject to punishments and fines. Such provisions are-
1) Failure to obtain the required consent order will incur penalties. For instance, under the
Water Act, any person who breaches the consent application process is punishable with imprisonment
for at least 18 months, which can be extended to six years, and a fine.
2) Under directions from the NGT, the CPCB recently devised a formula to compute environmental
compensation to be levied on the defaulting industry. The formula is based on the anticipated
severity of pollution, the duration of the violation (number of days), the scale of the operation
and the location (for example, proximity to large habitations).
3) Moreover, the Supreme Court and the state high courts can and do impose exemplary damages
for damage to the environment
4) The Water Act, Air Act and EP Act all contain specific provisions for offences committed by
companies. Under these Acts, every person who is in charge when an offence is committed, and is
responsible to the company for the conduct of its business, is guilty of the offence and liable to
be prosecuted and punished accordingly.
5) Further, if the offence was committed with the consent or connivance, or is attributable to
any neglect by a director, manager, secretary or other officer of the company, the other person is
also guilty of the offence, and liable to be prosecuted.
6) The National Green Tribunal Act, 2010 (NGT Act) contains penalty provisions which are
considerably higher compared to previously adopted environmental laws. Most likely all existing
environmental laws will be amended (at some point) to be aligned with the NGT Act penalty
provisions.

7) If the failure or contravention continues, an additional fine applies up to
INR 25,000 for every day the failure/contravention continues, after conviction for
the first failure or contravention.
8) Section 26(2) of the NGT Act states that if a company fails to comply with
any order or award or decision of the Tribunal, the company is punishable with a
fine up to 25 crore rupees. If the failure or contravention continues, an additional
fine applies up to INR100,000 for every day the failure/contravention continues,
after conviction for the first failure or contravention.
9) Under section 15(1) of the NGT Act, the NGT can order relief, compensation
and restitution in the following cases:
.Relief and compensation to the victims of pollution and other environmental
damage. . Restitution for property damaged.
. Restitution of the environment.
Further, the National Green Tribunal (NGT) can divide the compensation or relief
payable under separate heads specified in Schedule II of the NGT Act, which includes
claims:
. Due to harm, damage or destruction to flora, including aquatic flora, crops,
vegetables, trees and orchards. . Including cost or restoration of account of
harm or damage to the environment including pollution of soil, air, water, land
and eco-systems.
. Water pollution and abstraction

Negligence
The definition of negligence is carelessness or not paying attention, causing someone or something
to be at risk of being harmed. In the general sense, the term negligence means the act of being
careless and in the legal sense, it signifies the failure to exercise a standard of care which the
doer as a reasonable man should have exercised in a particular situation.
In Blyth v. Birmingham Water Works Co, Negligence was defined as the omission to do something which
a reasonable man would do or doing something which a prudent or reasonable man would not do.
It can be characterized in three forms-
● Nonfeasance: It means the act of failure to do something which a person should have done. For
example,failure to carry out the repairs of an old building when it should have been done.
● Misfeasance: It means the act of not doing an action properly when it should have been done
properly.For example, Doing the repairs of an old building but doing so by using very poor
quality materials creating a major probability of a collapse which injures people.
● Malfeasance: It means the act of doing something which should not have been done in the first
place itself. For example, using products that are not allowed and combustible to carry out
the repairs of an old building, therefore, converting the building into a firetrap leading to
an accident

Negligence is defined as doing something or failing to do something that
a prudent, careful, and reasonable nurse would do or not do in the same
situation. The definition of professional negligence is when a
professional fails to perform their responsibilities to the required
standard or breaches a duty of care. This poor conduct subsequently
results in a financial loss, physical damage or injury of their client
or customer. A claim of professional negligence can be made against
anyone considered to have expertise in the services they provide; for
example, a technology or management consultant, surveyor, etc. For the
claim to be successful there must be evidence that the service provided
fell below the standards of their profession, resulting in negative
consequences.

Deficiencies in State- of -art
Morality and art are connected usually in art that provokes and disturbs. Such art stirs up the
artists or viewer’s personal beliefs, values, and morals due to what is depicted. Works that seem
to purposely pursue or strongly communicate a message may cause controversies to flare up:
controversies over the rights of artistic freedom or over how society evaluates art. That judgment
of works created by artists has to do with society’s value judgment in a given time in history. The
relationship between the artist and society is intertwined and sometimes at odds as it relates to
art and ethics. Art is subjective which will be received or interpreted by different people in
various ways. What may be unethical to one may be ethical to another. Because art is subjective, it
is vulnerable to ethical judgment. This lack does not make ethical judgment wrong or irrational; it
shows that appreciation of art or styles changes over time and that new or different art or styles
can come to be appreciated. It is expected that in a work of art an artist’s own beliefs, values,
and ideology may contrast with societal values. It is the art that speaks and adds quality value to
what is communicated. This is what makes the power of free artistic expression so important. The
art is judged not by who created the work or the artist’s character, but based on the merits of the
work itself. Ethical dilemmas are not uncommon in the art world and often arise from the perception
or interpretation of the artwork’s content or message.

Vigilance/Whistle blowing
Vigil mechanism/ Whistle Blower Policy is a very well-known term all over the World.
Various compliance and fraud surveys show Vigil/Whistle blower mechanisms are among
the most effective means of detecting corporate misconduct. A genuine Whistle blower
can help a Company and its stakeholders in avoiding exposures related to fraud or
misconduct. Companies Act 2013 introduced the concept of Vigil Mechanism in India. A
Vigil mechanism provides a channel to employees and Directors of a Company to report
to the management concerns about unethical behaviour, actual or suspected fraud or
violation of the Codes of Conduct or any Policy of the Company. The term “Whistle-
blowing” originates from the practice of British policemen who blew their Whistles
whenever they observed commission of a crime. Whistle Blowing is nothing but calling
the attention of top level management to some malafide activities happening within
an organization. A Whistle blower is a person who comes forward and shares his/her
knowledge on any wrongdoing which he/she thinks is happening in the organization or
in a specific department. A Whistle blower could be an employee, contractor, or a
supplier who becomes aware of any illegal activities.

For creating and establishing a well-entrenched Whistle-
blowing Culture, a Company shall have to undergo the
following steps:
● Frame a Policy.
● Get an endorsement from top level management.
● Publicize the Organization’s Commitment.
● Investigate and Follow Up.
● Assess the Organization’s Internal Whistle-blowing System

Provisions under the Companies Act, 2013:
A) Section 177 of the Companies Act, 2013 read with Rules made thereunder
mandates following Companies to establish Vigil mechanism in their Company: 1.
Listed Company; 2. Every Company which accepts deposits from the public; and
3. Every Company which has borrowed money from Banks and Public Financial
Institutions in excess of Rupees 50 crores.
B) Companies which are required to constitute an Audit Committee shall operate
the Vigil mechanism through the audit Committee. If any of the members of the
Audit committee have a conflict of interest in a given case, they should
recuse themselves and the other members of the Audit Committee shall deal with
the matter on hand.
C) For the Companies which are not required to constitute the Audit
Committee, the Board of Directors shall nominate a director to play the role
of audit committee for the purpose of Vigil mechanism. All the employees and
other Directors shall report their concerns to such appointed Director.

D) Vigil mechanism Policy of the Company shall provide for adequate
safeguards against victimization of director(s)/employee(s) who avail of
the Vigil Mechanism and to make provisions for direct access to the
Chairman of the Audit Committee or the director nominated to play the
role of Audit Committee (as the case may be).
D) The details of establishment and framing of Vigil Mechanism Policy
shall be disclosed by the Company on its website, if any, and in it’s
Board’s report.
E) The Independent Directors of the Company (wherever applicable) shall
ascertain and ensure that the Company has an adequate and functional
Vigil mechanism and that the interests of a person who uses such
mechanism is not prejudicially affected on account of it’s use.
F) In case of repeated frivolous complaints being filed by a Director
or an employee, the audit committee or the director nominated to play
the role of audit committee has the right and power to take suitable
action against the concerned director or employee.

Under SEBI (LODR) Regulation, 2015 The SEBI (LODR) Requirements, 2015
contains similar requirement for establishment of a Vigil Mechanism
termed ‘Whistle Blower Policy’.
A) Regulation of SEBI (LODR), 2015 provides for the listed entity to
devise an effective Whistle blower mechanism viz. Whistle Blower Policy
enabling stakeholders, including individual employees and their
representative bodies, to freely communicate their concerns about
illegal or unethical practices. B) The Audit committee shall
review the functioning of the Whistle blower mechanism.
C) The listed entity shall disseminate details of establishment of Vigil
mechanism/ Whistle Blower policy on its functional website
D) The Corporate Governance Report of the Company shall contain the
details of establishment of Vigil mechanism, Whistle blower policy and
affirmation that no personnel has been denied access to the audit
committee.

Protected disclosures
Disclosure of information in the public interest by the employees of an organisation is
increasingly gaining acceptance by public bodies for ensuring better governance standards
and probity / transparency in the conduct of affairs of public institutions.
Large scale corporate frauds had necessitated various legislative measures for
safeguarding public interest.
In the Indian context, the Government of India had passed a resolution on April 21, 2004
authorizing the Central Vigilance Commission (CVC) as the ‘Designated Agency’ to receive
written complaints or disclosure on any allegation of corruption or of misuse of office
and recommend appropriate action.
As a proactive measure for strengthening financial stability and with a view to enhancing
public confidence in the robustness of the financial sector, Reserve Bank of India has
formulated a scheme called “Protected Disclosures Scheme for Private Sector and Foreign
Banks”. “Protected Disclosure” means any communication made in good faith that discloses
or demonstrates information that may evidence unethical or improper activity.

Protected Disclosures Act, 2000
The purpose of the Protected Disclosures Act, 2000, is to provide
procedures and to offer protection. The Act provides procedures in terms
of which any employee may disclose information relating to an offence or
a malpractice in the workplace by his or her employer or fellow
employees. The Act provides for the protection of an employee, who made
a disclosure in accordance with the procedures provided for by the Act,
against any reprisals as a result of such a disclosure. The procedures
provided for in the Act can be described as routes that can be followed
in order to disclose the information. An employee who discloses
information through one of these routes will be protected from being
victimised or penalised in his or her working environment.
An employee can disclose the information to—
● A legal representative; His or her employer;
● A Minister or a member of the Executive Council of a province (MEC);
● A specified person or body; or
● A general disclosure to any other person.

Case study
Dylan is a manager at a leading consumer electronics company. In his role, he must frequently interact with industry partners and customers. One
day, Dylan met with a customer of one of his company’s custom products. The custom product was a special chip for an electronic appliance that
was currently in its final stages of review before market release. During the meeting, the customer wanted to know the method of making the chip, a
process which was not specified in the given datasheet. The client claimed this information was needed to ensure that the chip would function
properly when it was integrated with electronic appliances.
At first, Dylan was uncertain. He wanted to give his customer more details if it was for the benefit of his client’s final product, but, at the same time,
was concerned because the requested information was protected under his company’s non-disclosure agreement (NDA).
Dylan decided to discuss the matter with his supervisor; however, Dylan’s manager was overseeing many projects and, knowing that Dylan was
capable and experienced, entrusted him to take care of the situation. When he returned to work the next day, Dylan received an email from his
customer. The message stated that, if the chip’s manufacturing methodology was not disclosed, the customer would cease further investments in
the product.
Shocked, Dylan believed that if the customer could not abide by the NDA, he should tell the contract should be broken off. However, doing so would
mean losing a significant amount of profit they had intended on garnering from selling the chip. On the other hand, sharing confidential information
with his customer could cause negative repercussions, especially if his company were to discover the legal breach.
Although it is highly unlikely that the extra chip information would be used by Dylan’s client for malicious purposes, its disclosure could potentially
affect his company’s reputation, lead to mistrust in the company and compromise Dylan’s position. What should Dylan do?
Jocelyn Tan was a 2014-2015 Hackworth Fellow in Engineering Ethics at the Markkula Center for Applied Ethics at Santa Clara University.

Introduction to GST
GST is the most ambitious and remarkable indirect tax reform in India’s post-
Independence history. Its objective is to levy a single national uniform tax across
India on all goods and services. GST has replaced a number of Central and State
taxes, made India more of a national integrated market, and brought more producers
into the tax net. By improving efficiency, it can add substantially to growth as
well as government finances. Implementing a new tax, encompassing both goods and
services, by the Centre and the States in a large and complex federal system, is
perhaps unprecedented in modern global tax history.GST is a tax on goods and
services with comprehensive and continuous chain of set-off benefits up to
theretailer level. It is essentially a tax only on value addition at each stage, and
a supplier at each stage is permitted to set-off, through a tax credit mechanism,
the GST paid on the purchase of goods and services.Ultimately, the burden of GST is
borne by the end-user (i.e. final consumer) of the commodity/service.With the
introduction of GST, a continuous chain of set-off from the original producer’s
point and service provider’s point up to the retailer’s level has been established,
eliminating the burden of all cascading or pyramiding effects of an indirect tax
system. This is the essence of GST. GST taxes only the final consumer. Hence the
cascading of taxes (tax-on-tax) is avoided and production costs are cut down.

Salient features of gst in india
1. Supply as the base: GST would be applicable on “supply” of goods or services as against the
erstwhile concept of tax on the manufacture of goods or on sale of goods or on provision of
services.
2. Destination-based tax: As opposed to the previous principle of origin-based taxation, GST would
be based on the principle of destination-based consumption taxation.
3. Dual GST: The Centre and the States would simultaneously levy tax on a common base.The GST to be
levied by the Centre would be called Central GST (CGST) and the GST to be levied by the States
(including Union territories with legislature) would be called State GST (SGST). Union territories
without legislature would levy Union territory GST(UTGST).
4. Inter-State supply: An integrated GST (IGST) would be levied on inter-State supply of goods or
services. This would be collected by the Centre so that the credit chain is not disrupted. Imports
of goods and services would be treated as inter-State supplies and would be subject to IGST. (This
would be in addition to applicable customs duties). Para 2.2Introduction to GST 10 taxmann

5. Central taxes subsumed: GST would subsume the following taxes that were levied and collected by
the Centre: Central excise duty; Additional duties of excise; Additional duties of customs
(commonly known as countervailing duty); special additional duty of customs(SAD); service tax; and
cesses and surcharges insofar as they relate to supply of goods or services.
6. State taxes subsumed: GST would subsume the following taxes that were levied and collected by
the State: State VAT; Central Sales Tax; purchase tax; luxury tax; entry tax;entertainment tax
(except those levied by the local bodies); taxes on advertisements; taxes on lotteries, betting and
gambling; and State cesses and surcharges insofar as they relate to supply of goods or services.
7. Applicability: GST would apply to all goods and services except alcohol for human consumption.
GST on five specified petroleum products (crude, petrol, diesel, aviation turbine fuel, natural
gas) would be applicable from a date to be recommended by the GST Council.
8. Threshold for GST: A common threshold exemption would apply to both CGST and SGST.Taxpayers with
an annual turnover of ` 20 lakh (` 10 lakh for special category States (except J&K) as specified in
article 279A of the Constitution) would be exempt from GST. Acompounding option (i.e. to pay tax at
a flat rate without credits) would be available to small taxpayers (including to manufacturers
other than specified category of manufacturers and service providers) having an annual turnover of
up to ` 1 crore (` 75 lakh for special category States (except J&K and Uttarakhand) enumerated in
article 279A of the Constitution). The threshold exemption and compounding scheme is optional.

9. Exports: All exports and supplies to Special Economic Zones (SEZs) and SEZ units would be zero-rated.
10. Input tax credit: Credit of CGST paid on inputs may be used only for paying CGST on theoutput and the
credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams
of input tax credit (ITC) cannot be cross utilized,except in specified circumstances of inter-State supplies
for payment of IGST. (For details,see the Chapter on Input Tax Credit).
11. Electronic filing of returns: There will be electronic filing of returns by different class of persons at
different cut-off dates. Various modes of payment of tax available to thetaxpayer including internet banking,
debit/credit card and National Electronic FundsTransfer (NEFT)/Real Time Gross Settlement (RTGS).
12. Tax deduction on payment made: While the provision for TDS has not been notified yet, itis obligatory on
certain persons including government departments, local authorities andgovernment agencies, who are
recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where
total value of supply, under a contract,exceeds ` 2,50,000.
13. Tax collection at source by E-commerce operators: While the provision for TCS has not been notified
yet,it is obligatory for electronic commerce operators to collect ‘tax atsource’, at such rate not exceeding
2% of net value of taxable supplies, out of payments tosuppliers supplying goods or services through their
portals.
14. Refund: Refund of tax can be sought by taxpayer or by any other person who has borne theincidence of tax
within two years from the relevant date. Refund is to be granted within 60 days from the date of receipt of
complete application and interest is payable if refund is not sanctioned within 60 days.
15.Anti-profiteering clause: It has been provided in order to ensure that business passes on the benefit of
reduced tax incident on goods and services or both to consumers.

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