The document discusses various global issues related to the operations of multinational corporations including their responsibilities regarding technology transfer, human rights, environmental protection and ensuring fair treatment of employees in host countries. It also provides a case study on alleged unethical practices of Walmart and discusses principles of appropriate technology and how multinationals can operate in a morally justified manner while respecting local laws and cultures.

1. SRI RAMAKRISHNA INSTITUTE OF TECHNOLOGY,
COIMBATORE.
AUTONOMOUS INSTITUTION
APPROVED BY AICTE, NEW DELHI – AFFILIATED TO ANNA UNIVERSITY, CHENNAI)
GE6075- PROFESSIONAL ETHICS IN ENGINEERING
I.Karthikeyan
Assistant Professor,
Mechanical Department .
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2. UNIT V GLOBAL ISSUES
 Multinational Corporations – Environmental Ethics –
Computer Ethics – Weapons Development –
Engineers as Managers – Consulting Engineers –
Engineers as Expert Witnesses and Advisors –
Moral Leadership –Code of Conduct – Corporate
Social Responsibility
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3. GLOBALIZATION
 Globalization means integration of countries through
commerce, transfer of technology, and exchange of
information and culture.
 Acting together and interacting economies through trade,
investment, loan, development schemes and capital
across countries.
 Flow of knowledge, science, technology, skills, culture,
information, and entertainment, besides direct human
resource, tele-work, and outsourcing.
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6.  Organisations who have established business in more than one
country, are called multinational corporation.
 The headquarters are in the home country and the business is
extended in many host countries. The Western organizations doing
business in the less-economically developed (developing, and
overpopulated) countries
 Gain the advantage of inexpensive labor, availability of natural
resources, conducive-tax atmosphere, and virgin market for the
products.
 Developing countries are also benefited by fresh job opportunities,
jobs with higher remuneration and challenges, transfer of
technology, and several social benefits by the wealth developed.
 But this happens invariably with some social and cultural disturbance.
Loss of jobs for the home country, and loss or exploitation of
natural resources, political instability for the host countries are
some of the threats of globalization.
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7.  Multinational Corporations (MNCs) or Transnational
Corporation (TNC), or Multinational Enterprise (MNE) is
a business unit which operates simultaneously in
different countries of the world.
 In some cases the manufacturing unit may be in one
country, while the marketing and investment may be in
other country.
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8.  In other cases all the business operations are carried out
in different countries, with the strategic head quarters in
any part the world.
 The MNCs are huge business organisations which
extend their business operations beyond the country of
origin through a network of industries and marketing
operations.
 They are multi-process and multi-product enterprises.
The few examples of MNCs, are, Sony of Japan, IBM of
USA, Siemens of Germany, Videocon and ITC of India,
etc. There are over 40,000 MNCs with over 2, 50,000
overseas affiliates. The top 300 MNCs control over 25
percent of the world economy.
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9.  Ethics is said to be "that branch of philosophy dealing
with values relating to human conduct, with respect to
the rightness and wrongness of certain actions and to
the goodness and badness of the motives and ends of
such actions".
 In regards to the challenges of multinational
organisations, does it matter if employees are
motivated to contribute to an organisation in a society?
 Are they demonstrating a sense of social
responsibility? Or is it strictly businesses that would
benefit the organisation alone?
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10.  What is the duty of the multinational organisations
in the countries businesses are located or situated?
How can Multinationals perform in an ethical and
socially responsible way?
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11.  Multinational organisations have the ability to move
about a massive amount of resources globally. Moving
things from one location to the other would be the least
of its problems.
 A lot of things that could limit profit could be worked
around if things like environmental standards,
production costs, taxes, safety at the work place,
production costs (Desjardins and McCall, 1990).
 The size of a multinational organisation and power
could play a huge impact on the policy issues in a
nation, such issues would be felt more by relationships
with developing nations as supposed to developed
nations.
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12.  Multinational organisations must realize that, the culture
of an organisation could have an effect on the
behaviour of an employee within an organisation. an
organisational culture could affect the behaviour of
employees in an organisation.
 Getz (1990) came up with a list of Multinational
organisations, how they were interrelated and their
rights as well as their duties. Getz (1990) classified
Multinational organisations into three categories:
 (i) MNC with host governments
 (ii) MNC with the general public.
 (iii) MNC with individual people.
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13.  Multinationals must think about its responsibilities in
relation to a number of other things such as political
engagements, regulations and laws, developmental
and economic policies.
 The requirements in these areas consist of (but are not
restricted to) providing local, raw materials, equity
participation, preferential treatment to local sources.
 The MNC is not above the regulations, laws and
jurisdiction of the host and should use suitable
international disagreement resolution mechanisms
when necessary.
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14.  MNCS should avoid interfering with improper
political activities, intergovernmental issues nor pay
bribes to public servants. Getz suggests that control
of the host is the basic right that must be
recognized and respected by the MNC.
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15.  If the country is a developing country, it could be
helpful if some research is carried out by the host
country and it would save a lot of costs as well if local
personnel are and local resources to every reasonable
extent.
 MNCs should also give licenses, in terms of realistic
terms and conditions, for using properties and rights.
 In the area of environmental protection, MNCs should
collaborate with the host country in producing and
increasing national and international environmental
security standards, as well as notifying the host of any
possible environmental impact of the goods
manufactured, services executed, and/or processes
made use of.
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16.  Finally, the relationship between MNCs and people
rotates around consumer guidance, human rights
issues and employment practices. MNCs should
value consumer laws of protection and preserve the
safety and health of consumers through accurate
advertising and appropriate labelling.
 The relationship between MNCs and the public has
two major categories: technology transfer and
environmental protection issues (Getz, 1990). With
regard to technology
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17. INTERNATIONAL HUMAN RIGHTS
International Human Rights
Moral responsibilities and obligations of the multinational corporations
operating in the host countries,
- Framework of rights ethics. Common minimal rights are to be followed to
smoothen the transactions when the engineers and employers of MNCs have to
interact at official, social, economic and sometimes political levels.
- At international level, the organizations are expected to adopt the minimum
levels of
- (a) values, such as mutual support, loyalty, and reciprocity,
- (b) the negative duty of refraining from harmful actions such as violence
and fraud, and
- (c) basic fairness and practical justice in case of conflicts.
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18.  Many companies do excellently well even when they
practice unethical conducts. These are just some
things that happen or come under unethical practices.
 A firm's ability to be
 Tricky, dishonest and deceptive.
 Ability to mislead and confuse a sister firm or company
or even the general public.
 Emotionally manipulating and exploiting vulnerable
people.
 Greed
 Falsifying documents to indicate or prove increased
profit.
 Escaping punishment of unlawful acts
 :
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19.  Resistance to investigation as well as lack of
transparency
 Increase in pollution as law is broken pr
government's prescription of pollution.
 Discriminating between gender, disabilities age and
sex.
 Testing for drugs
 Financial analysis that are misleading
 Price discrimination, price skimming, and price
fixation.
 Using animals as testing objects. etc
 Unethical Wal-Mart Business Practices
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20. CASE STUDY
 Labour Union Opposition: Wal-Mart is an organisation without
unions. They rather operate on an open door policy as
suppose to relying on the unions, they believe they do not
need third parties.
 The open door policy actually helps employees
experiencing problems within the organisation to go beyond
management. PBS states that the open door policy operated
by the Wal-Mart management does little or nothing to help
employees in a difficult situation. It claims that the policy to a
certain extent helps terminate unwanted non complaint. Wal-
Mart disallows employees from discussing with union
representatives.
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21.  It is corrupt for Wal-Mart to ban employees to talk to
union representatives given that according to the
National Labour Relations Act, employers should not be
allowed to put off employees from creating a union for it
is their right and should be enforced if need be.
 There was a complaint filed from United Food and
Commercial Workers Union filed a complaint with the
National Labour Relations Board against Wal-Mart.
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22.  “The complaint, filed with the National Labour
Relations Board, alleges that Wal-Mart violated federal
labour law by "bribing" employees to report on co-
workers who favoured a union."
(www.washingtonpost.com). these charges were
denied by Wal-Mart denied.
 Hence it was unethical for Wal-Mart to have bribed
employees as this supports fraudulent behaviours. As
an organisation, Wal-Mart needs to avoid certain
unlawful situations such as making employees free to
talk to union representatives.
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23. UNETHICAL PRACTICES
 Wal-Mart, a gigantic company retain a lot of customers,
both home and away are widely known for their
enormous variety of goods and services at low prices. It
was founded by Sam Walton, a very creative and
innovative entrepreneur.
 Wal-Mart has done very well for itself as it has beaten a
lot of other organisations in terms of its discounting
retailing. It is believed to be largest company in the
United States of America. According to PBS, "Wal-Mart
employs more people than any other company in the
United States outside of the Federal government, yet
the majority of its employees with children live below the
poverty line."(www.pbs.org)
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24.  They have also added that the company claims to
sell goods manufactured in the U.S only but their
products are goods and serviced produced abroad
or in overseas and at debated workshops.
 In addition, Wal-Mart likes to portray itself as a
seller of U.S. manufactured goods but in reality the
company has products on its shelves made in
foreign countries and at questionable workshops.
As Wal-Mart faces unethical business practices,
they have also been said to have encouraged
goods produced outside the U.S
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25. Unfair Treatment to Employees:
There has been a serious allegation of Wal-Mart
discriminating against women within its organisation.
There has been an example of women who has been
deprived of promotion and training opportunities that
have been put forward to men. Women have also
allegedly been underpaid than men.
 "In June 2001 a group of six current and former
female Wal-Mart employees filed a sex discrimination
lawsuit (seeking to represent up to 500,000 current
and former Wal-Mart workers) against the
company."(Hoover's Handbook, pg.907).
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26.  Wal- Mart failed to offer equal employment opportunity
to women, even though there are more than seventy
percent of women working at Wal-Mart, only a few of
these women are mangers, as a result the men are on
the frontline within the company.
 In fact, there are over 70 percent of women working at
Wal-Mart, but only a small amount of those women are
managers. So, men are holding more management
positions than women.
 "Wal-Mart is the nation's largest employer of women,
but unfortunately they are being treated without dignity
and respect. discrimination is definitely a big problem
in Wal- Mart.
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27.  There should be more job opportunities for women
to grow and climb up the ladder as there are in
many other organisations.
 This would reduce the allegations laid against the
company as a whole. Actually, "Wal-Mart recently
introduced workplace diversity initiatives, intended
to prevent further gender bias.
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28. The ten international rights to be taken care of, in this context are:
 1. Right of freedom of physical movement of people
 2. Right of ownership of properties
 3. Freedom from torture
 4. Right to fair trial on the products
 5. Freedom from discrimination on the basis of race or sex. If such discrimination
against women or minorities is prevalent in the host country, the MNC will be
compelled to accept. MNCs may opt to quit that country if the human rights
violations are severe.
 6. Physical security. Use of safety gadgets have to be supplied to the workers even if
the laws of the host country do not suggest such measures.
 7. Freedom of speech and forming association
 8. Right to have a minimum education
 9. Right to political participation
 10. Right to live and exist (i.e., coexistence). The individual liberty and sanctity of the
human life are to be respected by all societies.
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29. Technology Transfer
 It is a process of moving technology to a new setting
and implementing it there.
 Technology includes hardware (machines and
installations) and
 the techniques (technical, organizational,
 and managerial skills and procedures).
 It may mean moving the technology applications from
laboratory to the field/factory or
 from one country to another.
 This transfer is effected by governments,
organizations, universities, and MNCs.
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30. Appropriate Technology
 Identification, transfer, and implementation of most suitable
technology for a set of new situations, is called appropriate technology.
 Technology includes both hardware (machines and installations) and
 software (technical, organizational and managerial skills and
procedures).
 Factors such as economic, social, and engineering constraints are the
causes for the modification of technology.
 Depending on the availability of resources,
 physical conditions (such as temperature, humidity, salinity,
geographical location, isolated land area, and availability of water),
 Capital opportunity costs, and the human value system (social
acceptability) which includes their traditions, beliefs, and religion, the
appropriateness is to be determined.
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31. MNCs and Morality
 The economic and environmental conditions of the home and host countries may
vary. The multinational institutions have to adopt appropriate measures not to
disturb or dislocate the social and living conditions and cultures of the home
countries. A few principles are enlisted here:
 1. MNC should respect the basic human rights of the people of the host countries.
 2. The activities of the MNC should give economic and transfer technical benefits, and
implement welfare measures of the workers of the host countries.
 3. The business practices of the multinational organisations should improve and
promote morally justified institutions in the host countries.
 4. The multinationals must respect the laws and political set up, besides cultures and
promote he cultures of the host countries.
 5. The multinational organisations should provide a fair remuneration to the
employees of the host countries. If the remuneration is high as that of home country,
this may create tensions and if it is too low it will lead to exploitation.
 6. Multinational institutions should provide necessary safety for the workers when
they are engaged in hazardous activities and ‘informed consent’ should be obtained
from them.
 Adequate compensation should be paid to them for the additional risks undertaken.
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32. Bhopal Gas Tragedy
 The Union Carbide had 51% and the Indian
subsidiary UC India Ltd. had 49% of stock.
 In 1983, there were 14 plants in India manufacturing
chemicals, pesticides, and other hazardous products.
 The Bhopal plant had a license to make Methyl
isocyanate-based pesticides.
 In November 1984, they had decided to close down the
plant.
 For quite some years before the production rate was
going down.
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CASE STUDY 2

33. The cumulative effects of the following factors caused the tragedy in
Bhopal on December 3, 1984.
1. Maintenance neglected & the trained maintenance reduced as
economy measure.
2. Inadequate training of the personnel to handle emergencies.
3. Periodical Safety Inspection teams from U.S. which visited previously
were also stopped.
 The procedures had been deteriorating at these sites for
weeks or months, prior to the accident.
 There was clear lack of management systems &
procedures to ensure safety.
4. Vital spares for equipments and machineries were not available
5. Absence of capital replacement led to the stagnant economy of the
plant.
6. The high turnover of the experienced engineers and technicians, who
were demoralized by the lack of development.
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34. 7. Lack of experienced personnel to operate and control
the vital installations.
8. They have not conducted a thorough process hazards
analysis that would have exposed the serious hazards
which resulted in disaster later.
9. No emergency plan was put in practice, during the shut
down and maintenance.
10. Above all, the commitment of top-level management to
safety was lacking.
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35. Technologically, the tragedy was caused by a series of events listed:
1. The safety manual of U C precribed that the MIC tanks were to be filled
only up to 60% of the capacity. But the tanks were reported to have been
filled up to 75%.
2. The safety policy prescribed that an empty tank should be available as a
stand-bye in case of emergency. But the emergency tank was also filled with
to its full capacity. These facts confirmed that the MNC had not followed
and implemented appropriate safety standards of the home country in the
host country. [Example of ‘misappropriate technology’?]
3. The storage tanks should be refrigerated to make the chemical less reactive.
But here the refrigeration system was shut down as an economy measure.
This raised the temperature of the gas stored.
4. The plant was shut down for maintenance two months earlier. The worker
who cleaned the pipes and filters connected to the tanks and closed the
valves, was not trained properly. He did not insert the safety disks to
prevent any possible leakage of the gas. This led to the build up of
temperature and pressure in the storage tanks.
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36. 5. When the gas started leaking out, the operators tried to use
the vent gas-scrubber that was designed to reduce the
exhausting gas. But that scrubber was also shut down.
6. There was a flare tower that was designed to burn-off the gas
escaping from the scrubber. That was not also in working
condition.
7. The workers finally tried to spray water up to 100 feet to
quench the gas (which is water soluble). But the gas was
escaping from the chimney of 120-feet high.
8. The workers were not trained on safety drills or emergency
drills or any evacuation plans. The gas escaped into the air
and spread over 40 sq. km. About 600 people died and left
7000 injured and the health of about 2 million people was
affected adversely. Even after 22 years, influence of the
Central Government and the courts, the compensation had
not reached all the affected people.
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39.  Environmental ethics is the part of environmental
philosophy which considers extending the traditional
boundaries of ethics from solely including humans to
including the non-human world. It exerts influence on a
large range of disciplines including environmental
law, environmental sociology, ecotheology, ecological
economics, ecology and environmental geography.
 There are many ethical decisions that human beings
make with respect to the environment. For example:
 Should humans continue to clear cut forests for the
sake of human consumption?
 Why should humans continue to propagate its species,
and life itself?
 Should humans continue to make gasoline-powered
vehicles?
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40.  What environmental obligations do humans need to
keep for future generations?
 Is it right for humans to knowingly cause
the extinction of a species for the convenience of
humanity?
 How should humans best use and conserve the
space environment to secure and expand life?
 What role can Planetary Boundaries play in
reshaping the human-earth relationship?
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41. ENVIRONMENTAL ETHICS

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TRAGEDY OF COMMONS

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ENVIROMENTAL DISASTERS

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49. COMPUTER ETHICS
 Computer ethics is defined as
 (a) study and analysis of nature and social impact of
computer technology,
 (b) formulation and justification of policies, for ethical
use of computers.
 This subject has become relevant to the professionals
such as designers of computers, programmers, system
analysts, system managers, and operators.
 The use of computers have raised a host of moral
concerns such as free speech, privacy, intellectual
property right, and physical as well as mental harm.
There appears to be no conceptual framework available
on ethics, to study and understand and resolve the
problems in computer technology.
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50. TYPES OF ISSUES
 Different types of problems are found in computer
ethics.
 1. Computer as the Instrument of Unethical Acts
(a) The usage of computer replaces the job positions.
This has been overcome to a large extent by
readjusting work assignments, and training
everyone on computer applications such as word
processing, editing, and graphics.
(b) Breaking privacy. Information or data of the
individuals accessed or erased or the ownership
changed.
(c) Defraud a bank or a client, by accessing and
withdrawing money from other’s bank account.
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51.  2. Computer as the Object of Unethical Act
The data are accessed and deleted or changed.
(a) Hacking: The software is stolen or information is
accessed from other computers. This may cause
financial loss to the business or violation of privacy
rights of the individuals or business.
In case of defense information being hacked, this may
endanger the security of the nation.
(a) (b) Spreading virus: Through mail or otherwise, other
computers are accessed and the files are erased or
contents changed altogether. ‘Trojan horses’ are
implanted to distort the messages and files beyond
recovery.
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52.  This again causes financial loss or mental torture to the
individuals. Some hackers feel that they have justified
their right of free information or they do it for fun.
However, these acts are certainly unethical.
(c) Health hazard: The computers pose threat during their
use as well as during disposal
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53.  3. Problems Related to the Autonomous Nature of Computer
(a) Security risk: Recently the Tokyo Stock Exchange faced a
major embarrassment. A seemingly casual mistake by a
junior trader of a large security house led to huge losses
including that of reputation. The order through the
exchange’s trading system was to sell one share for
600,000 Yen. Instead the trader keyed in a sale order for
600,000 shares at the rate of one Yen each.
(b) Naturally the shares on offer at the ridiculously low price
were lapped up. And only a few buyers agreed to reverse
the deal! The loss to the securities firm was said to be huge,
running into several hundred thousands. More important to
note, such an obvious mistake could not be corrected by
some of the advanced technology available. For advanced
countries like Japan who have imbibed the latest
technology, this would be a new kind of learningexperience.
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54. (b) Loss of human lives: Risk and loss of human lives
lost by computer, in the operational control of military
weapons. There is a dangerous instability in automated
defense system.
An unexpected error in the software or hardware or a
conflict during interfacing between the two, may trigger
a serious attack and cause irreparable human loss
before the error is traced.
The Chinese embassy was bombed by U.S. military in
Iraq a few years back, but enquiries revealed that the
building was shown in a previous map as the building
where insurgents stayed.
(c) In flexible manufacturing systems, the autonomous
computer is beneficial in obtaining continuous
monitoring and automatic control.
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55.  Computers In Workplace
 The ethical problems initiated by computers in the
workplace are: 1. Elimination of routine and manual
jobs. This leads to unemployment, but the creation of
skilled and IT-enabled service jobs are more
advantageous for the people.
 Initially this may require some upgradation of their skills
and knowledge, but a formal training will set this
problem right. For example, in place of a typist, we
have a programmer or an accountant.
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56.  Health and safety: The ill-effects due to electromagnetic
radiation, especially on women and pregnant employees,
mental stress, wrist problem known as Carpel Tunnel
Syndrome, and backpain due to poor ergonomic seating
designs, and eye strain due to poor lighting and flickers in the
display and long exposure, have been reported worldwide.
Over a period of long exposure, these are expected to affect
the health and safety of the people.
 The computer designers should take care of these aspects
and management should monitor the health and safety of the
computer personnel. 3. Computer failure: Failure in
computers may be due to errors in the hardware or software.
Hardware errors are rare and they can be solved easily and
quickly. But software errors are very serious as they can stop
the entire network. Testing and quality systems for software
have gained relevance and importance in the recent past, to
avoid or minimize these errors.
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57. WEAPON ETHICS
 Military activities including the world wars have
stimulated the growth of technology.
 The growth of Internet amply illustrates this fact.
 The development of warfare and the involvement of
engineers bring out many ethical issues concerned
with engineers, such as the issue of integrity in
experiments as well as expenditure in defense
research and development, issue of personal
commitment and conscience, and the issues of
social justice and social health.
 Engineers involve in weapons development
because of the following reasons:
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58.  A weapon, arm, or armament is any device used
with intent to inflict damage or harm to living
creatures, structures, or systems. Weapons are
used to increase the efficacy and efficiency of
activities such as hunting, crime, law
enforcement, self-defense, and warfare.
 In broader context, weapons may be construed to
include anything used to gain a strategic, material
or mental advantage over an adversary or enemy
target.
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59.  1. It gives one job with high salary.
 2. One takes pride and honor in participating in the
activities towards the defense of the nation (patriotic
fervor).
 3. One believes the he fights a war on terrorism and
thereby contribute to peace and stability of the country.
Ironically, the wars have never won peace, only peace
can win peace!
 4. By research and development, the engineer is
reducing or eliminating the risk from enemy weapons,
and saving one’s country from disaster.
 5. By building-up arsenals and show of force, a country
can force the rogue country, towards regulation.
Engineers can participate effectively in arms control
negotiations for surrender or peace, e.g., bombing of
Nagasaki and Hiroshima led to surrender by the
Japanese in 1945.
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60.  Many engineers had to fight and convince their
personal conscience.
 The scene such as that of a Vietnamese village girl
running wild with burns on the body and horror in
the face and curse in her mind has moved some
engineers away from their jobs.
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61.  During the final stage of World War II, the United
States detonated two nuclear weapons over
the Japanese cities of Hiroshimaand Nagasaki on August 6
and 9, 1945, respectively. The United States dropped the
bombs after obtaining the consent of the United Kingdom, as
required by the Quebec Agreement. The two bombings killed
at least 129,000 people, most of whom were civilians. They
remain the only use of nuclear weapons in the history of
warfare.
 In the final year of the war, the Allies prepared for what was
anticipated to be a bloody invasion of the Japanese
mainland. This undertaking was preceded by a conventional
and firebombing campaign that destroyed 67 Japanese
cities. The war in Europehad concluded
when Germany signed its instrument of surrender on May 8,
1945. As the Allies turned their full attention to the war in
the Pacific War, the Japanese faced the same fate. The
Allies called for the unconditional surrender of the Imperial
Japanese armed forces in the Potsdam Declaration on July
26, 1945—the alternative being "prompt and utter
destruction". The Japanese ignored the ultimatum and the
war continued.
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62.  By August 1945, the Allies' Manhattan Project had produced two types
of atomic bomb, and the 509th Composite Group of the United States
Army Air Forces (USAAF) was equipped with the
specialized Silverplate version of the Boeing B-29 Superfortressthat
could deliver them from Tinian in the Mariana Islands. Orders for
atomic bombs to be used on four Japanese cities were issued on July
25. On August 6, one of its B-29s dropped a Little Boy uranium gun-
type bomb on Hiroshima. Three days later, on August 9, a Fat
Man plutonium implosion-type bomb was dropped by another B-29 on
Nagasaki. The bombs immediately devastated their targets. Over the
next two to four months, the acute effects of the atomic bombings
killed 90,000–146,000 people in Hiroshima and 39,000–80,000 people
in Nagasaki; roughly half of the deaths in each city occurred on the
first day. Large numbers of people continued to die from the effects of
burns, radiation sickness, and other injuries, compounded by illness
and malnutrition, for many months afterward. In both cities, most of
the dead were civilians, although Hiroshima had a sizable military
garrison.
 Japan announced its surrender to the Allies on August 15, six days
after the bombing of Nagasaki and the Soviet Union's declaration of
war. On September 2, the Japanese government signed
the instrument of surrender, effectively ending World War II. The
ethical and legal justification for the bombings is still debated to this
day.
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63.  World War II (often abbreviated to WWII or WW2), also
known as the Second World War, was a global war that
lasted from 1939 to 1945, although related conflicts began
earlier. The vast majority of the world's countries—including
all of the great powers—eventually formed two
opposing military alliances: the Allies and the Axis. It was
the most global war in history; it directly involved more than
100 million people from over 30 countries.
 In a state of total war, the major participants threw their
entire economic, industrial, and scientific capabilities behind
the war effort, blurring the distinction between civilian and
military resources. World War II was the deadliest
conflict in human history, marked by 50 to 85 million
fatalities, most of which were civilians in the Soviet Union
and China. It included massacres, the genocide of the
Holocaust, strategic bombing, starvation, disease, and the
first use of nuclear weapons in history.
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64. ENGINEERS AS MANAGERS
Characteristics
 The characteristics of engineers as managers are:
1. Promote an ethical climate, through framing organization
policies, responsibilities and by personal attitudes and
obligations.
2. Resolving conflicts, by evolving priority, developing mutual
understanding, generating various alternative solutions to
problems.
3. Social responsibility to stakeholders, customers and employers.
They act to develop wealth as well as the welfare of the society.
Ethicists project the view that the manager’s responsibility is
only to increase the profit of the organization, and only the
engineers have the responsibility to protect the safety, health,
and welfare of the public.
But managers have the ethical responsibility to produce safe and
good products (or useful service), while showing respect for the
human beings who include the employees, customers and the
public. Hence, the objective for the managers and engineers is
to produce valuable products that are also profitable.
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65. MANAGING CONFLICTS
 In solving conflicts, force should not be resorted. In fact, the
conflict situations should be tolerated, understood, and resolved
by participation by all the concerned.
 The conflicts in case of project managers arise in the following
manners:
(a) Conflicts based on schedules: This happens because of various
levels of execution, priority and limitations of each level.
(b) Conflicts arising out of fixing the priority to different projects or
departments. This is to be arrived at from the end requirements
and it may change from time to time.
(c) Conflict based on the availability of personnel.
(d) Conflict over technical, economic, and time factors such as cost,
time, and performance level.
(e) Conflict arising in administration such as authority, responsibility,
accountability, and logistics required.
(f) Conflicts of personality, human psychology and ego problems.
(g) Conflict over expenditure and its deviations.
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66.  Most of the conflicts can be resolved by following the
principles listed here:
 1. People
 Separate people from the problem. It implies that the
views of all concerned should be obtained. The
questions such as what, why, and when the error was
committed is more important than to know who
committed it. This impersonal approach will lead to not
only early solution but also others will be prevented
from committing errors.
 2. Interests
 Focus must be only on interest i.e., the ethical
attitudes or motives and not on the positions (i.e.,
stated views). A supplier may require commission
larger than usual prevailing rate for an agricultural
product.
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67.  But the past analysis may tell us that the material is not
cultivated regularly and the monsoon poses some
additional risk towards the supply. Mutual interests must
be respected to a maximum level. What is right is more
important than who is right!
3. Options
 Generate various options as solutions to the problem.
This helps a manager to try the next best solution should
the first one fails. Decision on alternate solutions can be
taken more easily and without loss of time.
4. Evaluation
 The evaluation of the results should be based on some
specified objectives such as efficiency, quality, and
customer satisfaction. More important is that the means,
not only the goals, should be ethical.
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68. CONSULTING ENGINEERS
 The consulting engineers work in private. There is
no salary from the employers. But they charge fees
from the sponsor and they have more freedom to
decide on their projects. Still they have no absolute
freedom, because they need to earn for their living.
The consulting engineers have ethical
responsibilities different from the salaried
engineers, as follows:
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69. 1. ADVERTISING
 The consulting engineers are directly responsible for
advertising their services, even if they employ other
consultants to assist them. But in many
organisations, this responsibility is with the
advertising executives and the personnel
department. They are allowed to advertise but to
avoid deceptive ones. Deceptive advertising such as
the following are prohibited:
 (a) By white lies.
 (b) Half-truth, e.g., a product has actually been
tested as prototype, but it was claimed to have been
already introduced in the market. An architect
shows the photograph of the completed building with
flowering trees around but actually the foundation of
the building has been completed and there is no real
garden..
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70.  (c) Exaggerated claims. The consultant might have
played a small role in a well-known project. But they
could claim to have played a major role. (d) Making
false suggestions. The reduction in cost might have
been achieved along with the reduction in strength,
but the strength details are hidden. (e) Through
vague wordings or slogans
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71. 2. Competitive Bidding
 It means offering a price, and get something in
return for the service offered. The organizations
have a pool of engineers.
 The expertise can be shared and the bidding is
made more realistic. But the individual consultants
have to develop creative designs and build their
reputation steadily and carefully, over a period of
time. The clients will have to choose between the
reputed organizations and proven
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72.  qualifications of the company and the expertise of the
consultants. Although competent, the younger consultants
are thus slightly at a disadvantage.
3. Contingency Fee
 This is the fee or commission paid to the consultant, when
one is successful in saving the expenses for the client. A
sense of honesty and fairness is required in fixing this fee.
The NSPE Code III 6 (a) says that the engineers shall not
propose or accept a commission on a contingent basis
where their judgment may be compromised.
 The fee may be either as an agreed amount or a fixed
percentage of the savings realized. But in the contingency
fee-agreements, the judgment of the consultant may be
biased. The consultant may be tempted to specify inferior
materials or design methods to cut the construction cost.
This fee may motivate the consultants to effect saving in the
costs to the clients, through reasonably moral and
technological means.
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73.  Safety and Client’s Needs
 The greater freedom for the consulting engineers in
decision making on safety aspects, and difficulties
concerning truthfulness are the matters to be given
attention. For example, in design-only projects, the
consulting engineers may design something and have
no role in the construction. Sometimes, difficulties may
crop-up during construction due to non-availability of
suitable materials, some shortcuts in construction, and
lack of necessary and adequate supervision and
inspection. Properly-trained supervision is needed, but
may not happen, unless it is provided. Further, the
contractor may not understand and/or be willing to
modify the original design to serve the clients best.
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74.  A few on-site inspections by the consulting engineers
will expose the deficiency in execution and save the
workers, the public, and the environment that may be
exposed to risk upon completion of the project.
 The NSPE codes on the advertisement by consultants
provide some specific regulations. The following are
the activities prohibited in advertisement by
consultant: 1. The use of statement containing
misrepresentation or omission of a necessary fact. 2.
Statement intended or likely to create an unjustified
expectation. 3. Statement containing prediction of
future (probable) success. 4. Statement intended or
likely to attract clients, by the use of slogans or
sensational language forma
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75. ENGINEERS AS EXPERT WITNESS
 Frequently engineers are required to act as
consultants and provide expert opinion and views in
many legal cases of the past events.
 They are required to explain the causes of
accidents, malfunctions and other technological
behavior of structures, machines, and instruments,
e.g., personal injury while using an instrument,
defective product, traffic accident, structure or
building collapse, and damage to the property, are
some of the cases where testimonies are needed.
The focus is on the past.
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76.  The engineers, who act as expert-witnesses, are likely to abuse
their positions in the following manners:
 1. Hired Guns
 Mostly lawyers hire engineers to serve the interest of their clients.
Lawyers are permitted and required to project the case in a way
favorable to their clients. But the engineers have obligations to
thoroughly examine the events and demonstrate their
professional integrity to testify only the truth in the court. They do
not serve the clients of the lawyers directly. The hired guns
forward white lies and distortions, as demanded by the lawyers.
They even withhold the information or shade the fact, to favor
their clients.
 2. Money Bias
 Consultants may be influenced or prejudiced for monitory
considerations, gain reputation and make a fortune.
 3. Ego Bias
 The assumption that the own side is innocent and the other side
is guilty, is responsible for this behavior. An inordinate desire to
serve one’s client and get name and fame is another reason for
this bias.
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77.  4. Sympathy Bias
 Sympathy for the victim on the opposite side may
upset the testimony. The integrity of the consultants
will keep these biases away from the justice. The
court also must obtain the balanced view of both
sides, by examining the expert witnesses of lawyers
on both sides, to remove a probable bias.
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78. POLICY
 The policy is also regarded as a mini – mission
statement, is a set of principles and rules which
directs the decisions of the organization.
 Policies are framed by the top level management of
the organization to serve as a guideline for
operational decision making. It is helpful in
highlighting the rules, value and beliefs of the
organization. In addition to this, it acts as a basis for
guiding the actions.
 Policies are designed, by taking opinion and
general view of a number of people in the
organization regarding any situation.
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79.  Increase utilization of public health facilities by 50%
from current levels by 2025.
 Access to safe water and sanitation to all by 2020.
 Increase health expenditure by government as a %
of GDP from the existing 1.15% to 2.5% by 2025
 Reforming medical education.
 Stresses on the provision of free drugs and emergency
healthcare services in all public hospitals.
It is thus clear that the chief objective of the government
is the provision of universal access to health care
services.
This can be achieved by sticking to the proposed
deadlines and increase in the health expenditure.

80.  ENGINEERS AS ADVISORS IN PLANNING AND
POLICY MAKING
 Advisors The engineers are required to give their view
on the future such as in planning, policy-making,
which involves the technology. For example, should
India expand nuclear power options or support
traditional energy sources such as fossil fuels or
alternative forms like solar and wind energy?
 In the recent past, this topic has created lot of
fireworks, in the national media. Various issues and
requirements for engineers who act as advisors are:
 1. Objectivity The engineers should study the cost and
benefits of all possible alternative means in objective
manner, within the specified conditions and
assumptions.
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81.  2. Study All Aspects They have to study the economic
viability (effectiveness), technical feasibility (efficiency),
operational feasibility (skills) and social acceptability,
which include environmental and ethical aspects,
before formulating the policy.
 3. Values Engineers have to posses the qualities, such
as (a) honesty, (b) competence (skills and expertise),
(c) diligence (careful and alert) (d) loyalty in serving the
interests of the clients and maintaining confidentiality,
and (e) public trust, and respect for the common good,
rather than serving only the interests of the clients or
the political interests.
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82.  4. Technical Complexity The arbitrary, unrealistic, and
controversial assumptions made during the future
planning that are overlooked or not verified, will lead to
moral complexity. The study on future is full of
uncertainties than the investigations on the past
events..
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83.  On the study of energy options, for example,
assumptions on population increase, life style,
urbanization, availability of local fossil resources,
projected costs of generating alternative forms of
energy, world political scenario, world military
tensions and pressures from world organizations
such as World Trade Organisation (W.T.O.) and
European Union (EU) may increase the complexity
in judgment on future
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84.  5. National Security The proposed options should
be aimed to strengthen the economy and security
of the nation, besides safeguarding the natural
resources and the environment from exploitation
and degradation.
 For the advisors on policy making or planning, a
shared understanding on balancing the conflicting
responsibilities, both to the clients and to the public,
can be effected by the following roles or models:
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85.  1. Hired Gun
 The prime obligation is shown to the clients. The data and
facts favorable to the clients are highlighted, and
unfavorable aspects are hidden or treated as insignificant.
The minimal level of interest is shown for public welfare.
 2. Value-neutral Analysts
 This assumes an impartial engineer. They exhibit
conscientious decisions, impartiality i.e., without bias, fear
or favor, and absence of advocacy.
 3. Value-guided Advocates
 The consulting engineers remain honest (frank in stating all
the relevant facts and truthful in interpretation of the facts)
and autonomous (independent) in judgement and show
paramount importance to the public (as different from the
hired guns).
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86. Thank you
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