24/09/2015

Today, we’ll discuss …

 Moral Aspects of ‘Teamwork’

 The need to maintain ‘Confidentiality’ and to avoid ‘Conflicts
of Interest’
 ‘Engineer’s Rights’ as a ‘Professional’ & as an ‘Employee’
 Issue of ‘Whistle-blowing’
 About his ‘Commitment’?
 How to see, build &
maintain his ‘Performance’
at a Professional level
(responsibility)?
 How to maintain
‘Confidentiality’?
 How to avoid ‘Conflicts of
Interest’?

An ‘Engineer’ should
concentrate!
 Manager Engineer
 Tend to be more distanced  Associate with technical
from the technical details of jobs

 More focused on people than  More focused on things

things

 Have different ‘attitudes’ &

‘approaches’
 Having different roles &
authority
Engineer Customer
Oriented Oriented

Corporation

Finance
Oriented
 Engineer Oriented Customer Oriented

Focus primarily on the Priority – satisfaction of

quality of the products customers

Finance Oriented

Primary focus - profit

Team work – scenario
‘Data General Corporation’ quickly becoming a Fortune 500 company that was
ranked third in overall sales of small computers. However, it began to fall
behind the competition and desperately needed a powerful new microcomputer
to sustain its share of the market. The development of that computer is
chronicled by Tracy Kidder in his Pulitzer Prize – winning book ‘The Soul of a
New Machine’.
Tom West one of Data General’s most trusted engineers, convinced
management that he could build the new computer within one year – an
unprecedented time for a project of its importance. West assembled a team of
15 exceptionally motivated though relatively inexperienced young engineers,
many of whom were just out of school. Within six months they designed the
CPU, and they delivered the complete computer ahead of schedule. Named the
Eclipse MV/8000, the computer immediately became a major marketing
success.

How the Success was possible?

“Morale” – success due to….
 Engineers came to identify themselves with the project and the product

 Team of Engineers who invested themselves in the product through their

personal commitment to work together creatively with colleagues as part of a
design group
i.e.
o Commitment to team work

o Collegiality

o Shared commitment

o Identification with the groups project

Virtues of Team work are as;
o Loyalty to Corporations
o Respect for Authority
o Collegiality

--the above are Virtues only within the context of Corporations

that maintain an ‘ethical climate’
Let us recall the concept of ‘ethical climate’ (before we start the above discussion)

 Larger corporations characterized by more intense

competition and profit-making pressures faces a greater
challenge in maintaining an ‘ethical climate’, since, it’s a kind
of ‘working environment’ that is conducive to “morally
responsible conduct”
 Professionalism would be
threatened due to corporation
‘powerful egos’
 No professional standards as
the top level managers are
having ‘self-promoting images
& forming power alliances with
other managers’
 Less importance for ‘hard
work, commitment to
worthwhile, safe products,
profit-making’
Organization’s that reduce Corporate
Values - described in book, ‘Moral Mazes’
by Robert Jackall, a sociologist
 Emphasize ‘basic values’ like,
honesty, fairness,
responsibilities for the
environment, high product
quality
 Defining features! – ethical
values, ethical language
(ethical responsibilities) ,
professional conduct,
procedures for conflict
resolution
Corporations have ‘ethical values’ by
establishing ‘ethics programs’
Loyalty to employer can mean two things;
1. Agency-loyalty – is acting to fulfill one’s contractual duties to an employer (doing one’s
job)

2. Attitude-loyalty – much to do with attitudes, emotions & sense of personal identity as it

does with actions

Collegiality:
o It’s a kind of connectedness grounded in respect for professional expertise and in a
commitment to the goals and values of the profession

o Disposition to support

o Cooperate with one’s colleagues

o Respect for colleagues

o commitment
The confronted by engineering project managers in
order of priority of overall intensity as;

Conflicts over ….

1. Schedules

2. Projects & Departments

3. Personal Resources ‘Personality Conflict’

ranked low, but,
4. Technical Issues
difficult to resolve
5. Administrative Procedures
Reason: disagreement
6. Personality over technical issues &
communication
7. Costs problems
1. People – separate the people from the problem
2. Interests – focus on interests not positions
3. Options – generate a variety of possibilities before deciding
what to do?
4. Criteria – insist that the result be based on some objective
standard
 Important aspects of Teamwork
and Trustworthiness?

 Maintaining ‘confidentiality’ &

avoiding harmful ‘conflicts of
interest’
 WHY TO MAINTAIN
‘confidentiality’ ?
 to prevent from ‘duplication of
products’ – this is because of
confidentiality leak, i.e. "trade
secret leak”

 WHY TO AVOID ‘conflicts of

interest’ ?

 to gain “trustworthiness”
 to meet obligations
 HOW THE CONFIDENTIALITY
LEAKAGE OCCURS?

 WHAT ARE THOSE CONFLICTS

OF INTERESTS & WHY THE
EMPLOYEE’S involve (not all)? IS
THERE ANY EXTRA BENEFITS
WITH IT?
Confidentiality:

In order to compete effectively against business rivals, any

employer or client would like to have information’s in secret

Eg: Any data concerning the company’s business or technical

processes that are not already public knowledge
few related terms (confidentiality)

Privileged information
means, ‘available only on the basis of special privilege’
Patent
- legally protect specific products from being
manufactured and sold by competitors
- drawback: being public, allows competitors an easy
means of working around them by finding ‘alternative
designs’
Proprietary information
- means, ‘company owns or Proprietor’
- it’s a ‘trade secret’ (no such protection as such ‘Patent’, i.e. by
analyzing a ‘final product’, a competitor can find the secrets of
“unknown design or process concepts”, as a result, ‘duplication of
products’)
Confidentiality & Changing Jobs:

The obligation to protect confidential information does not stop

when employees change jobs
“relationship of trust between employer and employee in regard
to confidentiality continues beyond the formal period of
employment”

Concept: ‘professional integrity’ of engineers involves much

more than mere loyalty to one’s present employer

Consider 2
different
Scenarios
Scenario 1:

In March 1993, Jose Ignacio Lopez, GM’s highly effective

manufacturing expert, left GM to join VW, a fierce competitor in
Europe, and took with him not only three colleagues and know-
how, but also copies of confidential GM documents.

It’s a TRADE SECRET

violation
Scenario 1:

A ‘settlement’ took place in January1997

(without coming to trial). VW agreed to pay GM $100
million in cash and to buy $1billion in parts
from GM over the next seven years
Scenario 2:

A more legally important case concerned Donald Wohlgemuth, a

Chemical Engineer, who at one time was manager of B.F.
Goodrich’s Space Suit Division. Technology for Space Suits was
undergoing rapid development, with several companies
competing for government contracts. Dissatisfied with his
‘salary’ and the research facilities at B.F. Goodrich, Wohlgemuth
negotiated a new job with International Latex Corporation as
Manager of Engineering for Industrial Products. International
Latex has just received a large government subcontract for
developing the Apollo Astronaut’s Space Suits, and that was one
of the programs Wohlgemuth would manage.
Possibility of
UNINTENTIONAL
LEAKS will occur
Scenario 2:
Goodrich charged Wohlgemuth with being ‘unethical’ in taking
the job with International Latex. Goodrich also went to court
seeking a restraining order to prevent him from working for
International Latex or any other company that developed ‘Space
Suits’.
The ‘Ohio Court of Appeals’ refused to issue such an order,
although it did issue an “injunction” prohibiting Wohlgemuth
from revealing any Goodrich trade secrets.
Reason: Goodrich had a right to have trade secrets kept
confidential, it had to be balanced against Wohlgemuth’s
personal right to seek career advancement.
Confidentiality & Management Policies:

1st Approach: special restrictions in the

employment contract on ‘future employment’

Eg: Goodrich might have required as a condition of employment

that Wohlgemuth sign an agreement that if he sought work
elsewhere he would not work on space suit projects for a
competitor in the United States for 5 years after leaving
Goodrich

threaten the “right of

individuals”
Confidentiality & Management Policies:

2nd Approach: Portable Pension Plan (PPF) or Post-

Employment Annual Consulting Fee (PEACF)

Eg: offer such a plan (PPF) to an engineer in exchange for an

agreement not to work for a competitor on certain kinds of
projects for a certain number of years after leaving the
company Or offer an PEACF for several years on the condition
that he or she not work for a direct competitor during that
period
not so threatening to
“Employee Rights”
Confidentiality & Management Policies:

3rd Approach: place tighter controls on the internal

flow of information

create an atmosphere
of “distrust” in
workplace
Confidentiality & Management Policies:

SOLUTION !

“Generate a sense of professional

responsibility (professional concern &
employee loyalty) among their staff”
Confidentiality: Justification

 Respect the ‘autonomy’ of individuals & corporations (major

ethical theories recognize the importance of autonomy)
 Trustworthiness
Eg: Patient – Doctor – Relationship

If patients are to have the best chances of being cured, they

must feel completely free to reveal the most personal
information about themselves to physicians, and that requires
trust that the physician will not divulge private information

Theme:
Confidentiality has its limits, particularly when it is
appealed to hide crime or wrong things
Confidentiality: Justification

 Respect the ‘autonomy’ of individuals & corporations (major

ethical theories recognize the importance of autonomy)
 Trustworthiness
Eg: Patient – Doctor – Relationship

If patients are to have the best chances of being cured, they

must feel completely free to reveal the most personal
information about themselves to physicians, and that requires
trust that the physician will not divulge private information

Theme:
Confidentiality has its limits, particularly when it is
appealed to hide crime or wrong things
 It’s an‘unethical’practice, say,

o ‘Consultant’ for a competitor

company
o Making substantial ‘private
investments’ in a competitor
company

 Distort good judgment in

faithfully serving an employer
Conflicts may arise in innumerable
ways;

1. Gifts, Bribes, & Kickbacks

2. Interests in other Companies

3. Insider information
Bribe:
It is a substantial amount of money or goods offered beyond a
stated business contract with the aim of winning an advantage
in gaining or keeping the contract

Gifts:
Are not bribes as long as they are small gratitude's offered in
the normal conduct of business

Kickbacks:
Prearranged payments made by contractors to companies in
exchange for contracts actually granted
Interests in other companies:
 Working for competitor as an employee or an consultant
 Partial ownership or substantial stockholdings
 One’s spouse works for a subcontractor to one’s company

Eg: conflicts of interest arise in academic settings as well

Consider a Scenario
for ‘PARTIAL
OWNERSHIP’ in
business
Scenario: “partial ownership or substantial stockholdings”
A professor of Electrical Engineering at a West Coast University was
found to have used $144000 in grant funds to purchase electronic
equipment from a company he owned in part. He had not revealed his
ownership to the university; he had priced the equipment much higher
than market value, and some of the purchased items were never
receive. The supplier information form and sole source justification
statements had been submitted as required, but with falsified content.
In addition, the professor had hired a brother and two sisters for
several years, concealing their relationship to him in violation of anti-
nepotism rules and paying them for research work they did not
perform. All told, he had defrauded the university of at least $500000
in research funds. Needless to say, the professor lost his university
position and had to stand trial in civil court when an internal audit and
subsequent hearings revealed these irregularities.
Insider Information: “inside” information to gain an
advantage
Eg: Engineer’s might tell their friends about the impending
announcement of a revolutionary invention, which they have
been perfecting, or of their corporation’s plans for a merger
that will greatly improve the worth of another company’s stock.
In doing so, they give those friends an edge on an investment
promising high returns
Moral Status of Conflicts of Interest

 Threaten to prevent one from fully meeting those

OBLIGATIONS

 ‘Bribes’ & ‘Gifts (large)’ are objectionable because they lead

to awarding contracts for reasons other than the best work
for the best price
Moral Rights – Types

1. Human Rights
fundamentals rights to LIVE & freely pursue their
LEGITIMATE INTERESTS

2. Employee Rights
right to receive one’s SALARY in return for performing one’s
duties

3. Professional Rights
special rights arise from professional role & the obligations it
involves
 3
Professional Rights:

1. Right of professional conscience

2. Right of conscientious refusal

3. Right of professional recognition

1. Right of professional conscience

 Moral right to exercise professional judgment (requires

autonomous moral judgment in trying to uncover the most morally
reasonable courses of action) in pursuing professional
responsibilities
 Moral authority to act without interference from others

Eg: conducting an adequate ‘safety inspection’ may require special

equipment be made available by employers. The Engineer involved in
that work may need an environment conducive to trust and support,
which employer may be obligated to help create and sustain (without
interference in other’s duties)
2. Right of conscientious refusal

 Right to refuse to engage in unethical behavior (forging

documents, lying, giving or taking bribes)

 Eg: physicians & nurses have a right not to participate in

abortions
3. Right of professional recognition

 Engineers have a right to professional recognition for their

work and accomplishments

 Eg: fair remuneration – for patent discoveries

 2
Employee Rights

1. Privacy

2. Equal Opportunity (Nondiscrimination & Affirmative Action)

* David Ewing (Editor – Harvard Business Review) – proposes

rights to privacy & rights to equal opportunity
Privacy - Right to have a private life off the job

Eg: consider situations – how easily rights of privacy are

abused?
1. A supervisor unlocks and searches the desk of an engineer
who is away on vacation without the permission of that
engineer. The supervisor suspects the engineer of having
leaked information about company plans to a competitor and is
searching for evidence to prove those suspicions

2. A large manufacturer of expensive pocket computers has

suffered substantia losses from employee theft. It is believed
that more than one employee is involved. Without notifying
employees, hidden surveillance cameras are installed
Equal Opportunity (Nondiscrimination – sex, race, skin color,
age or political or religious outlook)

 Morally unjustified treatment of people on arbitrary or

irrelevant grounds – is especially pernicious within the work
environment
 Fair and decent treatment to ‘human rights’ at the workplace
and in job training are vitally important
 Eg: “involve discrimination”
An opening arises for a chemical plant manager. Normally such positions are filled by
promotions from within the plant. The best qualified person in terms of training and years
of experience is an African-American Engineer. Management believes, however, that the
majority of workers in the plant would be disgruntled by the appointment of a nonwhite
manager. The fear lessened employee cooperation and efficiency. The decide to promote
and transfer a white engineer from another plant to fill the position
Equal Opportunity (Affirmative Action)

 Giving preference or advantage to a member of a group that

in the past was denied equal treatment, in particular, women
and minorities
 WHAT IT MEAN ‘WHISTLEBLOWING’ (WB) ?

 IS ‘WHISTLEBLOWING’ --- ESSENTIAL OR NOT ?

 WHEN IT WILL BE ESSENTIAL & BEYOND WB?

 WHEN IT IS NOT--- “NOT ALWAYS WB IS

ADMIRABLE” ?

 BEFORE
‘WHISTLEBLOWING’ --- ANY CRITERIA’S
TO CONCENTRATE Or GUIDELINES ?
Overview:
 Definition – Disclosure, Topic, Agent, Recipient
 ‘Whistleblowing’ Issues
 ‘Whistleblowing’ Classification
 Cases – Whether ‘Whistleblowing’ is JUSTIFIED
or not?
 Moral Guidelines - ‘Whistleblowing’ conditions
to met!
 Protecting ‘Whistleblowers’
 Commonsense Procedures – Practical Advice & Commonsense
should be heeded before ‘Whistleblowing’
 Beyond ‘Whistleblowing’
Definition:
It occurs when an employee or former
employee conveys information about a
significant moral problem to someone in a
position to take action on the problem, and
does so outside approved organizational
channels (or against strong pressure)
Definition: has 4 parts;

Disclosure
Information intentionally conveyed to outside organizational channels

Topic
Significant moral problems for the organization

Agent
The person disclosing the information (employee or former employee)

Recipient
Information conveying to a person or organization who are in a position to act
on the problem
 External

Internal

Whistleblowing

Open

Anonymous
‘Whistleblowing’ Classification:
EXTERNAL
Information passed outside the organization

INTERNAL
Information passed within the organization

OPEN
Individuals openly reveal their identity as they convey the information

ANONYMOUS
Individuals don’t reveal their identity as they convey the information
‘Whistleblowing’ CASES:

 Ernest Fitzgerald & the C-5A

COST OVERRUN WB

 Dan Applegate & the DC-10

DEFECTIVE DESIGN WB
‘Whistleblowing’ CASE 1:
 Ernest Fitzgerald & the C-5A (type: open, external
whistleblowing)
o C-5A, a giant cargo plane being built by Lockheed Aircraft
Corporation for the Air Force
o Fitzgerald, an engineer, work in the Air Force
o He reported about the huge cost overruns in the C-5A project
o To investigate this, a William Proxmire’s Subcommittee on
Economy in Govt. was set
o Fitzgerald along with other witnesses called to testify before
senator
o He was given pressure by his superior’s not to discuss the
extent of the C-5A overruns before the senator
‘Whistleblowing’ CASE 1:
 Ernest Fitzgerald & the C-5A (type: open, external
whistleblowing)
o Fitzgerald told the truth before the committee
o Stripped of from his duty & assigned with trivial projects &
shunned by his colleagues
o Received memo (with in 12 days after the incident) stating
that his civil service tenure itself a computer error
o Bureaucracy had restructured (with in 4 months) to remove
him from the job
o Fitzgerald went to court, after 4 months of court battle &
spending court fees of $900, 000, he was rehired in the Air
Force
Major Engineering Failures
DC10 Cargo Door (1974) - cargo door blown off at
10,000 feet & the result was a crash that killed all 346
people onboard
‘Whistleblowing’ CASE 2:
 Dan Applegate & the DC-10 (type: open, external
whistleblowing)
o It’s about DC-10 Jumbo Jet crash in Paris, 1974
o 346 people killed
o Known in advance – crash was bound to occur because of the
jet’s defective design
o Plane was constructed by McDonnell Douglas & Convair (subcontractor)
o Dan Applegate, senior engineer in Convair hinted the danger that could
result from the design, i.e. detailed the several ways the cargo doors
could burst open during flight, depressurize the cargo space, and
thereby collapse the floor of the passenger cabin above. Since, control
lines ran along the cabin floor, this will lead to full loss of control over
the plane
‘Whistleblowing’ CASE 2:
 Dan Applegate & the DC-10 (type: open, external
whistleblowing)
o Dan Applegate recommended redesigning the doors & strengthening
the cabin floor
o Convair’s top management disagree neither the technical facts cited by
Dan Applegate nor his predictions (poor design leads to cargo doors
would open in midair, resulting in crashes)
o Reason: due to possible liabilities Convair might incur (cost of redesign
& other delays, safety improvements)
‘Whistleblowing’ Issues:
 What procedures ought to be followed in
blowing the whistle?
 When is ‘whistleblowing’ morally permissible?
 To what extent, if any, do engineers have a
right to ‘whistleblow’ & when is doing so
immoral and imprudent?
 When is an ‘whistleblowing’ an act of
disloyalty to an organization?
Moral Guidelines - ‘Whistleblowing’ conditions to met!

1. The actual or potential harm reported is serious

2 The harm has been adequately documented
2.
3 The concerns have been reported to immediate
3.
superiors
4. After not getting satisfaction from immediate
superiors, regular channels within the organization
have been used to reach up to the highest levels of
management
5. There is reasonable hope that whistleblowing can
help prevent or remedy the harm
Protecting ‘Whistleblowers’

 Against ‘retaliation’ (revenge) by employers

Definition:

‘Whistle-blowing’ is lonely, unrewarded and fraught (fill) with peril

(danger)
Protecting ‘Whistleblowers’

WHAT DO THEY DO?

play a vital role;

 In informing the public & investigators about corporate &

government scandals
 Violation of any law, rule or regulation
 Mismanagement, a gross waste of funds
 An abuse of authority
 Specific danger to public health & safety
Protecting ‘Whistleblowers’
ANY LEGAL PROTECTION FOR Government & Private Sector ‘whistleblower’
Employees?
Government Employee Whistleblowers Private Sector Employee Whistleblowers

 Laws related to Environmental  Employees are covered by statues

Protection and Safety and the Civil forbidding firing or harassing by 20
Service Reform Act of 1978 protect Federal Laws, includes, coal mine
them against reprisals (punishment) safety, control of water & air
for lawful disclosures of pollution, disposal of toxic
information substances, occupational safety &
Eg: OSHA (in U.S.) health
 The Private Sector Whistleblower
Protection Streamlining Act of 2012
 ‘UNIONS’ do provide protection
Protecting ‘Whistleblowers’
ANY LEGAL PROTECTION FOR Government & Private Sector ‘whistleblower’
Employees?

Eg: OSHA – Occupational Health & Safety Act (in U.S.)

Concentrates on: unsafe or unhealthful conditions in the

workplace, environmental problems, certain public safety hazards,
and certain violations of federal provisions concerning securities
fraud, as well as for engaging in other related protected activities
Protecting ‘Whistleblowers’
ANY LEGAL PROTECTION FOR Government & Private Sector ‘whistleblower’
Employees in OMAN?

 BankMuscat – Whistleblower policy

 BankMuscat – Whistleblower policy
 BankMuscat – Whistleblower policy
 BankMuscat – Whistleblower policy
Protecting ‘Whistleblowers’
ANY LEGAL BENEFITS FOR Government & Private Sector ‘whistleblower’
Employees?
Government & Private Employee Whistleblowers

 Episodic Benefits
 Systemic Benefits

 Episodic Benefit: preventing publics from harm in particular situations

 Systemic Benefit: sending a strong message to industry to act

responsibly
Protecting ‘Whistleblowers’
WILL ‘LAW’ ALONE BE SUFFICIENT TO PROTECT?
----- NO, because when officialdom (admin system) is not ready to
enforce existing laws, then alternate should be to protect whistleblowers

ANY SOCIETIES ?
Employee Groups, Engineering Associations (IEEE)

What are the roles of these SOCIEITIES in protecting whistleblowers?

o By assisting the affected members with a help line

o Backing them when faced with retaliatory court actions

o Finding new jobs for those affected

o Honoring courageous whistleblowers with public recognitions

Protecting ‘Whistleblowers’
Commonsense Procedures – Practical Advice & Commonsense
should be heeded before ‘Whistleblowing’

Decision to whistleblow within or

outside an organization is a
serious matter that deserves
careful reflection
Protecting ‘Whistleblowers’
RULES OF PRACTICAL ADVICE & COMMONSENSE
 Except for extremely rare emergencies, always try working first through normal
organizational channels. Get to know both the formal & informal rules for
making appeals within the organization
 Be prompt in expressing objections
 Be considerate of the feelings of others involved
 Avoid any personal criticisms
 Keep supervisors informed of your actions, both through informal discussion
and formal memorandums
 Be accurate in your observation and claims, and keep formal records
documenting relevant events
 Consult trusted colleagues for advice – avoid isolation
 Before going outside the organization, consult the ethics committee of your
professional society
 Consult a lawyer concerning potential legal liabilities
Protecting ‘Whistleblowers’
BEYOND WHISTLE BLOWING:

Why ‘internal whistleblowing’ happens?

How to remove the need for ‘internal whistleblowing’?

How to remove the need for ‘external whistleblowing’?

Protecting ‘Whistleblowers’
BEYOND WHISTLE BLOWING:
Why ‘internal whistleblowing’ happens?
No freedom & openness of communication inside the organization
How to remove the need for ‘internal whistleblowing’?
o Allow greater freedom & openness of communication within the
organization
o Appeals procedures & ‘open-door’ policies allowing direct access to
higher levels of management
o ‘Ethics review committee’ with genuine freedom to investigate complaints and
make independent recommendations to top management
o Creation of positive atmosphere where engineer’s efforts is to assert & defend
their professional judgment's in matters involving ethical considerations
How to remove the need for ‘external whistleblowing’?
o Intra-Organizational modifications
Protecting ‘Whistleblowers’
BEYOND WHISTLE BLOWING:

 It holds little promise as the best possible method for

remedying problems

 It should be viewed as last resort (as it demands great sacrifices;

one cannot overlook that personal obligations to family, as well
as rights to pursue one’s career, i.e. loss of one’s job,
blacklisted within the profession)

--- SOMETIMES ‘WHISTLEBLOWING’ IS A PRACTICAL MORAL NECESSITY ---

Moral Guidelines - ‘Whistleblowing’ conditions to met!

WHEN WHISTLEBLOWING IS ADMIRABLE & NOT?

ADMIRABLE
 Public Hazard Involved
NOT ADMIRABLE
 Inaccurate whistleblowing (disloyalty to corporation)
can cause unjustified harm to companies that unfairly
receive bad publicity that hurts employees,
stockholders and sometimes the economy
Major Engineering Failures
Challenger Space Shuttle (1986)- Failure of O-ring
(faulty design & lack of testing in low temp)- O-ring
due to several factors, faulty design, lack of
testing in low temperatures
Major Engineering Failures
DC10 Cargo Door (1974) – “Failure Design”