professional ethics
Content
10/1/2013
Professional ETHICS HS 3050 Prof. N.Raghavan 24th Sep, 2013
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Ethics- Definitions •
Ethics: –
–
•
also known as moral philosophy/ rules of conduct a branch of philosophy that addresses questions about morality —i.e. concepts such as good and evil, right and wrong, virtue and vice, justice and injustice, etc.
Doing “what is RIGHT” (according to prevalent set of moral codes) and not necessarily “what is BEST” (which is your opinion likely to be clouded!)
•
Ethics is also a measure of concern for others & for the common good, as against the selfish motive 3
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Professional Ethics
Profession
Professionalism
Professional Responsibility
Professional Ethics
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Professions Professions :
"occupations that both require advanced study and mastery of a specialised body of knowledge, and undertake to promote, ensure or safeguard some matter that significantly affects others’ well-being”.
Are usually bound by a set of principles, attitudes or types of character dispositions that control the way the profession is practiced. This has been termed as Professional Ethics
In general, professional ethics always include upholding honesty and respect in the profession over personal needs, conflicts or biases. 6
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Professionalism
Core of professionalism: the possession and autonomous control of a body of specialised knowledge, which when combined with honorific status, confers power upon its holders.
Denotes efficiency, knowledgeability, thorough familiarity with
work practices, great skill & ability,…
Professionalism is about individual modes of behaviour that command respect and build trust.
The high standard that you expect from a person who is well trained in a particular job 7
Professionalism (Contd)
A focused approach Having pride in what one is doing Being confident; competent Goes with Accountability & Responsibility Respect for people irrespective of rank, status and gender; Commitment to word and deed basing business related interactions to facts, figures and purely on the logic and understanding of the situation at hand. Not getting carried away by the passion of the moment.
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Professional Responsibility
Professional responsibility :: obligation of a Professional ( a Consultant, an Auditor,…) to perform his duties in a fitting manner. This includes a professional and legal approach to the duties + the moral aspect of the profession (which is not always specified by the law);
ex. Giving the most economical design by a consultant and not only a safe design.
One key issue is “conflict of interest."
This creates a predetermined bias for or against one of the clients, which the main client is usually unaware of.
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Professional Ethics
Profession
Professionalism
Professional Responsibility
Professional Ethics
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Ethics - Categories Professional Ethics
Business Ethics
Corporate Ethics
Engineering Ethics
Personal Ethics 11
Business Ethics • •
•
• •
It is often thought that business and ethics should not be mixed! Indeed, "business ethics“ could be an oxymoron!! Ethical business practices: actions and attitudes held by a business and its employees that are considered professionally and morally responsible patterns of behaviour. A business should not do anything to make money and get ahead; many companies are successful while still acting in a way that is ethical & serving the common good as well as the corporate good. Good Practices are best implemented & established as a “top down” program. “Right of Conscientious Refusal”: right of an employee to refuse to partake in unethical conduct when forced to do so by an employer. This may occur in work or non-work situations and may not necessary involve breaking the law 12
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Corporate Ethics
Corporate Ethics: codes of conduct followed by a corporate in the course of doing its business & outside it towards the Society at large
To ensure that business incentives do not conflict with morality and responsibility to stakeholders. Stakeholders: shareholders, fellow employees, anyone affected by the company’s practices & the environment.
The code usually has a mission statement that sets out the overarching goals and beliefs, & set of guidelines on acceptable and unacceptable workplace behaviour and proper procedure and management.
How much the code is enforced depends on the management, and often on the transparency and oversight of company dealings. 13
Role of the Organisation
Often cause of ethical failure in an organisation can be traced to its organisational culture & failure on the part of the leadership to actively promote ethical practices Personal Ethics are a reflection of beliefs, values, personality and background, but often propensity of a person towards ethical conduct is strongly influenced by value systems of the employing organisation. This often results in one’s personal sense of what is right and wrong becoming buried amongst an organisations’ nonobservance of professional ethics. Unethical conduct may not eventuate from a person’s upbringing, but rather is part of the process of learning practical business or being inducted into the practice 14
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Some Basic Issues
Conflict of Interests Gift vs Bribery Clarity of Perceptions
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Conflict of Interest
Professionals are expected to uphold professional ethics by not getting involved in any type of conflict of interest. A conflict of interest situation may occur when an individual tries to accomplish personal goals as a result of being in a certain profession. An interest which, if pursued, could keep professionals from meeting one of their obligations For example, a Consultant giving advice to the owner and the contractor for the same project (with or without the knowledge of each other)! Ex. “Gifts” and bribes, interests in other companies, insider information…. Unchecked conflicts of interest may also lead to serious problems! Ex. Meryl Lynch,… 16
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Gift Vs Bribery
Following two actions have to be satisfied to transform gift giving to the illegal practice of bribery: 1. The person receiving the gift may, consciously or otherwise, be disposed, predictably, to favour the interests of the gift giver 2. The gift must be of a non-token nature that it is reasonable to think that it may put the interests of the giver in a privileged status even when all else is equal.
Consequently, some corporations have allowed gift giving to their clients or potential clients only as long as these two conditions do not apply.
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What is the Right Thing to do?
Warren Buffet once devised a creative solution:
Assess all future business judgments using this rule:
“If your business decisions and motives were published on the front page of a large circulation newspaper the day after you make your decision, and you will still feel comfortable, then do it.”
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Ethical Conduct – Personal qualities Honesty
Fairness
Fair Reward
Reliability
Integrity
Objectivity
Accountability
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Engineering Ethics
Developing the best possible design for the given specs & the committed framework Give the best possible quality for product/ services for the given specs & the committed framework Not overdesigning just because you are consultant to Owner, not dumping materials in a cost plus contract Design with user-orientation, for the environment, safety, sustainability Design with client benefit in mind, not to promote your own CV or sense of self-importance! Respect Intellectual Property Rights Bring out the potentialities for failure, if any. Check your work/ get it checked. 21
Institution Of Engineers (India) Code of Ethics www.ieindia.org
1.1.1 1.1.2
1.1.3
1.1.4
1.1.5
Concern for ethical standard; Concern for social justice, social order and human rights; Concern for protection of the environment; Concern for sustainable development; Public safety and tranquility. 22
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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CONSTRUCTION INDUSTRY
Second largest industry after agriculture in India Employs over 3 crore persons Annual monitory value (2006)
Rs. 310,000 Crore
Investment planned in Infrastructure alone in XII FYP (2013-18): total of Rs 3,88,000 Cr for Urban Transport (Rs. 3.88 Trillions)
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Projected Investment in Construction Industry in India – Rs. Crores Years
Base year Total (2006–07 of Tenth Plan)
2007–08
2008–09
2009–10
2010-11
2011-12
Total Eleventh Plan
GDP
41,45,810
45,18,933
49,25,637
53,68,944
58,52,149
63,78,843
2,70,44,506
Public Investment
1,75,388
192107
2,27,327
2,73,543
3,32,355
4,11,226
14,36,559
Private Investment
49,858
78166
94,252
1,15,724
1,46,762
1,84,687
6,19,591
Total Investment
2,25,246
2,70,273
3,21,579
3,89,266
4,79,117
5,95,913
20,56,150
Source: Planning commission of India Report
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India's Construction Spending Outlook
(IHS 2010) IHS Global Insight - India construction: importance of infrastructure construction in India
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Future Development of India’s Construction Industry
India GDP Construction Growth Construction industry will exceed the overall GDP growth
http://www.bcindia.com/en/p.21730941/Exhibitors/India
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Civil Engg. Infrastructure – vast coverage
Housing & Buildings- Commercial, Residential, Public, Sports,... Transportation - Roads, Bridges, Airports, Railways, Ports & Harbours, Metros; Traffic engineering Power- Thermal, Hydro, Nuclear & Non-conventional Plants & Factories -General industrial structures; Core sector industries – steel, paper, … Water -Hydraulics & Hydrology, Ocean engineering Underground: Soil mechanics, Foundation engineering, Underground structures (Tunnels, Caverns) Environmental: Environmental engineering, Water & Effluent Treatment Plants Management: Construction Management, Project Management, Quality Management,... 28
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Construction & Ethics
An Opinion Poll indicates that various forms of unethical conducts have significant impact on construction quality Only when professional ethics are well practiced, professionalism will be enhanced and thus eliminating the quality-related problems directly. People working in the construction industry are twice as likely to sustain a major injury and five times more likely to be killed, than the average for all industries. Hence ethical conduct is key element in construction contracting 29
Construction & Ethics (Contd.)
One such study analyzed the probable effect of corruption on the death tolls from earthquakes, particularly those resulting from the collapse of buildings. It says that poor building practices can turn even moderate earthquakes into major disasters. It says that 83% of all deaths from building collapses in earthquakes over the past 30 years occurred in countries perceived to have abnormally high levels of corruption!
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Some Construction Ethics breaches
Fraud in Government Contracts Defective Pricing Antitrust Violations: Collusive Bidding and Price Fixing, cartels Cost Mischarging Product Substitution Fixing the Testing process Progress Payment Fraud Bribery, Gratuities, and Conflicts of Interest Commercial Bribery and Kickbacks 31
Main Stakeholders in Construction Designer/ Architect/ Consultant
Owner/Client
Contra ctor
Sub.
Vendors
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Architects & Ethics Architects are generally rated high in Ethics In contrast with architects, however, construction contractors have a reputation for unethical behaviour The main problem being, according to a poll , the high level of disputes between owners and builders
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Architect/ Designer/ Consultant & Non-Ethics
Tweaking experience list, CVs Offering one particular candidate in the bid for the work but actually providing another Concealing of construction errors Stealing someone else’s drawings/ designs Exaggerating experience and academic achievements in resumes and applications Charging clients for work not done, costs not incurred or overstated (manhour-based billing) Misleading clients in project management Involvement in conflict of interest Consultants and builder discussing client details Improper information flow, internally and externally, within a practice 34
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Contractor & Non-Ethics
Frequently identified as the “main source” of all corruption! Collusive tendering Colluding with Client’s officers to make money (undue claims, overpayment, inflating quantities, passing off poor quality/ safety, etc) Rampant “misdemeanors” in public works Will calling him a “Constructor” instead of “Contractor (“Tekedar”) help to get more respect/ responsibility?!!
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Contractor (Contd.)
Collusive Tendering: • illegal agreements between tenderers that result in seemingly competitive bids • price fixing (quoting high thro’ a cartel) • schemes that circumvent spirit of free competition and defraud clients • cover pricing (quoting high price to lose tender) • hidden fees ( “the small print”) • compensation for unsuccessful tenderers (for support bids) • “ withdrawal” where a tenderer withdraws his bid after consultation with other tenderers.
Bid cutting : (negotiating down S/Cs by M/Cs) 36
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The Client & Non-Ethics
Coercing contractors for kick-backs Turning a blind-eye to poor performance by agencies Confidentiality and propriety information infringements Using Architect’s drawings to complete projects with other parties Revealing tendering/ product information Not being transparent w.r.t difficult conditions –ex. Cavern project Bid shopping: divulging solicited bids as leverage to encourage contractors to lower their prices; showing L1 quote to others to get lower price Reverse auction: (asking bidders to openly keep quoting against others to get the lowest price – often in blind e-auction) also considered to be unethical, as it is more or less another form of bid shopping. 37
LPG Storage Cavern 200m below GL
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Client (Contd.)
Procurement is often the basic cause! Selecting knowledge-based services on price basis Encouraging cut-throat competition among consultants Selecting contractors by reverse auction Changing qualification criteria arbitrarily & at last minute Harassment of honest contractors Rampant “moonlighting” by public organisation employees!
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Client-related lapse
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Babylon’s Building Code!
Hammurabi’s Code: “If a builder has built a house for a man and has not made his work sound, and the house which he has built has fallen down and so caused the death of the house-holder, the builder should be put to death ……………”
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Some interesting Issues
Environmental breaches Negligence Deficiencies in State-of-the- Art Negligence – in Engineering Negligence – in Construction Whose Responsibility?
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Environmental breaches
Bad practices:
Contamination of the soil Degradation of vegetation Soil erosion Inadequate perimeter fencing on construction sites Careless execution of demolition and construction Storage of construction waste products offsite Inadequate protection for public from debris
Issues:
Did Client/ Consultant specify proper measures in tender? Did Client procure proper land for debris disposal? Is the Contractor following bad practices? 43
Negligence
Negligence: failure to exercise that degree of care which, in the circumstances, the law requires for the protection of those interests of other persons which may be injuriously affected by the want of such care. The main sources are design negligence, design defect, production defect, construction defect or a combination of these factors Negligence is major cause of many accidents Is Negligence an Unethical Practice?
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Primary Causes of Engineering Disasters The primary causes of engineering disasters are usually considered to be human factors (including both 'ethical' failure and accidents) design flaws (many of which are also the result of unethical practices) materials failures extreme conditions or environments, and, most commonly and importantly combinations of these reasons
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Primary Causes of Engineering Disasters (Contd.)
Recent study by Swiss Federal Institute of Technology: 800 cases of structural failure -- 504 people killed, 592 people injured, millions of dollars of damage. Cause of Failure
Percentage( %)
Insufficient knowledge
36
Underestimation of influence
16
Ignorance, carelessness, negligence
14
Forgetfulness, error
13
Relying upon others without sufficient control
9
Objectively unknown situation
7
Un-precise definition of responsibilities
1
Choice of bad quality
1
Other
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State-of-the-Art not being good enough!
Sometimes the existing knowledge levels themselves are low; many intricacies had not yet been explored & understood Whose responsibility is it when something engineered as state-of-the-art fails? Ex. The Titanic to some extent!
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Tacoma Narrows Bridge, USA
“Galloping Gertie” www.youtube.com/watch?v=P0Fi1VcbpAI 48
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Tacoma Narrows Bridge
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Ronan Point Flats Collapse, UK
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Ferry Bridge Cooling Towers, UK
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Negligence in construction
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Negligence in Construction!!
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Negligence during Construction
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Negligence in Engineering & Construction
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The Failure Sequence
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Amazing negligence!
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Examples
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Examples
Examples
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Negligence in Construction – the Safety Aspect Hardly any concern for safety in any field!– ---- Construction, Traffic, Diwali crackers!! “ Preventable Accidents, if not prevented due to our negligence, are nothing short of murder ” - Dr S.Radhakrishnan Safety in Construction has to be Designed and is not merely wearing a helmet! Forensic Engg is now a solution to fix the root causes!
Moot Questions!!
Is there any awareness of Quality and Safety at all ??!! Does anyone care? Whose responsibility is it?
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Responsibility – Dilemmas! •
Who is responsible for encouraging lapses in Ethical practices Client/ Consultant/ Contractor?? (Chicken & egg analogy?!)
•
Client: expressed/ veiled/ passive “expectations”, lack of competence, poor specifications
•
Contractor: too much competition, pressure on margins, client inducements, pressure of time, difficulties in job, unexpected problems in project
•
Consultant: too much competition, lack of competence, pressure of time
•
Circumstances/ national culture/ apathy??! 63
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Questionnaire- 1 (USA)
31 (42%) valid responses (Avg. experience of 21 ys in field)
61%:Architects, 16%:Contractors, 16%:Project Managers, 6%: Construction Managers
90% subscribed to a professional Code of Ethics 45% had an Ethical Code of Conduct in their organisations 84% considered good ethical practice to be an important organisational goal. 93% agreed that “Business Ethics” should be driven or governed by “Personal Ethics”, 84% stated that a balance of both the requirements of the client and the impact on the public should be maintained. 65
Questionnaire 1 (Contd.)
All the respondents had witnessed or experienced some degree of unethical conduct: unfair conduct (81%), negligence (67%), conflict of interest (48%), collusive tendering (44%), fraud (35%), confidentiality and propriety breach (32%), bribery (26%) violation of environmental ethics (20%).
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Questionnaire 2 (USA)
Questionnaires on ethical state of construction industry from 270 architects, engineers, construction managers, general contractors and subcontractors.
An opinion: “The majority of contractors who do engage in corrupt practices tend to do so not because they want to, but because they feel they are forced to by the way the industry and the political environment operate.” ………………..(Rationalisation!!)
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Five most Critical Ethical issues • • • • •
Bid Shopping Change Orders Payment Games Unreliable Contractors Claims Games
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Bid Shopping is Unethical Reverse Auction is Unethical
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Call for More regulations, Ethics Training, Codes of Conduct
70
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Survey 3 - in Malaysia
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Breakdown of response by type of company. Type of Firm
Sent
Responded
Percent(%)
Contractor
275
40
14.55
Architectural
80
11
13.95
Developer
45
6
13.33
Quantity Surveying
100
7
7.00
Total
500
66
13.20
72
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Classification for frequency scale – Nonethical instances Options
Mean
None
0.00 ≤ Mean score < 0.75
Sometimes
0.75 ≤ Mean score < 1.50
Often
1.50 ≤ Mean score < 2.25
Very often
2.25 ≤ Mean score < 3.00
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Ranking of unethical conducts by construction players Categories of unethical conducts
Mean
Rank
Under bidding, bid shopping, bid cutting
1.67
1
Bribery, corruption
1.61
2
Negligence
1.48
3
Front loading, claims game
1.42
4
Payment game
1.32
5
Unfair and dishonest conduct, fraud
1.30
6
Collusion
1.26
7 8
Conflict of interest
1.17
Change order game
1.12
9
Cover pricing, withdrawal of tender
1.06
10
Compensation of tendering
0.74
11
Rank no. 1 = Most frequent; Rank no.11 = Least frequent. 74
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Whether unethical conducts contribute to quality-related problem Unethical conducts contribute to quality-related problem
Frequency
Percent (%)
Score
Strongly agree (score- 0)
27
40.91
0.00
Somewhat agree (score- 1)
35
53.03
35.00
Somewhat disagree (score- 2)
3
4.55
6.00
Strongly disagree (score- 3)
4
1.51
3.00
Total
66
100.00
110.00
Mean
0.67
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Ethics ----the Professional
A person who will not propagate incorrect information/ knowledge A person who will not steal someone else’s work A person who will practice what he preaches A person who will not cheat – in tenders (cartels, bribing…), in quality (poor materials, poor workmanship), in claims (falsified documentation,…), industrial espionage A person who will not pass off a substandard design or product or workmanship; Does not overprice services/ goods taking advantage of a situation (black marketing, hoarding, opportunity pricing) Subscribes to Engineering Registration 77
Ethical working – a practical guide •
Check out if a set of Ethical Codes is available for ethical practices in your chosen profession as set forth by an
independent body •
Follow your organization's spelt-out set of business ethics if available and if strictly followed
•
If neither is available, set up your own code of ethics to suit the various contexts
•
Developing Personal Ethics 78
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An Example of personal ethics – Whistle blowing
Carl Houston was a welding supervisor for a nuclear power facility in Virginia (1970) for Stone & Weber He saw
Improper welding procedures Use of wrong materials Welders were not trained properly The situation was dangerous
He reported to Stone & Weber’s Manager, who ignored him. He threatened to write to Stone & Weber’s Headquarters. Shortly thereafter he was fired on trumped–up charges. Finally he wrote to Senators Howard's Baker and Albert Gore. The Senators prompted the Atomic Energy Commission to investigate, which confirmed his allegations. 79
Personal Work Ethics! (recommended)
Constant quest for Perfection – any less is not your best! Sincerity/ commitment is your best in what you do Search for a better solution, the Best possible! Study, Learn, Discuss, Explore, Try out alternatives… till you get the best solution– INNOVATE! Not compromising even if it involves more work from yourself, tirade from the top! (not to be confused with being a workaholic!) To say “I don’t know” when in ignorance, instead of putting out a defective design/ product./ work Taking responsibility and not finding scapegoats 80
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Personal Ethics - CITIGROUP CENTER BUILDING Structural Engineer Bill LeMessurier faced a big design problem when he worked on the Citicorp Centre, N.Y – then the fifth highest skyscraper in New York. The 900 feet bank would rise from 9-storey (114’) high columns. The columns are positioned as follows: one at the center and the other at the CENTER OF EACH SIDE OF THE TOWER and not at the CORNERS OF THE TOWERS (as is usual) This was because of a corner of the plot belonged to a church and the church had to be accommodated there. The building was completed in 1977. An engineering student questioned: what will happen when the wind loading is oblique? 81
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y
x
(a)
(b)
(c)
Calculations should show that in Case (c) resultant force is 40% larger.
the
While LeMessurier designed welded joints, the contractor, Bethlehem Steel changed them to bolted joints. Recalculation was not done to check what the construction change would do. Wind Tunnel Tests proved that the diagonal wind loading (with a return period of 16 years) can lead to the failure of the critical bolted joints and therefore the building. 84
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LeMessurier was deeply troubled. He considered his options Silence Suicide
Then he told himself:
• •
I have information that nobody else in the world had. I have power to effect extraordinary events that only I could initiate.
He explained the problem to his client Citicorp. The building was strengthened by welding two-inch thick steel plates over each of the 200 bolted joints. With only welding half the number of bolts hurricane Ella was threatening to strike the building. Luckily Ella’s direction changed. 85
Despite the fact that nothing happened as the result of the engineering gaffe, the crisis was kept hidden from the public for almost 20 years. LeMessurier was criticized for Insufficient
oversight leading to bolted rather than
welded joints.
For misleading the public about the extent of the danger during the reinforcement process For keeping the engineering insights from his peers for
decades. However his act of alerting Citicorp to the problem
inherent in his own design is now used as an example of ethical behavior in several engineering textbooks.
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Conclusion - “the IIT Way”?!! •Ethics is taking the high (and possibly, lonely) ground! •Construction has many potentialities for Unethical acts and a lot of care has to be exercised by all the players to avoid them. •Developing a strong sense of Personal Ethics could help! IITM’s GN 5001 – Course on “Self Awareness” could help towards this! •How would you like to project the IIT Brand? •as having an Ethical Value? •In your Workplace? •In your Professional Circles? •In the Society? •In your Personal Life? •To your own inner Self??
•It is your call !! 88
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References
en.wikepedia.org Ethics in Engineering- M.W.Martin & R.Schinzinger, McGraw-Hill Engineering Ethics, National Institute for Engineering Ethics, USA www.ieindia.org Engineering Ethics, http://repo-nt.tcc.virginia.edu/ethics/ Engineering ethics: concepts and cases – C. E. Harris, M.S. Pritchard, M.J.Rabins Vee, C. and Skitmore, R.M. (2003) Professional ethics in the construction industry. Engineering Construction and Architectural Management 10(2):pp. 117-127. Citigroup center- Wikipedia 89
THANK YOU
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Professional ETHICS HS 3050 Prof. N.Raghavan 24th Sep, 2013
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
2
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10/1/2013
Ethics- Definitions •
Ethics: –
–
•
also known as moral philosophy/ rules of conduct a branch of philosophy that addresses questions about morality —i.e. concepts such as good and evil, right and wrong, virtue and vice, justice and injustice, etc.
Doing “what is RIGHT” (according to prevalent set of moral codes) and not necessarily “what is BEST” (which is your opinion likely to be clouded!)
•
Ethics is also a measure of concern for others & for the common good, as against the selfish motive 3
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
4
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10/1/2013
Professional Ethics
Profession
Professionalism
Professional Responsibility
Professional Ethics
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Professions Professions :
"occupations that both require advanced study and mastery of a specialised body of knowledge, and undertake to promote, ensure or safeguard some matter that significantly affects others’ well-being”.
Are usually bound by a set of principles, attitudes or types of character dispositions that control the way the profession is practiced. This has been termed as Professional Ethics
In general, professional ethics always include upholding honesty and respect in the profession over personal needs, conflicts or biases. 6
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Professionalism
Core of professionalism: the possession and autonomous control of a body of specialised knowledge, which when combined with honorific status, confers power upon its holders.
Denotes efficiency, knowledgeability, thorough familiarity with
work practices, great skill & ability,…
Professionalism is about individual modes of behaviour that command respect and build trust.
The high standard that you expect from a person who is well trained in a particular job 7
Professionalism (Contd)
A focused approach Having pride in what one is doing Being confident; competent Goes with Accountability & Responsibility Respect for people irrespective of rank, status and gender; Commitment to word and deed basing business related interactions to facts, figures and purely on the logic and understanding of the situation at hand. Not getting carried away by the passion of the moment.
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Professional Responsibility
Professional responsibility :: obligation of a Professional ( a Consultant, an Auditor,…) to perform his duties in a fitting manner. This includes a professional and legal approach to the duties + the moral aspect of the profession (which is not always specified by the law);
ex. Giving the most economical design by a consultant and not only a safe design.
One key issue is “conflict of interest."
This creates a predetermined bias for or against one of the clients, which the main client is usually unaware of.
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Professional Ethics
Profession
Professionalism
Professional Responsibility
Professional Ethics
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Ethics - Categories Professional Ethics
Business Ethics
Corporate Ethics
Engineering Ethics
Personal Ethics 11
Business Ethics • •
•
• •
It is often thought that business and ethics should not be mixed! Indeed, "business ethics“ could be an oxymoron!! Ethical business practices: actions and attitudes held by a business and its employees that are considered professionally and morally responsible patterns of behaviour. A business should not do anything to make money and get ahead; many companies are successful while still acting in a way that is ethical & serving the common good as well as the corporate good. Good Practices are best implemented & established as a “top down” program. “Right of Conscientious Refusal”: right of an employee to refuse to partake in unethical conduct when forced to do so by an employer. This may occur in work or non-work situations and may not necessary involve breaking the law 12
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Corporate Ethics
Corporate Ethics: codes of conduct followed by a corporate in the course of doing its business & outside it towards the Society at large
To ensure that business incentives do not conflict with morality and responsibility to stakeholders. Stakeholders: shareholders, fellow employees, anyone affected by the company’s practices & the environment.
The code usually has a mission statement that sets out the overarching goals and beliefs, & set of guidelines on acceptable and unacceptable workplace behaviour and proper procedure and management.
How much the code is enforced depends on the management, and often on the transparency and oversight of company dealings. 13
Role of the Organisation
Often cause of ethical failure in an organisation can be traced to its organisational culture & failure on the part of the leadership to actively promote ethical practices Personal Ethics are a reflection of beliefs, values, personality and background, but often propensity of a person towards ethical conduct is strongly influenced by value systems of the employing organisation. This often results in one’s personal sense of what is right and wrong becoming buried amongst an organisations’ nonobservance of professional ethics. Unethical conduct may not eventuate from a person’s upbringing, but rather is part of the process of learning practical business or being inducted into the practice 14
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Some Basic Issues
Conflict of Interests Gift vs Bribery Clarity of Perceptions
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Conflict of Interest
Professionals are expected to uphold professional ethics by not getting involved in any type of conflict of interest. A conflict of interest situation may occur when an individual tries to accomplish personal goals as a result of being in a certain profession. An interest which, if pursued, could keep professionals from meeting one of their obligations For example, a Consultant giving advice to the owner and the contractor for the same project (with or without the knowledge of each other)! Ex. “Gifts” and bribes, interests in other companies, insider information…. Unchecked conflicts of interest may also lead to serious problems! Ex. Meryl Lynch,… 16
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Gift Vs Bribery
Following two actions have to be satisfied to transform gift giving to the illegal practice of bribery: 1. The person receiving the gift may, consciously or otherwise, be disposed, predictably, to favour the interests of the gift giver 2. The gift must be of a non-token nature that it is reasonable to think that it may put the interests of the giver in a privileged status even when all else is equal.
Consequently, some corporations have allowed gift giving to their clients or potential clients only as long as these two conditions do not apply.
17
What is the Right Thing to do?
Warren Buffet once devised a creative solution:
Assess all future business judgments using this rule:
“If your business decisions and motives were published on the front page of a large circulation newspaper the day after you make your decision, and you will still feel comfortable, then do it.”
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Ethical Conduct – Personal qualities Honesty
Fairness
Fair Reward
Reliability
Integrity
Objectivity
Accountability
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Engineering Ethics
Developing the best possible design for the given specs & the committed framework Give the best possible quality for product/ services for the given specs & the committed framework Not overdesigning just because you are consultant to Owner, not dumping materials in a cost plus contract Design with user-orientation, for the environment, safety, sustainability Design with client benefit in mind, not to promote your own CV or sense of self-importance! Respect Intellectual Property Rights Bring out the potentialities for failure, if any. Check your work/ get it checked. 21
Institution Of Engineers (India) Code of Ethics www.ieindia.org
1.1.1 1.1.2
1.1.3
1.1.4
1.1.5
Concern for ethical standard; Concern for social justice, social order and human rights; Concern for protection of the environment; Concern for sustainable development; Public safety and tranquility. 22
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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CONSTRUCTION INDUSTRY
Second largest industry after agriculture in India Employs over 3 crore persons Annual monitory value (2006)
Rs. 310,000 Crore
Investment planned in Infrastructure alone in XII FYP (2013-18): total of Rs 3,88,000 Cr for Urban Transport (Rs. 3.88 Trillions)
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Projected Investment in Construction Industry in India – Rs. Crores Years
Base year Total (2006–07 of Tenth Plan)
2007–08
2008–09
2009–10
2010-11
2011-12
Total Eleventh Plan
GDP
41,45,810
45,18,933
49,25,637
53,68,944
58,52,149
63,78,843
2,70,44,506
Public Investment
1,75,388
192107
2,27,327
2,73,543
3,32,355
4,11,226
14,36,559
Private Investment
49,858
78166
94,252
1,15,724
1,46,762
1,84,687
6,19,591
Total Investment
2,25,246
2,70,273
3,21,579
3,89,266
4,79,117
5,95,913
20,56,150
Source: Planning commission of India Report
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India's Construction Spending Outlook
(IHS 2010) IHS Global Insight - India construction: importance of infrastructure construction in India
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Future Development of India’s Construction Industry
India GDP Construction Growth Construction industry will exceed the overall GDP growth
http://www.bcindia.com/en/p.21730941/Exhibitors/India
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Civil Engg. Infrastructure – vast coverage
Housing & Buildings- Commercial, Residential, Public, Sports,... Transportation - Roads, Bridges, Airports, Railways, Ports & Harbours, Metros; Traffic engineering Power- Thermal, Hydro, Nuclear & Non-conventional Plants & Factories -General industrial structures; Core sector industries – steel, paper, … Water -Hydraulics & Hydrology, Ocean engineering Underground: Soil mechanics, Foundation engineering, Underground structures (Tunnels, Caverns) Environmental: Environmental engineering, Water & Effluent Treatment Plants Management: Construction Management, Project Management, Quality Management,... 28
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Construction & Ethics
An Opinion Poll indicates that various forms of unethical conducts have significant impact on construction quality Only when professional ethics are well practiced, professionalism will be enhanced and thus eliminating the quality-related problems directly. People working in the construction industry are twice as likely to sustain a major injury and five times more likely to be killed, than the average for all industries. Hence ethical conduct is key element in construction contracting 29
Construction & Ethics (Contd.)
One such study analyzed the probable effect of corruption on the death tolls from earthquakes, particularly those resulting from the collapse of buildings. It says that poor building practices can turn even moderate earthquakes into major disasters. It says that 83% of all deaths from building collapses in earthquakes over the past 30 years occurred in countries perceived to have abnormally high levels of corruption!
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Some Construction Ethics breaches
Fraud in Government Contracts Defective Pricing Antitrust Violations: Collusive Bidding and Price Fixing, cartels Cost Mischarging Product Substitution Fixing the Testing process Progress Payment Fraud Bribery, Gratuities, and Conflicts of Interest Commercial Bribery and Kickbacks 31
Main Stakeholders in Construction Designer/ Architect/ Consultant
Owner/Client
Contra ctor
Sub.
Vendors
32
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Architects & Ethics Architects are generally rated high in Ethics In contrast with architects, however, construction contractors have a reputation for unethical behaviour The main problem being, according to a poll , the high level of disputes between owners and builders
33
Architect/ Designer/ Consultant & Non-Ethics
Tweaking experience list, CVs Offering one particular candidate in the bid for the work but actually providing another Concealing of construction errors Stealing someone else’s drawings/ designs Exaggerating experience and academic achievements in resumes and applications Charging clients for work not done, costs not incurred or overstated (manhour-based billing) Misleading clients in project management Involvement in conflict of interest Consultants and builder discussing client details Improper information flow, internally and externally, within a practice 34
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Contractor & Non-Ethics
Frequently identified as the “main source” of all corruption! Collusive tendering Colluding with Client’s officers to make money (undue claims, overpayment, inflating quantities, passing off poor quality/ safety, etc) Rampant “misdemeanors” in public works Will calling him a “Constructor” instead of “Contractor (“Tekedar”) help to get more respect/ responsibility?!!
35
Contractor (Contd.)
Collusive Tendering: • illegal agreements between tenderers that result in seemingly competitive bids • price fixing (quoting high thro’ a cartel) • schemes that circumvent spirit of free competition and defraud clients • cover pricing (quoting high price to lose tender) • hidden fees ( “the small print”) • compensation for unsuccessful tenderers (for support bids) • “ withdrawal” where a tenderer withdraws his bid after consultation with other tenderers.
Bid cutting : (negotiating down S/Cs by M/Cs) 36
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The Client & Non-Ethics
Coercing contractors for kick-backs Turning a blind-eye to poor performance by agencies Confidentiality and propriety information infringements Using Architect’s drawings to complete projects with other parties Revealing tendering/ product information Not being transparent w.r.t difficult conditions –ex. Cavern project Bid shopping: divulging solicited bids as leverage to encourage contractors to lower their prices; showing L1 quote to others to get lower price Reverse auction: (asking bidders to openly keep quoting against others to get the lowest price – often in blind e-auction) also considered to be unethical, as it is more or less another form of bid shopping. 37
LPG Storage Cavern 200m below GL
38
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Client (Contd.)
Procurement is often the basic cause! Selecting knowledge-based services on price basis Encouraging cut-throat competition among consultants Selecting contractors by reverse auction Changing qualification criteria arbitrarily & at last minute Harassment of honest contractors Rampant “moonlighting” by public organisation employees!
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Client-related lapse
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Babylon’s Building Code!
Hammurabi’s Code: “If a builder has built a house for a man and has not made his work sound, and the house which he has built has fallen down and so caused the death of the house-holder, the builder should be put to death ……………”
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Some interesting Issues
Environmental breaches Negligence Deficiencies in State-of-the- Art Negligence – in Engineering Negligence – in Construction Whose Responsibility?
42
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Environmental breaches
Bad practices:
Contamination of the soil Degradation of vegetation Soil erosion Inadequate perimeter fencing on construction sites Careless execution of demolition and construction Storage of construction waste products offsite Inadequate protection for public from debris
Issues:
Did Client/ Consultant specify proper measures in tender? Did Client procure proper land for debris disposal? Is the Contractor following bad practices? 43
Negligence
Negligence: failure to exercise that degree of care which, in the circumstances, the law requires for the protection of those interests of other persons which may be injuriously affected by the want of such care. The main sources are design negligence, design defect, production defect, construction defect or a combination of these factors Negligence is major cause of many accidents Is Negligence an Unethical Practice?
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Primary Causes of Engineering Disasters The primary causes of engineering disasters are usually considered to be human factors (including both 'ethical' failure and accidents) design flaws (many of which are also the result of unethical practices) materials failures extreme conditions or environments, and, most commonly and importantly combinations of these reasons
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Primary Causes of Engineering Disasters (Contd.)
Recent study by Swiss Federal Institute of Technology: 800 cases of structural failure -- 504 people killed, 592 people injured, millions of dollars of damage. Cause of Failure
Percentage( %)
Insufficient knowledge
36
Underestimation of influence
16
Ignorance, carelessness, negligence
14
Forgetfulness, error
13
Relying upon others without sufficient control
9
Objectively unknown situation
7
Un-precise definition of responsibilities
1
Choice of bad quality
1
Other
3 46
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State-of-the-Art not being good enough!
Sometimes the existing knowledge levels themselves are low; many intricacies had not yet been explored & understood Whose responsibility is it when something engineered as state-of-the-art fails? Ex. The Titanic to some extent!
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Tacoma Narrows Bridge, USA
“Galloping Gertie” www.youtube.com/watch?v=P0Fi1VcbpAI 48
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Tacoma Narrows Bridge
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Ronan Point Flats Collapse, UK
50
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Ferry Bridge Cooling Towers, UK
51
Negligence in construction
52
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Negligence in Construction!!
53
Negligence during Construction
54
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Negligence in Engineering & Construction
55
The Failure Sequence
56
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Amazing negligence!
57
57
Examples
58
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Examples
Examples
60
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Negligence in Construction – the Safety Aspect Hardly any concern for safety in any field!– ---- Construction, Traffic, Diwali crackers!! “ Preventable Accidents, if not prevented due to our negligence, are nothing short of murder ” - Dr S.Radhakrishnan Safety in Construction has to be Designed and is not merely wearing a helmet! Forensic Engg is now a solution to fix the root causes!
Moot Questions!!
Is there any awareness of Quality and Safety at all ??!! Does anyone care? Whose responsibility is it?
62
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Responsibility – Dilemmas! •
Who is responsible for encouraging lapses in Ethical practices Client/ Consultant/ Contractor?? (Chicken & egg analogy?!)
•
Client: expressed/ veiled/ passive “expectations”, lack of competence, poor specifications
•
Contractor: too much competition, pressure on margins, client inducements, pressure of time, difficulties in job, unexpected problems in project
•
Consultant: too much competition, lack of competence, pressure of time
•
Circumstances/ national culture/ apathy??! 63
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
64
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Questionnaire- 1 (USA)
31 (42%) valid responses (Avg. experience of 21 ys in field)
61%:Architects, 16%:Contractors, 16%:Project Managers, 6%: Construction Managers
90% subscribed to a professional Code of Ethics 45% had an Ethical Code of Conduct in their organisations 84% considered good ethical practice to be an important organisational goal. 93% agreed that “Business Ethics” should be driven or governed by “Personal Ethics”, 84% stated that a balance of both the requirements of the client and the impact on the public should be maintained. 65
Questionnaire 1 (Contd.)
All the respondents had witnessed or experienced some degree of unethical conduct: unfair conduct (81%), negligence (67%), conflict of interest (48%), collusive tendering (44%), fraud (35%), confidentiality and propriety breach (32%), bribery (26%) violation of environmental ethics (20%).
66
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Questionnaire 2 (USA)
Questionnaires on ethical state of construction industry from 270 architects, engineers, construction managers, general contractors and subcontractors.
An opinion: “The majority of contractors who do engage in corrupt practices tend to do so not because they want to, but because they feel they are forced to by the way the industry and the political environment operate.” ………………..(Rationalisation!!)
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Five most Critical Ethical issues • • • • •
Bid Shopping Change Orders Payment Games Unreliable Contractors Claims Games
68
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Bid Shopping is Unethical Reverse Auction is Unethical
69
Call for More regulations, Ethics Training, Codes of Conduct
70
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Survey 3 - in Malaysia
71
Breakdown of response by type of company. Type of Firm
Sent
Responded
Percent(%)
Contractor
275
40
14.55
Architectural
80
11
13.95
Developer
45
6
13.33
Quantity Surveying
100
7
7.00
Total
500
66
13.20
72
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Classification for frequency scale – Nonethical instances Options
Mean
None
0.00 ≤ Mean score < 0.75
Sometimes
0.75 ≤ Mean score < 1.50
Often
1.50 ≤ Mean score < 2.25
Very often
2.25 ≤ Mean score < 3.00
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Ranking of unethical conducts by construction players Categories of unethical conducts
Mean
Rank
Under bidding, bid shopping, bid cutting
1.67
1
Bribery, corruption
1.61
2
Negligence
1.48
3
Front loading, claims game
1.42
4
Payment game
1.32
5
Unfair and dishonest conduct, fraud
1.30
6
Collusion
1.26
7 8
Conflict of interest
1.17
Change order game
1.12
9
Cover pricing, withdrawal of tender
1.06
10
Compensation of tendering
0.74
11
Rank no. 1 = Most frequent; Rank no.11 = Least frequent. 74
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Whether unethical conducts contribute to quality-related problem Unethical conducts contribute to quality-related problem
Frequency
Percent (%)
Score
Strongly agree (score- 0)
27
40.91
0.00
Somewhat agree (score- 1)
35
53.03
35.00
Somewhat disagree (score- 2)
3
4.55
6.00
Strongly disagree (score- 3)
4
1.51
3.00
Total
66
100.00
110.00
Mean
0.67
Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
76
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Ethics ----the Professional
A person who will not propagate incorrect information/ knowledge A person who will not steal someone else’s work A person who will practice what he preaches A person who will not cheat – in tenders (cartels, bribing…), in quality (poor materials, poor workmanship), in claims (falsified documentation,…), industrial espionage A person who will not pass off a substandard design or product or workmanship; Does not overprice services/ goods taking advantage of a situation (black marketing, hoarding, opportunity pricing) Subscribes to Engineering Registration 77
Ethical working – a practical guide •
Check out if a set of Ethical Codes is available for ethical practices in your chosen profession as set forth by an
independent body •
Follow your organization's spelt-out set of business ethics if available and if strictly followed
•
If neither is available, set up your own code of ethics to suit the various contexts
•
Developing Personal Ethics 78
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An Example of personal ethics – Whistle blowing
Carl Houston was a welding supervisor for a nuclear power facility in Virginia (1970) for Stone & Weber He saw
Improper welding procedures Use of wrong materials Welders were not trained properly The situation was dangerous
He reported to Stone & Weber’s Manager, who ignored him. He threatened to write to Stone & Weber’s Headquarters. Shortly thereafter he was fired on trumped–up charges. Finally he wrote to Senators Howard's Baker and Albert Gore. The Senators prompted the Atomic Energy Commission to investigate, which confirmed his allegations. 79
Personal Work Ethics! (recommended)
Constant quest for Perfection – any less is not your best! Sincerity/ commitment is your best in what you do Search for a better solution, the Best possible! Study, Learn, Discuss, Explore, Try out alternatives… till you get the best solution– INNOVATE! Not compromising even if it involves more work from yourself, tirade from the top! (not to be confused with being a workaholic!) To say “I don’t know” when in ignorance, instead of putting out a defective design/ product./ work Taking responsibility and not finding scapegoats 80
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Personal Ethics - CITIGROUP CENTER BUILDING Structural Engineer Bill LeMessurier faced a big design problem when he worked on the Citicorp Centre, N.Y – then the fifth highest skyscraper in New York. The 900 feet bank would rise from 9-storey (114’) high columns. The columns are positioned as follows: one at the center and the other at the CENTER OF EACH SIDE OF THE TOWER and not at the CORNERS OF THE TOWERS (as is usual) This was because of a corner of the plot belonged to a church and the church had to be accommodated there. The building was completed in 1977. An engineering student questioned: what will happen when the wind loading is oblique? 81
82
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y
x
(a)
(b)
(c)
Calculations should show that in Case (c) resultant force is 40% larger.
the
While LeMessurier designed welded joints, the contractor, Bethlehem Steel changed them to bolted joints. Recalculation was not done to check what the construction change would do. Wind Tunnel Tests proved that the diagonal wind loading (with a return period of 16 years) can lead to the failure of the critical bolted joints and therefore the building. 84
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LeMessurier was deeply troubled. He considered his options Silence Suicide
Then he told himself:
• •
I have information that nobody else in the world had. I have power to effect extraordinary events that only I could initiate.
He explained the problem to his client Citicorp. The building was strengthened by welding two-inch thick steel plates over each of the 200 bolted joints. With only welding half the number of bolts hurricane Ella was threatening to strike the building. Luckily Ella’s direction changed. 85
Despite the fact that nothing happened as the result of the engineering gaffe, the crisis was kept hidden from the public for almost 20 years. LeMessurier was criticized for Insufficient
oversight leading to bolted rather than
welded joints.
For misleading the public about the extent of the danger during the reinforcement process For keeping the engineering insights from his peers for
decades. However his act of alerting Citicorp to the problem
inherent in his own design is now used as an example of ethical behavior in several engineering textbooks.
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Road Map
Basic Definitions Professional Ethics & other categories Engineering Ethics Ethics in Construction Survey findings Role of Personal Ethics Conclusions
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Conclusion - “the IIT Way”?!! •Ethics is taking the high (and possibly, lonely) ground! •Construction has many potentialities for Unethical acts and a lot of care has to be exercised by all the players to avoid them. •Developing a strong sense of Personal Ethics could help! IITM’s GN 5001 – Course on “Self Awareness” could help towards this! •How would you like to project the IIT Brand? •as having an Ethical Value? •In your Workplace? •In your Professional Circles? •In the Society? •In your Personal Life? •To your own inner Self??
•It is your call !! 88
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References
en.wikepedia.org Ethics in Engineering- M.W.Martin & R.Schinzinger, McGraw-Hill Engineering Ethics, National Institute for Engineering Ethics, USA www.ieindia.org Engineering Ethics, http://repo-nt.tcc.virginia.edu/ethics/ Engineering ethics: concepts and cases – C. E. Harris, M.S. Pritchard, M.J.Rabins Vee, C. and Skitmore, R.M. (2003) Professional ethics in the construction industry. Engineering Construction and Architectural Management 10(2):pp. 117-127. Citigroup center- Wikipedia 89
THANK YOU
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