Questions

1. Difference between code of conduct & code of ethics.

Aspect Code of Conduct Code of Ethics

Definition A set of rules and guidelines A set of broad principles that guide
that outline expected behaviour behaviour based on values and moral
in specific situations. beliefs.
Scope Specific and operational.
General and aspirational. Focuses on
Covers day-to-day activities
overarching values and principles.
and decisions.
Purpose To ensure employees follow
standard practices and avoid To promote a culture of integrity and
unethical behaviour in specific moral responsibility.
situations.
Examples of "Employees must clock in at 9 "Act with honesty and integrity," or
Rules AM" or "No using company "Respect the dignity of all
equipment for personal use." individuals."
Focus Focused on personal and
Focused on behaviour and
organizational values, decision-
actions within the workplace.
making, and morality.
Enforcement Violations usually result in Violations may lead to reputational
disciplinary actions or damage or ethical reviews, but not
penalties. necessarily penalties.
Detail Level More broad and open-ended,
Highly detailed, providing
providing guiding principles rather
specific guidelines for conduct.
than specific actions.
Nature More concrete and practical. More abstract and philosophical. It’s
It’s about following specific about aligning actions with ethical
rules. principles.
Flexibility Less flexible as it is specific and More flexible, as it sets a general
can be updated regularly to ethical standard applicable across
address current issues. various situations.
Example in A company may have a code of A company’s code of ethics may state
Action conduct that prohibits that employees should always act
employees from accepting gifts with integrity, considering the
from clients to avoid conflicts consequences of their actions for
of interest. stakeholders.

2. Essential role of Code of Ethics

A code of ethics, also called ethical code, is a set of behavioral rules employees
should follow to ensure the company’s values are reflected in all business dealings.
A well written code of ethics should also give guidance to employees on how to deal
 with certain ethical situations. A code of ethics is essential because it plays an
important role in defining:
• Values: Business Values typically are expressed in terms of how the company
performs its day-to-day interactions with suppliers, employees and customers
• Principles: Principles are used to further support the business values by
including operational credos employees should follow.
• Management support: Manager support of the values and principles may be
documented in the code of ethics.
• Personal Responsibility: Another component is a statement regarding each
employee’s personal responsibilities to uphold the code of ethics.
• Compliance: Any laws or regulations may be referred as rules to adhere to as
part of daily business interactions.
Furthermore, the code of ethics governs & is integral for the following:
• Strategic Decision-Making: A code of ethics in a small business can provide
a foundation on which to base all decisions that affect internal and external
stakeholders, such as employees or residents in the local community.
• Day-to-Day Decisions: Front-line employees often have less supervision and
more personal responsibility which makes it even more important for ethical
guidelines to be in place.
• Company Reputation: Proudly displaying your code of ethics & ensuring that
your actions are always in line with your words, can garner a positive image
among consumers and job-seekers helping to develop your brand image
• Legal Considerations: The legal benefits of having a code of ethics in place
make ethics statements a virtual requirement of doing business & is
especially important for sole proprietorships and partnerships.
• Build Customer Loyalty: A company’s reputation for ethical behavior can
bring in new customers through word-of-mouth referrals
• Retain Good Employees: Companies who are fair and open in their dealing
with employees have a better chance of retaining the most talented people.

Disadvantages of Code of Ethics:

a) Inequality b) Enforceability
c) Unethical Corporate Behaviour d) Lack of stability
Steps to make Code of Ethics

1. Review sample codes of ethics that company in similar business use. Read
those documents carefully and look for information you can apply to your
business.
2. Review other documents related to your business, including the firm’s mission
statement and any specific policies new hires receive as part of their orientation.
3. Solicit input from employees when you create the code of ethics.
 4. Address potential workplace issues, such as office romance and nepotism, in
your code of ethics.
5. Assign an individual in your company to be responsible for compiling the code of
ethics.
6. Ask your attorney to review the proposed code of ethics before putting it in force.

3. Steps in resolving an ethical dilemma

Ethical dilemmas are issues that require usage of an ethical value system to
determine a course of action that cannot be satisfactorily determined using facts and
technical rules alone. Ethical dilemmas can be resolved through effective decision-
making. The RIGHT Decision Method gives us tools to make sound ethical decisions
and resolve ethical dilemmas.
RIGHT is an acronym that stands for each step of the decision-making process –
which are included in the ethical dilemma.
• R: Recognize the ethical dilemma.
The first step is recognizing the conflicting obligations and clearly stating the
dilemma. It is important to recognize the Code of Ethics applicable to this
issue.
• I: Identify points of view.
The second step is identifying points of view in the situation. Considering the
viewpoint of the person receiving services, your colleagues & other parties
involved, restating the problem clearly to someone else can also help you
check out whether you have interpreted the situation accurately
• G: Gather resources and assistance.
The third step is gathering resources and assistance that might help you figure
out what to do. Now that you have an accurate understanding for the problem
and various perspectives, this step encourages you to consider other people
who may be able to assist you & agency policies that could be considered & if
there are any laws or regulations in the state that may influence your decision-
making.
• H: Have a plan.
The fourth step means that you are ready to make your decision. Formulating
a plan will help you decide the best way to put your ideas into action. Once you
have considered the following issues, write a plan down and identify step-by-
step actions – plan to take home that you must speak to first & what steps can
you take to ensure the best possible outcome for your decision.
• T: Act based on ethical standards.
The fifth and final step is implementing the plan you developed in the manner
you decided. Then, it is important to monitor its success using the success
 indicators you identified in the planning process to help you reflect on your
decision about what worked well and why?

Conflict of Interest

Conflict of Interest is used to describe the situation in which an official, contrary to the
obligation and absolute duty to act for the benefit of the designated task, exploits the
relationships for personal benefit, typically pecuniary.

The examples for potential conflict of interest can be a financial interest on any supplier,
direct or indirect partnership in a subcontract agency, immediate family members or
relatives working under the supervision of a professional.

Managing Conflict of Interests requires integrity and trust. In the event of any potential
conflict of interest, the professional shall disclose immediately to the concerned
authorities and try to refrain from attending to the task.

Ethics & Compliance Program

Professionals and professional organizations shall maintain a regular ethics and

compliance program and communicate their commitments to integrity, values, to ensure
compliance with applicable laws, rules and regulations. Such programs shall

• include educational and awareness to provide job specific compliance and

sensitivity to key issues.
• be designed to recognize and resolve any ethical and compliance issues which
may arise in daily activities of a professional.
• organizations may employ an Ethics compliance officer who shall be
responsible for formulating policies and procedures, providing guidance,
assistance and instruction

Engineering Failure Case Studies

1. Collapse of the Quebec Bridge

The Quebec Bridge is a cantilever bridge that spans the Saint Lawrence River in Quebec,
Canada. At the time, this was the largest cantilever structure attempted.

• Failure 1: During its construction in August of 1907, the bridge collapse occurred and
as a result 75 of the 86 workers on the project were killed, and 11 were injured

Later the Canadian government decided the project must be completed to build the
railway connection. Construction resumed in 1913. By September 1916, the bridge was
nearly finished, except for hoisting the centre span and connecting it to the cantilever
arms.
 • Failure 2: This time the span tore away from its lifts and plummeted into the water,
killing 13 construction workers and injuring several others.

Finally, the bridge was completed and opened to traffic one year later in 1917.

• Cause of Failure: The failure was neither linked to detailing, fabrication, or

material quality. It was due to bad engineering design. The investigation would
conclude that one of the most vital compression members buckled, causing the
collapse.

2. Ford Pinto Car

In 1970, Ford Motor Company began producing the Pinto, a small subcompact car. The
automaker set out to make a competitive, affordable car, but late into the development
of its design:

• Problem 1: Engineers discovered an issue with the fuel tank. The Pinto was
created with a weak rear end that may burst into flames in a rear-end collision.

Ford’s engineers suggested an easy fix for the problem, which would cost the company
an additional $11 for each vehicle.

• Problem 2: Despite this, the firm opted to stick with the design as is, both to keep
costs low and to avoid delaying production.

Impact: As many as 27 to 180 people died because of the fuel tank. Ford was eventually
sued for its flawed design and negligence and had to pay millions of dollars in damages.
When Ford lost a lawsuit in 1978, it recalled the Pinto from the market.

3. New Orleans Levee System

The levee system in New Orleans failed during Hurricane Katrina in 2005, leading to
devastating flooding in the city. The hurricane caused a storm surge of more than 25
feet (7.6 m) and affected more than 80% of the city.
 Impact: The devastation caused by Hurricane Katrina in New Orleans was
particularly severe. More than 1,800 people were killed and more than $100 billion
in damage was done across the Gulf Coast because of the storm.
 Cause of Failure: Engineers miscalculated the soil’s strength during construction
in addition to relying on incorrect data about land elevation & failed to consider
natural, modest sinking.

4. Chernobyl Nuclear Disaster

The Chernobyl nuclear plant explosion occurred on April 26, 1986, and resulted in the
release of a large amount of radioactive material into the atmosphere.
Impact: The fire and clean-up operation resulted in the death of hundreds of people,
with millions more in the former Soviet Union and Europe possibly affected by
 radiation exposure. At least 30,000 deaths of cancer patients are estimated to be
caused by the disaster.
Cause of Failure: Flawed reactor design which was operated by inadequately trained
personnel who are carrying out an unsafe procedure – with further loss caused by
Soviet Government’s attempt to cover up the disaster.

5. Apollo 13 Disaster
The Apollo 13 mission was launched on April 11, 1970, with the goal of landing two
astronauts on the moon. However, due to a series of technical failures, the astronauts
were forced to abort the landing and return to Earth.
Cause of Failure: The main failure was an oxygen tank explosion that caused a loss
of power and disrupted the spacecraft’s guidance system.
Impact: No casualty - On April 17th, the crew was brought safely home, thanks to the
efforts of mission controllers.

Professional Ethics

Ethics has been defined as the study of morality. In a professional environment ethics is
all about development of reasonable standards for deciding between what is right and
wrong or goodness and badness. Hence, professional ethics is a continuous process; it
is a way of reviewing behaviour against constantly changing standards. Some common
ethical standards are:

1. All professionals must be able to demonstrate that they act with integrity – honest,
straightforward & trustworthy in their dealings.
2. Confidential information shall not be divulged to unintended receivers.
3. A professional shall act impartially, without any bias and in the event of any
conflicting interest or any potential conflict of interest; the same shall be informed
to the relevant parties.
4. A professional shall always provide the best possible service within the context of
scope of engagement.
5. An efficient and effective communication system shall be in place – do what is
said and say only what can be done.
6. Treat others with courtesy, politeness, consideration and respect immaterial of
their race, religion, size, age, gender, disability, etc.
7. A professional shall be accountable for all their actions; they must take
responsibility whether it is right or wrong.

Ethical guidelines may include particulars regarding the principle of accepting gifts/
hospitality, health and safety regulations to be adhered to, dealing with issues related to
conflicts of interest, procedures to be followed in money transactions, authorities of
disclosing confidential information of the organization.

Leadership Ethics: The ethics that leaders in an organization use to manage employees.
The leaders of a business may create an ethical culture by exhibiting the type of behavior
they had like to see in employees.

Employee Ethics: Ethical behavior among workers in an organization - ensures that

employees complete work with honesty and integrity. The organization can reinforce
ethical behavior by rewarding employees who exhibit the values and integrity that
coincides with the company code of ethics and disciplining those who make the wrong
choices.

Ethical Organizational Culture: Leaders and employees adhering to a code of ethics

create an ethical organizational culture.

Define Ethics

• Ethics may be defined as the systematic study of human actions from the point of view
of their rightfulness or wrongfulness, as means for the attainment of the ultimate
happiness.
• Etymologically the term “ethics” correspond to the Greek word “ethos” which means
character, habit, customs, ways of behavior, etc.
• Ethics is also called “moral philosophy”. The word “moral” comes from Latin word
“mores” which signifies customs, character, behavior, etc.

Scope of Ethics

Ethics deals with voluntary actions.

• Human Action: Those actions that are done by human consciously, deliberately and
in view of an end
• Actions of Human: May not be willfully, voluntarily, consciously and deliberately
done but all the same they are done by human (e.g. sleeping, walking, etc.).

Method of Ethics
Non-normative approaches examine morality without concern for making judgements
as to what is morally right or wrong.

Descriptive ethics describe and sometimes try to explain the moral and ethical
practices and beliefs of certain societies and cultures.

Metaethics focuses on the analysis of the meanings of the central terms used in ethical
reasoning and decision-making. It attempts to answer questions of meaning.

Normative approaches make judgements as to what is morally right or wrong.

History of Ethics:

The history of ethics traces the evolution of moral thought from ancient philosophy to
contemporary debates.

• In ancient Greece, philosophers like Socrates, Plato, and Aristotle laid the foundation
of ethical thought. Socrates focused on moral questions through dialogue, aiming to
define virtues like justice and courage. Plato, his student, explored the ideal state and
moral virtues while Aristotle introduced virtue ethics, emphasizing character.
• During the medieval period, Christian thinkers like Augustine and Thomas Aquinas
integrated Greco-Roman ethics with Christian doctrine. Aquinas’ natural law theory
argued that moral principles could be derived from human nature and reason,
reflecting God’s will.
• In the Enlightenment, Immanuel Kant’s deontological ethics focused on duty and
universal moral laws, while John Stuart Mill promoted utilitarianism, asserting that
actions should aim to maximize overall happiness.
• In the 19th and 20th centuries, ethics branched into diverse schools of thought.
Existentialists like Jean-Paul Sartre emphasized individual freedom and
responsibility, while contemporary moral philosophy saw the rise of relativism, virtue
ethics, and care ethics.

Today, ethics continues to evolve, addressing modern issues like bioethics,

environmental ethics, and social justice. Philosophers remain engaged with timeless
questions, seeking to understand the moral dimensions of human life in an increasingly
complex world.