Responsible Professionals and Ethical Corporations

The engineering industry has been at the forefront of the development of corporations
in recent years. This is due to the increasingly shifting of the markets for its goods and services
towards the developing world and the core activities of the engineering industry that require
many individual to work together.
The two main stages in the development of engineering as a profession were identified
by Edwin T. Layton, Jr. which are increase demand for infrastructure and services and that
demand for engineers burst out. The corporate control underlies the primary ethical dilemmas
confronted by engineers as suggested by Layton. In this topic, the different forms of
responsibility of corporations are discussed.

In Engineering Ethics, Professions are defined as those forms of work involving advanced
expertise, self- regulation and concerted service to the public good.
Professions require refined skills and theoretical knowledge in exercising judgment that
is not entirely routine or susceptible to mechanization. These skills are acquired from an
extensive formal training or education. The expertise possessed by engineers is vitally important
to the public welfare. Professional skills are important to the well-being of society.
Professions are self-regulating, in that they control the training and evaluation
processes that admit new persons to the field. Professions are regulated by ethical standards.
Professional societies have a certain degree of autonomy in the regulation of their practice
which was allowed by the public. Each engineering discipline and professional society maintains
a code of ethics, which the members pledge to uphold. Professionals are expected to utilize
their independent judgment in carrying out their professional responsibilities.
Professions are directed in serving the public good. Engineering is engaged toward
technological solutions to problems concerning the publics well-being, safety and health. In
order to serve the public effectively, engineers must maintain a high level of technical
competence. However, a high level of technical expertise without adherence to ethical
guidelines is as much a threat to public welfare as is professional incompetence. Therefore,
engineers must also be guided by ethical principles. The ethical principles governing the
engineering profession are embodied in codes of ethics. Such codes have been adopted by
state boards of registration, professional engineering societies, and even by some private

industries. As part of an engineers responsibility to the public, an engineer is responsible for

knowing and abiding by these codes. However, there may be situations in which applying the
code may raise more difficult issues. In particular, there may be cases in which terminology in
the codes is not clearly defined, or in conflict.
Ethical Climate
An ethical work climate leads to more trust in the company, stronger commitment from
employees, lower absenteeism and turnover rates, higher profitability and productivity, and a
more positive attitude to work and good conduct.
An ethical climate also reduces employee misconduct. Several studies have found a
positive relationship between the ethical climate in a company and job satisfaction. Larger
corporations characterized by more intense competition and profit-making pressures face a
greater challenge in maintaining an ethical climate.
Social Responsibility of Corporations
Social Responsibility Movement has outstretched consideration to product quality, the
well-being of workers, the wider community and the environment since 1960s and also, of
which is reflected in the Stakeholder Theory. Responsible corporations also strive to be good
neighbors by supporting local schools, cultural activities, civic groups and charities.
Stakeholder Theory:
Corporations have responsibilities to all groups that have a vital stake in the
corporation

including

employees,

customers,

dealers,

suppliers,

local

communities, and the general public.

The social responsibility movement was attacked by Milton Friedman, a Nobel Laureate
economist, in a famous essay The Social Responsibility of a Business is to Increase Its Profits.
He argued that the sole responsibility of the management is to satisfy the desires of the
stockholders while conforming to the basic laws of society but his view is ultimately selfdefeating.
When the public perceives corporations as having wider social commitments, it is more
willing to cooperate and purchase products from socially responsible corporations. Thus, the

moral roles of engineers and their corporations are symbiotic and it is essential for engineering
and corporations, in their major dimensions, to be morally aligned.

Moral Responsibility of Corporations

In dealing with corporate responsibility, the senses of responsibility of an individual
which revolve around obligations, accountability, the virtue of being conscientious, and
praiseworthiness and blameworthiness are also applied. Corporations, as defined, are
communities

of

individuals,

structured

within

legal

frameworks.

Thus,

the

senses

aforementioned apply for corporations, too.

Corporations have responsibilitiesobligations just like individuals. In addition,
corporations have internal structures consisting of policy manual and flowcharts assigning
responsibilities to individuals. The unity of a corporation is expressed when these individuals act
in accordance with their assigned responsibilities.
Corporations are accountable to the general public, to their employees and customers,
and to their stockholders. The actions of the corporation are performed by individuals and
subgroups within the corporation, according to how the flowchart and policy manual specifies
areas of authority.
Corporations manifest the virtue of responsibilityconscientious when they routinely
meet their obligations.
Corporations could also be blameworthy if they are accountable for a wrong doing and
praiseworthy if they are accountable for right conduct.
Hence, these pertain to the moral responsibility of a corporation. Causal responsibility
and legal responsibility are distinct from moral responsibility. Causal responsibility consists
simply in being a cause of some event. Legal responsibility consists simply what the law
requires.

A Morally Committed Corporation in the Philippines

Petrochemical company Shell is among seven companies in the Philippines that
received highest ratings in ethical business practices. The recognition was given by the Makati
Business Club (MBC) in cooperation with the European Chamber of Commerce of the
Philippines (ECCP), which established the Integrity Initiativea private sector-led campaign that
aims to strengthen ethical standards in society. It aspires for a level playing field for business,
where ethical companies enjoy competitive advantage in both government and private sector
transactions.
Shell was categorized in the Advanced Level of implementing integrity initiatives, after
having undertaken earlier in the year the Integrity Self-Assessment Tool launched by Integrity
Initiative. For Shell companies in the Philippines (SciP), this involved each of its three
businesses in the country, namely: Shell Philippines Exploration, B.V. (SPEX), Shell Business
Service CenterManila (SBSC), and Pilipinas Shell Petroleum Corporation (PSPC), all of which
have given clear signals down the line on their initiatives against corruption and unethical
practices.
Shells orientation toward integrity is ultimately in line with its commitment toward nationbuilding, expressed through advocacies covering many aspects of business and society, such
as: youth development, environmental management, road safety, driver education, efficient
transport, developing new energy sources, smarter products, smarter infrastructure, and many
others. It showcased the significant progress of the private sector in establishing a new breed of
companies that is driving culture change and is spearheading the campaign to build the
Philippines as a nation with integrity.
This is the latest and one of the most important highlights of Shells local business
integrity milestones. In 2012, Shell reinforced the companys commitment to anti-bribery and
corruption with a pledge of its managing executives in the Philippines. In March 2013, after
having attained the Advanced level in the Integrity Self-Assessment Tool, Shell reiterated the
companys commitment to personal and business integrity by launching a company-wide
integrity campaign dubbed I COMMIT. Think. Act. Work. With Integrity.
The campaign revolved around the role of each Shell staff in upholding the core values
of Shells General Business Principleshonesty, integrity and respect, and transparency and
fairness. Moreover, the same is expected of any supplier engaging in any business transaction
with Shell, as well as other stakeholders and customers.

This call for integrity is amidst a backdrop of stronger global pressure for companies to
embrace ethical practices. Shell set high standards of performance and ethical behavior that is
exceptional in spite of the more intense competition and profit-making pressures among large
companies nowadays. Nevertheless, maintaining an ethical climate or high ethical standards
must be emulated by other companies and the business community in the Philippines.
Relating Social Responsibility of a Corporation in the Philippine setting:
Smart Communications, Inc. (Smart) is the Philippines' leading wireless services
provider with 54.2 million subscribers on its GSM network as of end-2012. A wholly owned
subsidiary of the countrys dominant telecommunications carrier, the Philippine Long Distance
Telephone Co. (PLDT), Smart and its subsidiaries operate a nationwide cellular network, a
wireless broadband service, a satellite phone service, and mobile commerce services.
Efforts of Smart Communications, Inc. (Smart) to practice corporate social responsibility
(CSR) dates back to its early years when employees, singly or in groups, conducted community
service activities. It was in 2003, Smart Communities was born. By creating partnerships, Smart
has transformed Smart Communities into a stronger, more established CSR and CS
program: Smart Kabalikat. Renaming Smarts CSR Kabalikat emphasizes that initiatives are
crafted hand in hand with the communities, often involving their participation in various stages,
from development to implementation, to evaluation and monitoring.
SMART has lined up several major community partnership initiatives in the field of
educationharnessing technology to complement the formal classroom learning across all
levels. Smart has undertaken programs to address the needs of elementary up to tertiary levels.
Some of their programs are Smart Wireless Engineering Education Program (SWEEP), which is
a partnership between the academe and the industry that seeks to utilize wireless
communications technology in improving the level of engineering and information technology
education in the country and TechX, which is an exchange program where individuals or groups
who do social good swap their accomplishments for technology, which can further enable their
work and at the same time, provide much-needed technology support for a public school in their
community. CommuniTeach is also one of their programs which aim to foster nation-building
through community intervention and support in basic education.
Smart is making a difference in the lives of its subscribers, not only in terms of
convenient and reliable communications, but also in terms of livelihood opportunities. Smarts
Project Zero aims to create livelihood projects through innovative design and product

development such as discarded tarpaulins from Smarts promotional materials which are
shipped to Iloilo for upcycling, converting these into high-quality, environmentally-friendly
fashionable bags. They are also training the residents of the communities residing within the
Marikina watershed in alternative livelihood such as organic farming and bamboo design and
construction is seen to help improve their means.
Smart has established its leadership in disaster preparedness and response, ensuring
not only that its network is immediately restored on the wake of disasters but also that it is able
to respond to the needs of affected communities and responding agencies by way of relief
operations and free voice call and data services. It is a collaborative effort with the Department
of Science and Technology to launch the mobile application of the on-time weather information
on DOSTs Project NOAH website for Android mobile devices. NOAH or the Nationwide
Operational Assessment of Hazards is a responsive disaster mitigation program developed by
the DOST in partnership with the University of the Philippines.
As the countrys leading wireless services provider with facilities strategically located
nationwide, Smart recognizes that it plays a key role in contributing to efforts to institutionalize
sound environmental practice in the telecoms industry. Smarts Green Merchandising campaign
involves the use of eco-friendly materials from instead of the traditional plastic-based solutions
for its packaging and outdoor advertising materials such as awnings, tarpaulins and bags for its
mobile phone kits. Also, their Green Cell Sites campaign has been able to reduce Smarts
carbon emission by using alternative energy to power some 124 cell sites in off-grid areas
nationwide and they have been planting trees since 2005 in an effort to offset its greenhouse
gas emissions in its operations.
Currently, Smart is the only Philippine telco that has ventured and invested in mHealth
the practice of medicine and public health supported by wireless communication devices such
as mobile phones and tablet computers. Their programs include Secured Health Information
Network and Exchange (SHINE), which is the flagship mHealth project of Smart that aims to
raise the efficiency and effectiveness of healthcare facilities through the innovative use of
mobile and ICT technologies, and Amputee Screening via CEllphone NeTworking (ASCENT)
which is a mobile and web application allowing real-time evaluation and advice on prosthesis
use to amputees in far-flung communities.
We can see that Kabalikat is relevant not only to social investors, shareholders and the
general public, but also to employees who keep the spirit of volunteerism alive by participating

in CSR and CS initiatives. With this, Smart establishes itself as a long-term partner in a
communitys development. All these endeavors are committed to one singular goal that of
fulfilling the needs and uplifting the quality of life of each and every Filipino.