Conflict of Interest

Simply it is a situation in which there are (personal, family,

private, etc) interests that diverge or in conflict with your
professional obligations that are based on your
experience and expertise.

Some of the conflict of interest bad consequences1:

It increases the temptation for unethical conduct
It increases the unintentional bias

Some guidelines to manage conflict of interest1:

Avoid and minimize conflicts
Disclose (reveal) your interests (rules of practice 4a)

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1University f Alberta, Ethics training course .
Conflict of Interest
Some situations that may lead to conflict of interests:
Bribes:
Substantial amount of money or goods offered (usually in
secret) to have an unfair and unethical advantage

Gifts
Are not bribes as long as they are:
Small
Offered in normal conduct
Made in public and according to the company policies

As a rule of thumb, Never ever accept/offer a gift that will

affect your professional ethical conduct.

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K. Conflict of Interest
Some situations that may lead to conflict of interests:
Interests in other companies
You are looking for a position in a competitor company
You have financial interest in certain company (other than the
company you work for)
Working at night for a second company!!!!!

Insider information
Use inside information to set up a personal (yourself, family,
friend, etc) busniness.

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L. Ethical Dilemmas
Ethical dilemmas happen when:
Moral reasons come to conflict
Application of moral values are unclear
Conflict of interest exist
etc.

Useful steps to solve dilemmas

Moral clarity (Remember codes of ethics)
Conceptual clarity
Informed about the facts
Informed about the options
Well-reasoned

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Moral Dilemmas

Kickbacks
An Engineer demanded a 25% kickback (bribe, payment) in secret payments
for highway work contracts he issued. He made such an offer to
Engineer x, a 32 year old civil engineer who was vice president of a
young and struggling consulting firm greatly in need of the work.
Engineer x discussed the offer with others in the firm, who told him it
was his decision to make. Finally Engineer x agreed to the deal, citing as
a main reason his concern for getting sufficient work to retain his
current employees. (Martin and Schinzinger, pg 14)
Does this violate the codes of ethics? How?
More Moral Dilemmas
Waste dumping
On a midnight shift, a botched (inferior) solution of sodium cyanide, a
reactant in an organic synthesis, is temporarily stored in drums for
reprocessing. Two weeks later, the day shift foreman cannot find the drums.
Roy, the plant manager, finds out that the batch had been illegally dumped
into the sanitary sewer. Upon making discrete inquiries, he finds out that
no apparent harm has resulted from the dumping. (Martin and Schinzinger,
pg 32)

Should Roy inform government authorities, as is required by law in this kind of

situation?
More Moral Dilemmas
I have a wife and kids...
Older engineers, in particular, find job security in competition with ethical
instinct. With considerable sympathy, I recall the dilemma of an older PE, in
the shadow of a comfortable retirement, who was confronted by a new
general manager of the plant in which he was employed as a facility
engineer. In consideration of plans for a plant expansion, the general
manager insisted that the PE reduce footings and structural steel
specifications below standards of good practice. The PE was told to choose
between his job and his seal on the plans. Did he really have a choice?
(ref Martin and Schinzinger, pg 212)
Summary

Where you draw the line is your choice

Corporate ethics begins with each person
You can be held personally and legally responsible
for your professional actions
It is important to understand your companys
attitude toward ethics - it should be a factor in
your choice of employer
The Engineering Process
Concept

Engineering: Corporate
Design context:
Produce Time pressure
Install Cost pressure
Operate Secrecy

Intended outcomes: External context:

User satisfaction Uncertainty
Company profits Legal framework
Unintended outcomes Social impacts
Environmental impacts