ENGINEERING ETHICS CHAPTER 4: 4'54'6 AGNEW CASE

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ENGINEERING ETHICSCHAPTER 4 4.5-4.6AGNEW CASE

• By
• Roy Arias
• David Crawford
• Esteban Duque

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4.5 Conflict Problems

• A problem that presents us with a choice between
  two conflicting moral values.

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Types of Conflict Problems

• Unbalanced Moral Choice

• The Hard Choice

The Creative Middle Way
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Unbalanced Moral Choice

• One is obviously more significant than the other.
• Example public safety is more important than
  your duty to your employer.

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Creative Middle Way

• Attempt at a compromise that will work for
  everyone.
• Problem it takes a great deal of diplomacy to
  sell it to everyone
• Jokingly defined as The solution where nobody
  gets what they want

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The Hard Choice

• Last Resort
• Make the best choice possible with the
  information available at the time
• Rely on gut feelings

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Challenger Example

• The three different choices were applied in this
  example.

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4.6 Bribery/Acceptance of Gifts

• A bribe is something, such as money or a favor,
  offered or given to someone in a position of
  trust in order to induce him to act dishonestly.

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How Bribery Affects Engineers

• Engineers deal with vendors who wish to sell them
  products.
• Engineers may act as vendors themselves in
  selling to other engineers or companies.
• Bribery is prohibited everywhere.
• US law prohibits American companies from engaging
  in bribery overseas.

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Why Not to Tolerate Bribery

• Bribery corrupts the free market economic system
  and is anti-competitive.
• It is a sellout to the rich.
• Bribery treats people as commodities that can be
  bought and sold.

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When is a Gift a Bribe?

• Subtle difference between a legitimate gift and a
  bribe.
• Dining with a customer or supplier is an accepted
  practice.
• When meals or gifts are no longer of low cost and
  expense is not shared equally, the possibility
  for abuse becomes large.

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Examples of Gifts vs. Bribes

• During a sales visit, a representative offers you
  a coffee mug with his companys name and logo on
  it. The value of the mug is 5.
• Can you accept this gift?
• What if its a 350 crystal bowl with the name of
  the company engraved on it?
• What if it has no engraving?

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Example Two

• Your meeting with a sales representative is
  running into the lunch hour. She invites you to
  go out for lunch.
• What if you go to a fast food restaurant?
• What if its a five star restaurant?
• What if she pays for it?

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Example Three

• A company sales representative would like for you
  to attend a one-day sales seminar in Cleveland.
  Your company will pay for your trip.
• Should you go?
• What if the meeting were in Maui?
• What if the sales representatives company pays?
• What if your family is invited as well?

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Timing of Gifts

• Before a sale
• After the sale
• Does it make a difference?

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Problem Solving

• Check the facts who offered the gift, and what
  was its value?
• Line drawing can be used to pick out the ethical
  choice based on value and timing of the gift.
• Flow charting may also be used to examine the
  consequence that will result from offering or
  accepting a gift.

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Avoiding Bribery Problems

• Look at company policy.
• Preapproval from management is the best guide to
  what is acceptable.

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New York Times Test

• Could your actions withstand the scrutiny of a
  newspaper reporter?
• Could you stand to see your name in the newspaper
  in an article about the gift you received?
• If you couldnt easily defend your action without
  resorting to self-serving rationalizations, you
  probably shouldnt do it.

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The Agnew Case

• Thomas Matz was a partner in an engineering firm
  that soon figured out that government projects
  were awarded as favors, not on merit.
• In 1962, Matz donated an initial sum of 500.00
  to Agnews campaign for Baltimore County
  Executive.

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Agnew Case

• Agnew received a percentage from each contract
  awarded, and through this arrangement they both
  became rich.
• Overall, Matz gave Agnew over 100,000.

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Agnew Case

• They were caught by the methods Matz used to
  raise cash. He awarded bonuses which he kept
  in the company safe. This is tax evasion.
• Another method was with loans that were made to
  colleagues who cashed them and returned the
  money.

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Results of the Agnew Case

• Agnew was fined 10,000 after entering a plea of
  nolo contendere to a count of tax evasion and
  resigning from the Vice Presidency.
• Because Matz cooperated, he was not punished.

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International Gift Giving Protocol

• Customs vary greatly from country to country.
• Highest Importance Japan
• Middling Importance China and Latin America
• Lowest Importance Europe and the US

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Views on Bribery Through History

• Concept of bribery is dynamic through history.
• Bribery has become a less tolerated practice in
  recent times, especially with the spread of
  market economy.
• Bribery creates cynicism and a general distrust
  of institutions.

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Here Comes the Bribe

• The Foreign Corrupt Practices Act prohibits
  bribery for business purposes and prevents
  businesses from disguising them.
• Bribery was accepted as a business expense for
  tax returns in Germany and Canada until the
  Organization for Economic Cooperation and
  Development was signed in 1997.

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References

• Accepting gifts and amenities. Department of
  Philosophy ,Texas AM University. June 1992
• http//ethics.tamu.edu/ethics/giftgive/giftg
  iv1.htm
• Fledderman, Charles. Engineering Ethics. Second
  Edition
• Pearson Prentice Hall. Upper Saddle River, NJ.
  2004
• Kurth, Susan. International Gift Giving Protocol.
• Netique Gift Boutique. June 1998
• http//www.4hb.com/marketing/0113intergift.html
• Moria, Allen. Here Comes the Bribe.
• Entrepreneur Magazine. October 2000
• http//www.entrepreneur.com/article/0,4621,
  279734,00. html