Team 1
Dean Pichette
B E 1200
March 31, 2014
Assignment: Ethics Case Study “Inside Tool and Die”
1. The introduction
The purpose of this report is to learn and understand the NSPE Code of Ethics for engineers. We
have to study an ethical case related with the company T&D Manufacturing. The company’s
goals is to obtain needed tools. The procedure is as follows:

Tools are designed in house by company tool engineers

Design is approved.

Part prints and specifications are mailed to at least 3 approved vendors.

The outside shop supplying the best price and delivery date is usually awarded a contract
to produce the tool.
T&D has his own internal tool and die department, which in the past resharpened and repaired
the tools that were purchased outside. However, the head of the department requested
management to allow them to offer a price to produce the tooling internally, and this request was
approved. Next the department head placed a call to the Purchasing Department, and asked for
the prices obtained from the outside vendors before he submits his quote.
2. Our opinion:
The Purchasing Department should refuse the request as being unethical. This request is
inconsistent with the National Society of Professional Engineers code of Ethics. The department
head wants to take advantage of the information that shouldn’t be revealed at this time. It would
be unfair game with outside vendors who would lose out in the bidding, because of the unequal
chances. What is more, it would show the disrespect for other vendors’ time and energy. It could
also lead to the company degradation. Due to the revealed information, the department would
always be able to have the best bid. Therefore, they would take control over the prices, and the
quality and finance would be at stake. Moreover, if the vendors discovered this fact, they
probably would stop cooperating with T&D and providing them free advice.
3. The NSPE Code of Ethics:

I. Fundamental Canons
Engineers, in the fulfillment of their professional duties, shall:
4. Act for each employer or client as faithful agents or trustees.
5.Avoid deceptive acts.
6. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance
the honor, reputation, and usefulness of the profession. 1
We chose these three points from the 1st part of the Code of Ethics for Engineers "Fundamental
Canons", because we believe that the engineers should act faithfully, truthfully and hold
paramount the welfare of the public, clients and employers. They should respect their profession,
and enhance its honor, reputation, and responsibility. If the purchasing department revealed the
information, the all values listed above would be disrespected and the fundamental rules would
be forgotten.

II. Rules of Practice
1.Engineers shall hold paramount the safety, health, and welfare of the public.
1.3. Engineers shall not reveal facts, data, or information without the prior consent of the
client or employer except as authorized or required by law or this Code. 2
We chose this point of the Code of Ethics for Engineers, because if the purchasing department
revealed the information about the prices, they would do this without the prior consent of other
vendors. What's more, this revealing wouldn't be justified by law or this Code.

II. Rules of Practice
2. Engineers shall perform services only in the areas of their competence.
2.1. Engineers shall undertake assignments only when qualified by education or
experience in the specific technical fields involved. 3
We chose this point of the Code of Ethics for Engineers, because if the group of engineers from
T&D Manufacturing started producing the tools, they would do this without required
qualifications. In the past, they used to repair and resharpen the tools. They weren't in charge of
the production of new tools, nor is it specified whether or that they are in fact qualified to do
such procedures.

III. Professional Obligations
1. Engineers shall be guided in all their relations by the highest standards of honesty and
integrity.
1.5. Engineers shall not promote their own interest at the expense of the dignity and
integrity of the profession.4
We chose this point of the Code of Ethics for Engineers, because if the purchasing department
shared the information about the prices with their internal department, they would promote their
own interest. They would play unfair, because their own department would always be able to
offer a better deal by out bidding the other vendors. Thus, it would lead to disrespect the dignity,
honesty, and integrity of the profession.

III. Professional Obligations
4. Engineers shall not disclose, without consent, confidential information concerning the
business affairs or technical processes of any present or former client or employer, or
public body on which they serve.
4.1. Engineers shall not, without the consent of all interested parties, promote or arrange
for new employment or practice in connection with a specific project for which the
engineer has gained particular and specialized knowledge.
4.2. Engineers shall not, without the consent of all interested parties, participate in or
represent an adversary interest in connection with a specific project or processing in
which the engineer has gained particular specialized knowledge on behalf of a former
client or employer.5
We chose this point of the Code of Ethics for Engineers, because the purchasing department at
T&D Manufacturing shouldn't reveal this kind of information because it puts the internal
company at an unfair advantage over the other vendors. They have to receive the consent from
all their vendors before informing their own department about other vendors' prices.
According to the point 4.1. In this case, the purchasing department would promote and arrange
for new employment and practice within their own company. It would happen only because this
department would be provided with the particular information that they shouldn't obtain at that
time.
According to the point 4.2. In this case, the purchasing department would give the information
about the competition to their internal department without all interested party's consent.
Therefore, their department would take the advantage of this specialized knowledge on behalf of
other vendors.
4. Sources:
NSPE Code of Ethics for Engineers
National Society of Professional Engineers
1420 King Street
Alexandria, Virginia 22314-2794,
703/684-2800 • Fax: 703/836-4875
www.nspe.org
Publication date as revised: July 2007 • Publication #1102
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NSPE Code of Ethics
NSPE Code of Ethics
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NSPE Code of Ethics
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NSPE Code of Ethics
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NSPE Code of Ethics
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