Tutorial 16
Ethics Engineering and Business
Overview of Main Points
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Review role of ICAC in Hong Kong
Discuss examples of Ethics violations in business
Introduction of the ETHICS-PLUS model
Demonstrate use of the model to analyze video case
Introduction
The role of ICAC is one of law enforcement. During the talk of the HKEDC
representative ethics violations in business were discussed. They included the Ford Pinto
case because Ford tried to persuade legislators to delay enactment of a law that, once
established, would have stopped Ford from allowing the safety problems to begin with.
ICAC suggests using the Ethics-Plus model to help determine what should be done in an
ethical dilemma. It provides more a forum for those involved to ask the right questions
and make their own decisions. The model will be discussed in light of the scenario in the
video provided by HKEDC/ICAC called ‘Think Before You Leap’.
Role of Independent Commission Against Corruption (ICAC)
The role of ICAC in Hong Kong is one of law enforcement. The ICAC attempts to
prevent bribery and enforce ‘anticorruption’ laws. Among their tasks is to prevent the
offer and acceptance of ‘advantage’ in the workplace. Accepting ‘advantage’ or ‘bribery’
is punishable as a criminal offense. ‘Advantage’ means any gift, loan, fee, reward or
payment consisting of money or other valuables.
In addition the Hong Kong Ethics Development Center, part of ICAC, provides services
to the community on promoting ‘ethics in the workplace’ and have developed
instructional materials as well. The instructional materials consist of videos such as
‘Think Before You Leap’, a quarterly newsletter called ‘Ethics in Practice’ and a model
called the ‘ETHICS-PLUS’ model for determining what to do in ethical dilemmas.
Ethics Violations in Business
During the talk of the HKEDC representative ethics violations in business were
discussed. They included the Ford Pinto case because Ford tried to persuade legislators,
Science, Technology and Society: A Tutorial for Engineers, Scientists and Business version 1.0 Spring 1997
Dr. Vincent G. Duffy IEEM and Dr. Robert Ferguson, SOSC Hong Kong University of Science and Technology
61
unethically, to delay enactment of a law that, once established, would have stopped Ford
from allowing these safety problems to begin with. Ford, decided to go ahead with
production of the Pinto, knowing the safety problems. Their decision was based on the
unit cost based on weight and time in trying to beat the Japanese competitor to the
marketplace.
In calculating the unit cost, they estimated the number of deaths that could occur from the
safety problem (exposed fuel tank which leaves the car vulnerable to explosion upon rear
end collision with another vehicle). It was judged that the cost of fixing the problem
would cost more than the risk due to wrongful death, so production was continued.
Ultimately, Ford was wrong and had to pay a great deal in ‘wrongful death’ claims to
surviving family members after accident.
The Ethics-PLUS Model
The Ethics-Plus model is suggested for use by employees facing such similar dilemmas at
work. The parts of the model are as follows:
E - Establish relevant facts and identify the ethical issues involved.
T - Take stock of all ‘stakeholders’ or parties involved
H - Have an objective assessment of each stakeholder’s position (including likely
responses)
I - Identify viable/possible alternatives and their effects on the stakeholders
C - Compare and evaluate likely consequences of each alternative.
S - Select the most appropriate course of action
P - Professional or company code of conduct
L - Legal requirements
U - Uncompromisable self values e.g. integrity, loyalty, honesty
S - Sunshine test i.e. whether the issue can be discussed openly and the decision
disclosed
without difficulty or discomfort.
Using the ETHICS-PLUS model to determine what to do in Ethical
Dilemmas
It is suggested by ICAC that the Ethics-PLUS model could be used by business
executives facing ethical dilemmas. How could the model be used to deal with the
dilemma shown in video segment one, ‘Through the Back Door’?
Recall the segment in which Shum, a marketing representative for a fire fighting
equipment company, was working hard to get a multi-million dollar contract with the
company of Mr. Cheung. Mr. Cheung was working as VP of a group based in the U.S.
Science, Technology and Society: A Tutorial for Engineers, Scientists and Business version 1.0 Spring 1997
Dr. Vincent G. Duffy IEEM and Dr. Robert Ferguson, SOSC Hong Kong University of Science and Technology
62
Shum met Cheung’s wife and discovered that the charity chaired by her was looking for a
donation of $500,000 HKD. Shum was advised by his peer to recommend that the
company make the donation to the charity of Cheung’s wife in order to improve the
chance of winning the contract. If you were Shum you would ……
E - Establish the facts and identify ethical issues
Shum wanted to get the contract of Cheung’s company. He learned from Cheung’s wife
that the charity was looking for a donation. Shum has to decide whether or not to
recommend to his company to make the donation. Ethical issues? Fair competition,
marketing ethics.
T- Take Stock of Stakeholders?
Shum’s career prospects are jeopardized if they do not get the contract. Also, what if he
suggests that the company make the donation and still not get the contract. What if
Cheung, after the donation, decides it is a conflict of interest for him to give the contract
to Shum’s company? Then Shum’s company would have not $500,000 and no contract
either. If Shum ignores Mrs. Cheung’s suggestion/request, then he risks upsetting Mrs.
Cheung and possibly Cheung. If Shum suggests that they make the donation just to get
the contract, other coworkers may think him unethical. What about competitors if they
find out?
I - Identify alternatives.
Shum’s best bet is to try to consult with top management and have them to decide. He
could pretend not to have heard Mrs. Cheung’s hint for donation. He could also try to
find a way to buy some time, or delay the decision so as to make the decision to donate
separate from the attempt to get the contract (go through formal channels with the request
and have the formal channels decide - possibly with some delay).
C - Consider key factors.
Other considerations before selecting should be mentioned (see PLUS)
S - Select an appropriate course of action.
Shum should do whatever possible to have these issues decided independently (one
outcome should not be based on the outcome of the other if possible)
P - Professional - What are the company codes of conduct on this type of situation?
L - Legal - Is he subject to the bribery ordinance if he offers a $500,000 ‘advantage’ in
this situation?
U - Uncompromisable values - fairness. Would it be fair if he makes the donation with
intention to improve his chances of the contract. It is best if Shum can keep
consideration of these two issues separate.
S - Can his decision pass or fail the sunshine test? How would the authorities or the
public react if they knew his actions? He should keep this in mind as feedback during
his decision making process.
Science, Technology and Society: A Tutorial for Engineers, Scientists and Business version 1.0 Spring 1997
Dr. Vincent G. Duffy IEEM and Dr. Robert Ferguson, SOSC Hong Kong University of Science and Technology
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Further study
“Ethics in Practice”, Hong Kong Ethics Development Centre, Hong Kong Government
Printer, January, 1997.
J. Glynn Henry and Gary W. Heinke, Environmental Science and Engineering, 2nd
edition, Prentice Hall International Editions: New Jersey, 1996.
David J. Fritzsche, Business Ethics, The McGraw-Hill Book Companies, Inc. New York,
1997.
Science, Technology and Society: A Tutorial for Engineers, Scientists and Business version 1.0 Spring 1997
Dr. Vincent G. Duffy IEEM and Dr. Robert Ferguson, SOSC Hong Kong University of Science and Technology
64