PERSONAL ETHICS TODAY
Alfred Smith, Jr.
Independent Consultant
New Orleans, LA
a-csmith@cox.net
(504) 738-5176
September 16, 2003
SUMMARY
Proper ethics is one of the most important personal qualities any person can have and practice during
their life and work career. This seminar will explore ethics from the engineering and quality individual
performer's perspective, including all levels of management. Ethical requirements, rules, and guidelines
will be reviewed for companies, organizations, and individuals as they relate to these personnel
(engineering and quality) as well as other personnel in related fields (finance, marketing, operations, and
purchasing). Ethical practices will be discussed in areas of concern including conflict of interest,
consulting services, and registration for certification.
INTRODUCTION
Using a flip chart: "YOU WILL BE THE SAME PERSON FIVE YEARS FROM NOW WITH THE
EXCEPTION OF: BOOKS YOU READ, PEOPLE YOU MEET, PLACES YOU GO, RISKS YOU TAKE."
(From Bob Boylan in his book "What's Your Point.")
My first goal during this session is to meet the mission as set forth in the description of the seminar (See
SUMMARY). However, I have a second goal, which is to offer guidelines, ideas, knowledge, and advice
that can help make you a better and more successful person. As a consultant, my job is usually to get
people to think. However, my more difficult challenge is to get them to rethink. You will need to rethink
and do things a little differently to get better and become more successful.
Note: A "draft" copy of the presentation with a copy of the ASQ Code of Ethics was distributed to the
attendees to save time taking notes and assure follow-up sources were available.
During the past five years the United States has experienced an abnormal number of business and
engineering catastrophes and disasters, where the cause has too often involved the lack of ethics, the
violation of a code of ethics, or the violation of procedures. You seldom miss a day when a new or
ongoing ethical problem is not being discussed in the news. I would wager that over 50% of the people in
this room have been affected financially by business failures such as those at Enron, Adelphia
Communications, Tyco, Martha Stewart Enterprises, and WorldCom.
Note: A rough profile of the audience at this presentation indicated by show of hands that: (1) the majority
have lost money on the stock market during the past three years, (2) a few are professional engineers, (3)
most are American Society for Quality (ASQ) members, (4) about half of ASQ members present indicated
they have read the ASQ Code of Ethics, and (5) most of the "half" are ASQ certified personnel.
Ethical problems are not new, but the recent rash of disasters and business failures have caused
tremendous repercussions involving peoples' lives and the loss of billions of dollars to the economy. This
has forced business, government, and professional communities to take action in order to prevent future
problems and failures. Actions include the United States Congress passing new laws tightening
accounting rules and penalties, Wall Street requiring new companies to have an acceptable set of
employment rules and Code of Ethics for employees and boards before they are accepted into the
market, both business and professional organizations reviewing their employment rules and Codes of
Ethics to find out if they should make changes to assure that their employees or members understand the
rules and the consequences of violations, corporations making ethics training courses mandatory,
additional ethics study courses being considered and added to the curriculum at schools of higher
learning, and corporations creating a new and visible "corporate level head of ethics and compliance"
position.
As already said, the primary goal of this seminar is to provide information that can help you better
understand the importance of personal ethics today. The information you will receive is not new, but its
importance is stressed because too many professional people and leaders have violated their code of
ethics and made the wrong decisions. Because of their greed and short sightedness, the entire country is
now suffering. You, as a professional, must make the right decision every time, to assure these
catastrophes do not happen again.
The seminar will use the following format:
First, I'll define personal and work place ethics along with some other information.
Second, throughout the seminar, I'll discuss non-ethical examples that may help clarify Code rules.
Third, I'll discuss the American Society for Quality (ASQ) Policy that requires the Code of Ethics be
followed, and the ASQ Policies that provide the procedures to be used when handling ethics matters.
We'll then review the ASQ Code of Ethics. ASQ documents are being used because the majority of
attendees are members.
Fourth, I'll give you a set of Ethical Standards that can help determine which is the right ethical decision to
make in any situation. I will also discuss a new book to use as a source for business ethics information
that has impressed me as much as anything I've come across recently.
Fifth, I'll give you my Conclusion.
Finally, we will have a Question and Answer period. Please hold all questions until then.
WHAT IS ETHICS? WHAT IS A CODE OF ETHICS?
Ethics is defined in "The Random House College Dictionary, Revised Edition," as "1. (construed as sing.
or pl.) a system of moral principles. 2. the rules of conduct recognized in respect to a particular class of
human actions or a particular group, culture, etc.: medical ethics; Christian ethics. 3. Moral principles, as
of an individual; His ethics forbade betrayal of a confidence."
Moral is defined as "of, pertaining to, or concerned with right conduct or its principles."
Culture is defined as "1. the quality in a person or society that arises from an interest in the acquaintance
with what is generally regarded as excellence in arts, letters, manners, scholarly pursuits, etc. 2. a
particular form or stage of civilization: Greek culture. 3. Sociol. the sum total of ways of living built up by a
group of human beings and transmitted from one generation to another."
It is important to remember that morals are defined by religion, not government. Religion sets morals in
concrete for that religion and these morals cannot be rewritten, revised or changed. Government defined
morals can be changed, revised, and rewritten.
Business and Professional Codes of Ethics are the rules that meet the needs of a business or profession
and require mandatory compliance. If these work place rules are violated, the violator can and will be
punished according to the seriousness of the matter. All organizations should have Policies and
Procedures to accept violation claims and deal with ethical matters. Punishment can be as little as a
reprimand, or as serious as getting fired, expelled, and ending up in court. Consider these rules your work
career benchmark.
Personal ethics outside the work place are normally established through parents, cultural environment,
religion, schooling, and work experience. Consider these your basic personal benchmark.
Codes of Ethics differ widely in their content because of their origins and their specific purposes. These
codes are similar in topics they cover and general ethical standards they articulate, but differ in language
and in specific ethical abuses or problems they address. Don't expect accountants, lawyers, salesmen,
buyers, arbitrators, health care workers, and other professions to have exactly the same rules and/or
interpretations.
Codes of Ethics are typically written according to guidelines and standards such as set forth in the
"Association Law Handbook" (Third edition, 1996, Jerald A. Jacobs, published by the American Society of
Association Executives), which covers legal and other guidelines for business or professional situations.
ASQ's Code of Ethics, along with the required Policies and Procedures that go with the code, are written
using this Handbook's Chapter 52, entitled "Business or Professional Codes and Self-Regulation," as a
guide. If you are working on a code or an ethical matter, there are many good references in this chapter.
Remember that no citizen may be denied due process, his/her legal rights, and all laws must conform to
fundamentally accepted legal principles, as the right of the accused to confront his/her accusers.
You can obtain additional information, feedback, or advice from many sources. When I needed more
information, I always used the professional society and/or their local members most closely associated
with the matter for feedback and to help direct my thinking. Colleges and Universities that teach in the
field of your concern are always good sources for information. If they do not have what you need they can
tell you where to obtain it. If you use the Internet and are an engineer or scientist, try the Online Ethics
Center for Engineering and Science at Case Western Reserve University <http://onlineethics.org/>. The
Center's mission is to provide engineers, scientists, and students with resources for understanding and
addressing ethically significant problems that arise in their work, etc. The National Society of Professional
Engineers Code of Ethics has very specific rules because they represent a self-governing body that is
controlled by individual state regulations. The American Society of Mechanical Engineers (ASME) has a
Code of Ethics, which is similar to ASQ's Code, but uses a number of guidelines to provide ASME criteria
for interpretation.
WHAT IS AN EXAMPLE OF A GENERIC NON-ETHICAL PRACTICE?
Non-ethical practices are best understood when specific case studies are analyzed and discussed. Due to
limited time, I will use some generic examples as we review the documents to define or help clarify the
interpretation of the rules.
The following is a good generic example of a non-ethical practice: An outside ASQ certified
auditor/consultant is given access to a client's unique proprietary process in good faith and trust that
disclosure to outsiders will not occur. Shortly thereafter the same auditor/consultant is at a second client's
facility, and in order to resolve a problem, the outside auditor/consultant gives the first client's unique
proprietary process details to the second client without permission from the first client. If this were
reported to the Code Control Committee, there would be an investigation and, if found guilty, the
auditor/consultant could be stripped of ASQ membership and lose ASQ certification(s) for an indefinite
period time.
WHAT DOES A CODE OF ETHICS SAY? WHO CONTROLS THE CODE?
The best way to understand a Code of Ethics is to review one. So we will review the ASQ Code of Ethics
after I discuss ASQ's Policies concerning the Code. These policies and procedures define how this
professional society establishes its member's compliance and handles non-compliance. All ASQ
documents can be viewed and copied from the web site <www.asq.org >.
Policy No. G-1 entitled "Member Rights, Privileges, Duties and Benefits," in par. 3.4.1, states that one of
the duties of a Society Member is to follow the Code of Ethics.
Policy No. G-5, entitled "Charter Policy: Professional Ethics & Qualifications Committee - Composition,"
outlines the Committee composition requirements and refers to Policy G-6 for duties, roles, and
responsibilities, and Policy G-30 for general committee requirements such as voting, quorum, and
prohibitions.
Policy No. G-6, entitled "Ethics Ombudsman, Grievance, Suspension and Expulsion Procedure," "...is
applicable to all individuals and groups who prepare, process, and adjudicate complaints investigations
and similar matters dealing with professional ethics, conflicts of interest, legal issues, and conduct
prejudicial to the interests of the Society."
Now let's review the ASQ Code of Ethics and see what it says.
CODE OF ETHICS
To uphold and advance the honor and dignity of the profession, and in keeping with high standards of
ethical conduct I acknowledge that I: (See Comments 1, 2, and 3, below.)
Fundamental Principles
Will be honest and impartial, and will serve with devotion my employer, my clients, and the public.
Will strive to increase the competence and prestige of the profession.
Will use my knowledge and skill for the advancement of human welfare, and in promoting the safety
and reliability of products for public use.
Will earnestly endeavor to aid the work of the Society.
Relations With the Public
1.1 Will do whatever I can to promote the reliability and safety of all products that come within my
jurisdiction.
1.2 Will endeavor to extend public knowledge of the work of the Society and its members that relates
to the public welfare.
1.3 Will be dignified and modest in explaining my work and merit.
1.4 Will preface any public statements that I may issue by clearly indicating on whose behalf they are
made. (See Comment 4, below.)
Relations With Employers and Clients
2.1 Will act in professional matters as a faithful agent or trustee for each employer or client. (See
Comment 5, below.)
2.2 Will inform each client or employer of any business connections, interests, or affiliations which
might influence my judgment or impair the equitable character of my services. (See Comment 6,
below.)
2.3 Will indicate to my employer or client the adverse consequences to be expected if my
professional judgment is overruled. (See Comment 7, below.)
2.4 Will not disclose information concerning the business affairs or technical processes of any present
or former employer or client without his consent. (See Comment 8, below.)
2.5 Will not accept compensation from more than one party for the same service without the consent
of all parties. If employed, I will engage in supplementary employment of consulting practice only with
the consent of my employer.
Relations With Peers
3.1 Will take care that credit for the work of others is given to those whom it is due.
3.2 Will endeavor to aid the professional development and advancement of those in my employ or
under my supervision.
3.3 Will not compete unfairly with others; will extend my friendship and confidence to all associates
and those with whom I have business relations. (See Comment 9, below.)
Comments (on the ASQ Code) - See above for the location where each comment applies.
1. Opening paragraph - This code is not required to be given to new members. A new member will usually
learn of the code by either word of mouth or by reading the membership policy. A suggestion has been
made to a member of the ASQ Ethics Committee that this may be a weakness in their policy and that they
may want to review and change in line with actions already taken by business corporations/companies.
My suggestion is that the Code of Ethics be included on the Application for Membership and when the
application is signed the new member agrees that he/she has read the Code, understands it, understands
it is mandatory, and agrees to comply with the rules as stated.
2. Opening paragraph - If a member is making application to be certified by the society, the application for
certification contains the Code of Ethics as part of the application. The application states, "Compliance
with the Code of Ethics is mandatory." It then requires a signature and date under the statement, "I have
read, and I understand the ASQ Code of Ethics and agree to comply with them." An ASQ Ethics
Committee member is aware of this comment.
3. Opening paragraph - Comparing the ASQ code with the ASME (American Society of Mechanical
Engineers) code, I find that the ASME code does a better job of clarifying the rules and their interpretation
for members and the ASME Board on Professional Practice and Ethics. The first three fundamental
principles are the same for both ASQ and ASME, but ASME does not include a fourth principle. ASME
uses about 1 page to present their code, which consists of the three fundamental principles plus eight
canons. However, the ASME code uses at least 4 more pages to provide ASME criteria for interpretation
through guidelines for each canon. I believe a similar approach by ASQ would help members better
understand the intent of the rules in the ASQ code. An ASQ Ethics Committee member is aware of this
comment.
4. Item 1.4 - Remember a case similar to this involving a writer on the New York Times this past year.
5. Item 2.1 - Your first concern is always making sure the customer gets the product specified in the
contract. Also, remember that a customer is always right, except when an ethical rule is to be broken.
6. Item 2.2 - This is where you avoid the "conflict of interest" problem. Remember that the word "might"
has a large tolerance range, so it is better to report and be safe rather than not report and get caught.
Most businesses require a signed annual statement on this.
7. Item 2.3 - An example could be a situation that arises when registration for ISO certification is involved
and a consultant provides his/her opinion of a condition in question. Another example could be a part that
is "fit for use," where you might find a drawing violation, but based on knowledge of the material and
information as to how used, know the part is "fit for use," such as a crankshaft and a bushing; handle the
situation as a "known problem" and make sure the condition is documented to avoid any possible
question in the future.
8. Item 2.4 - The "generic non-ethical practice" example I provided just before starting to review the ASQ
procedures would violate this rule.
9. Item 3.3 - A recent example of "competing unfairly" occurred in the professional golf world and involves
the club called a driver and whether this club should be measured before each round of golf. The latest
drivers can give an advantage that lowers the golfer's score.
WHAT ETHICAL STANDARDS SHOULD I USE TO DECIDE WHICH IS THE RIGHT ETHICAL
DECISION IN ANY SITUATION?
I have two suggestions for you to consider if you want to improve or better your personal ethical
standards for decision making in any situation.
First: Dr. Caroline Fisher, Director for the Master of Quality Management Program at Loyola University in
New Orleans, Louisiana, has developed her own presentation for teaching personal ethics. Her
presentation contains the answer to this question, which is one of the best I have seen. She teaches that
Ethical Standards should be based on using the six points listed below for determining the right ethical
decision in any situation.
ETHICAL STANDARDS
(1) The Golden Rule - Act in the way you would expect others to act toward you.
(2) The Utilitarian Principle - Act in a way that results in the greatest good for the greatest number.
(3) Kant's Categorical Imperative - Act in such a way that the action taken under the circumstances could
be a universal law or rule of behavior.
(4) The Professional Ethic - Take actions that would be viewed as proper by a disinterested panel of
professional colleagues.
(5) The TV Test - A manager should ask, "Would I feel comfortable explaining my actions to a national TV
audience?"
(6) Yo Mama Test - A manager should ask, "Would I feel good telling my Mother about my actions?"
Second: A new book was just published in August, entitled "There's No Such Thing as 'BUSINESS'
ETHICS." The Author is John C. Maxwell, who is a well known author and who has already written two
New York Times business management Bestsellers. Maxwell says there's only ONE RULE for making
decisions, and that is the GOLDEN RULE. He states the Christian variation of the rule is, "Whatever you
want men to do to you, do also to them." He further states, "There are really only two important points
when it come to ethics. The first is a standard to follow. The second is the will to follow it." I highly
recommend this book for advice, guidelines, ideas, and knowledge. By the time you finish reading the
book, you could be rethinking.
CONCLUSION
This seminar would not have been presented had it not been for the unusual number of large problems
caused by non-ethical decisions during the past five years. However, based on the extensive corrective
actions already taken and the follow-up actions expected to continue into the future, you should see a
drop in these type problems.
From a personal ethics standpoint, no one wants to lose their good reputation, especially their
trustworthiness. From a career standpoint, no one can afford to have an ethically related black mark on
their work record. Tighter controls, greater public awareness, and rapid exposure through modern
communications are making non-ethical decision results more difficult to conceal. In today's professional
and business world, peers cannot tolerate non-ethical situations and leadership must not accept known
violations of their Employment Rules and Code of Ethics. In order to succeed in today's world, a
professional person must understand the importance of personal ethics, and comply with his/her
organization's Employment Rules and Code of Ethics.
QUESTION AND ANSWERS
During the Q&A session, there were two points I heard the loudest:
1. How can you stop the world and the people you deal with from being non-ethical?
2. How can you stop our leaders from being corrupted by greed and survival?
My first response to both of these questions is that ethics starts with us, you and me, and our country. If
we personally have strong ethics and live by them, we will get what we expect and live in a "win-win"
world. If we personally do not have strong ethics and accept non-ethical decisions or actions, we are not
only setting an example, but we will have to live with what we have accepted.
My second response to these questions is that I do not think the people in this world are stupid. They
realize the importance of ethics and the fact that civilization must have moral control to succeed. If all the
things I talked about during the presentation do not work (i.e.: tighter controls, greater public awareness,
and rapid exposure through modern communications) then things will become worse and we will go
through more cycles of the same thing, until we reach a point of control that is viable. If you look at
history, you can see these cycles being repeated over and over, however, each cycle producing a better
world.
My third response is that I think the people living today are more ethical than they have ever been. If you
think the world today is worse ethically than it was 50 years ago, then you either did not live 50 years ago
or you were not old enough to know what was going on. I believe the world will continue to get better and
that all people will someday understand that the only way to live in a safe and "win-win" world is to use
the Golden Rule, as it is intended to be used.