Engineering Ethics

International Engineering
Professionalism

Prof. G.P. Rangaiah

Department of Chemical & Biomolecular
Engineering @ NUS

Dr. GP Rangaiah
 Scenario
H&J is a small clothing manufacturer from Country D. It owns and
operates a plant in another Country X, whose employees are mostly
young women from nearby villages.

The young women live in company dormitories and work for $0.80
per day, producing garments that are at the low end of the price
spectrum. They work 12 hours/day in a clean, safe and well-lit
factory.

The young women describe the work as hard but say they still
prefer it to village life. Some of the young women are probably the
sole wage earners in their families. Without these jobs, they might
well be forced into begging or prostitution.

H&J does not employ children under the age of 14, and there are no
serious health or safety problems at the plant.
Dr. GP Rangaiah 2
 Scenario
Some critics argued that H&J should leave Country X. A manager
for H&J responds that, if his firm left Country X, another firm would
take its place. He says: ‘‘The message from business is to follow the
dollar and learn to effect changes from within.’’

Elaine is an engineer from Country D. Her company has been asked

to design, produce and supply some new equipment for H&J plant in
Country X. Elaine will be asked to spend one year in Country X,
supervising equipment installation and training plant personnel. The
new equipment should improve efficiency and safety in the plant.

Some of Elaine’s engineering colleagues argue that she should not

take the assignment because it makes her a party to the exploitation
of young women. What should Elaine do?

Dr. GP Rangaiah 3
 Scenario
❑ Sweatshops (factories, especially in the clothing industry, where
manual workers are employed at very low wages for long hours and under
poor conditions)

▪ Are they beneficial or bad for the country?

▪ David Landauer, Wellesley economist and World

Bank consultant, remarks: We know of no case where
a nation developed a modern manufacturing sector
without first going through a ‘‘sweatshop’’ phase. How
long ago was it that children could be found working
in the textile factories of Lowell (Massachusetts, US);
or Manchester (England) or Osaka (Japan)?

▪ How about Singapore or China?

Dr. GP Rangaiah 4
 Introduction
❑ Globalization of Goods and Services

❑ Engineers from one home country working in another

host country

❑ Ethical problems (Boundary-crossing problems)

due to differences in cultural, social and/or economic
conditions in home and host countries.

❑ Serious problems for an engineer going from a home

country to a host country, which is less industrialized.

Dr. GP Rangaiah 5
 Introduction
❑ Two Extreme Solutions to Boundary-Crossing Problems
(e.g., faced by Elaine in the Scenario)

❑ Absolutist Solution: This follows home country’s laws,

customs and values.

❑ Relativist Solution: This follows host country’s laws,

customs and values (“When in Rome, do as the
Romans do”).

❑ Is either one satisfactory? Why or why not?

Dr. GP Rangaiah 6
 International Engineering Professionalism

Contents
➢ Introduction
➢ Resources for Solving Boundary-Crossing Problems
➢ Economic Underdevelopment: Problem of Exploitation
➢ Paying for Special Treatment: Problem of Bribery
➢ Paying for Deserved Services: Problem of Extortion and
Grease Payments
➢ Extended Family Unit: Problem of Nepotism
➢ Business and Friendship: Problem of Excessive Gifts
➢ Absence of Technical-Scientific Sophistication: Problem of
Paternalism
➢ Differing Business Practices: Problem of Negotiating Taxes
➢ Summary

Dr. GP Rangaiah 7
 International Engineering Professionalism
Learning Outcomes
1. Describe ethical (boundary-crossing) problems in
international engineering professionalism.
2. Resolve boundary-crossing problems.
3. Describe factors in host countries contributing to
boundary-crossing problems for engineers from another
(home) country.
4. Differentiate bribery, extortion, grease payments and gifts.

Chapter 10 in
"Engineering Ethics: Concepts and Cases",
C.E. Harris Jr., M.S. Pritchard and M.J. Rabins,
4th Edition, Thomson-Wadsworth.
Dr. GP Rangaiah 8
 Resources for Solving Boundary-Crossing Problems

❑ Absolutist or Relativist solution is simplistic and may

not be acceptable.

❑ Creative Middle Ways

▪ Satisfying both home and host country expectations to some
extent (without violating fundamental moral considerations)

▪ Two extremes and neither is desirable

• Moral Laxism (i.e., completely abandon moral values
because we are living in a real world)
• Moral Rigorism (i.e., moral principles must be strictly
applied in every situation)

Dr. GP Rangaiah 9
 Resources for Solving Boundary-Crossing Problems

Scenario: Ping-Ping’s plant operates in another Country X and

produces fertilizer in an area where farmers live at almost a
subsistence level. The plant produces relatively inexpensive
fertilizer, affordable to local farmers, but it also produces pollution.

The pollution produced does not violate environmental standards of

Country X even though it would violate standards of Ping-Ping’s
home country. In order to remedy the pollution problem, the plant
would have to raise the price of the fertilizer so much that the
farmers could not afford it.

Ping-Ping has been asked by her management to give advice as to

what the plant should do.
Suggest some creative middle way solutions, which do not show
moral laxism or rigorism.
Dr. GP Rangaiah 10
 Resources for Solving Boundary-Crossing Problems

❑ Another Scenario

▪ Ping-Ping finds out that the cheapest supplier of a

part or material used in her company’s plant in
Country X employs slave labor (i.e., labor which is
coerced and inadequately rewarded).

▪ Her colleague suggests what he calls a creative

middle way solution: Tell the supplier that you will
use supplier’s part/material only if he does not use
children. This means adult slave labor is ok.

▪ Is the above solution acceptable?

▪ Is the use of slave labor acceptable?
Dr. GP Rangaiah 11
 Resources for Solving Boundary-Crossing Problems

❑ How to determine whether a creative middle way

solution is ethically acceptable?

❑ Some Moral Standards are required for evaluating a

middle way solution.

❑ Moral Standards should meet the following criteria.

▪ Are the standards universal and applicable in many
countries (cultures)?
▪ Are the standards plausible, reasonable and easily
acceptable?

Dr. GP Rangaiah 12
 Resources for Solving Boundary-Crossing Problems

❑ First Moral Standard: The Golden Rule

▪ Ask the question: would I be willing to accept the

effects of this solution?

▪ This requires you to put yourself in the position of

host country citizen, whose culture, economic status,
living conditions and values may be very different.

▪ Is the above easy or difficult?

▪ In general, does anyone want to be exploited or

injured?
Dr. GP Rangaiah 13
 Resources for Solving Boundary-Crossing Problems

❑ Second Moral Standard: Universal Human Rights

▪ Ethical theories and UN International Bill of Human Rights
support Universal Human Rights

▪ All Human Beings have the Rights to: Life, Liberty, Security,
Nondiscrimination, Impartial trial, Education, Freedom of
thought, Peaceful assembly and participation in government,
Marriage, Property ownership, Social security and work,
Participate in and form trade unions, Minimal standard of
living, and also Freedom from slavery, torture, inhuman
punishment and marriage without free consent

▪ Long and Wishful List? Desirable if the country can afford.

Dr. GP Rangaiah 14
 Resources for Solving Boundary-Crossing Problems

❑ Third Moral Standard: Promoting Basic Human

Well-Being

▪ A satisfactory solution to the boundary-crossing

problem promotes well-being of host country citizens.

▪ Engineering and business can promote well-being

through economic development.

▪ Basic human functional capabilities (on next slide) in

order to live a reasonable quality of life

Dr. GP Rangaiah 15
 Resources for Solving Boundary-Crossing Problems
Basic human functional capabilities are being able:
1. To live a human life of normal length.
2. To enjoy good health, nourishment, shelter, sexual satisfaction and
physical movement.
3. To avoid unnecessary and non-beneficial pain, and to have
pleasurable experiences.
4. To use the senses, imagine, think and reason.
5. To form loving attachments to things and persons.
6. To form a conception of the good and to engage in critical reflection
about the planning of one’s life.
7. To show concern for others and to engage in social interaction.
8. To live with concern for and in relation to animals, plants and the
world of nature. Can Engineering
9. To laugh, play and enjoy recreational activities. contribute to any of
10. To live one’s own life and nobody else’s. these capabilities?
If so, how?
Dr. GP Rangaiah 16
 Resources for Solving Boundary-Crossing Problems

❑ Fourth Moral Standard: Code of Ethics of an

Engineering Society

▪ Is the Code of Ethics applicable in the country of

origin only or in all countries?
• IEEE is explicitly an international organization open to
members from different countries.
• Its code opens with an acknowledgment of ‘‘the
importance of our technologies in affecting the quality of
life throughout the world.’’

Dr. GP Rangaiah 17
 Resources for Solving Boundary-Crossing Problems

• A 1996 decision by the National Society of Professional

Engineers Board of Ethical Review held that an NSPE
member is bound by the NSPE’s code of ethics, even in
another country. In this case, the issue was whether a U.S.
engineer could ethically retain a host country engineer who
would then offer bribes to a host country official in order to
get a contract. The board held that the practice would
violate NSPE code and it would be unethical for a U.S.
engineer to be a party to such a practice.

▪ Guidance in the form of prohibitions (e.g., against

bribery and conflict of interest)

▪ Important in determining whether a creative middle

way solution is acceptable.

Dr. GP Rangaiah 18
 Resources for Solving Boundary-Crossing Problems

❑ In summary, Moral Standards for assessing a

solution are:
1. Golden Rule,
2. Universal Human Rights,
3. Promoting Basic Human Well-Being and
4. Code of Ethics of an Engineering Society

❑ Are there some similarities and/or some differences

among these?

❑ Which Moral Standard to use in assessing a

solution?

Dr. GP Rangaiah 19
 Economic Underdevelopment: Problem of Exploitation

❑ Scenario:

Coppergiant is the most powerful copper mining and smelting

company in the world. It controls world prices and keeps
competitors away from some of the lucrative sources of copper.

In Country X, the firm’s most lucrative source of copper,

Coppergiant buys copper at prices well below the world market and
pays workers the lowest wages for mining and smelting work in the
world. As a result, Coppergiant makes enormous profits.

Because the company pays off government officials and has so

much control over the world market in copper, no other mining and
smelting company is allowed into the country. Country X is
desperately poor, and copper is its only source of foreign currency.

Dr. GP Rangaiah 20
 Economic Underdevelopment: Problem of Exploitation

❑ Exploitation (action of treating someone unfairly in order to

benefit from their work, or making use of and benefiting from
resources) of the weak and vulnerable is a serious
moral problem, and it is particularly likely to occur in
economically underdeveloped countries,

❑ Exploitation violates several moral standards and is

wrong.

❑ Is there exploitation in the scenario of Coppergiant’s

plant in Country X?

❑ How does it compare with young women working in

the clothing manufacture (H&J) described earlier?
Dr. GP Rangaiah 21
 Economic Underdevelopment: Problem of Exploitation

❑ Risk of exploitation arises when the following five

conditions are present.
1. There is an imbalance of (usually economic) power between
the dominant and subordinate (exploited) party.
2. The subordinate party needs the resources (e.g., money)
provided by the dominant party, to protect his or her vital
interests.
3. For the subordinate party, the exploitative relationship is the
only source of such resources.
4. The dominant party in the relationship exercises discretionary
control over the needed resources.
5. The resources of the subordinate party (natural resources,
labor etc.) are used without adequate compensation.

Dr. GP Rangaiah 22
 Economic Underdevelopment: Problem of Exploitation

❑ Exploitation violates the Golden Rule.

❑ Exploitation violates the right to a minimal standard of living.

❑ Exploitation does not facilitate many of the basic human

functional capabilities

❑ Is exploitation justified based on utilitarian grounds of economic

development?

❑ Is the compensation adequate (compared to local salaries and

living costs)?

❑ Does Code of Ethics justify exploitation? See the next slide for
NSPE Code of Ethics.

Dr. GP Rangaiah 23
 Economic Underdevelopment: Problem of Exploitation

❑ NSPE Code of Ethics (Appendix A, p. 158 to 162,

Fleddermann)
▪ Fundamental Canons
1. Hold paramount the safety, health, and welfare of the public.
2. Perform services only in areas of their competence.
3. Issue public statements only in an objective and truthful
manner.
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.

Dr. GP Rangaiah 24
 Paying for Special Treatment: Problem of Bribery

❑ Bribe: payment of money (or something of value) privately to

another person in exchange for his/her giving special
consideration that is incompatible with the duties of his/her
office, position or role.
❑ Bribery is illegal.
❑ Bribery is a common issue faced in host/many countries.
❑ Foreign Corrupt Practices Act (FCPA) of US prohibits bribery of
government officials anywhere by US companies.
❑ Opposition to bribery (including election campaign contributions)
is increasing in many countries.
❑ Bribery should be avoided; there is no creative middle way.

Dr. GP Rangaiah 25
 Paying for Special Treatment: Problem of Bribery

❑ A Typical Scenario of Bribery

An executive of Company A hopes to sell 25 airplanes to

the national airline of County X. The deal requires the
approval of the top officer of transportation in Country X.
The executive knows that the national airline can make a
better deal elsewhere.

So, the executive offers the top officer of transportation

$3,000,000 to authorize the purchase of planes from
Company A. The top officer accepts the bribe and orders
the planes to be purchased from Company A.

Dr. GP Rangaiah 26
 Paying for Special Treatment: Problem of Bribery

❑ Giving and receiving are both forbidden by Codes

of Ethics. Why?

1. Tarnishes reputation of engineering profession.

2. Violates the obligation to promote well-being of public.
3. Person taking the bribe may be acting against the best
interest of her/his employer.
4. Undermines the free-market efficiency and economic
development.
5. The person giving the bribe will have an unfair
advantage (to her/his company) over competitors, thus
violating standards of justice and fair play.

Dr. GP Rangaiah 27
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ Extortion: practice of obtaining money, through force/threats
❑ Some bribery actions may be cases of extortion.

❑ Is the following bribery or extortion?

Consider again the case of the executive of Company A described

previously. Suppose that he knows he is offering the best deal on
airplanes to the official of Country X, who has the authority to
authorize purchases for his national airlines.

The executive knows, however, that his bid will not even be
considered unless he offers the official a large cash payment. The
payment will not guarantee that Company A will get the contract but
only that his bid will be considered.

Dr. GP Rangaiah 28
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ Extortion is the act of threatening someone with harm
in order to obtain benefits to which the extorter has no
prior right.

❑ Sometimes it is difficult to know whether one is paying

bribery or extortion.
An inspector who demands a payoff to authorize shipments of a
product may claim that the product does not meet her/his country’s
standards. It may be difficult to know whether he is lying and/or too
expensive to find out. If the company decides to make the payment,
it may not know whether it is paying a bribe or extortion.

Dr. GP Rangaiah 29
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ Historical Example

Between 1966 and 1970, Gulf Oil Corporation (GOC) paid $4

million to the ruling Democratic Republican Party of South Korea.

GOC was led to believe that its continued flourishing in South

Korea depended on these payments.

➢ If the payments gave GOC special advantages over its

competitors, they were bribes.

➢ If the payments would have been required of any competitor

as a condition of operating without undeserved reprisals or
restrictions, they might better be classified as extortion.

Dr. GP Rangaiah 30
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ Moral status of paying extortion is different from that of
paying and accepting bribes.

1. Paying extortion will not usually corrupt professional judgment.

2. Although paying extortion can tarnish one’s professional
reputation, it may not as much as paying a bribe.
3. Paying extortion will not cause one to act contrary to the best
interests of one’s employer (by selecting an inferior product),
but it does involve the use of employer’s money.
4. Paying extortion does not undermine efficiency of free market
(as it does not lead to selection of inferior/expensive products,
but it does divert funds from their most efficient use).
5. Paying extortion does not give one an unfair advantage over
others, except insofar as others do/can not pay the extortion.

Dr. GP Rangaiah 31
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ Main problem with paying extortion is that it continues
a practice that is a type of theft.

❑ A moral rigorist might find extortion ethically not

acceptable.

❑ Sometimes, paying extortion may be morally ok if:

▪ it enables one to do business in the host country,
▪ business activity is good for both home and host countries,
and
▪ no other moral standards are violated.

Dr. GP Rangaiah 32
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
Grease Payment is offered to facilitate
routine bureaucratic processes
(e.g., hastening passage of goods
through customs).
▪ They involve relatively small amounts of money compared to
bribery or extortion.
▪ They are most common forms of petty extortion.
▪ They do not give an unfair advantage over others, assuming
that others make grease payments too.
▪ They are often tacitly condoned by governments/employers.
• In many countries, (customs) officials may not be paid an adequate
salary, and the government may assume that they will receive grease
payments to supplement their salary.

Dr. GP Rangaiah 33
 Paying for Deserved Services:
Problem of Extortion and Grease Payments
❑ A moral rigorist might find grease payment morally unacceptable.
❑ Better to replace grease payments by proper salaries.

❑ Grease payments may be like bribery. Why?

▪ Allows passage of inferior goods or services
▪ Gives advantage over others in faster processing
❑ Grease payments are often extortion to obtain deserved services.

❑ Grease payments may be morally acceptable if

▪ it enables one to do business in the host country
▪ business activity is good for both home and host countries, and
▪ no other moral standards are violated.
Dr. GP Rangaiah 34
 Extended Family Unit: Problem of Nepotism
❑ Nepotism
▪ Practice of favouring relatives or friends by giving them jobs
▪ Violates the policy of hiring the most qualified applicant
❑ Primary unit of society
▪ Individual in Western countries
▪ Extended family or tribe (social group) in many countries
❑ Traditions require extended family members to help each other
in both good and bad times (e.g., finding a job and caring a sick
member).

Dr. GP Rangaiah 35
 Extended Family Unit: Problem of Nepotism
❑ Scenario: You work for a steel company in Country X, which has
the policy of hiring one of the employee’s children. This policy is
popular with employees in that country, where there is a tradition
of providing jobs for one’s children and members of one’s
extended family. But to you (from a home country), the policy is
nepotism and in conflict with the more desirable policy of hiring
the most qualified applicant. What should you do?

❑ Is nepotism ok sometimes?
▪ Ok if it is limited to only one other family member, who meets
required qualifications/experience for the job.
▪ Ok if job is given to one other family member only in case of
death of an employee before retirement.
▪ Ok if it promotes harmony in the workplace and employee
retention (and hence economic efficiency).
▪ Ok in a tradition-oriented cultures.
Dr. GP Rangaiah 36
 Business and Friendship:
Problem of Excessive Gifts
❑ Exchange of gifts to develop personal
friendships in many cultures

❑ Impersonal business transactions in the West.

❑ Large gifts in a host country may look like

bribes.

❑ A creative solution to meet the expectations

in a host country: Give the gift to community
and not to individuals
• Planting trees in the locality
• Providing water supply to the local community
• Supporting education, health and well-being of
the local community
Dr. GP Rangaiah 37
 Business and Friendship:
Problem of Excessive Gifts
❑ When is the practice of large gifts acceptable for a home
country engineer for doing business in Country X?
▪ The gift is not excessive compared to the practice in the host
country, and so it does not command any special favor.
▪ Intent of the gift is not for any special favor but for developing
good relations.

❑ Policy of Texas Instruments (TI)

TI generally follows conservative rules governing the giving and receiving
of gifts. However, what we consider to be an excessive gift in U.S. may
differ from what local customs dictate in other parts of the world. We used
to define gift limits in terms of U.S. dollars, but this is impractical when
dealing internationally. Instead, we emphasize following the directive that
gift-giving should not be used in a way that exerts undue pressure to win
business or implies a quid-pro-quo (i.e., a favor granted in return for
something).

Dr. GP Rangaiah 38
 Bribery, Extortion, Grease Payment and Gift

Duty Who
Type Value Violation Expects/ Purpose
by Official? Initiates
Gift Low No Engineer Build good relations

Grease Low to Engineer Facilitate/quicken

No
Payment Moderate or Official routine processing
To ensure official
considers engineer’s
Moderate
Extortion No Official submission and does
to High
his duty (e.g., approve
the "best" proposal)
To obtain preferential
Bribe High Yes Engineer treatment from the
official

Dr. GP Rangaiah 39
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ Paternalism is the interference with the liberty (or
autonomy) of another person, with the intent of
promoting good (or preventing harm) to that person.
▪ Examples of paternalism in everyday life are laws that
require seat belts, wearing helmets while riding a
motorcycle, and banning of certain drugs.
▪ Paternalism is in some ways the opposite of exploitation.
▪ If exploitation is imposing one’s will on another for one’s
good, paternalism is imposing one’s will on another for
the other’s good.
▪ Both paternalism and exploitation deprive another
person’s freedom to decide his own life but reasons for
doing this are very different.

Dr. GP Rangaiah 40
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ Example
Robin’s firm operates a large pineapple plantation in Country X. The
firm has been having what it considers excessive problems with
maintaining the health of its workers. It has determined that a major
reason for health problems of its workers is the unsanitary
conditions of the traditional villages in which they live.
In order to remedy this problem, the firm has required the workers to
leave their traditional villages and live in small, uniform houses on
uniformly laid-out streets.
Managers believe that the workers can be ‘‘educated’’ to appreciate
the cleaner conditions and the aesthetic qualities of the new
villages. But the workers have strongly objected, claiming that the
new accommodations are boring and have destroyed much of their
traditional way of life.

Dr. GP Rangaiah 41
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ Is the above a weak or strong paternalism?

❑ In weak paternalism, the paternalist overrides decision-making

powers of the recipient when there is reason to believe the
recipient is not exercising his moral agency effectively anyhow.

❑ In strong paternalism, the paternalist overrides the decision-

making powers of the recipient, even when there is no reason to
believe the recipient is not exercising his moral agency
effectively.
▪ The paternalist overrides the decision-making powers of the
recipient simply because he believes the recipient is not
making the ‘‘right’’ decision.

Dr. GP Rangaiah 42
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ Conditions to justify weak paternalism
▪ A person may be under undue emotional pressure, and so
she is unable to make a rational decision.
▪ A person may be ignorant of consequences of her action,
and so she is unable to make a genuinely informed decision.
▪ A person may be too young to comprehend the factors
relevant to her decision, and so s/he is unable to make a
rational and informed decision.
▪ The paternalist may be justified in intervening to keep the
recipient from making any decision until it is clear (e.g.,
waiting for sufficient time) that the recipient is indeed making a
decision that is free and informed.

❑ Weak paternalism is justified from the perspectives of both

utilitarianism and respect for persons.

Dr. GP Rangaiah 43
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ In strong paternalism, the recipient is making a free
and informed decision, but the paternalist thinks that
the recipient’s decision is not the ‘‘right’’ one.
▪ Strong paternalism can then be justified only from the
utilitarian standpoint.
▪ The argument is that the recipient is not making a decision
that will maximize her/his own good (or overall good), even
though s/he may think that s/he is making the correct decision.

❑ Strong paternalism is more difficult to justify.

❑ The paternalist has greater responsibility to show that her/his

action is justified.

Dr. GP Rangaiah 44
 Absence of Technical-Scientific Sophistication:
Problem of Paternalism
❑ Scenario
You are employed by a large firm that sells infant formula (baby milk
powder) in Country X. The firm is the only one that markets infant
formula in Country X.

Many mothers in Country X mix the infant formula with

contaminated water because they do not understand the health
dangers to their infants. They also dilute the infant formula too much
in order to save money, unaware that this leads to malnutrition in
their babies.

Should you recommend that the firm stop selling baby milk powder
in Country X? Give reason(s) for your recommendation.

Dr. GP Rangaiah 45
 Differing Business Practices:
Problem of Negotiating Taxes
❑ Another Scenario
James works for a U.S. firm in Country X, where the government tax
is at an exorbitant rate because it is known that firms report only half
their actual earnings. If a firm reported its actual earnings, the taxes
would force it out of business.
James’ firm wonders whether it is morally permissible to adopt the
local practice of dishonestly reporting its profits, even though it is
illegal to do this in U.S.
▪ Does the local practice violate Golden Rule?
▪ Does the local practice violate the rights of anyone?
▪ Does the local practice produce overall good?
▪ Is the local practice known openly or not?
▪ Is any bribe involved in the local practice?
Dr. GP Rangaiah 46
 Differing Business Practices:
Problem of Negotiating Taxes
❑ The firm must report its profits accurately to US
government. Why?

❑ Local practice is not the most desirable. Why?

Dr. GP Rangaiah 47
 Summary
❑ Boundary-crossing (ethical) problems are due to
differences in economic, social and cultural conditions
in home and host countries.
▪ Exploitation of workers
▪ Bribery, Extortion, Grease payments and Gifts
▪ Nepotism arising from loyalty/commitment in extended family
▪ Paternalism: Weak paternalism can often be justified but
Strong paternalism is more difficult to justify

❑ Relativist or Absolutist solution may not be satisfactory.

❑ Creative middle way solution is required.

▪ The proposed solution should not violate Golden rule, Rights
and Utilitarian considerations, and Codes of ethics

Dr. GP Rangaiah 48
 International Engineering Professionalism
Learning Outcomes
1. Describe ethical (boundary-crossing) problems in
international engineering professionalism.
2. Resolve boundary-crossing problems.
3. Describe factors in host countries contributing to
boundary-crossing problems for engineers from another
(home) country.
4. Differentiate bribery, extortion, grease payments and gifts.

Chapter 10 in
"Engineering Ethics: Concepts and Cases",
C.E. Harris Jr., M.S. Pritchard and M.J. Rabins,
4th Edition, Thomson-Wadsworth.
Dr. GP Rangaiah 49