Engineering Ethics

Ethical Problem Solving Techniques

Prof. G.P. Rangaiah

Department of Chemical & Biomolecular
Engineering @ NUS

Dr. GP Rangaiah
 Ethical Problem Solving Techniques
Contents
➢ Introduction

➢ Issues in Ethical Problems

▪ Factual, Conceptual and Moral Issues

➢ Line Drawing

➢ Flow Charting

➢ Conflict Problems

➢ Application: Bribe or Gift

Dr. GP Rangaiah 2
 Ethical Problem Solving Techniques

Learning Outcomes
✓ Describe ethical problem solving techniques
and their limitations

✓ Apply ethical problem solving techniques

✓ Discuss bribery versus gift, and

ways to avoid bribery

Reference: Chapter 4 in "Engineering Ethics", C.B.

Fleddermann, 4th Edition, Prentice-Hall.

Dr. GP Rangaiah 3
 Introduction
❑ Ethical Problem Solving
▪ Analyze and resolve ethical/moral dilemmas

❑ Similar to Engineering Problem Solving?

▪ Are there some formula and/or plug-and-chug techniques?

❑ Ethical Problems
▪ Some are simple and have only one solution
▪ Some are complex, ambiguous and have alternate solutions

❑ Ethical Problem Solving Techniques

▪ Systematic procedures
▪ Useful for complex and ambiguous ethical problems

Dr. GP Rangaiah 4
 Issues in Ethical Problem Solving

Carefully study the ethical problem and compile relevant

issues in three categories.
❑ Factual Issues

❑ Conceptual Issues

❑ Moral Issues

Application: Competitive Bidding – Paradyne Computers

For details, see Pages 40-41, Fleddermann

Dr. GP Rangaiah 5
 Issues in Ethical Problem Solving

Application: In 1980, Paradyne (computer company) bid to supply

new computer systems to the Social Security Administration (SSA).
The request for proposals clearly specified that only existing
systems would be considered. Paradyne did not have any such
system and had never tested the operating system on the product
they proposed to sell to SSA. The employment of a former SSA by
Paradyne to help lobby SSA for the contract is also clear.

❑ Factual Issues
▪ List Facts in the ethical problem
• What are the facts in the above description of ethical
problem solving?

Dr. GP Rangaiah 6
 Issues in Ethical Problem Solving

▪ Facts regarding Individuals

▪ Facts relating to the Organization

▪ Other (Material) Facts

▪ Are all required facts always available?

• Reasonable assumptions, if required.

▪ Are factual issues always clear?

• Global warming and its effects

Dr. GP Rangaiah 7
 Issues in Ethical Problem Solving

❑ Conceptual Issues
▪ Meaning/applicability of an idea or term or concept
• What constitutes a gift and a bribe?
• Whether certain business information is proprietary?
• A particular chemical is not legally restricted but there is
some evidence that it is harmful. Is it ok to use it?

▪ What are the Conceptual Issues in the following?

Application: Paradyne did not have an existing product but only

a product in planning stage. Yet, it bid to supply to SSA. For
product demonstration, Paradyne labels were placed over labels
of the actual manufacturer. Recall Paradyne employed a former
SSA employee.

Dr. GP Rangaiah 8
 Issues in Ethical Problem Solving
▪ When Paradyne has the product in planning stage
only, is bidding to a tender that requires supply of an
existing product, lying or acceptable business
practice?

▪ Is placing Paradyne labels on the labels of original

manufacturer deceptive or not? Is this an accepted
business practice?

▪ Does lobbying your former employer on behalf of

your current employer constitute a conflict of interest?
Is this a common business practice?

Dr. GP Rangaiah 9
 Issues in Ethical Problem Solving
❑ Ethical/Moral Issues
▪ Is lying acceptable to secure a contract?

▪ Is deception acceptable in the demonstration to secure a

contract?

▪ Are practices of Paradyne computers ethical?

▪ Resolution of ethical/moral issues

Dr. GP Rangaiah 10
 Issues in Ethical Problem Solving
❑ Avoiding Ethical Problems
▪ What can be done to avoid similar ethical problems in the
future?

▪ This can be by the government, companies and/or

engineering societies.

▪ Laws restricting employment of workers after leaving

government to lobby their former employers

▪ Company policies restricting employment of their former

employees by competitors.

▪ Engineering societies updating their Code of Ethics.

Dr. GP Rangaiah 11
 Line Drawing
❑ Procedure using an application

❑ Problem:
A company proposes to dispose of a slightly hazardous waste by
dumping it into a lake. A nearby town takes its drinking water
supply from this lake. With the amount of waste to be put into the
lake, the company estimates that average concentration of waste
in the lake will be 5 parts per million (ppm). Local regulation limit
for this material is 10 ppm. At 5 ppm level, no health problems are
expected, and consumers would not be able to detect the waste in
their drinking water.

Is it ethical to dispose of the slightly hazardous waste by

dumping in the lake?

Dr. GP Rangaiah 12
 Line Drawing

❑ Factual Issues are clear from the problem

statement.

❑ Conceptual Issue(s):
▪ Although it is stated no health problems are expected at 5
ppm level, can there be short term effects on the health of
(some) people?
▪ Is it desirable to lower waste to a lower level (say, 1 ppm)?

❑ Moral Issue
▪ Is it ethical to dispose of the slightly hazardous waste by
dumping in the lake?

Dr. GP Rangaiah 13
 Line Drawing

❑ Positive Paradigm (PP): Water supply for the town

should be clean and safe (i.e., an example of morally
acceptable without any doubt)

❑ Negative Paradigm (NP): Toxic levels of waste are

put into the lake (i.e., an example of unambiguously
morally unacceptable)

❑ Paradigm: a typical example or pattern of something;

a pattern or model

Dr. GP Rangaiah 14
 Line Drawing
❑ Some hypothetical examples for consideration
A. The company dumps the waste into the lake. At 5 ppm, waste will be
harmless, but town’s water will have an unusual taste.
B. The waste can be effectively removed by the town’s existing water-
treatment system.
C. The waste can be removed by the town with new equipment that will
be purchased by the company.
D. The waste can be removed by the town with new equipment for
which the taxpayer will pay.
E. Occasionally, exposure to the waste can make people feel ill, but this
only lasts for an hour and is rare.
F. At 5 ppm, some people can get fairly sick, but the sickness only lasts
a week, and there is no long-term harm.
G. Equipment can be installed at the plant to further reduce the waste
level to 1 ppm.

Dr. GP Rangaiah 15
 Line Drawing

❑ Draw a line and place positive and negative

paradigms (PP and NP) on either end of the line.

NP PP

Negative Positive
Paradigm: Paradigm:
Dump toxic Lake water
levels of should be
waste into clean and
lake. safe.

Dr. GP Rangaiah 16
 Line Drawing

❑ Place each hypothetical example at a suitable location

(closer to PP/NP or roughly in the middle) on the line.
A. The company dumps the waste into the lake. At 5 ppm, waste will be
harmless, but town’s water will have an unusual taste.
B. The waste can be effectively removed by the town’s existing water-
treatment system.
C. The waste can be removed by the town with new equipment that will
be purchased by the company.

NP PP

Dump toxic A B Lake water

levels of should be
waste into
C clean and
lake. safe.

Dr. GP Rangaiah 17
 Line Drawing
❑ Place each hypothetical example at a suitable location
(closer to PP/NP or roughly in the middle) on the line.
D. The waste can be removed by the town with new equipment for
which the taxpayer will pay.
E. Occasionally, exposure to the waste can make people feel ill, but this
only lasts for an hour and is rare.

NP PP

Dump toxic E D A B Lake water

levels of should be
waste into C clean and
lake. safe.

Dr. GP Rangaiah 18
 Line Drawing
❑ Place each hypothetical example at a suitable location
(closer to PP/NP or roughly in the middle) on the line.
D. The waste can be removed by the town with new equipment for
which the taxpayer will pay.
E. Occasionally, exposure to the waste can make people feel ill, but this
only lasts for an hour and is rare.
F. At 5 ppm, some people can get fairly sick, but the sickness only lasts
a week, and there is no long-term harm.
G. Equipment can be installed at the plant to further reduce the waste
level to 1 ppm.

NP PP

F E D A G B
C
Dr. GP Rangaiah 19
 Line Drawing
❑ Place the proposed solution (P: dumping slightly hazardous waste in
the lake with no health problems expected and consumers would not
be able to detect waste in their drinking water) on the line.
A. The company dumps the waste into the lake. At 5 ppm, waste will be harmless, but town’s
water will have an unusual taste.
B. The waste can be effectively removed by the town’s existing water-treatment system.
C. The waste can be removed by the town with new equipment that will be purchased by the
company.
D. The waste can be removed by the town with new equipment for which the taxpayer will pay.
E. Occasionally, exposure to the waste can make people feel ill, but this only lasts for an hour
and is rare.
F. At 5 ppm, some people can get fairly sick, but the sickness only lasts a week, and there is no
long-term harm.
G. Equipment can be installed at the plant to further reduce the waste level to 1 ppm.

NP PP

Dump toxic Lake water

F E D A P G B
levels of should be
waste into C clean and
lake. safe.
20
Dr. GP Rangaiah
 Line Drawing
NP PP

F E D A P G B
C

❑ Conclusions
▪ Dumping the toxic waste is probably a morally acceptable
choice, since no humans will be harmed and the waste levels
will be well below those that could cause any harm.
▪ However, since it is somewhat far from the positive paradigm,
there are probably better choices that can be made, and the
company should investigate these alternatives.

Dr. GP Rangaiah 21
 Line Drawing
NP PP

F E D A P G B
C

❑ Other Factors not Considered

▪ Effects of Seasons/Weather and Plant Operation
▪ Community Relations
▪ Time for Approvals

Dr. GP Rangaiah 22
 Line Drawing

❑ Simplified Line Drawing

▪ The following diagram

can be shown as:

NP -------------- A --------- B, C ----- PP

Dr. GP Rangaiah 23
 Line Drawing

▪ The above diagram can be presented as:

NP -------------- E --- D -- A ----------- B, C ----- PP

By modifying NP -------------- A --------- B, C ----- PP

Dr. GP Rangaiah 24
 Line Drawing
NP PP

F E D A P G B
C

❑ Final Line Drawing can presented as:

NP ----- F --- E --- D -- A ---- P ----- G --- B, C ---- PP

▪ Proper sequence is required.

▪ Include reasonable spacing between examples.

▪ Continuous straight line is not necessary.

▪ Remember to place the proposed solution.

Dr. GP Rangaiah 25
 Line Drawing
❑ Procedure
1. Study the problem/situation under investigation.
2. List factual, conceptual and moral issues.
3. Develop positive/negative paradigms and place them on a
line drawing.
4. Propose several hypothetical examples (different from the
proposed solution).
5. Place hypothetical examples on the line drawing between
positive and negative paradigms.
6. Place the proposed solution on the line drawing.
7. Review the location of the proposed solution compared to
locations of hypothetical examples.
8. Conclude whether the proposed solution is ethically
acceptable or better alternatives should be explored.

Dr. GP Rangaiah 26
 Line Drawing

❑ Simple? Straightforward?

❑ Powerful? Useful?
▪ Develop hypothetical alternatives
▪ Compare the proposed solution with alternatives
▪ Comprehensive resolution

❑ Subjectivity in hypothetical examples & their locations

❑ Should be used objectively and honestly.

❑ Can be misused to show a solution is ethically right

when it is not (i.e., window dressing).

Dr. GP Rangaiah 27
 Line Drawing

❑ How to Reduce Subjectivity and Improve Solution

by Line Drawing?

▪ Formulate clear NP and PP

▪ Hypothetical Examples – Reasonable and Distinct

Examples Covering the range from NP to PP

▪ Ponder over NP, PP and Hypothetical Examples

▪ Placement – Consider applicable Ethical Principle(s), their

violation and impact

Dr. GP Rangaiah 28
 Line Drawing
❑ Application to Intel Pentium Chip Case
In 1994–95, it was discovered and widely reported that the latest
version of the Intel Pentium chip had flaws. At first, Intel sought to
hide this information, but later came around to a policy of offering
consumers chips in which the flaw had been corrected. Use line
drawing to assess whether the approach of not informing the
customers about the known flaw is ethically acceptable.

❑ Factual Issues

❑ Conceptual Issue(s)
▪ What is a flaw and what is its effect/significance?
▪ Is selling a product with a known flaw ethical?

❑ Moral Issue

Dr. GP Rangaiah 29
 Line Drawing
Positive Paradigm (PP): Products should perform as
advertised.

Negative Paradigm (NP): Knowingly sell products that

are defective and can affect customers’ applications.

Hypothetical Examples

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 Line Drawing
❑ Hypothetical Examples
1. There is a flaw in the chip, but it is undetectable and won’t
affect any customer’s applications.
2. There are flaws in the chip, the customer is informed of them,
but no help is offered.
3. A warning label says that the chip should not be used for
certain applications.
4. Recall notices are sent out, and all flawed chips are replaced.
5. Replacement chips are offered only if the customer notices the
problem.
Which of the above examples will be closest to PP?
Which of the above examples will be closest to NP?
Dr. GP Rangaiah 31
 Line Drawing
1. There is a flaw in the chip, but it is undetectable and won’t
affect any customer’s applications. Where
2. There are flaws in the chip, the customer is informed of them, should these
but no help is offered. examples be
3. A warning label says that the chip should not be used for placed on
certain applications. the Line
4. Recall notices are sent out, and all flawed chips are replaced. Drawing?
5. Replacement chips are offered only if the customer notices
the problem.

NP PP

Negative 5 2 3 1 Positive
Paradigm: Paradigm:
Knowingly,
4 Products
sell should
Defective perform as
Products stated.

Dr. GP Rangaiah 32
 Line Drawing
❑ Intel Pentium Chip Case: Is the approach of not
informing customers about the known flaw (Proposed
Solution, P) ethical? Where do you place P on the Line
Drawing? Any better solutions?
NP PP

Negative 5 2 3 1 Positive
Paradigm: Paradigm:
Knowingly,
4 Products
sell should
1. There is a flaw in the chip, but it is undetectable and won’t affect
Defective perform as
Products any customer’s applications. stated.
2. There are flaws in the chip, the customer is informed of them, but
no help is offered.
3. A warning label says that the chip should not be used for certain
applications.
4. Recall notices are sent out, and all flawed chips are replaced.
5. Replacement chips are offered only if the customer notices the
problem.
Dr. GP Rangaiah 33
 Line Drawing

❑ Intel Pentium Chip Case:

Simplified Line Drawing:

NP ---------- 5 ---------- 2 -----3 --------- 1, 4 --------- PP

State NP and PP before/near the simplified Line Drawing.

Where should be P?
1. There is a flaw in the chip, but it is undetectable and won’t affect
any customer’s applications.
2. There are flaws in the chip, the customer is informed of them, but
no help is offered.
3. A warning label says that the chip should not be used for certain
applications.
4. Recall notices are sent out, and all flawed chips are replaced.
5. Replacement chips are offered only if the customer notices the
problem.
Dr. GP Rangaiah 34
 Flow Charting

❑ Flow Charts for Computational Algorithms and

Programs

❑ Flow Charts for Work-Flow in Administration

❑ Flow Charts for analyzing Ethical Problems involving

a series of events (decisions) and (a series of)
consequences from each decision

❑ A flow chart gives a visual picture of a situation,

decisions and consequences

Dr. GP Rangaiah 35
 Flow Charting
Company would like Decision making process that might have
to build a plant in gone at Union Carbide as they decided
Bhopal, India
whether or not build a plant at Bhopal

No Are local laws No Build plant

Are safety laws
in India as strict adequate for anyway and
as US? safe operation? assume risk.

Yes Yes
Design plant as Design plant Decide on minimal
in US according to local standards that will
standards ensure local safety.

No
Invest Is this cost
elsewhere effective?

Yes
Build Plant

Dr. GP Rangaiah 36
 Flow Charting

Decisions required during the maintenance of

the flare tower at the Bhopal Plant

Job safety/hazard
analysis?

Dr. GP Rangaiah 37
 Flow Charting

❑ Flow charts can be for different aspects.

❑ There can be many and complex flow charts.

❑ Suggestions in solving ethical problems:

▪ Be objective and honest in the analysis
▪ Determine all possible outcomes and scenarios
▪ Be creative and thorough
▪ Answers can be positive or negative
▪ No hesitation in deciding to stop the project.

❑ Application given later in this topic

Dr. GP Rangaiah 38
 Flow Charting
❑ Flow chart is visual and understandable to many.

❑ Flow chart is somewhat tedious to draw.

❑ Possible to use algorithm/steps instead of flow

charting?

❑ Engineers have analytical and logical skills, and they

can easily understand algorithm/steps.

❑ Algorithm for Job Safety/Hazard Analysis on the next

slide

Dr. GP Rangaiah 39
 Flow Charting
❑ Algorithm/steps for Job Safety/Hazard Analysis

1. Maintenance is needed on flare tower.

2. Is MIC tank filled? If no, proceed with maintenance and terminate the
algorithm. Else, go to next step.
3. Are other safety systems operating? If no, defer maintenance until other
systems are available and terminate the algorithm. Else, go to next step.
4. Are other safety systems adequate to prevent accidents? If not, defer
maintenance and terminate the algorithm. Else, go to next step.
5. Other safety systems are operating and also adequate to prevent accidents.
Hence, perform maintenance and terminate the algorithm.
Dr. GP Rangaiah 40
 Conflict Problems
❑ Often, ethical problems involve choice between
two conflicting moral values (or solutions)

❑ How to solve such conflict problems?

1. Prioritize moral values – one of them may be more important
than the other (e.g., public health/safety versus duty/loyalty
to the employer).
2. Creative middle way to satisfy both moral values –
compromise solution that will be good for everyone
▪ Challenge to find creative solutions

▪ Challenge to convince everyone (since nobody gets what they want)

3. Hard or Tough choice – may have to use ‘gut feeling’

Dr. GP Rangaiah 41
 Conflict Problems
❑ Conflict Resolution:
Let’s examine the Challenger explosion, focusing on the dilemma
faced by the engineering manager, Bob Lund of Thiokol company.
The conflict was clear. There was an unknown probability that the
shuttle would explode, perhaps killing all aboard the shuttle.
On the other hand, Lund had a responsibility to his company and
the people who worked for him. Potential consequences of
postponing the launch are: (i) loss of future contracts from NASA,
(ii) loss of jobs to many Thiokol workers, and (iii) even bankruptcy
of the company.

Consider Lund’s dilemma at that time

(i.e., not knowing the outcome)

Dr. GP Rangaiah 42
 Conflict Problems
❑ Easy Choice – not to launch Challenger
(to avoid any risk and with hindsight)

❑ Middle Ways
▪ Postpone the launch
▪ Inform the astronauts (and/or other relevant persons)
about the risk and leave the choice to them

❑ Tough Choice – launch the Challenger

▪ For the (bright) future of Thiokol and NASA programs
▪ Similar risk, perhaps reduced risk, was present in earlier
successful launches
▪ Recognition and no questions if the launch was
successful
Dr. GP Rangaiah 43
 Application: Bribe or Gift
❑ Is it ethical to accept gifts from vendors or to offer
gifts to secure business?

❑ Is this potentially bribery?

❑ Bribe: something (money or favor) offered to

someone in a position of authority to induce him/her
to act dishonestly for the giver’s gain
▪ Intent is to influence or persuade someone

▪ Significant value

Dr. GP Rangaiah 44
 Application: Bribe or Gift
❑ Bribe can involve
▪ Engineers working in companies requiring goods/services
and/or
▪ Engineers working in vendors providing goods/services

❑ Is bribery legal in any country?

❑ Does bribery occur in many countries?

❑ US federal law forbids American companies from

engaging in bribery overseas, regardless of local
practices or expectations.

Dr. GP Rangaiah 45
 Application: Bribe or Gift
❑ What are the reasons for not tolerating bribery?
▪ Bribery corrupts free-market economic system
▪ Bribery is anti-competitive, and affects buying the best product
at the best price (i.e., taking the right action).
▪ Bribery benefits large companies and rich persons.
▪ Bribery treats people as commodities that can be bought or
sold. This is degrading to human beings, and corrupts both the
buyer and the seller.

Dr. GP Rangaiah 46
 Application: Bribe or Gift
❑ Corruption
▪ Corruption is the abuse of entrusted power for private gain.

▪ It can be classified as grand, petty and political,

depending on the amount of money involved and the
sector where it occurs.

▪ Does corruption occur in many countries?

▪ See: https://www.transparency.org/

Dr. GP Rangaiah 47
 Application: Bribe or Gift
❑ Classify the following as bribe or gift:
▪ Mug, Calendar etc. with company’s logo of a vendor

▪ Small gifts with company’s logo of vendor on a regular basis

▪ Pen, watch, wine bottle etc.

▪ Hamper during the festivals

▪ Expensive/exclusive lunch paid by the vendor

▪ Retreat in a holiday location paid by the vendor

❑ Does it matter whether the bribe or gift is before or

after the ‘event’?

Dr. GP Rangaiah 48
 Application: Bribe or Gift
❑ Bribery or not can be analyzed by:
▪ Listing factual, conceptual and moral issues
▪ Line drawing
▪ Flow charting

❑ Application: A vendor regularly provides products

to your company. Its sales representative invites you
to attend a one-day sales seminar in a far-away
holiday resort. Should you accept this invitation and
attend the seminar?
How do you resolve this dilemma?
Dr. GP Rangaiah 49
 Application: Bribe or Gift

❑ Factual, Conceptual and Moral Issues

❑ Line Drawing
▪ Positive and Negative Paradigms (PP and NP)
▪ Hypothetical examples (4 to 6) covering the range of
NP and PP
▪ Be creative and objective in developing hypothetical
examples

❑ Flow Charting

Dr. GP Rangaiah 50
 Ethical Problem Solving Techniques
Contents
➢ Introduction

➢ Issues in Ethical Problems

▪ Factual, Conceptual and Moral Issues

➢ Line Drawing

➢ Flow Charting

➢ Conflict Problems

➢ Application: Bribe or Gift

Dr. GP Rangaiah 51
 Ethical Problem Solving Techniques
Learning Outcomes
✓ Describe ethical problem solving techniques
and their limitations

✓ Apply ethical problem solving techniques

✓ Discuss bribery versus gift, and

ways to avoid bribery

Reference: Chapter 4 in "Engineering Ethics", C.B.

Fleddermann, 4th Edition, Prentice-Hall.

Dr. GP Rangaiah 52
 Ethical Problem Solving Techniques

❑ Suggestions for Self-Study

1. Read the Case: Construction Kickbacks in Maryland,

Fleddermann, pages 69-70.

2. Attempt Problems 4.11, 4.12, 4.13 and 4.14 in

Fleddermann. Provide detailed answers including
justification from ethical theories and code of ethics.

Dr. GP Rangaiah 53
 Ethical Problem Solving Techniques

Do you need Critical and/or

Creative Thinking?

❑ Does Problem Identification

require Critical and/or Creative
Thinking?

❑ Does Problem Solution

require Critical and/or Creative
Thinking?

Dr. GP Rangaiah 54
 Application: Bribe or Gift
❑ Application: A vendor regularly provides products to your
company. Its sales representative invites you to attend a one-
day sales seminar in a far-away holiday resort. Should you
accept and attend it?
Should you accept the invitation/attend the seminar?
How to analyze and resolve this?

❑ Factual Issues
▪ Is it an expensive trip? Who is paying for the trip?
▪ What is your role in purchasing and using these products in
your company?
❑ Conceptual Issues
▪ Is this seminar attendance a gift or bribe?
▪ What is the benefit and/or loss to your company from your
attendance of this seminar?
Dr. GP Rangaiah 55
 Application: Bribe or Gift

❑ Moral Issue
▪ Is it ethical to accept/attend this sales seminar?

❑ Line Drawing
▪ Positive and Negative Paradigms (PP and NP)
▪ Hypothetical examples (4 to 6) covering the range of
NP and PP
▪ Be creative and objective in developing hypothetical
examples

❑ Flow Charting

Dr. GP Rangaiah 56
 Application: Bribe or Gift
❑ Line Drawing
▪ PP – Reject any invitation to sales seminars
▪ NP – Accept/attend all invitations to sales seminars

▪ Hypothetical Examples
1. Your supervisor approves you to attend the sales seminar in a far-
away holiday resort.
2. Your company pays for all expenses to attend the sales seminar in a
far-away holiday resort.
3. Sales seminar is beneficial for your work in your company, and it will
not influence your decision making in matters involving this vendor.
4. Sales seminar in vendor’s local office (and not in a faraway holiday
resort).
5. Sales seminar in the faraway holiday resort is followed by free stay in
the resort for another day.

Dr. GP Rangaiah 57
 Application: Bribe or Gift
NP PP

5 1 3 2 4
Accept all Reject any
invitations invitation
to sales to sales
seminars seminars.

1. Your supervisor approves you to attend the sales seminar in a far-

away holiday resort.
2. Your company pays for all expenses to attend the sales seminar in a
far-away holiday resort.
3. Sales seminar is beneficial for your work in your company, and it will
not influence your decision making in matters involving this vendor.
4. Sales seminar in vendor’s local office (and not in a faraway holiday
resort).
5. Sales seminar in the faraway holiday resort is followed by free stay
in the resort for another day.

Dr. GP Rangaiah 58
 Application: Bribe or Gift

❑ Proposed solution (P) is to accept/attend the sales

seminar in a faraway holiday resort.

❑ Where should P be placed?

❑ What is the conclusion?

❑ What more can be done?

Dr. GP Rangaiah 59
 Application: Bribe or Gift
Vendor invited you to
attend the sales
Decision making seminar in a resort.
process regarding the
invitation to attend the
No
sales seminar in a Consistent with Do not accept the
faraway holiday resort, company’s invitation to the
code of ethics? sales seminar.
organized by a vendor.
Yes

Does your No
supervisor
support your
attendance?

Yes
Accept and
attend the sales
seminar.

Dr. GP Rangaiah 60
 Application: Bribe or Gift

Algorithm:
1. Vendor invited you to attend the
sales seminar in a resort.

2. Is accepting vendor’s invitation

consistent with company’s code of
ethics? If no, do not accept the
invitation and terminate the
algorithm. Else, proceed to next step.

3. Does your supervisor support your

attendance? If no, do not accept the
invitation and terminate the
algorithm. Else, proceed to accept
vendor’s invitation.

Dr. GP Rangaiah 61
 Application: Bribe or Gift
Vendor invited you to Decision making process regarding the
attend the sales invitation to attend the sales seminar in a
seminar in a resort. faraway holiday resort, organized by a vendor.

Is the seminar No
Are there No Do not accept the
useful for your
company’s invitation to the
work in the
code of ethics? sales seminar.
company?

Yes Yes

Does your
Consistent with No No
supervisor
company’s support your
code of ethics? attendance?

Yes Yes
Accept and
attend the sales Yes Does seminar No
seminar. attendance meet
‘Media test’?
Dr. GP Rangaiah 62
 Lobbying and Bribery
KEY TAKEAWAYS
❑ Lobbying is the organizing of a group of like-minded
people, industries, or entities to influence an
authoritative body or lawmakers, often through
financial contributions.
❑ Bribery involves the payment of something (either money
or goods or an intangible favor) in the subversion of
normal practices, for gain or special treatment, or in order
to get an advantage.
❑ In the U.S., lobbying is legal, while bribery is not.
❑ Bribery is an effort to buy power, while lobbying is just an
effort to influence it; but admittedly, the distinction
between the two can be opaque.
Source - https://www.investopedia.com/financial-edge/0912/the-
differences-between-bribery-and-lobbying.aspx (May 2022)
Dr. GP Rangaiah 63