Engineering Professional ethics: - Corruption Engineering and Society (Societal impact & Bridge method): Engineering Economics and

and Society (Societal impact & Bridge method): Engineering Economics and Innovation:
Sunshine test: ‘Would you and the other party be able to discuss the matter openly, and likewise disclose the How to increase profitability of a project:
-reduce costs
decision, without misgivings?’ (Hong Kong) e.g. ‘Would you be comfortable going into the staff room and openly -increase profits
discussing your decision in this matter?’ OPERATE IN THE LIGHT (Sunshine test) -> disclose at outset Proposition of value: who the organisation exists for (the client) and how it delivers value to them
‘‘Avoid the "sweetener": avoid a situation whereby the acceptance of advantages will place you in a position of Product liability: Product liability occurs as a consequence of a technology system causing harm to a person. It is natural to think of harm as primarily
biological injury to a person, i.e. that product liability is a consequence of health and safety failure, but harm also includes emotional injury and
obligation to reciprocate the offeror. From past experience, corruption does not always start with a direct bribe. In financial loss. Designers are required to anticipate reasonably foreseeable misuse and human error. – USE AT OWN RISK, CONTENT WARNING
fact, it often begins with a "sweetening up" process laden with lavish entertainment and offering of small gifts NPV: Net Present Value - the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at
which do not seem to be connected with your official duties at the time of offering. Hence, you will then be trapped compound interest. Financial measure of future profits, normalised to current time. Future profits are estimated using estimate of interest rate. Only
+ve NPV makes sense. IRR: Internal Rate of Return - IRR is not the actual dollar value of the project. It is the annual return that makes the NPV equal
in an embarrassing or compromising situation when you are asked to return a favour later on.’(Hong Kong) to zero. How high inflation has to be to earn nothing from project using NPV. Higher number better, sensitive to time period, overstates profitability.
The discount rate in NPV and IRR are not the same.
ROI: Return on Investment: Ignores time value of money. Not suited for long periods of investment.
The NPV assumes the interest rate up front, whereas the IRR calculation determines what external interest rate would be necessary to make the
venture unprofitable. Thus NPV is better for comparing several venture options, and IRR for comparing a single venture against unspecified other uses
Ethics risk bowtie of the funds.
(Corruption) VIRO: Inimitable Proposition of Value
Organisations are successful to the extent that they offer a product that offers value to a customer (or client), where that value cannot be obtained
from competing organisations. Hence an Inimitable proposition of value. The factors are: rare, inimitable, valuable, and organisational strengths
(VIRO).
Complexity in Engineering Problems: Examples: F&P Dish drawer, De Beers diamonds, Blue mushroom food dye
Valuable:
Rarity leads to organisational profits, providing that the product is also valuable, i.e. that customers are willing to pay so they are not without it. In
many cases value arises because of scarcity. Hence both rare and inimitable contribute to value. However, it is also possible that people will value a
product even if it is not rare. Marketing is used to build up the Customer’s perceptions that they need the product, that they can’t do without it.
Advertisers therefore seek to emphasise the aspirational nature of the product, even if it is not particularly rare.
Inimitable:
Rarity also has to be inimitable, i.e. not able to be copied. Otherwise other competitors will make their own similar product and split off part of the
market. There are two ways to achieve inimitableness: (1) Secrecy – not allowing other firms to know how the product was made. Secrecy typically
applies to manufacturing process or material composition. (2) Intellectual property (IP) protection – here the key idea or invention is disclosed, but in
return for a legal protection. Other people may not use the idea, even if they can see everything there is to know about the product and its
manufacture. Examples of IP are patents and copyrights.
Rare:
Rare - When there are few or no competing products on the market, then the item is rare and the Customer either has to buy it from the firm, or do
Generic Stakeholder List without. Rare corresponds to having high market-share.
Organisational Strengths:
Organisational advantage also occurs via processes. All outputs of value require some process. This could be a production process, intellectual
property, ways of doing work (work systems), knowledge capability of staff, attitudes of willingness towards risk. It is important to note that provision
of services also requires delivery mechanisms. Hence organisations need processes to deliver services, and this capability may be a strength.
Differentiated Product:
In most cases organisations cannot rely on having all their products as rare, valuable, and inimitable. This applies also to services. In which case the
next strategy is to differentiate between your product and the competitors, by offering a different proposition of value. If you cannot be number one in
your market, then create a niche and dominate that.

*Declare conflicts of interest regardless of severity/significance Stakeholder + Values Diagram

Check each facet of
the code to see if it’s
relevant to the
situation in question.

May be multiple
ethical correct paths
to final state

Possible things to
consider:
*Conflicts of interest
*Resigning
immediately
*Cashflow analysis
*Confidential
information,
especially
information that
would considered
part of the strategic
plan
*Dates of work
(priority dispute)

*Sun inducements
both giving and
receiving

Engineering NZ Code of Ethical Conduct (on exam paper):

Obligations in the public interest Consequences of corruption:
1.Take reasonable steps to safeguard health and safety -Quality of service is decreased
2.Have regard to effects on the environment -Corruption reduces life expectancy for the public
3.Report adverse consequences Avoidance of corruption:
Obligations relating to personal conduct 1-The principles of ethics
4.Act competently 2-Customer focused assessment
5.Behave appropriately 3-Uilitarian approach, will this benefit me long term?
6.Inform others of the consequences of not following advice 4-You will get found out (Sunshine test)
7. Maintain confidentiality
8.Report breach of Code
Ethics question steps:
Scenario:
-Identify relevant provisions in code e.g.
(1) – Safety
(2) – Physical Asset (Environment)
(3) – Regulation
(6) – Following Advice
-Identify multiple courses of action e.g.
Refuse -> CONFESS TO BOSS (ETHICAL)
Enquire about the Objections
Agree -> DO NOTHING (UNETHICAL)
Peer reviewed
-Tabulate pros and cons relative to code:
Courses of action Pros (for) Cons (against)
Refuse 1,2,6 Rude? (No rant)
Objectivity (5ai)
Enquire about objections Objectivity (5ai) None Complexity: -refer to complexity in Eng problems list above. Solving Complex problems:
Courtesy (5aii) 1. Analyse the problem
Competence (4aii or iii) 2. Create a model of system behaviour Project Management Iron Triangle:
3. Apply innovative thinking
Agree Respect 5aii (1)-Safety, (2)-Asset 4. Design a solution
1. Low Cost (Inexpensive)
2. High Quality
Peer reviewed Keep for next stage - -Satisficing - finding as opposed to perfect solutions 3. Done Quickly
-Identify acceptable course(s) of action -Synthesis – combination of part solutions into new integrated whole
5. Apply a range of resources
--May involve progressive action
progression 6. Implement a solution
Chosen course of action: - Enquire about nature of objection

Napier Port Tutorial: System, Stakeholder/Values, Project Activities, Complexity Diagrams Complexity
Diagram

Napier Port Tutorial Project

System Architecture Diagram Activities
Risk Management: Environmental Engineering: (1) the overall impact categories, (2) One or two sub categories for each, (3) a risk- (Biculturalism): - Consultation with Iwi process diagram:
-Bowtie Analysis: - examples based evaluation (N1xN2=N3). +summary /recommendations /findings / treatments
The bowtie methods are also useful in showing where human error contributes to accidents. This is a qualitative
method, which is not the limitation it might seem, because finding probabilities for human error rates is practically
impossible to achieve in most situations.

AEE categories: - for each category there are sub issues that requiring addressing
Outstanding geological features
-Destruction of interesting geological features (2*1 = 2)
-Increased risk of erosion/landslides (3*1 = 3)
Visual Amenity (i.e. can see turbines from shore), Natural Character
-Noise (2*4 = 8)
-Habitat destruction (3*2 = 6)
-Audience 1,2,3: local people, recreation users, from a long way away, tourists (2*4 = 8)
Recreational access, public access, customary activities
-Negative effects on popularity (2*2 = 4)
Roads and Earthworks
-Roads (2*4 = 8)
Treaty Principles: (interconnected)
-Foundations (3*4 = 12)
-Kaitiakitanga (environmental stewardship)
Threats to Flora – plants
-He Tangata (Health and Safety)
-Damage to soil and disturbance of natural environment as a result of earthworks and roadworks (2*4 = 8) Kaupapa values:
-Rahui (Management of resources)
Threats to Fauna – Animals *Past dispossession of land
-Tapu (Sacredness)
-Damage to the environment and/or directly to fauna populations as a result of the construction and operation (2*4 = *Chieftainship over natural resources
-Korero (Communication)
8) *Ethnic stewardship – Kaitiakitanga
-Taonga (Lands, Fisheries. Forests, Estates, etc)
Native peoples – Tangata Whenua – Maori and their values *Waahi Tapu (sacred places)
-Rangatiratanga (Sovereignty, Chieftainship)
- Ethnic stewardship – kaitiakitanga (2*2 = 4) Six principles for product liability *Taonga species: birds (e.g. Muttonbirds)
- Waahi tapu (sacred places) (4*3 = 12) One is enough * Historical, Archaeological, and Mythical/Legendary associations with the area
- Legendary associations (3*2 = 6) 1. Negligence by commission or omission, *Food gathering (e.g. Mutton-birds in Foveaux Strait)
- Food gathering 1*2 = 2) 2. Strict liability, *Spiritual (Wairua)
Historic, cultural, heritage 3. Implied warranty of merchantability, *Social effects (Whanau)
-Heritage buildings (1*1 = 1) 4. Express warranty, *Treaty Rights (e.g. Lands, Estates, Forests, Fisheries etc)
-Historic features (1*1 = 1) 5. Implied warranty of fitness for a particular purpose, 72 * Identify sites of significance, cultural sensitivity
-Cultural associations (1*1 = 1) 6. Misrepresentation. *Interests in the fauna and flora of the region
Intrinsic value of ecosystems, ecological utilities Things to consider when doing a development project in the natural environment.
- Effects to intrinsic value of ecosystem and ecological utilities (1*2 = 2) It's incomplete - the areas of ToE, AEE, consultation, consent, & contracts are absent
Waste, pollution, weeds
-Waste/Pollution produced by construction/commissioning (2*4 = 8)
- Waste/Pollution produced by operation (2*4 = 8)
- Waste/Pollution produced by decommissioning (2*4 = 8)
- Weeds transferred to site via roads (1*3 = 3)
Climate change
-Emissions from produced from manufacture, construction, maintenance and running of wind farm (1*4 = 4)
Neighbours and stakeholders
-Effects on residential neighbours (2*2 = 4)
-Effects on non-residential neighbours (DOC) (1*1 = 1)
FOCUS ON SUMMARY “this shows that the key issues are likely to be this, this and this…” + RECOMMENDATIONS:
To minimise the impact of the Windfarm on the environment of Mount Cass, it is recommended that further work be
done to identify suitable treatments for the identified issues.

The key treatments to the identified environmental risks are:

To reduce the uncertainty in the identified environmental risks, further work is required to establish the degree of
consultation with Māori values stakeholders, identify the extent of earthworks and road building required on the site
and identify the threatened fauna and flora on the site.

Bridge Method: scored [-2, -1, 0, +1, +2] – status quo is always all zero
1. Societal benefits (tangata whenua, tangata Tiritri): [30 points]
-1.1 Benefit to local families (whanau mauri): [10 points]
*Employment
*Physical (Tinana) (Caring for the body)
*Mental (Hinengaro)
*Exercise and recreation
-1.2 Community benefits: [10 points]
*Social (Whanau)
*Countering adverse social behaviours
*Protection of indigenous knowledge (product of appellation)
-1.3 Cultural Benefits (Hapu Mauri): [10 points]
*Spiritual (Wairua)
*Maintaining cultural values, including ancestral legends of the landscape
*Preserving ability of future generations to meet their own needs (kaitiakitanga)
*Preservation of historically significant places or items
2. Environmental benefits (taiao mauri): [40 points]
*CO2
*Eutrophication
*NOx
*Dust Numerical method for Bridge Method:
*CH4 *Assign scores to each item from -2 to +2
*SOx *Sum item scores for each sub-category e.g. 1.1 Three Pillars Model: Economic value, Benefit to society, Environmental integrity
*Resource Depletion *Divide sum by the No. of items in sub-category x2 Do three pillars analysis with three overlapping Venn circles: one green, one red and one blue. Talk about
*Ecological services *Multiply by the total points available for sub- intersections. Tie it back to the particular scenario i.e. what goes in the intersection between economic and
*Water storage category
3. External economics: [30 points] environment e.g. more wind turbines is economic but negatively affects the environment. Try and identify the
*Sum for each sub-category in a category most pressing issues of the scenario e.g. the “show stopper issue”. In case of Te Waka: Maori mythological
-3.1 Utility [10 points] *Sum for each category for each scenario + status
*Business Profit issues. DO circles + Bridge method
quo
*Strategic value to organisation Example:
Li – ion battery fire bowtie: - How to draw Bowtie diagram in exam *Financial means to complete 1.1-Benefit to local families
-3.2 Technological feasibility [10 points] Employment +2
*Tech feasibility Physical +1
*Residual risks after treatment Mental +1
*Reliability of premises and input assumptions and modelling Exercise and recreation +1
-3.3 National interest [10 points] -> 5/8 x 10 -> 6.25/10
*Strategic value to national government Repeat process for each sub-category
*Strategic value to local government Statu Development Development
*Energy or other sufficiency of provenance s Quo Plan A Plan B
+EVALUATION OF OPTIONS:
***Need comment at the end of bridge analysis saying “this shows that the key issues are likely to be this, this and
this…”
“In this case option A favours the external economics, but does poorly against the societal and environmental
dimensions. Option B gives less external economic utility but is better for the other dimensions, and this shows in its
better score.”
“The recommended outcome is Option x, for the following reasons. Note also that this is consistent with xxx.“

Conflict of interest diagram:

Resource consent process: