Question

1- Ahmed is working as a project engineer at a newly established company. His company has completed 2 projects, has 5 engineers and 10 technicians. Ahmed’s manager assigned him to contact Ashghal and register the company as a potential bidder for their project. However, the company’s profile does not meet Asghal Policy to be a potential bidder as their minimum requirement is: 5 completed projects, 10 registered engineers, 15 technicians. Even though Ahmed informed his manager about the policy, he insisted Ahmed on declaring that the company has completed 6 projects, has 12 registered engineers and 20 technicians. (a) Identify the ethical situation in this case (if any) (b) Explain what Ahmed should do (c) Mention the relevant Rule of Practice or Professional Obligation (if any)

2-John is a mechanical engineer with two years of experience in designing automobile engines. He is a hard worker and has been very successful. Considering John’s achievements, the department manager promoted him as a “chief design engineer”. As he is now the “chief design engineer”, John was assigned to design and work on automotive electrical circuits by his manager. (a) Identify the ethical situation in this case (if any) (b) Explain what John should do (c) Mention the relevant Rule of Practice or Professional Obligation (if any)

3- Ali is a junior chemical engineer working for a leading engineering firm. Their firm was assigned to design and develop a large new chemical processing unit. During the course of the project, Ali suggested to the project designer an alteration to the design that considerably improved efficiency of the processing unit. After Ali's suggestion has been successfully implemented, Ali was offered a very nice trip to Europe by his upper manager for his suggestion. (a) Identify the ethical situation in this case (if any) (b) Explain what Ali should do (c) Mention the relevant Rule of Practice or Professional Obligation (if any)

4- Tom is a civil engineer and working in a large construction project. Tom was assigned by his manager to look for steel suppliers for the project. Tom placed a newspaper advertisement for potential suppliers to bid. Tom’s brother-in-law is also a steel supplier and he also responded to the newspaper advertisement. Although Tom’s brother-in-law’s price is higher, Tom was thinking to recommend his brother-in-law as the supplier to the manager. (a) Identify the ethical situation in this case (if any) (b) Explain what Tom should do (c) Mention the relevant Rule of Practice or Professional Obligation (if any)

Answer 1

1.

a. The ethical situation involved in this case is a company being awarded a project despite not meeting the eligiblity criteria. The client Asghal requires that the supplying company should have completed at least 5 projects and have 10 registered engineers and 15 technicians on their roster. The bidding company does not meet these requirements and instead is making false claims to win the project.

b. Ahmed should either-

• Decline the request and make the manager change his mind
• Not take part in the project anymore and ask the manager to take him off the project
• Resign from his job
• Consult with someone more senior than his manager within the company

c. A company should not make false assertations and should refrain from any malpractices to get a bid. There should be integrity and openness in their transactions. Business should be carried out with a competitive spirit and should adhere to fair practices. Section 5(a) of the Federal Trade Commission Act (FTC Act) prohibits “unfair or deceptive acts or practices in or affecting commerce"

2.

a.John does not meet the criteria for being the Chief design engineer with just two years of experience in designing mechanical engines. Furthermore, he is a mechanical engineer and not an electrical engineer, yet has been entrusted with the job of designing electrical circuits by his manager.

b. John should step down from his position and not work in the capacity at all.He should not take up any eletrical engineering assignments

c. John has the professional obligation of not taking up any work that does not come under his purview or work where his skills and qualifications are not sufficient for the job. In other words, they should only 'perform in areas of their professional competence'- National Society of Professional Engineers(United States).

3. a. The ethical situation involved here is using performance related incentives to influence an employee. Although, it is isn't exactly an ethical situation considering that Ali is being rewarded for his suggestion. He is being rewarded for his individual performance and not for his involvement in the collective efforts of the team.

b. Ali should carefully analyze the situation and ask for peers and seniors for advice before deciding on taking up the offer or decline it.

c. Employees should be rewarded for their performance and any incentives that are provided to them should be wholly on the basis of merit. In recent years, there has been a shift from fixed remuneration system to performance related remuneration system. The problems involved with this system is that employers become more prone to financial risk and the employees as a group will be upset with only one person being rewarded, despite the project being a collective effort. This can also affect their collective bargaining power if not careful. So fair practices recommend that these factors are looked at and considered before going ahead with any such performance related incentives.

4.

a. Related party transaction is the problem here. Tom is thinking of recommending his brother-in-law as a supplier despite his prices being higher. Related party transactions are any transactions involving parties with connections prior to the business deal or transaction taking place. This is against fair trade practices.

b. Tom should refrain from going ahead and should drop the idea altogether. Tom should select a supplier who is able to provide the require quality goods at a reasonable rate.

c. While selecting a supplier the process should be wholly on merit. Again, Section 5(a) of the Federal Trade Commission Act (FTC Act) is applicable here. It prohibits unfair/deceptive practices.