NSPE Spring 2009 Ethics Forum
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1 NSPE Spring 2009 Ethics Forum Meeting Ethical Challenges in Difficult Times Keeping Finance and Marketing on Course in an Economic Downturn May 6, 2009
2 MODERATOR Arthur E. Schwartz, Esq. NSPE Deputy Executive Director & General Counsel
3 TODAY S PANEL MEMBERS William J. Lhota, PE, PLS: President and CEO, Central Ohio Transit Authority, current Director for the National Institute of Engineering Ethics, former member and Chairman, NSPE Board of Ethical Review Michael L. Shirley, PE, F.NSPE: Innovators Research, Inc., Current Chairman, NSPE Board of Ethical Review
4 Overview of Today s Discussion 1. Present the facts of NSPE Board of Ethical Review Cases 2. References from the NSPE Code of Ethics 3. Discussion of the Case by the Panel
5 Case 1 (91-4) MARKETING SURVEY BY ENGINEERING FIRM
6 Case 1 Facts: -Engineer A, is exploring various marketing approaches for both potential and existing clients. -Engineer A has developed a survey/questionnaire which includes client expectations questions and other material.
7 Case 1 Facts cont d: A sentence at the end of a cover letter accompanying the survey notes that the firm "appreciates the time the client has taken to complete the survey/questionnaire and that the client's efforts in completing the survey will benefit the entire engineering community...
8 Case 1 QUESTIONS 1. Was it ethical for Engineer A to conduct the survey? 2. Was it ethical for Engineer A to state in the cover letter accompanying the survey that the client's efforts in completing the survey would benefit the entire engineering community?
9 Reference NSPE Code of Ethics Section II.3. Engineers shall issue public statements only in an objective and truthful manner.
10 Reference NSPE Code of Ethics Section II.5. Engineers shall avoid deceptive acts.
11 Reference NSPE Code of Ethics Section III.1.e. Engineers shall not promote their own interest at the expense of the dignity and integrity of the profession.
12 Reference NSPE Code of Ethics Section III.3.a. Engineers shall avoid the use of statements containing a material misrepresentation of fact or omitting a material fact.
13 Case 1 Panel Discussion and Conclusion
14 Polling Question Case 1 I agree/disagree with the following statement: The current economic downturn has caused me to change my marketing techniques in order to increase business and employment opportunities. 1. Agree 2. Disagree 3. Not Sure
15 Case 2 (02-4) CONFLICT OF INTEREST LOAN FROM CONTRACTOR
16 Case 2 Facts: Engineer A is a consulting engineer. Following client review and approval of Engineer A s designs, Engineer A is generally requested to recommend a contractor. Engineer A frequently recommends that his clients hire Contractor B.
17 Case 2 Facts (cont d): Recently, Engineer A mentions to Contractor B that Engineer A plans to expand his consulting engineering practice Contractor B offers to lend Engineer A $20,000 at an interest rate significantly below market rate.
18 Polling Question Case 2 I agree/disagree with the following statement: It is appropriate and acceptable for engineers to borrow funds from parties with which they do business with on a regular or occasional basis such as contractors. 1. I agree 2. I disagree 3. Not Sure
19 Case 2 QUESTION Would it be ethical for Engineer A to accept Contractor B s offer to lend Engineer A $20,000 at an interest rate significantly below market rate?
20 Reference NSPE Code of Ethics Section II.4.a. Engineers shall disclose all known or potential conflicts of interest that could influence or appear to influence their judgment or the quality of their services.
21 Reference NSPE Code of Ethics Section II.4.c. Engineers shall not solicit or accept financial or other valuable consideration, directly or indirectly, from outside agents in connection with the work for which they are responsible.
22 Reference NSPE Code of Ethics Section III.5.b. Engineers shall not accept commissions or allowances, directly or indirectly, from contractors or other parties dealing with clients or employers of the Engineer in connection with work for which the Engineer is responsible.
23 Case 2 Panel Discuss and Conclusion
24 Polling Question I believe the following is true: The internet has been effective in improving my ability to sell and market my services and my firm s services to new clients. 1. True 2. False 3. Unsure
25 Case 3 (04-4) Advertising: Representations Made on Web site
26 Case 3 Facts: Engineer A, a professional engineer licensed in four states, establishes a Web site, that indicates that Engineer A s company will seal professional engineering drawings for a standard prescribed fee per page. The information on the Web site states the following:
27 Facts: Case 3 Get your project approved! engineerseals.com provides a convenient, cost effective, way for you to obtain sealed documents from a registered engineer to meet your local or state requirements. The online questionnaires and confirmation processes help us determine the specific services you need. We will provide direct engineering supervision, and depending on your project, we will:
28 Case 3 Facts: Review and modify your plans, shop drawings, specifications, and calculations; Generate the necessary drawings, plans, specifications, and reports; Perform engineering investigation, evaluation, and consultation; or Perform site visits
29 Case 3 Facts: Upon receipt of your information, we will contact you directly. Your responses help us to simplify the review process and ultimately help us customize the services to meet your needs. The next time you need plans reviewed for building construction codes and permit approvals, visit engineerseals.com. We'll help you get your remodeling, renovation, and new building projects from draft to development efficiently and professionally. The process is easy.
30 Case 3 Question: Was it ethical for Engineer A to develop a Web site in the manner indicated?
31 Reference NSPE Code of Ethics Section II.2.b. Engineers shall not affix their signatures to any plans or documents dealing with subject matter in which they lack competence, nor to any plan or document not prepared under their direction and control.
32 Reference NSPE Code of Ethics Section III.3. Engineers shall avoid all conduct or practice that deceives the public.
33 Reference NSPE Code of Ethics Section III.3.a. Engineers shall avoid the use of statements containing a material misrepresentation of fact or omitting a material fact.
34 Reference NSPE Code of Ethics Section III.8.a. Engineers shall conform with state registration laws in the practice of engineering.
35 Case 3 Panel Discuss and Conclusion
36 Polling Question Case 3 1. I believe state engineering licensure boards have a role in establishing guidelines regarding the use of the internet as a means of performing engineering services 1. I agree. 2. I disagree 3. Not sure.
37 Case # 4 (06-7) Conflict of Interest Accepting Real Estate as Payment for Services
38 Case # 4 Facts: Engineer A provides professional services to Client B. Engineer A is a friend and business partner of Landowner C, also a land developer, who owns property immediately adjacent to Client B s subdivision. Client B is unaware of Engineer A s relationship with Landowner C. The contract between Engineer A and Client B indicates that the engineering services would be billable on an hourly basis.
39 Facts (Cont d): Case # 4 However, with 85% of the work performed, the fees are more than two times the original estimate discussed between Engineer A and Client B, Engineer A was required to perform significant redesign, resulting in the additional cost.
40 Case # 4 Facts (Cont d): Engineer A is reluctant to agree to Client B s request that Engineer A complete the remainder of the engineering services on a lump sum basis. Following a discussion of the matter, Engineer A offers to purchase the property from Client B for a reduced price that would satisfy and include the outstanding fees owed to Engineer A.
41 Case #4 Question: Was it ethical for Engineer A offer to purchase the property from Client B for a reduced price that would satisfy and include the outstanding fees owed to Engineer A under the circumstances?
42 Reference NSPE Code of Ethics Section II.4. Engineers shall act for each employer or client as faithful agents or trustees.
43 Reference NSPE Code of Ethics Section II.4.a. Engineers shall disclose all known or potential conflicts of interest that could influence or appear to influence their judgment or the quality of their services.
44 Reference NSPE Code of Ethics Section III.1.e. Engineers shall not promote their own interest at the expense of the dignity and integrity of the profession.
45 Reference NSPE Code of Ethics Section III.3.a. Engineers shall avoid the use of statements containing a material misrepresentation of fact or omitting a material fact.
46 Case # 4 Panel Discussion and Conclusion
47 Polling Question Case 4 I believe that engineers are confronting more professional and ethical challenges today that at any time in the past? (1) Yes (2) No (3) Unsure
48 Extra Polling Question I believe the following statement best characterizes my view concerning the engineer s obligation to act ethically (1) Ethics is the overriding obligation in all of my professional activities; (2) Ethics must be balanced with a variety of factors that I face in my professional and personal life; (3) Ethics, while an important consideration, must sometimes give way to other considerations; (4) Unsure
49 QUESTIONS COMMENTS
50 CONTACT Arthur E. Schwartz, Esq., CAE NSPE Deputy Executive Director and Legal Counsel 703/
51 NSPE ONLINE IN 2009 Additional online web seminars may be found at and click on Education.
52 NEW! NSPE ONLINE 24/7 NSPE on-demand courses are now available through Shop NSPE. Take the course now and earn your PDHs at your convenience from the comfort of your home or office. Choose from a variety of topics presented by leading experts in the field. Visit and click on Shop NSPE on the homepage.
53 NOTICE The NSPE Online Seminar series is presented and copyrighted by the National Society of Professional Engineers. All rights are reserved. Any transmission, retransmission or republishing of the audio or written portions of this program without permission of the National Society of Professional Engineers is prohibited.
54 THANK YOU!
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