1. NSPE Board of Ethical Review
National Society of Professional Engineers
1420 King Street
Alexandria, Virginia 22314

2. Table of Contents / Agenda
Overview of BER
Background of BER
Current Activity of BER
Overview of Ethics Cases
Example Case 1 – Duty to Report
Example Case 2 – Advertising
Example Case 3 – Conflict of Interest
Example Case 4 – Misrepresentation
Example Case 5 – Quid Pro Quo

3. NSPE Board of Ethical Review
What is the Board of Ethical Review (BER)?
Who is on the BER?
What is the purpose of the BER?

4. Overview of the NSPE Board of Ethical Review
The Board of Ethical Review (BER) is a panel of engineering ethics experts that has served as the profession's guide through ethical dilemmas.
The board consists of seven licensed members who are appointed by the NSPE president.
The purpose of the BER is to render impartial opinions pertaining to the interpretation of the NSPE Code of Ethics, develop materials, and conduct studies relating to ethics of the engineering profession.

5. Background of the NSPE Board of Ethical Review
History of Engineering Ethics The engineering profession's emphasis on ethics dates back to the end of the 19th century.

6. Background of the NSPE Board of Ethical Review
History of NSPE Code of Ethics In 1946, NSPE released its Canons of Ethics for Engineers and Rules of Professional Conduct, which evolved to the current Code of Ethics, adopted in 1964.

7. Background of the NSPE Board of Ethical Review
Creation of the BER While these statements of general principles served as a guide, many engineers requested interpretations of how the Canons and Rules would apply to specific circumstances. These requests ultimately led to the creation of the BER in 1954.

8. Background of the NSPE Board of Ethical Review
Ethics Cases Ethics cases rarely have easy answers, but the BER's nearly 500 advisory opinions have helped bring clarity to the ethical issues engineers face daily.

9. Background of the NSPE Board of Ethical Review
Evolution of BER Since 1954, the BER and its work has evolved with the profession. In the early years there was an emphasis on advertising and competitive bidding, self-promotion, collective bargaining, and supplanting.

10. Background of the NSPE Board of Ethical Review
Evolution of Laws and Public Health & Safety But as a result of changes in the law, especially antitrust laws and commercial-free speech laws, the emphasis shifted to professional competence issues, such as the signing and sealing of work, whistleblowing, conflicts of interest, and the engineer's obligation to protect the public health and safety.

11. Background of the NSPE Board of Ethical Review
Current Status of the NSPE BER Today, NSPE’s dedication to professional ethics is integral to the mission, values, goals outlined in the organization’s strategic plan.
Vision: NSPE is a member-centric, nimble, future-focused and responsive organization, serving as the recognized voice and advocate of licensed Professional Engineers.
Mission: NSPE, in partnership with the State Societies, is the organization of licensed Professional Engineers (PEs) and Engineer Interns (EIs).

12. Current Activity of the NSPE Board of Ethical Review
Engineering Ethics Activity Besides producing advisory opinions on ethics cases, the seven licensed member BER is involved in many other engineering ethics activities.

13. Current Activity of the NSPE Board of Ethical Review
Gilbane Gold Ethics Video It participated in the development of the ethics video Gilbane Gold, which shows the dilemma of an engineer caught between doing what he feels is right and remaining loyal to his company.

14. Current Activity of the NSPE Board of Ethical Review
Code of Ethics Exam and “You Be The Judge” It also established a Code of Ethics Exam on the NSPE Web site and began the "You Be the Judge" column in Engineering Times in 1987.

15. Current Activity of the NSPE Board of Ethical Review
Milton F. Lunch Ethics Contest The BER, which meets multiple times a year (once face-to-face and others by teleconference) to discuss ethics issues and decide cases, also administers the annual Milton F. Lunch Ethics Contest. The contest gives members an opportunity to test their ethics knowledge by applying it to a fictional scenario and was recently revised to permit increased submission options.

16. Current Activity of the NSPE Board of Ethical Review
NSPE Ethics Reference Guide & Publication of BER Cases Other BER projects include the development of the NSPE Ethics Reference Guide and the translation to Japanese of the most recent three volumes of BER cases.

17. Current Activity of the NSPE Board of Ethical Review
Continuing the Legacy of Providing Guidance NSPE's Board of Ethical Review is approaching 50 years of service to the profession, and it continues to be a place where engineers openly discuss tough questions and provide guidance to others.

18. Overview of Ethics Cases
What are the most common subject areas?
Would anyone like to guess?

19. Overview of Ethics Cases
The Most Common Subject Areas are…
Advertising, Confidentiality, Conflict of Interest (largest), Contingent Contracts, Disclosure, Duty to Report, Employment, Expert Witness, Gifts, Misrepresentation, Professional Competence, Public Health, Safety and Welfare.

20. Overview of Ethics Cases
Examples of Ethics Cases…
The following are summary examples of the types of cases considered by the NSPE Board of Ethical Review.
This will provide you with the opportunity to step in to the shoes of the Board of Ethical Review and consider some typical cases that are submitted to the BER, discuss your views and then comment on the conclusions reached by the BER.

21. Example Case 1 – Duty to Report (BER Case 05-4)
M. S. Errey, P.E., is retained by Mawadepro Inc. for a major waterfront development project in Harbortown.
As part of the process for approving Mawadepro's project, Errey is required to attend a public hearing and present the proposed design for the Harbortown waterfront to the Harbortown Planning Board.
Errey makes a presentation and responds to questions by members of the Harbortown Planning Board.
Errey highlights the improved environmental effect of converting the waterfront from an industrial facility to a parkland.
The detailed sentences are fine here. The speaker is trying to give an actual example case, so facts are important.
If asked about details not provided or “what ifs”, the speaker should explain the facts are given and the BER typically does not alter, add, or subtract facts, but we try to use them exactly as provided…and that not having all details is often part of the engineering ethics dilemma.

22. Example Case 1 – Duty to Report
This anticipated commercial development could increase traffic, as well as air and noise pollution. Errey is aware of these factors but was not specifically questioned about them and does not volunteer this fact.
Had Errey been questioned by the Harbortown Planning Board, Errey would have provided testimony concerning these issues.
Later, other witnesses attending the public hearing (including other engineers) testify about the increased traffic, noise, and air pollution issues.

23. Example Case 1 – Duty to Report
What do you think?
Was it ethical for Errey to fail to volunteer the fact that the anticipated commercial development could significantly increase traffic, as well as air and noise pollution?
Group Discussion

24. Example Case 1 – Duty to Report
It was not unethical for Errey to fail to volunteer the fact that the anticipated commercial development could increase traffic, as well as noise and air pollution.
Comments

25. Example Case 1 – Duty to Report
Engineers role when testifying
Engineers play an important role when testifying before public bodies on technical and other matters affecting the public health, safety, and welfare.

26. Example Case 1 – Duty to Report
Technical insight
Engineers bring an important perspective to such discussions, offering technical insights into issues that have a significant effect on people's lives.

27. Example Case 1 – Duty to Report
Affect of public policy
Because of the effect that their testimony may have on public policy discussions of this type, engineers who are involved in obligations in a manner that is consistent with the NSPE Code of Ethics.

28. Example Case 1 – Duty to Report
Obligations of this engineer
This case involves the potential obligation of a single engineer to disclose the fact that an anticipated commercial development will significantly increase traffic, as well as noise and air pollution.

29. Example Case 1 – Duty to Report
Differing engineering opinions
Environmental considerations are often subject to varying arguments, reflecting differing considerations and interests.

30. Example Case 1 – Duty to Report
Subjectiveness and policy considerations
While it might be easier if environmental issues could be resolved in a clear and objective manner, in fact, many of these important public policy questions are the result of subjective and sometimes difficult policy considerations.

31. Example Case 1 – Duty to Report
Relevant and pertinent information
The question in this case is whether the traffic, noise, and air pollution issues are "relevant and pertinent information."
If they are "relevant and pertinent," the engineer has an obligation to disclose the information in any presentation made on the project. Engineers can reach different conclusions when looking at the same set of facts.

32. Example Case 1 – Duty to Report
What is M.S. Errey obligated to provide?
Errey's ethical obligation does not require him to disclose such information if, in his professional judgment, it is not "relevant and pertinent."

33. Example Case 1 – Duty to Report
Errey's ethical obligation does not require him to disclose such information if, in his professional judgment, it is not "relevant and pertinent."
Errey's ethical obligation does not require him to disclose such information if, in his professional judgment, it is not "relevant and pertinent."

34. Example Case 1 – Duty to Report
Comments?

35. Example Case 2 – Advertising (BER Case 05-9)
Sheeza Schmoozer, P.E., is employed in private practice and is approached by a networking and referral organization that has multiple chapters around the world.
Only one person from any given profession or line of business can join any individual chapter.
The chapter that approached Schmoozer includes a lawyer, contractor, investment advisor, and insurance agent.
At each weekly meeting, there is usually a presentation on how to market a business and one member gives a detailed presentation about his or her business.
Finally, members may exchange any referrals that they have obtained for each other during the week.
The referral organization earns its revenue though annual membership fees.
The members do not pay any fees to each other, and the organization does not make any referrals nor require that members make referrals to each other. Schmoozer describes the organization's role as helping to bring people together to make "free referrals among themselves."

36. Example Case 2 - Advertising
What Do You Think?
Would it be ethical for Schmoozer to participate in the networking and referral organization?
Group Discussion

37. Example Case 2 - Advertising
Use of consortium and associations
The use of a consortium of other professionals and the ethical implications involved in such a business association has been the subject of NSPE Board of Ethical Review deliberations in the past.

38. Example Case 2 - Advertising
Must review each situation and facts
Whether such business associations create the potential for conflicts of interest or other circumstances that could create appearances of impropriety is often dependent upon a review of all of the facts and circumstances relating to the operation of the consortium.

39. Example Case 2 - Advertising
Established advertising models
The Board believes that the facts are based upon an established model that is presumably practiced throughout the world.

40. Example Case 2 - Advertising
Comparison to this networking circle
While that does not necessarily indicate that the practice is acceptable, it does demonstrate a level of credibility and sustainability.

41. Example Case 2 - Advertising
Follow the money
The arrangement outlined under the present facts appears to constitute a formalized networking circle and information exchange with no requirement that any party make a referral to another party.

42. Example Case 2 - Advertising
Obligations to circle
In addition, the fees that are paid are intended to cover chapter membership and general administrative cost, but are not provided to any individual member in consideration for a referral.

43. Example Case 2 - Advertising
Comments?
Individuals are also free to make referrals outside of the network if the member so chooses. On this basis, the Board can not conclude that there is a violation of the NSPE Code of Ethics under these facts.

44. Example Case 3 – Conflict of Interest (BER Case 05-10)
Cole Laborator, P.E., performs design services on a design-build joint venture project with contractor QRS for private client Loyal.
Later, Loyal retains Laborator on another unrelated design-bid-build project to review the submissions and construction work performed by QRS.

45. Example Case 3 – Conflict of Interest
What Do You Think?
Would it be ethical for Laborator to review the submissions and construction work performed by QRS after having participated in a joint venture with QRS for the same client?
Group Discussion

46. Example Case 3 – Conflict of Interest
What do the facts say?
It would appear that the facts presented in this matter suggest the possibility of a conflict of interest.

47. Example Case 3 – Conflict of Interest
Conflicts of interest
Engineers are frequently faced with situations that could raise a conflict of interest or, at least, the appearance of a conflict of interest.

48. Example Case 3 – Conflict of Interest
Judgement and interests
Two critical issues that are implicit in a conflict-of-interest situation are the effect that the conflict has or could have on 1) the engineer's professional or business judgment and 2) an employer's client's interests.

49. Example Case 3 – Conflict of Interest
One of the most widely discussed topics
Conflict of interest is among the most widely examined topics addressed by the NSPE Board of Ethical Review.

50. Example Case 3 – Conflict of Interest
Assumptions?
Assuming there is full disclosure by Laborator (which is a reasonable assumption under the facts), the Board cannot see why it would be unethical for Laborator to review the submissions and construction work performed by QRS after having participated in a joint venture with QRS for the same client.

51. Example Case 3 – Conflict of Interest
Unpopular doesn’t equal conflict of interest
While it may not necessarily be the preferred manner for Loyal to proceed, as the client and the recipient of engineering and construction services, that is a decision for the client to make.

52. Example Case 3 – Conflict of Interest
Recommendations?
While Laborator may wish to advise Loyal that there may be a better procedure to follow in order to ensure proper "checks and balances," the Board cannot say that, as a matter of ethics, the facts present an unacceptable situation.

53. Example Case 3 – Conflict of Interest
It would be ethical for Laborator to review the submissions and construction work performed by QRS after having participated in a joint venture with QRS for the same client.

54. Example Case 3 – Conflict of Interest
Comments?

55. Example Case 4 – Misrepresentation (BER Case 05-12)
Dee Seaving, an engineering student at State University, is enrolled in the engineering college.
Toward the end of the semester, while studying in a university library, Seaving discovers a folder on a table with the previous year's final examinations, some of which are in Seaving's areas of study.
Using the library copier, Seaving makes copies of the examinations and then brings the originals to the engineering college office, where she is complimented by the engineering dean for bringing the matter to her attention, Seaving is not questioned any further.
It turns out that an administrative staff person inadvertently left the examinations on the table while making copies for faculty.
During the examination study period, Seaving uses the copies of those examinations to study for the final examination in her areas of study. The engineering college does not generally distribute copies of prior year examinations, and Seaving is aware of this policy.

56. Example Case 4 – Misrepresentation
What Do You Think?
Was it ethical for Seaving to make copies of the examinations and use those examinations to prepare for the final examination in her areas of study?
Group Discussion

57. Example Case 4 – Misrepresentation
Fundamental ethical obligations
The facts presented in this case relate to some of the fundamental ethical obligations relating to the conduct of students in the academic environment.

58. Example Case 4 – Misrepresentation
Conduct of Students
As the NSPE Board of Ethical Review has noted before, the NSPE Code of Ethics applies to engineering students as a means of providing guidance in preparation for entrance into the engineering profession.

59. Example Case 4 – Misrepresentation
Trust and Honesty
Issues of trust and honesty in an academic environment are critical to the mission of the university.

60. Example Case 4 – Misrepresentation
Honor Codes
University honor codes and student standards of conduct are critical to academic integrity. In the Board's view, Seaving's use of the material in question as a study aid to provide an edge in preparing for engineering examinations is inconsistent with the notion of honesty and truthfulness and undermines the integrity of the academic institution.

61. Example Case 4 – Misrepresentation
What should be the appropriate action?
The appropriate action for Seaving to take under the circumstances would have been to immediately return the material to the engineering office once she had determined the nature of the material.

62. Example Case 4 – Misrepresentation
Using the NSPE Code of Ethics as a guidance document for engineering students, it was unethical for Seaving to makes copies of the examinations and use those examinations to prepare for the final examination in her areas of study.

63. Example Case 4 – Misrepresentation
Comments?

64. Example Case 5 – Quid Pro Quo (BER Case 06-1)
Learn N. Buy, P.E., receives the following solicitation from a company:
EFG Building Supply Company invites you to participate in a new program tailored for engineers of septic/drainage systems.
To qualify for this plan, attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems.
If you are convinced of the value of the EFG products, simply note on your future septic/drainage system plans that “EFG carries septic and drainage products”.
For the EFG Building Supply Company Reward Program, your client makes discounted purchases of EFG septic/drainage products and those are noted on your EFG Rewards account (this is strictly a pay-as-you-go basis).
Every month when one of your clients makes a purchase, you will receive a Rewards Certificate. The value of the Certificate is based on a percentage of monthly sales to your clients. Rewards Certificates may be redeemed for cash at EFG or at the East Westville Resort and Country Club.

65. Example Case 5 – Quid Pro Quo
What Do You Think?
Would it be ethical for Buy to attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems? Would it be ethical for Buy to participate in the EFG Building Supply Company Reward Program?
Group Discussion

66. Example Case 5 – Quid Pro Quo
Is attendance okay?
Buy's mere participation in a complimentary educational seminar on septic/drainage systems does not violate the language in the NSPE Code of Ethics.

67. Example Case 5 – Quid Pro Quo
Value of Information?
Presumably Buy may learn technical or other information at such an event that will improve Buy's professional competence and allow Buy to better serve clients and the public.

68. Example Case 5 – Quid Pro Quo
Is attending considered a gift?
The Board's conclusions may be significantly different if the complimentary educational seminar was conducted on, for example, a cruise ship, which would turn this activity into a gift rather than an educational activity.

69. Example Case 5 – Quid Pro Quo
Value of gift?
However in this case, the Board believes that the complimentary seminar is of
de minimis value.

70. Example Case 5 – Quid Pro Quo
Is participation in the program okay?
On the second issue, the Board does not find facts or circumstances that would warrant a determination that Buy's participation in the EFG Building Supply Reward Program would be ethical.

71. Example Case 5 – Quid Pro Quo
Are kickbacks okay?
Buy's participation in the program appears to amount to nothing more than a kickback to specifiers, such as Buy, who specify a particular product supplied by the EFG Building Supply Company, an activity NSPE Code Sections III.5.a., III.5.b., and other provisions were designed to prevent.

72. Example Case 5 – Quid Pro Quo
NSPE Code of Ethics Sections III.5.a and III.5.b prevent this.
Section III.5.a. - Engineers shall not accept financial or other considerations, including free engineering designs, from material or equipment suppliers for specifying their product.
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.
Section III.5.a. - Engineers shall not accept financial or other considerations, including free engineering designs, from material or equipment suppliers for specifying their product.
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.

73. Example Case 5 – Quid Pro Quo
Do purchase discounts for buyers matter?
The fact that a purchase discount is also for the benefit of the engineer's client does not mitigate the ethical problem.

74. Example Case 5 – Quid Pro Quo
The program is a blatant effort to institute a quid pro quo policy that undermines the credibility of engineers retained by their clients to exercise independent engineering judgment and discretion.

75. Example Case 5 – Quid Pro Quo
Would it be okay to participate in the EFG Rewards Program?
If after participating in the EFG Building Supply Company Seminar on Septic Drainage Systems, Buy is convinced that the EFG septic/drainage system is the most advantageous system for a client, Buy may specify the system but must not participate in the EFG Building Supply Reward Program.

76. Example Case 5 – Quid Pro Quo
It would be ethical for Buy to attend the complimentary EFG Building Supply Company Seminar on Septic/Drainage Systems, but it would not be ethical for Buy to participate in the EFG Building Supply Company Rewards Program.

77. Example Case 5 – Quid Pro Quo
Comments?

78. NSPE Board of Ethical Review
Final Comments