PROFESSIONAL

ETHICS
 What are Ethics?
•Ethics can be defined broadly as
a set of moral principles or
values.
•Each of us has such a set of
values.
•We may or may not have
considered them explicitly.
 Ethics
GOOD

SELF OTHER
 Ethical Issues are Seldom
Black and White
Conflicting demands:
Loyalty to company and colleagues
Concern for public welfare
Personal gain, ambition

Ethical standards are usually relative and

personal, there is seldom an absolute
standard
Characteristics of a
profession
•Extended theoretical training
knowledge and skills vital for
society

• Public put trust in their competence

• Self-regulation by ethical standards

What does it take to be a
professional?
Definition of Professional Ethics
The principles and standards that guide
the members of the profession in their
interaction with internal and external
stakeholders.
Why People Act Unethically?
• The person’s ethical standards are different
from those of society as a whole.

• The person chooses to act selfishly.

• In many instances, both reasons exist.

Rationalizing
Unethical Behavior
• Everybody does it.

• If it’s legal, it’s ethical.

• Likelihood of discovery and

consequences
 A Person’s Ethical Standards
Differ from General Society
Embezzlers Con artists Shoplifters

Most people who commit such acts feel no

remorse when they are apprehended
because their ethical standards differ from
those of society as a whole.
 Ethical Dilemmas
An ethical dilemma is a situation a
person faces in which a decision must
be made about appropriate behavior.
 Ethical Dilemma
• A staff person has been informed that
he will work hours without recording
them as hours worked.

• Firm policy prohibits this practice.

• Another staff person has stated that

this is common practice in the firm.
 Resolving Ethical
Dilemmas
1. Obtain the relevant facts.
2. Identify the ethical issues from
the facts.

3. Determine who is affected.

4. Identify the alternatives available to the
person who must resolve the dilemma.

5. Identify the likely consequence of each

alternative.

6. Decide the appropriate action.

AICPA Code of
Professional Conduct
Four parts to the Code:
• Principles
• Interpretation of the rules of conduct
• Rules of conduct
• Ethical rulings
Code of Professional Conduct
Principles
• Ideal standards of ethical
conduct in philosophical terms
• They are not enforceable.
Rules of conduct
• Minimum standards of ethical
conduct stated as specific rules
• They are enforceable.
Interpretation of the rules of conduct

• Interpretation of the rules of conduct by the

AICPA Division of Professional Ethics
• They are not enforceable, but a
practitioner must justify departure.
Ethical rulings

• Published explanations and answers

to questions about the rules of conduct
submitted to the AICPA by practitioners
and others interested in ethical requirements

• They are not enforceable, but a practitioner

must justify departure.
 Ethical Principles
1. Responsibilities
Professionals should exercise sensitive and
moral judgments in all their activities.
2. Public Interest
Members should accept the obligation to
act in a way that will serve and honor the
public.
3. Integrity
Members should perform all responsibilities
with integrity to maintain public confidence.

4. Objectivity and Independence

Members should be objective, independent,
and free of conflicts of interest.
5. Due Care
Members should observe the profession’s
standards and strive to improve competence.

6. Scope and Nature of Services

A member in public practice should observe
the Code of Professional Conduct.
 Engineering Ethics
Code of Ethics for Engineers (excerpt of NSPE)
Fundamental Canons
Engineers, in the fulfillment of their professional
duties, shall:

•Hold paramount the safety, health and

welfare of the public in the performance of
their professional duties.

•Perform
services only in areas of their
competence.
 Engineering Ethics
•Issue public statements only in an
objective and truthful manner.
•Act in professional matters for each
employer or client as faithful agents or
trustees.
•Avoid deceptive acts in the solicitation of
professional employment
 References
Ethics in Engineering, Second edition, Mike Martin,
Roland Schinzinger, McGraw-Hill, 1989 (good
general reference)

Prentice Hall Business Publishing Auditing and

Assurance Services 9/e, Arens/Elder/Beasley

Code of Ethics for Civil Engineers ,Japan Society of

Civil Engineers
 Team Members
1 Madem Sadhana
2 Smrithy .k
3 Pentakota Saran Kumar
4 Revanth Reddy Katta
5 Revanth Nannapaneni
6 Surapaneni Sujith
7 Nishant Tyagi