General

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SOSC 111 - Science Technology and SocietyToday
Lesson 17Ethics, Engineering and Business
October 30, 1998
Dr. Vincent Duffy - IEEM http//www-ieem.ust.hk/df
aculty/duffy/111 email vduffy_at_ust.hk
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Overview for today

• View videotape Think before you leap
• segment 2 Blowing the whistle
• Discuss Rational Technique
• Compare to the Ethics Plus Model
• QOTD

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Questions of the Day

• Q1. What is the meaning of whistle blowing?
• Q.2. What is the difference between the
  ETHICS-PLUS model and the Rational Technique?
  
• Q.3. What is the significance of the sunshine
  test? Why do we worry about company business
  being discussed openly since it is private?
• Q.4. Who are the stakeholders in the Pepsi case?
  Who is at fault?

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rational technique

• define the problem
• recognize the problem and collect information
• consider the options
• generate alternatives and compare
• who benefits or suffers - how much?
• make a decision
• select option based on conformity w/laws, code of
  ethics, etc.
• implement - think about what is missing?

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What would you do?

• facts? Tang gave her promotion
• problem was brought to her attention
• ethical issue?
• whistle blowing

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What would you do?

• alternatives?
• conspire (to cheat) w/Alex
• pretend not to know
• verify Alex claim about Tang
• if false? consult w/Tang senior management
• if true? seek employment elsewhere /or .whistle
• these actions by Alex/Tang can not survive
  Sunshine test
• if malpractices are discovered by public her
  career prospects will be poor both inside and
  outside company

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What is the meaning of whistle blowing?

• whistle blowing is what someone might do to get
  the authoritys attention
• to tell (in chinese)
• in the old days, policemen used to blow a loud
  whistle if they needed assistance from other
  police
• in the case of Sandras office, (Think before you
  leap-video)
• money from a client account was used by her
  co-workers to trade securities for their own
  benefit
• Sandra was to decide whether or not to get the
  attention of authorities
• either outside her company or in her company
• She was trying to decide whether or not to blow
  the whistle to get the authorities attention

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What is missing from Rational Technique?

• Feedback-
• nothing built in to show that perception of the
  implementation by others will affect the outcome
• remember sunshine test?
• can the decision stand the light of day?
• can the issue be discussed openly and discussed
  w/out problem?

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Recall Ethics-Plus Model

• ETHICS - Establish relevant facts
• Take stock of stakeholders involved
• Have assessment of positions likely responses
• Identify viable alternatives
• Compare evaluate consequences of alternatives
• Select appropriate course of action
• PLUS - Professional conduct
• Legal requirements
• Uncompromisable values eg. integrity, loyalty,
  honesty
• Sunshine test - can the issue and decision be
  discussed openly?

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Q3. What is the significance of sunshine test?

• Why do we worry about company business being
  discussed openly, since it is private?
• Though the matters are private (company),
• it should be considered how the public would
  react if they find out the actions, because
• it is possible that someone will find out
• maybe by chance
• maybe from a whistle blower or
• maybe just newspapers asking questions

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New case

• Today discuss Pepsi
• science technology and society
• a computer problem causes a situation where a
  difficult decision has to be made

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ex. Pepsi Cola-Philippines

• sales have been running a distant 2nd to Coke
• Pepsi launched Number Fever campaign in Feb.92.
  Numbers printed on the underside of cap and
  winning numbers announced each day
• Prizes up to 1M pesos, 300k HKD
• Ads in newspapers, radio, TV, saying today you
  could be a millionaire
• Promotion successful, extended 5 more weeks
• most won 100 pesos (30HKD)

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• Victoria Angelo, unemployed mother of 5, lives
  w/family in tin-roofed shack in Manila
• husband, Juanito, earns 30HKD/ day
• began drinking pepsi, every meal, snack
• each day prayed to get winning number
• gather around small TV w/neighbors to see
• May25, 349 flashed winner

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• we are a millionaire to children you can
  finish school and go to college to husband you
  can buy passenger jeep to self we can buy a
  real house
• a dream come true
• unfortunately, Pepsi realized mistake, thousands
  of people were demanding payment
• realizing the mistake could cost Billions of
• Pepsi refused to pay

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• Riots broke out, Pepsi delivery trucks were
  stoned, torched, overturned
• homemade bombs were thrown at Pepsi plants and
  offices
• in one case, fragmentation grenade tossed at a
  parked Pepsi truck bounced off truck
• killed 5 year old girl, schoolteacher and wounded
  others

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• The violence frightened the company officials and
  they offered then 50 HKD to the winners
• more than 480,000 winners claimed the prize
• if paid in full more than 50Billion HKD
• Violence resulted in 30 burned trucks, 6000
  people filed civil suit for damages
• 5000 criminal suits charging fraud (false
  advertising)
• Pepsi claimed it was started by a computer error

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QOTD - Q4 - Pepsi a computer problem

• In the Pepsi case, who are stakeholders?
• Were any ethical principles violated?
• Was Pepsi justified?
• What should they have done differently?
• When?
• Would the result have been similar or different
  in Hong Kong?