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CHAPTER 4 ETHICS AND SAFETY
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An Ethical Dilemma - Example

• Southland Prestressed Concrete (SPC) company has
  been awarded a contract to build an ultramodern
  multistory shopping mall.
• The University Mall is the largest contract SPC
  has ever undertaken.
• In order to win the contract SPCs Vice President
  had to a agree to a completion date, that if not
  reasonable, is at least going to be challenging.
• In addition, all exposed concrete surfaces must
  be sprayed with a specified paint that is highly
  toxic and difficult to apply.

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An Ethical Dilemma - Example

• SPCs subcontractor has never used this
  particular type of paint before.
• Personal protective equipment and other
  engineering controls can minimize the potential
  hazards, but all precautions must be stringently
  observed with absolutely no shortcuts.
• The manufacturer of the paint recommends 3 full
  days of training for all employees who will work
  with the paint.
• The recommended training cannot be provided soon
  enough to fit into SPCs expedited schedule for
  this job.

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An Ethical Dilemma - Example

• In a secret meeting, SPCs executive managers
  decide to purchase the necessary personal
  protective equipment, use the toxic paint as
  specified and forgo the recommended training.
• In addition, the executives decide to withhold
  from employees all information about the toxicity
  of the paint.
• Safety engineer was not invited to the secret
  meeting however the decision made during the
  meeting were slipped to him anonymously.

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An Ethical Dilemma - Example

• Safety engineer faces an ethical dilemma
• If he chooses to do nothing, employees might be
  inappropriately exposed to a highly dangerous
  substance.
• If he shares what he knows with the
  subcontractor, he might be called upon to testify
  about what he knows a step that could cost him
  his job and threaten his career.

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Definitions

• Ethics the study of morality within a context
  established by cultural and professional values,
  social norms, and accepted standards of behavior
• Morality the values that are subscribed to and
  fostered by society in general.
• Ethical behavior falls within the limits
  prescribed by morality.
• Ethical questions are rarely black and white.
  They typically fall into a gray area between two
  extremes of right and wrong.
• Personal experience, self-interest, point of
  view, and external pressure often cloud this gray
  area even further.

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Guidelines for Determining Ethical Behavior

• Guidelines are needed when trying to sort out
  matters that are not clearly right or wrong.
• It is necessary to distinguish between the
  concepts of legal and ethical.
• Just because an option is legal does not
  necessarily mean it is ethical.
• Guidelines for determining ethical behavior
  assuming that the behavior in question is legal.
• Morning After Test
• How will you feel the morning after?
• Front Page Test
• Would it embarrass you if it were a story on the
  front page of the newspaper?

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Guidelines for Determining Ethical Behavior

• Mirror Test
• How will you feel about yourself when you look in
  the mirror?
• Role-Reversal Test
• Trade places with the people affected by your
  decision and view the decision through their
  eyes.
• Common-Sense Test
• Listen to your instincts and common sense. If it
  feels wrong, it probably is.

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Guidelines for Determining Ethical Behavior

• Blanchard and Peale suggest their own testing for
  deciding ethical choice in a given situation
• Is it legal?
• If an action is not legal, it is also not
  ethical.
• Is it balanced?
• If an action is balanced, it is fair to all
  involved
• How will it make me feel about myself?
• If a course of action is in keeping with our own
  moral structure, it will make you feel good about
  yourself.

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Five Ps of Ethical Power

1. Purpose Individuals see themselves as ethical
   people who let their conscience be their guide
   and, in all cases, want to feel good about
   themselves.
2. Pride Individuals apply internal guidelines and
   have sufficient self-esteem to make decisions
   that may not be popular with others.
3. Patience Individual believe right will prevail
   in the long run, and they are willing to wait
   when necessary.
4. Persistence Individuals are willing to stay with
   an ethical course of action once it has been
   chosen and to see it through to a positive
   conclusion.
5. Perspective Individuals take the time to reflect
   and are guided by their own internal barometer
   when making ethical decisions.

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Ethical Behavior in Organizations

• Trevino suggest ethical behavior in organizations
  is influenced by individual factors and social
  factors.
• Individual Factors
• Ego Strength
• Ability to undertake tasks and cope with tense
  situations
• Machiavellianism
• Attempt to deceive
• Locus of control
• Workers perspective on who controls their
  behavior (Internal or External)
• Social Factors
• Gender, age, work experience, influence of
  people, etc.
• People learn appropriate behavior by observing
  the behavior of significant role models.

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Construction Professionals and Ethics

• Knowing what is ethical is easier than actually
  doing it.
• Construction professionals should,
• Set an example
• Help employees facing ethical questions in
  decision making
• Help employees undertake the chosen ethical
  option.
• One of the following approaches can be adapted
• Best-ratio approach
• Black-and-white approach
• Full potential approach

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Best-Ratio Approach

• Pragmatic option
• Sometimes referred to as situational ethics.
• People are basically good
• Under certain conditions, people may be driven to
  unethical behavior.
• Construction professionals should do everything
  possible to create conditions that promote
  ethical behavior and try to maintain the highest
  possible ratio of good choices to bad.
• When hard decisions must be made, the appropriate
  choice is the one that does the most good for
  most people.

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Black-and-White Approach

• Right is right, wrong is wrong.
• Circumstances are irrelevant
• Construction professionals job is to make
  ethical decisions and carry them out and, in
  addition to help employees choose the ethical
  route.
• When difficult decisions must be made,
  construction professionals should make fair and
  impartial choices regardless of outcomes.

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Full-Potential Approach

• Decisions are made based on how the outcomes
  affect the ability of individuals to achieve
  their full potential.
• People are responsible for realizing their full
  potential within the confines of morality.
• Choices that can achieve this goal without
  infringing on the rights of others are considered
  ethical.

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Approaches

• Decisions made may differ, depending on the
  approach selected.
• In the case study of Southland Prestressed
  Concrete (SPC) company,
• If the safety engineer applies the best-ratio
  approach, he may decide to keep quiet, encourage
  the proper usage of personal protective
  equipment, and hope for the best.
• If he takes the black-and-white approach, he will
  be compelled to confront the SPCs management
  team with what he knows.

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Companys Role in Ethics

• Construction companies, have a critical role to
  play in promoting ethical behavior among their
  employees.
• Construction professionals cannot set ethical
  examples alone or expect employees to behave
  ethically in a vacuum.
• A companys role in ethics can be summarized as
• Creating an internal environment that promotes,
  expects, and rewards ethical behavior.
• Setting an example of ethical behavior in all
  external dealings.

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Creating an Ethical Environment

• Companies create an ethical environment by
  establishing policies and practices that ensure
  that all employees are treated ethically and then
  enforcing these policies.
• Companies can create an ethics policy
• J. R. Makin Construction Company will conduct
  its business in strict compliance with applicable
  laws, rules, regulations, corporate policies,
  procedures, and guidelines. We will conduct all
  business with honesty, integrity, and a strong
  commitment to the highest standards of ethics.
  We have a duty to conduct our business with both
  the letter and the spirit of the law.

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Setting an Ethical Example

• Companies that take the do as I say, not as I
  do approach to ethics do not succeed.
• Employees must be able to trust their company
  leaders to conduct all external and internal
  dealings in an ethical manner.
• Companies must support employees who make
  ethically correct decisions.
• In the case study of Southland Prestressed
  Concrete (SPC) company, higher management must
  stand behind the safety manager if he decides to
  confront the management team.

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Handling Ethical Dilemmas

• Steps of handling ethical dilemmas
• Apply the guidelines to determine what is
  ethical.
• Use the simple tests
• Goal is to identify the ethical choice.
• Select the Approach
• Consider the best ratio, black-and-white, and
  full potential approaches
• Personal makeup, expectations of the company,
  degree of company support affect the decision.
• Proceeding with the Decision
• Proceed in strict accordance with the approach
  selected
• Consistency is critical when handling ethical
  dilemmas.

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Whistle-Blowing

• Whistle-blowing the act of informing an outside
  authority or media organ of alleged illegal or
  unethical acts on the part of an organization or
  individual.
• Problems with whistle-blowing
• Retribution
• Damaged relationships and hostility
• Loss of focus
• Scapegoating

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OSHA and Whistle-Blowing

• Employee protection provisions
• Section 211 of the Energy Reorganization Act
  (ERA)
• This statute makes it illegal for an employer
  covered by the act to discharge an employee or
  otherwise discriminate against an employee in
  terms of compensation, conditions, or privileges
  of the employment because the employee or any
  person acting at an employees request performs a
  protected activity.
• Employers covered by the ERA include the
  following
• Licensees of the Nuclear Regulatory Commission or
  an agreement state (including applicants for a
  license)
• A contractor or subcontractor of a licensee or
  applicant
• A contractor or subcontractor of the Department
  of Energy

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OSHA and Whistle-Blowing

• Key provisions to the ERA
• Every employee has the right to raise a safety
  concern
• Unlawful acts by employers in the form of
  intimidation, threatening, restrain, coerce,
  blacklist, discharge, or discriminate any
  employees
• Complaints by an employee or representative may
  be filed up to 180 days of the action.
• Enforcement if the employers cannot provide
  clear evidence of no violation, OSHA performs an
  investigation.
• Relief if found in violation, the employer must
  provide appropriate relief in the form of
  reinstatement, back wages, compensation for
  injuries, and attorneys fees and costs.