Barrameda, Jasmine Joy C.

de Guzman, Amiel P.
Dela Rea, Neil Gerald
Fabro, William Joseph T.
Osorio, Renzy C.
Quiñosa, Joshua A.

HALTING A DANGEROUS PROJECT

In the mid -1980s, Sam was Alpha Electronics’ project leader on a new contract to produce
manufactured weaponry devices for companies doing business with NATO government agencies.
The devices were advanced technology land mines with electronic controls that could be triggered
with capacitor circuits to go off only at specified times, rather than years later when children might
be playing in old minefields. NATO provided all the technical specifications and Alpha Electronics
fulfilled the contract without problems. However, Sam was concerned that one new end user of
this device could negate the safety aspects of the trigger and make the land mines more danger-
ous than any others on the market.

After the NATO contract was completed, Sam was dismayed to learn that Alpha
Electronics had signed another contract with an Eastern European firm that had a reputation of
stealing patented devices and of doing business with terrorist organizations. Sam halted the
production of the devices. He then sought advice from some of his colleagues and contacted the
U.S. State Department’s Office of Munitions Controls. In retrospect, he wishes he had also
contacted the Department of Commerce’s Bureau of Export Administration, as well as the Defense
Department. He ruefully acknowledges that the issue would have been brought to a close much
more quickly.

The contract that Sam unilaterally voided by his action was for nearly $2 million over 15
years. Sam noted that no further hiring or equipment would have been needed, so the contract
promised to be highly profitable. There was a $15,000 penalty for breaking the contract.

On the basis of global corporate citizenship, it was clear that Alpha Electronics could
legally produce the devices for the NATO countries but not for the Eastern European company.
The Cold War was in full swing at that time.

On the basis of local corporate citizenship, it was clear that Alpha Electronics had to
consider the expected impact on local communities. In particular, there was no guarantee regarding
to whom the Eastern European company would be selling the devices and how they would end up
being used.
 Sam took matters into his own hands without any foreknowledge of how his decision would
be viewed by his company’s upper management, board of directors, or fellow workers, many of
whom were also company stockholders. Happily, Sam was never punished for his unilateral action
of halting production. He recently retired from Alpha Electronics as a corporate-level vice
president. He was especially gratified by the number of Alpha employees who were veterans of
World War II, the Korean War, and the Vietnam War who thanked him for his action.

Sam strongly believed his action was the right thing to do, both for his company and for
the public welfare. What ideas typically covered in an engineering ethics course might support that
conviction?

STATEMENT RULE NO. IN CODE OF RELATION IN R.A. 8495

ETHICS
1. NATO provided all  Rule 15 - The  Section 33.
the technical mechanical engineer Field of Action
specifications and shall observe Authorized for Each
Alpha Electronics Category: Prohibition-It
punctuality in his
shall be unlawful for any
fulfilled the contract appointments, perform person, unless authorized
without problems. honestly and in good under this Act:
faith his contractual (a)to be in
obligation and his responsible charge of the
duties and obligations preparation of plans,
to his client or designs, investigations,
valuation, technical
employer, and observe
reports, specifications,
fair dealing in his project studies or
relations with his estimates or to be in
clients and employers. performance of other
professional mechanical
engineering activities
unless he is a duly
licensed Professional
Mechanical Engineer.

2. After the NATO  Rule 16 - He shall treat  Section 3.

contract was with confidentiality Definition of Terms
completed, Sam was any information .
dismayed to learn that obtained by him as to
Alpha Electronics had the business affairs
 signed another and technical methods As used in this Act,
contract with an or processes of a client the following terms shall
Eastern European firm or employer. mean as follows:
that had a reputation of
a) Practice of Mechanical
stealing patented Engineering
devices and of doing -
business with terrorist A person shall be
organizations. deemed to be practicing
mechanical
engineering or rendering
mechanical engineering
service within the
meaning and intent of
this Act when he
performs the
following:

(1) Consultation,
valuation, investigation
and management
services requiring
mechanical engineering
knowledge;

3. Sam halted the  Rule 6 - He shall  Section 35

production of the
devices. He then
sought advice from
some of his colleagues
and contacted the U.S.
State Department’s
Office of Munitions
Controls. In
retrospect, he wishes
he had also contacted
the Department of
Commerce’s Bureau
of Export
Administration, as  Rule 20 - The
well as the Defense
Department.
cooperate fully with
the State in the pursuit
of national
development plans
and programs, the
inviolability
of national security,
the promotion of
peace, and the
prevention and/or
prosecution of unjust,
criminal or unlawful
acts and omissions.
mechanical engineer
shall be completely
Preparation of
Plans and Supervision of
Construction by
Licensed Engineers
Required
It shall be unlawful
for any person to order or
otherwise cause the
fabrication, construction,
erection, installation or
alteration of any
mechanical equipment,
machinery or process for
any mechanical works,
 above suspicion or
reproach in his
relationship with his
clients or employers,
avoiding the remotest
reference or relation to
any secret or
questionable
agreement on
commissions or other
financial
considerations
promised by or
received from any
person or entity other
than his client or
employer.
 Rule 26 - He shall be
receptive to new ideas
and suggestions from
others, and ready to
recognize, encourage,
and accredit the
authors thereof.
Suggestions from
colleagues and
associates shall be
given more careful
attention.
4. The contract that Sam  Rule 18 - The  Section 3.
unilaterally voided by mechanical engineer is
his action was for entitled to a just and
nearly $2 million over fair compensation for
15 years. Sam noted his services. In the
that no further hiring computation of such
or equipment would compensation, the
have been needed, so period consumed, his
the contract promised knowledge, skill,
to be highly profitable. experience, and
There was a $15,000 reputation, and the
projects, or plants, unless
the designs, plans,
layouts or specifications
have been prepared by or
under the
responsible charge of,
and duly signed and
sealed by a Professional
Mechanical Engineer.
Likewise, proposals
and quotations for the
supply and fabrication of
mechanical equipment,
works, projects, plants,
mechanical
pollution abatement
systems, mechanical fire
protection systems,
pressurized pipes with a
working pressure of
not less than 70 kpa.,
shall be duly signed and
sealed by a Professional
Mechanical
Engineer.
Definition of Terms
.
As used in this Act,
the following terms shall
mean as follows:
a) Practice of Mechanical
Engineering
-
 penalty for breaking depreciation of A person shall be
the contract. instruments and deemed to be practicing
materials used, shall mechanical
engineering or rendering
be considered and
mechanical engineering
accorded such weight service within the
as is just and meaning and intent of
reasonable. this Act when he
performs the
following:

(5) Management or
supervision of the
manufacture, sale,
supply or distribution of
mechanical equipment
parts or components;

5. Sam took matters into  Rule 17 - He shall  Section 3.

his own hands without inform his client or Definition of Terms
any foreknowledge of employer of his .
how his decision business connections,
As used in this Act,
would be viewed by interests, or the following terms shall
his company’s upper affiliations which may mean as follows:
management, board of influence his
directors, or fellow judgment, or impair a) Practice of Mechanical
workers, many of the quality or character Engineering
whom were also of his services. -
A person shall be
company
deemed to be practicing
stockholders. mechanical
engineering or rendering
mechanical engineering
service within the
meaning and intent of
this Act when he
performs the
following:

(1) Consultation,
valuation, investigation
and management
services requiring
mechanical engineering
knowledge;