Unit - 1 B

Professional Ethics

1.1 Definition of Ethics, Professional Ethics, Business Ethics, Corporate Ethics, Engineering Ethics, Personal Ethics

Ethics, also called moral philosophy, the discipline concerned with what is morally good and bad and morally right and wrong. The term is also applied to any system or theory of moral values or principles. Ethics is based on well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. It is the study of morally appropriate behaviour and decisions, and examining what should be done. Ethics helps to mould and shape human behaviour. 

Definitions-

“Ethics is the science of judging specifically human ends and the relationship of means to those ends. In some way it is also the art of controlling means so that they will serve human ends.” — Thomas Garret

“‘Ethics’ is the discipline that examines one’s moral standard or moral standards of society. It asks how those standards apply to our life and whether these standards are reasonable or unreasonable — that is, whether these are supported by good reason or poor one.” — Manuel G. Velasquez

“Ethics refer to a set of moral principles which should play a very significant role in guiding the conduct of managers and employees in the operation of any enterprise.” — Dale S. Beach

Features of ethics

(i) Ethics is a set of moral standards and values acceptable in a society. It is relevant in the context of a society only.

(ii) Ethics guides human conduct or behaviour. If any member of the society behaves contrary to the norms and customs, society disapproves it. Moral principles serve as a guide for personal and professional conduct. Ethics checks people from taking decisions and actions which are harmful to society.

There are three main theories of ethics. First, the utilitarian theory suggests that actions become right or wrong on the basis of their consequence. Second, the theory of rights holds that all people have certain basic rights. Third, the theory of justice demands that actions must be fair and equitable.

(iii) Ethical principles are universal in nature. These prescribe obligations and virtues for everybody in a society. Ethics is important not only in business and politics but in every human endeavour.

(iv) Ethical standards differ from society to society. What is considered ethical behaviour in one society might be considered unethical in another. For example, abortion and artificial birth control is a taboo in most of the Islamic countries and catholic Christian communities. But these practices are fully ethical in China, Russia, Japan and many other countries. Similarly, euthanasia (mercy killing) is permitted in some countries but is strictly unethical in most countries.

(v) Ethics is normative or prescriptive in nature. It deals not with what is but what ought to be. It does not rest on feelings of approval or disapproval but on principles. For example, it may be unpleasant to fire an employee but morality may require it.

(vi) Ethical norms might not be legally binding. But these are more powerful than law because these have the sanction of society. When a person’s behaviour is inconsistent with the prevailing values and norms, it is called unethical. Ethics serves as a guide to law by highlighting its short comings.

(vii) Ethics relates to the behaviour of individuals and groups. The ethical norms do not apply to the behaviour of animals, birds, and insects. Only human beings have the capacity to guide and regulate their behaviour.

(viii) Ethics are not hard and fast rules. They are an expression of a society’s attitudes and beliefs. There is an element of discretion as a person has the option to adopt ethical norms. Ethics may differ from place-to-place and time-to-time.

(ix) There exist no sharp boundaries between ethical and non-ethical. Therefore, people often face ethical dilemmas wherein a clear cut choice is very difficult.

(x) Ethics aims at perfection in human conduct. It guides law makers in framing proper laws to regulate the behaviour of all citizens. Existing norms may contain valuable insights but ethics sets out to critics and test them in terms of ultimate norms.

Ethics – 6 Basic Ethical Principles

Some schools of thought believe that the basic ethical principles, on whose basis different ethical theories have been evolved, can be considered to be the following:

Figure: Principles of ethics

1. Beneficence:

The beneficence principle enunciates a fundamental principle of ethical conduct. This essentially means doing good to others. According to this principle, all our thoughts and actions must be directed to ensure that others benefit from these thoughts and actions. This can be done without much difficulty. People generally tend to care more about themselves than others. Even small actions performed by us can be based on this principle.

As an example, consider a person parking his/her motor vehicle, a car or a motor cycle. He/She must park the vehicle in such a way that it does not block pedestrians walking on the road, prevent smooth flow of traffic, or obstruct another person‘s parked vehicle. Many times, people park their vehicle oil the road without caring about the inconvenience caused to others.

2. Least Harm:

The second ethical principle to keep in mind is that our actions must result in the least harm to others. There can be situations where, even if we intend to do good to others, our actions may cause some harm to them. In such a situation, it is necessary to ensure that our actions are such that we cause the least harm to others. Let us consider the case of a train accident. One’s duty in such an event is to help the injured passengers. He/She must get them out of the compartment; help the authorities take the injured to the hospital, and so on. On the other hand, sometimes it is seen that people use such incidents as an opportunity to steal the belongings of the injured, hapless people.

3. Autonomy:

This principle essentially states that we need to respect the autonomy of others for performing actions. We should not impose our views on others. This principle assumes that every person knows what is good for himself/herself. One can also look at it from the point of view of the person performing the action, who decides that what he/she is going to do is good for himself/herself. For example, consider the case of arranged marriages in India. It is not uncommon to find parents deciding a partner for their sons/daughters based on factors such as family status or wealth, without caring for their children’s feelings or wishes. This is a clear invasion of the person’s autonomy. Taking the concurrence of the children before getting them married is a very important factor in the success of marriages.

4. Non-Violence or Peace:

This principle has become very relevant today. Violence has now pervaded all sections of society and has become its greatest bane. One of the basic ethical principles is to shun violence and to not support those who resort to it. Unless we adhere to this principle, no substantial progress can be made in ethical behaviour. In an incident, a person was killed by a group. The police could not even investigate the case because in the violence that spread in the aftermath of this murder, many people were killed, a large number of houses were burnt, and hundreds were injured. In this case, there was violence for no particular reason. In a case that was reported by the press, a group was collecting donations for a festival. The group approached a small shopkeeper and demanded Rs. 1000. The shopkeeper refused to pay more than Rs. 250. The group resorted to violence, beat him up, and ransacked his shop. It is to be remembered that donations, by their very nature, are voluntary.

5. Justice:

The principle of justice states that our actions must be such that they are fair to everyone concerned. All ethical decisions must be based on the principle of fairness. There can be situations where a deviation from past practice is required. All such cases must be analysed and justified before a decision different from earlier decisions is made. For example, consider the many development-induced displacements that make headlines in the newspapers these days. The building of a dam, the requirement of a weapon-testing ground, the need for a nuclear power plant, or the need for an expressway might necessitate displacement of a community to clear land for such a purpose.

6. Truthfulness:

Truthfulness is the quality of telling, adhering to, or upholding the truth. This appears to be a universal principle. Truthfulness also leads to other values such as trustworthiness and honesty. Mahatma Gandhi highlighted this principle when he undertook the freedom struggle and named it Satyagraha, desire for truth. We will seldom find an example where not telling the truth gets us any real benefit. In the Upanishads, it is said asato ma sat gamaya, meaning ‘lead me from falsehood to truth’. Truthfulness is thus a universal principle propounded by all religious texts. In engineering measurements, it is mentioned that the true value of a quantity is not known.

Professional Ethics

Professional ethics are principles that govern the behaviour of a person or group in a business environment. Like values, professional ethics provide rules on how a person should act towards other people and institutions in such an environment. The Code is an example of a codified set of professional ethics for those who choose to enter the immigration advice profession.

Ethical principles underpin all professional codes of conduct. Ethical principles may differ depending on the profession; for example, professional ethics that relate to medical practitioners will differ from those that relate to lawyers or real estate agents.

However, there are some universal ethical principles that apply across all professions, including:

• Honesty
• Trustworthiness
• Loyalty
• Respect for others
• Adherence to the law
• Doing good and avoiding harm to others
• Accountability

Types of Professional Ethics 

Every profession has its way of dealing and making the profession work. Although ethics differ in every profession, some principle ethics are universal. Some particular associations around the world and nation determine the ethics of a specific profession. Such types are-

Figure: Types of professional ethics

1. Media and their Professional Ethics 

Journalists or anyone related to media has a great responsibility for transparency. No one in the media should be biased regarding any happenings around the world. The job of journalists is fierce and terrifying because they are always in the target. If any journalist gives news related to a criminal s/he has a chance that they can be harmed. But journalists have to be honest and unbiased while reporting the news. Any news that is about making people aware of their surroundings. Therefore, ethics in media is crucial and is about sticking to the facts instead of presenting their opinions.

2. Judicial and Legal Professional Ethics

Anyone who is in the field of law and justice is required to abide by its rules and ethics. Here, the lawyers or anyone in the legal area should balance their duty to prosecute criminals and defend the clients. It should be under the obligation of ethics to uphold the law and be truthful regarding it. People from the Legal field are to maintain the confidentiality of their clients and avoid conflicts. Everything should be balanced, and they should be honest about their duty. The most important thing is that they should not make their clients fools. If any lawyer is unable to convince their clients then s/, he should drag themselves away from the case.

3. Engineer’s Professional Ethics 

Engineers also have specific ethical codes that they have to follow anyhow. There is so much responsibility on the shoulders of Engineers. They are the one building houses, dams, highways, any gadget or even a car. They have to be honest enough while designing and making them. National Society of Professional Engineers created an ethics code for engineers to make sure that engineers know that in their profession, they need to be honest and responsible. Being fair, taking care of public health and their safety should be their priority as a professional. This code is the principle they follow. The ethical code of engineering was created to facilitate the tenets of impartiality, equity, honesty and fairness in their work. When they are to conduct any building making or designing, they have to do it with full sincerity to decrease the risk of harm. For the highway, people use it very often, and it should be safe. Therefore the one making it should be honest.

4. Medical Professional Ethics 

People of medicine have to take an oath about promising and serving the people who are in pain. The Hippocratic Oath is one of the prominent ethical codes which almost people know. Other than this oath, the nurses and doctors are advised to respect the patient’s dignity, respect the human right. The Hippocratic Oath is the most famous ethical code, yet not the only system that shows the moral standard of the medical field. Doctors and nurses should always respect their patient’s dignity, honest, helpful to their patients. They must maintain their patients confidently. Any major fault or mistake can ruin the entire professional life of a person. They need to be very careful with the principles.

5. Codes of Conduct

There are many industries; it can be about medical and legal fields or any institution. Every company, group or administration has a particular code of conduct that is to be followed by the people there. This is often organized by the Association that looks on the legal field. This helps in creating and modifying the rules. This can build confidence among people. Also, it creates transparency with the clients and makes it easier to take decisions accurately. Any person who is unable to follow the ethics of their profession can be disbarred and making them no longer practice their business, it can be medical or law.

Business/corporate Ethics

Business ethics are the moral principles that act as guidelines for the way a business conducts itself and its transactions. Business ethics is a practice that determines what is right, wrong, and appropriate in the workplace. Business ethics is often guided by laws, and keep companies and individuals from engaging in illegal activity such as insider trading, discrimination and bribery. Examples of ethical behaviours in the workplace includes; obeying the company's rules, effective communication, taking responsibility, accountability, professionalism, trust and mutual respect for your colleagues at work. 

Importance of business ethics in the workplace

There are tangible and intangible benefits to maintaining ethical practices in your workplace, including:

1. Improved employee retention

Strong business ethics often encourage managers to show appreciation for an employee’s hard work. As a result, team members may be more loyal to the company and strive to be more productive. It also means employees at all levels are less likely to be let go for reasons related to unethical behaviour.


2. Stronger collaboration

Team members who practice business ethics have respect for one another and work well together. This camaraderie not only fosters a pleasant work environment but also helps with team collaboration and productivity.


3. More effective leadership

When a manager follows business ethics, they’re more likely to treat employees well. As a result, teams are more inclined to follow their lead. This minimizes discipline issues and teams’ trust in managers and supervisors when tough decisions need to be made.

4. Increased professional value

When you have a positive attitude toward your work and those you work with, you can increase the quality of your work. It also increases your value to your team and the company as a whole.

Engineering Ethics

Engineers also have specific ethical codes that they have to follow anyhow. There is so much responsibility on the shoulders of Engineers. They are the one building houses, dams, highways, any gadget or even a car. They have to be honest enough while designing and making them. National Society of Professional Engineers created an ethics code for engineers to make sure that engineers know that in their profession, they need to be honest and responsible. Being fair, taking care of public health and their safety should be their priority as a professional.

NSPE ethics for engineers are-

1. Fundamental Canons

Engineers, in the fulfilment of their professional duties, shall:

1. Hold paramount the safety, health, and welfare of the public.
2. Perform services only in areas of their competence.
3. Issue public statements only in an objective and truthful manner.
4. Act for each employer or client as faithful agents or trustees.
5. Avoid deceptive acts.
6. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession.

II. Rules of Practice

1. Engineers shall hold paramount the safety, health, and welfare of the public.
   1. If engineers' judgment is overruled under circumstances that endanger life or property, they shall notify their employer or client and such other authority as may be appropriate.
   2. Engineers shall approve only those engineering documents that are in conformity with applicable standards.
   3. Engineers shall not reveal facts, data, or information without the prior consent of the client or employer except as authorized or required by law or this Code.
   4. Engineers shall not permit the use of their name or associate in business ventures with any person or firm that they believe is engaged in fraudulent or dishonest enterprise.
   5. Engineers shall not aid or abet the unlawful practice of engineering by a person or firm.
   6. Engineers having knowledge of any alleged violation of this Code shall report thereon to appropriate professional bodies and, when relevant, also to public authorities, and cooperate with the proper authorities in furnishing such information or assistance as may be required.

2.     Engineers shall perform services only in the areas of their competence.

1. Engineers shall undertake assignments only when qualified by education or experience in the specific technical fields involved.
2. Engineers shall not affix their signatures to any plans or documents dealing with subject matter in which they lack competence, nor to any plan or document not prepared under their direction and control.
3. Engineers may accept assignments and assume responsibility for coordination of an entire project and sign and seal the engineering documents for the entire project, provided that each technical segment is signed and sealed only by the qualified engineers who prepared the segment.

3.     Engineers shall issue public statements only in an objective and truthful manner.

1. Engineers shall be objective and truthful in professional reports, statements, or testimony. They shall include all relevant and pertinent information in such reports, statements, or testimony, which should bear the date indicating when it was current.
2. Engineers may express publicly technical opinions that are founded upon knowledge of the facts and competence in the subject matter.
3. Engineers shall issue no statements, criticisms, or arguments on technical matters that are inspired or paid for by interested parties, unless they have prefaced their comments by explicitly identifying the interested parties on whose behalf they are speaking, and by revealing the existence of any interest the engineers may have in the matters.

4.     Engineers shall act for each employer or client as faithful agents or trustees.

1. Engineers shall disclose all known or potential conflicts of interest that could influence or appear to influence their judgment or the quality of their services.
2. Engineers shall not accept compensation, financial or otherwise, from more than one party for services on the same project, or for services pertaining to the same project, unless the circumstances are fully disclosed and agreed to by all interested parties.
3. Engineers shall not solicit or accept financial or other valuable consideration, directly or indirectly, from outside agents in connection with the work for which they are responsible.
4. Engineers in public service as members, advisors, or employees of a governmental or quasi-governmental body or department shall not participate in decisions with respect to services solicited or provided by them or their organizations in private or public engineering practice.
5. Engineers shall not solicit or accept a contract from a governmental body on which a principal or officer of their organization serves as a member.

5.     Engineers shall avoid deceptive acts.

1. Engineers shall not falsify their qualifications or permit misrepresentation of their or their associates' qualifications. They shall not misrepresent or exaggerate their responsibility in or for the subject matter of prior assignments. Brochures or other presentations incident to the solicitation of employment shall not misrepresent pertinent facts concerning employers, employees, associates, joint venturers, or past accomplishments.
2. Engineers shall not offer, give, solicit, or receive, either directly or indirectly, any contribution to influence the award of a contract by public authority, or which may be reasonably construed by the public as having the effect or intent of influencing the awarding of a contract. They shall not offer any gift or other valuable consideration in order to secure work. They shall not pay a commission, percentage, or brokerage fee in order to secure work, except to a bona fide employee or bona fide established commercial or marketing agencies retained by them.

III. Professional Obligations

1. Engineers shall be guided in all their relations by the highest standards of honesty and integrity.
   1. Engineers shall acknowledge their errors and shall not distort or alter the facts.
   2. Engineers shall advise their clients or employers when they believe a project will not be successful.
   3. Engineers shall not accept outside employment to the detriment of their regular work or interest. Before accepting any outside engineering employment, they will notify their employers.
   4. Engineers shall not attempt to attract an engineer from another employer by false or misleading pretenses.
   5. Engineers shall not promote their own interest at the expense of the dignity and integrity of the profession.
   6. Engineers shall treat all persons with dignity, respect, fairness and without discrimination.

2.     Engineers shall at all times strive to serve the public interest.

1. Engineers are encouraged to participate in civic affairs; career guidance for youths; and work for the advancement of the safety, health, and well-being of their community.
2. Engineers shall not complete, sign, or seal plans and/or specifications that are not in conformity with applicable engineering standards. If the client or employer insists on such unprofessional conduct, they shall notify the proper authorities and withdraw from further service on the project.
3. Engineers are encouraged to extend public knowledge and appreciation of engineering and its achievements.
4. Engineers are encouraged to adhere to the principles of sustainable development1 in order to protect the environment for future generations.
5. Engineers shall continue their professional development throughout their careers and should keep current in their specialty fields by engaging in professional practice, participating in continuing education courses, reading in the technical literature, and attending professional meetings and seminars.

3.     Engineers shall avoid all conduct or practice that deceives the public.

1. Engineers shall avoid the use of statements containing a material misrepresentation of fact or omitting a material fact.
2. Consistent with the foregoing, engineers may advertise for recruitment of personnel.
3. Consistent with the foregoing, engineers may prepare articles for the lay or technical press, but such articles shall not imply credit to the author for work performed by others.

4.     Engineers shall not disclose, without consent, confidential information concerning the business affairs or technical processes of any present or former client or employer, or public body on which they serve.

1. Engineers shall not, without the consent of all interested parties, promote or arrange for new employment or practice in connection with a specific project for which the engineer has gained particular and specialized knowledge.
2. Engineers shall not, without the consent of all interested parties, participate in or represent an adversary interest in connection with a specific project or proceeding in which the engineer has gained particular specialized knowledge on behalf of a former client or employer.

5.     Engineers shall not be influenced in their professional duties by conflicting interests.

1. Engineers shall not accept financial or other considerations, including free engineering designs, from material or equipment suppliers for specifying their product.
2. 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.

6.     Engineers shall not attempt to obtain employment or advancement or professional engagements by untruthfully criticizing other engineers, or by other improper or questionable methods.

1. Engineers shall not request, propose, or accept a commission on a contingent basis under circumstances in which their judgment may be compromised.
2. Engineers in salaried positions shall accept part-time engineering work only to the extent consistent with policies of the employer and in accordance with ethical considerations.
3. Engineers shall not, without consent, use equipment, supplies, laboratory, or office facilities of an employer to carry on outside private practice.

7.     Engineers shall not attempt to injure, maliciously or falsely, directly or indirectly, the professional reputation, prospects, practice, or employment of other engineers. Engineers who believe others are guilty of unethical or illegal practice shall present such information to the proper authority for action.

1. Engineers in private practice shall not review the work of another engineer for the same client, except with the knowledge of such engineer, or unless the connection of such engineer with the work has been terminated.
2. Engineers in governmental, industrial, or educational employ are entitled to review and evaluate the work of other engineers when so required by their employment duties.
3. Engineers in sales or industrial employ are entitled to make engineering comparisons of represented products with products of other suppliers.

8.     Engineers shall accept personal responsibility for their professional activities, provided, however, that engineers may seek indemnification for services arising out of their practice for other than gross negligence, where the engineer's interests cannot otherwise be protected.

1. Engineers shall conform with state registration laws in the practice of engineering.
2. Engineers shall not use association with a non-engineer, a corporation, or partnership as a "cloak" for unethical acts.

9.     Engineers shall give credit for engineering work to those to whom credit is due, and will recognize the proprietary interests of others.

1. Engineers shall, whenever possible, name the person or persons who may be individually responsible for designs, inventions, writings, or other accomplishments.
2. Engineers using designs supplied by a client recognize that the designs remain the property of the client and may not be duplicated by the engineer for others without express permission.
3. Engineers, before undertaking work for others in connection with which the engineer may make improvements, plans, designs, inventions, or other records that may justify copyrights or patents, should enter into a positive agreement regarding ownership.
4. Engineers' designs, data, records, and notes referring exclusively to an employer's work are the employer's property. The employer should indemnify the engineer for use of the information for any purpose other than the original purpose.

Personal Ethics

Personal ethics refers to the ethics that a person identifies with in respect to people and situations that they deal with in everyday life. Professional ethics refers to the ethics that a person must adhere to in respect of their interactions and business dealings in their professional life. Some common personal ethics include:

• Integrity
• Selflessness
• Honesty
• Loyalty
• Equality and fairness
• Empathy and respect
• Self-respect

Key Takeaways

Ethics, also called moral philosophy, the discipline concerned with what is morally good and bad and morally right and wrong. The term is also applied to any system or theory of moral values or principles.

1.2 Code of Ethics as defined in the website of Institution of Engineers (India)

The Corporate Members of The Institution of Engineers (India) are committed to promote and practice the profession of engineering for the common good of the community bearing in mind the following concerns:

• Concern for ethical standard;
• Concern for social justice, social order and human rights;
• Concern for protection of the environment;
• Concern for sustainable development;
• Public safety and tranquillity

The Tenets of the Code of Ethics

1. A Corporate Member shall utilise his knowledge and expertise for the welfare, health and safety of the community without any discrimination for sectional or private interests.
2. A Corporate Member shall maintain the honour, integrity and dignity in all his professional actions to be worthy of the trust of the community and the profession.
3. A Corporate Member shall act only in the domains of his competence and with diligence, care, sincerity and honesty.
4. A Corporate Member shall apply his knowledge and expertise in the interest of his employer or the clients for whom he shall work without compromising with other obligations to these Tenets.
5. A Corporate Member shall not falsify or misrepresent his own or his associates' qualifications, experience, etc.
6. A Corporate Member, wherever necessary and relevant, shall take all reasonable steps to inform himself, his employer or clients, of the environmental, economic, social and other possible consequences, which may arise out of his actions.
7. A Corporate Member shall maintain utmost honesty and fairness in making statements or giving witness and shall do so on the basis of adequate knowledge.
8. A Corporate Member shall not directly or indirectly injure the professional reputation of another member.
9. A Corporate Member shall reject any kind of offer that may involve unfair practice or may cause avoidable damage to the ecosystem.
10. A Corporate Member shall be concerned about and shall act in the best of his abilities for maintenance of sustainability of the process of development.
11. A Corporate Member shall not act in any manner which may injure the reputation of the Institution or which may cause any damage to the Institution financially or otherwise.

General Guidance

The Tenets of the Code of Ethics are based on the recognition that –

1. A common tie exists among the humanity and that The Institution of Engineers (India) derives its value from the people, so that the actions of its Corporate Members should indicate the member’s highest regard for equality of opportunity, social justice and fairness;
2. The Corporate Members of the Institution hold a privileged position in the community so as to make it a necessity for their not using the position for personal and sectional interests.
   

And, as such, a Corporate Member –

1. Should keep his employer or client fully informed on all matters in respect of his assignment which are likely to lead to a conflict of interest or when, in his judgement, a project will not be viable on the basis of commercial, technical, environmental or any other risks;
2. Should maintain confidentiality of any information with utmost sincerity unless expressly permitted to disclose such information or unless such permission, if withheld, may adversely affect the welfare, health and safety of the community;
3. Should neither solicit nor accept financial or other considerations from anyone related to a project or assignment of which he is in the charge;

4.  should neither pay nor offer direct or indirect inducements to secure work;

5.  should compete on the basis of merit alone;

6.  should refrain from inducing a client to breach a contract entered into with another duly appointed engineer;

7.  should, if asked by the employer or a client, to review the work of another person or organisation, discuss the review with the other person or organisation to arrive at a balanced opinion;

8.  should make statements or give evidence before a tribunal or a court of law in an objective and accurate manner and express any opinion on the basis of adequate knowledge and competence; and,

9.  should reveal the existence of any interest – pecuniary or otherwise – which may affect the judgement while giving an evidence or making a statement.

Key takeaways

The corporate members of the institution of engineers (India) are committed to promote and practice the profession of engineering for the common good of the community bearing in mind the following concerns:

      Concern for ethical standard;

      Concern for social justice, social order and human rights;

      Concern for protection of the environment;

      Concern for sustainable development;

      Public safety and tranquillity

1.3 Profession, Professionalism, Professional Responsibility, Professional Ethics

A Profession is a disciplined group of individuals who adhere to ethical standards and who hold themselves out as, and are accepted by the public as possessing special knowledge and skills in a widely recognised body of learning derived from research, education and training at a high level, and who are prepared to apply this knowledge and exercise these skills in the interest of others. 

Professionalism

Professionalism is skill or behaviour that goes beyond what an ordinary person would have or behaving in a more formal or business-like manner. Professionalism involves consistently achieving high standards, both visibly and "behind the scenes" – whatever your role or profession. Some sectors, workplaces or roles have particular "rules" of professionalism. These may be explicit, such as an agreed dress code, or a policy for using social media. Other rules and expectations may not be written down, but they can be just as important – such as what is regarded as professional behaviour at meetings, or even how people personalize their desks.

Features of professionalism

1. Competence

As a professional, you get the job done – and done well. Your abilities match the requirements of your role, and you often produce results that exceed expectations. The professionalism allows you to manage your own and others' expectations, and to ask for support when necessary.

2. Knowledge

Professionalism involves developing detailed, up-to-date knowledge, which is often highly specialized. At every stage of your career you can strive to master your role – and keep adding to what you know. It's also important to put your knowledge into action. Being professional means feeling confident to show what you know – not for self-promotion, but to help yourself and others to succeed.

3. Conscientiousness

Professionalism involves being reliable, setting your own high standards, and showing that you care about every aspect of your job. It's about being industrious and organized, and holding yourself accountable for your thoughts, words and actions. But don't confuse conscientiousness with working longer hours than everyone else, or obsessing about details. True professionals plan and prioritize their work to keep it under control, and they don't let perfectionism hold them back.

4. Integrity

Integrity means what keeps professional people true to their word. It also stops them compromising their values, even if that means taking a harder road. Integrity is bound up with being honest – to yourself, and to the people you meet. Your beliefs and behaviours are aligned, and everyone can see that you're genuine.

5. Respect

Professionalism means being a role model for politeness and good manners  – to everyone, not just those you need to impress.

6. Emotional Intelligence

To be a true professional you need to stay professional even under pressure. This takes strategies for managing your emotions, plus a clear awareness of other people's feelings. In short, emotional intelligence is essential. Sometimes, professionalism means keeping your emotions in check. But at other times it's important to express your feelings, in order to have meaningful conversations or to stand up for what you believe in.

7. Appropriateness

A big part of being professional is knowing what's appropriate in different situations. It avoids awkwardness or upset, boosts your credibility, and helps you to feel secure in your role. Appropriateness relates to outward appearances, such as dress, personal grooming and body language. But it also covers the way you speak and write, the topics you choose to discuss, and how you behave with others.

8. Confidence

Well-founded confidence reassures and motivates other people, boosting your ability to influence and lead. It also pushes you to take on new challenges, because you don't fear damaging your professional reputation if things go wrong. Professionalism makes you confident about what you’re doing now, but always eager to do it better and achieve more.

Professional Responsibility

Professional responsibility is the area of legal practice that encompasses the duties of attorneys to act in a professional manner, obey the law, avoid conflicts of interest, and put the interests of clients ahead of their own interests. Professional responsibility means those programs or segments of programs devoted to

a) the substance, underlying rationale, and practical application of the Rules of Professional Conduct;

b) the professional obligations of the lawyer to the client, the court, the public, and other lawyers;

c) moral philosophy and ethical decision-making in the context of the practice of law; and

d) the effects of stress, substance abuse and chemical dependency, or debilitating mental conditions on a lawyer's professional responsibilities and the prevention, detection, treatment, and etiology of stress, substance abuse, chemical dependency, and debilitating mental conditions.

1.4 Conflict of Interest, Gift Vs Bribery, Environmental breaches, Negligence, Deficiencies in state-of-the-art

A conflict of interest occurs when an individual’s personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace. Government agencies take conflicts of interest so seriously that they are regulated. Industry organizations, corporations, and universities, including our university, follow that lead by including conflicts of interest in our policies, regulations, and standards of operating procedures. Conflicts of interest are a clash that most often occurs between requirements and interests. Various types of conflicts of interest can occur because of the nature of relationships versus rules of organizations or federal and state laws. People can easily become biased (have an unfair preference) because of small things like friendship, food, or flattery, or they may be influenced to make a decision because of the potential to gain power, prestige, or money. Conflicts can occur when an individual makes or influences a decision and does so for some personal gain that may be

• Unfair,
• Unethical, or
• Even illegal.

For example- nepotism, self-dealings, insider trading etc.

Gift Vs Bribery

Gift is given to someone without any expectation in return. Value of gift is often based on closeness in relation, time of gifting, economic condition of giver and receiver.

Bribe is given with expectation of favour toward giver. Its economic value are incoherent to closeness in relation, timing (inappropriate timing) and costly. Business gifts may be a Costly Cricket match ticket, desk clock, sweets or even a cash envelope. Timing of such gifts makes them bribe. Suppose a gift from someone just before you are going to roll-out a tender, a calendar and desk accessories with bold name of pharma companies to doctor. Such things are actually bribe and not gift. Many MNC organisations have come up with norms and structures already. Some norms which are still needed are:

1. Reporting to department about any gifts that is received from whom, value and date details. This part is already applicable to judicial judges in India.
2. Any gifts above certain monetary values should be avoided.
3. No gifts received with brand name should be put on desk as it will tarnish the image of official/public servant for lenient toward certain brand.
4. Provision of filing gift tax by receiver. IT department should tally the gift received as mentioned in department books and filed by receiver. Failure to file tax for gift should be taken seriously.
5. Scrutiny of gifts received by officials regularly and checking of property declaration regularly. Repeated gift from same person should be brought under Directorate Enforcement radar.

Bribes are complex thing for receiver because it puts him into moral dilemma for how to return the favour and makes them corrupt once they receive.

Environmental breaches

Violation of environmental laws subject to punishments and fines. Such provisions are-

1)     Failure to obtain the required consent order will incur penalties. For instance, under the Water Act, any person who breaches the consent application process is punishable with imprisonment for at least 18 months, which can be extended to six years, and a fine.

2)     Under directions from the NGT, the CPCB recently devised a formula to compute environmental compensation to be levied on the defaulting industry. The formula is based on the anticipated severity of pollution, the duration of the violation (number of days), the scale of the operation and the location (for example, proximity to large habitations).

3)     Moreover, the Supreme Court and the state high courts can and do impose exemplary damages for damage to the environment.

4)     The Water Act, Air Act and EP Act all contain specific provisions for offences committed by companies. Under these Acts, every person who is in charge when an offence is committed, and is responsible to the company for the conduct of its business, is guilty of the offence and liable to be prosecuted and punished accordingly.

5)     Further, if the offence was committed with the consent or connivance, or is attributable to any neglect by a director, manager, secretary or other officer of the company, the other person is also guilty of the offence, and liable to be prosecuted.

6)     The National Green Tribunal Act, 2010 (NGT Act) contains penalty provisions which are considerably higher compared to previously adopted environmental laws. Most likely all existing environmental laws will be amended (at some point) to be aligned with the NGT Act penalty provisions.

7)     If the failure or contravention continues, an additional fine applies up to INR 25,000 for every day the failure/contravention continues, after conviction for the first failure or contravention.

8)     Section 26(2) of the NGT Act states that if a company fails to comply with any order or award or decision of the Tribunal, the company is punishable with a fine up to 25 crore rupees. If the failure or contravention continues, an additional fine applies up to INR100,000 for every day the failure/contravention continues, after conviction for the first failure or contravention.

9)     Under section 15(1) of the NGT Act, the NGT can order relief, compensation and restitution in the following cases:

• Relief and compensation to the victims of pollution and other environmental damage.
• Restitution for property damaged.
• Restitution of the environment.

Further, the National Green Tribunal (NGT) can divide the compensation or relief payable under separate heads specified in Schedule II of the NGT Act, which includes claims:

• Due to harm, damage or destruction to flora, including aquatic flora, crops, vegetables, trees and orchards.
• Including cost or restoration of account of harm or damage to the environment including pollution of soil, air, water, land and eco-systems.
• Water pollution and abstraction

Negligence

Negligence is defined as doing something or failing to do something that a prudent, careful, and reasonable nurse would do or not do in the same situation. The definition of professional negligence is when a professional fails to perform their responsibilities to the required standard or breaches a duty of care. This poor conduct subsequently results in a financial loss, physical damage or injury of their client or customer. A claim of professional negligence can be made against anyone considered to have expertise in the services they provide; for example, a technology or management consultant, surveyor, etc. For the claim to be successful there must be evidence that the service provided fell below the standards of their profession, resulting in negative consequences.

Deficiencies in State of the art

Morality and art are connected usually in art that provokes and disturbs. Such art stirs up the artists or viewer’s personal beliefs, values, and morals due to what is depicted. Works that seem to purposely pursue or strongly communicate a message may cause controversies to flare up: controversies over the rights of artistic freedom or over how society evaluates art. That judgment of works created by artists has to do with society’s value judgment in a given time in history. The relationship between the artist and society is intertwined and sometimes at odds as it relates to art and ethics. Art is subjective which will be received or interpreted by different people in various ways. What may be unethical to one may be ethical to another. Because art is subjective, it is vulnerable to ethical judgment. This lack does not make ethical judgment wrong or irrational; it shows that appreciation of art or styles changes over time and that new or different art or styles can come to be appreciated. It is expected that in a work of art an artist’s own beliefs, values, and ideology may contrast with societal values. It is the art that speaks and adds quality value to what is communicated. This is what makes the power of free artistic expression so important. The art is judged not by who created the work or the artist’s character, but based on the merits of the work itself. Ethical dilemmas are not uncommon in the art world and often arise from the perception or interpretation of the artwork’s content or message.

1.5 Vigil Mechanism/Whistleblowing

Vigil mechanism/ Whistle Blower Policy is a very well-known term all over the World. Various compliance and fraud surveys show Vigil/Whistle blower mechanisms are among the most effective means of detecting corporate misconduct. A genuine Whistle blower can help a Company and its stakeholders in avoiding exposures related to fraud or misconduct. Companies Act 2013 introduced the concept of Vigil Mechanism in India.

A Vigil mechanism provides a channel to employees and Directors of a Company to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of Conduct or any Policy of the Company.

The term “Whistle-blowing” originates from the practice of British policemen who blew their Whistles whenever they observed commission of a crime. Whistle Blowing is nothing but calling the attention of top level management to some malafide activities happening within an organization.  A Whistle blower is a person who comes forward and shares his/her knowledge on any wrongdoing which he/she thinks is happening in the organization or in a specific department. A Whistle blower could be an employee, contractor, or a supplier who becomes aware of any illegal activities.

For creating and establishing a well-entrenched Whistle-blowing Culture, a Company shall have to undergo the following steps:

• Frame a Policy.
• Get an endorsement from top level management.
• Publicize the Organization’s Commitment.
• Investigate and Follow Up.
• Assess the Organization’s Internal Whistle-blowing System.

Provisions under the Companies Act, 2013:

A) Section 177 of the Companies Act, 2013 read with Rules made thereunder mandates following Companies to establish Vigil mechanism in their Company:

1. Listed Company;
2. Every Company which accepts deposits from the public; and
3. Every Company which has borrowed money from Banks and Public Financial Institutions in excess of Rupees 50 crores.

B) Companies which are required to constitute an Audit Committee shall operate the Vigil mechanism through the audit Committee. If any of the members of the Audit committee have a conflict of interest in a given case, they should recuse themselves and the other members of the Audit Committee shall deal with the matter on hand.

C) For the Companies which are not required to constitute the Audit Committee, the Board of Directors shall nominate a director to play the role of audit committee for the purpose of Vigil mechanism. All the employees and other Directors shall report their concerns to such appointed Director.

D) Vigil mechanism Policy of the Company shall provide for adequate safeguards against victimization of director(s)/employee(s) who avail of the Vigil Mechanism and to make provisions for direct access to the Chairman of the Audit Committee or the director nominated to play the role of Audit Committee (as the case may be).

E) The details of establishment and framing of Vigil Mechanism Policy shall be disclosed by the Company on its website, if any, and in it’s Board’s report.

F) The Independent Directors of the Company (wherever applicable) shall ascertain and ensure that the Company has an adequate and functional Vigil mechanism and that the interests of a person who uses such mechanism is not prejudicially affected on account of it’s use.

G) In case of repeated frivolous complaints being filed by a Director or an employee, the audit committee or the director nominated to play the role of audit committee has the right and power to take suitable action against the concerned director or employee.

Under SEBI (LODR) Regulation, 2015

The SEBI (LODR) Requirements, 2015 contains similar requirement for establishment of a Vigil Mechanism termed ‘Whistle Blower Policy’.

A) Regulation 4(2)(d)(iv) of SEBI (LODR), 2015 provides for the listed entity to devise an effective Whistle blower mechanism viz. Whistle Blower Policy enabling stakeholders, including individual employees and their representative bodies, to freely communicate their concerns about illegal or unethical practices.

B) The Audit committee shall review the functioning of the Whistle blower mechanism.

C) The listed entity shall disseminate details of establishment of Vigil mechanism/ Whistle Blower policy on its functional website.

D) The Corporate Governance Report of the Company shall contain the details of establishment of Vigil mechanism, Whistle blower policy and affirmation that no personnel has been denied access to the audit committee.

1.6 Protected disclosures

Disclosure of information in the public interest by the employees of an organisation is increasingly gaining acceptance by public bodies for ensuring better governance standards and probity / transparency in the conduct of affairs of public institutions. Large scale corporate frauds had necessitated various legislative measures for safeguarding public interest. In the Indian context, the Government of India had passed a resolution on April 21, 2004 authorizing the Central Vigilance Commission (CVC) as the ‘Designated Agency’ to receive written complaints or disclosure on any allegation of corruption or of misuse of office and recommend appropriate action. As a proactive measure for strengthening financial stability and with a view to enhancing public confidence in the robustness of the financial sector, Reserve Bank of India has formulated a scheme called "Protected Disclosures Scheme for Private Sector and Foreign Banks". “Protected Disclosure” means any communication made in good faith that discloses or demonstrates information that may evidence unethical or improper activity.

Protected Disclosures Act, 2000

The purpose of the Protected Disclosures Act, 2000, is to provide procedures and to offer protection.

• The Act provides procedures in terms of which any employee may disclose information relating to an offence or a malpractice in the workplace by his or her employer or fellow employees.
• The Act provides for the protection of an employee, who made a disclosure in accordance with the procedures provided for by the Act, against any reprisals as a result of such a disclosure.

The procedures provided for in the Act can be described as routes that can be followed in order to disclose the information. An employee who discloses information through one of these routes will be protected from being victimised or penalised in his or her working environment.

• An employee can disclose the information to—

• a legal representative;
• His or her employer;
• a Minister or a member of the Executive Council of a province (MEC);
• a specified person or body; or
• a general disclosure to any other person.

Key Takeaways

A profession is a disciplined group of individuals who adhere to ethical standards and who hold themselves out as, and are accepted by the public as possessing special knowledge and skills in a widely recognised body of learning derived from research, education and training at a high level, and who are prepared to apply this knowledge and exercise these skills in the interest of others.

References:

1. B.S. Patil, Legal Aspects of Building and Engineering Contracts, 1974.

2. The National Building Code, BIS, 2017

3. RERA Act, 2017

4. Meena Rao (2006), Fundamental concepts in Law of Contract, 3rd Edn. Professional Offset

5. Neelima Chandiramani (2000), The Law of Contract: An Outline, 2nd Edn. Avinash Publications Mumbai

6. Avtarsingh (2002), Law of Contract, Eastern Book Co.

7. Dutt (1994), Indian Contract Act, Eastern Law House

8. Anson W.R. (1979), Law of Contract, Oxford University Press