Practical Aspects of Ethics
by Iain Greenway
Key words: ethics, business practices, standards.
Abstract
With the globalisation of markets and increasingly high public
expectations of professional behaviour, ethics and their application
in practice are of vital importance to surveyors. The paper outlines
the basis for ethics, considers the necessary content of a code of
ethics and, through the use of examples, examines a number of
real-life ethical conflicts. The paper builds on the FIG Model Code of
Professional Conduct and supports the work of FIG Working Group 1.2
(Business Practices).
Iain Greenway
Chair of FIG Task Force on Standards
13 Hazelbury Park
Clonee
Dublin 15
IRELAND
Tel. + 353 1 802 5316
Fax + 353 1 820 4156
E-mail: [email protected]
Practical Aspects of Ethics
1. INTRODUCTION
Ethics can often be seen as a topic for academic discourse, only
affecting real life in rather indirect ways. The importance of the
subject for practitioners is, however, growing for a number of
reasons, not least that the majority of practitioners feel that
standards of ethical behaviour have declined over the years and are
likely to decline further (Hoogsteden 1994, 1). This is in an age when
public expectations of professionals are growing in the light of
scandals such as those associated with Ivan Boesky and Robert Maxwell.
Ethical priorities can be particularly tangled for professionals, with
their sense of duty being split in a number of different directions.
Allred (1999) suggests that professionals are subject to (often
conflicting) standards of their own, their company, their profession,
and the public. An RICS Working Party on Professional Ethics in the
mid-1990s (unpublished) found increasing tensions between
commercialism, professionalism and ethical behaviour.
Ultimately, companies (and individuals) with clear values who apply
those values consistently will be more successful than companies
without such clarity, as they will not put themselves in positions
which later become compromising and need time and effort to resolve.
This is supported by evidence (Jones and Pollitt 1998); in summary,
their findings are that principled decision making is compatible with
profitable decision making.
This paper examines the issues in turning ethical principles –
the subject of academic and smoking room discourse – into practice.
It draws on the FIG Model Code of Professional Conduct (FIG 1998),
summarises the work to date of FIG Working Group 1.2, of which the
author is Chair, and attempts to stimulate further debate on this
important topic.
2. ETHICAL THINKING
It is important that we start with development of ethical and
philosophical thought, however dry it may seem, so that we can set
individual plans and actions in the context of a coherent set of
principles.
Perhaps the most fundamental starting point is to attempt to answer
the question ‘what is ethics?’ A New Zealand government paper (SSC
1999) suggests that ethics is ‘what ought to be; the ideals of what
is just, good and proper’. Powers and Vogel (quoted in Chryssides
and Kaler 1993) suggest ‘in essence, ethics is concerned with
clarifying what constitutes human welfare and the kind of conduct
necessary to promote it’. The Oxford English Dictionary ventures ‘the
department of study concerned with the principles of human duty’.
And the RICS Working Party suggested that professional ethics ‘are
giving of one’s best to ensure that clients’ interests are
properly cared for, but that in doing so the wider public interest is
also recognised and respected’.
A number of schools of thought have worked over the centuries to
expand on these definitions. Four of the schools which have developed
in western societies, and which have long provided a basis for
decisions on ethical and other issues, are:
- Consequentialism
, developed by Jeremy Bentham and
others, takes the view that all that matters is the consequences of
a decision; motivation is not relevant. On this basis, decisions are
made by a process akin to a cost-benefit analysis, with a goal of
maximising the net expectable utility of all parties affected by the
decision;
- Contractarianism
, on the other hand, is based on the
concept of fairness. All individuals are accorded equal respect as
participants in social arrangements, leading to the idea of a social
contract and the right of individuals to veto a proposed solution
(this is not available as an option under the consequentialist
approach);
- Pluralism, or duty-based ethics
, focuses on the concept
of duty – individuals have an obligation to each other to be open,
honest and fair. This philosophy was expounded by Immanuel Kant in
the late eighteenth century but also draws heavily on a number of
the world’s religions;
- The aristocratic tradition is particularly
associated with the work of Friedrich Nietzsche in the late part
of the nineteenth century. He focused on the need of the
individual to be enriched by the decision made and to feel
comfortable with it. Other affected parties were largely
irrelevant in the decision-making process.
Other traditions have developed in the east, influenced by a
society and experience very different from the Greek, Roman and
European history of the west. In particular, the sayings of Confucius
provide a very powerful basis for Chinese thinking. Confucius focused
on the central place of authority. He also saw the harmonising of
human relations as very important, This leads to an emphasis on
resolving disputes by negotiation rather than by resorting to legal
processes.
All of these traditions have developed out of a particular society
and history. Most explicitly acknowledge the power of the outside
world. The aristocratic approach, however, concentrates on the
individual, seeing external influences as the seeds for conflict
within each person.
3. TURNING THINKING INTO PRACTICE
Leading on from the above consideration, we need to ask whether
global society holds that there are intrinsic rights and wrongs. Or is
it, as Shakespeare has Hamlet say, that ‘there is nothing either
good or bad, but thinking makes it so’?
The work of FIG in compiling its Model Code of Professional Conduct
(FIG 1998) included examination of the philosophies underlying ethical
decision-making processes in different countries. The Golden Rule ‘do
unto others as you would have others do unto you’ was found to be a
basic common denominator in the building of model and religious codes
of conduct. Close behind was the Hippocratic Oath ‘not knowingly to
do harm’, dubbed the silver rule. Lively discussion of environmental
concerns led to the addition of a third rule – the Green Rule –
answering the rhetorical question ‘Is it sustainable?’ (Allred
1999). The golden and silver rules have ancient bases, and underlie
many of the schools of thought which have developed around the world
(being more explicitly expounded in some than in others).
Attempting to turn this into something rather more specific,
Hodgson (1992) suggests seven fundamental duties that have to be
fulfilled for an action to be considered ethical:
- Dignity of life: people’s lives are to be respected
- Autonomy: all people are intrinsically valued and have the right
to self-determination
- Honesty: the truth should be told to those who have a right to
know it
- Loyalty: promises, contracts and commitments should be honoured
- Fairness: people should be treated justly
- Humaneness: our actions ought to accomplish good and we should
avoid doing evil
- The common good: our actions should accomplish ‘the greatest
good for the greatest number of people’.
A key element already mentioned above is that of national
differences. Some work amongst a mixed group of nationals on the
Cranfield MBA programme in 1995 (unpublished) suggested the following
prime considerations in a number of countries:
- China
– the need to be honest to yourself, considering
the interests of all parties; the importance of human relations;
that trust, honesty and negotiation should be the basis for doing
business; the need for balance between the interests of various
parties; and the need to take responsibility for your own actions.
- Dominica
– how will I feel the next morning? How will
my family react to the decision reached? What will be the impact of
the decision on family life and community profile?
- Poland
– Will anybody be hurt? What is the
organisational view? Am I going to be hurt? Am I being fair to
others?
- Singapore
– the responsibility to do good (‘Good men
have good returns’); the obligation of companies to provide a
world-class service to their customers.
- UK
– the Golden Rule; the importance of reputation;
the common good; feeling comfortable with yourself.
The list above, although to some extent subjective (based on the
individuals involved in the work), shows a number of tensions: that
between Catholicism and Communism in Poland, for instance; and that
between capitalism and a Christian tradition in the UK. Globalisation
makes national and regional boundaries increasingly irrelevant, with
individuals from one culture working within another, often with little
chance to take guidance from corporate headquarters.
Another divide which cannot be ignored is that between the public
and private sectors. The situation is probably more complex in the
public sector, as a primary focus on providing profits for
shareholders gives a clear frame of reference for private sector
business decisions. In the public sector, other stakeholders gain
importance, as the externalities are larger (or, in the case of public
goods, predominant), and so the decision-making framework is less
clear-cut. There is also the additional difficulty of political and
parliamentary involvement in managerial decision-making processes
(this difference is developed in Vallance 1999).
In all of the above, we can see reflected the social acceptance of
Contractarianism and pluralism in preference to Consequentialism. We
can also see strong suggestions that there are intrinsic rights
and wrongs, and that these are consistent across cultures.
4. CODIFICATION
In theory, these rights and wrongs do not need to be written down
into codes – they should be innately within us and so reflected in
all that we do. A number of factors however, make codification
necessary:
- Companies are becoming larger and more complex, with the sphere
of influence often covering several continents. One of the
findings of the BCCI inquiry (Passas 1994) was that the bank was
not controlled by anyone;
- Coupled with this, and with ease of travel, employees of large
firms will often be away from colleagues when making decisions
that bind the corporation. They need to have a framework of
standards readily to hand;
- A number of scandals since the early 1970s have focused press
and public attention on the standards of organisations. A classic
example of what is now considered unacceptable behaviour was that
undertaken by ITT in Chile (Kline 1994), attempting to bring down
the elected government. A good example of ethical conduct is also
in order: that of Johnson and Johnson removing Tylenol from sale
when potential problems were found with it. The public expects to
see frameworks which constrain the actions of large corporations
and the individuals within them, and that the frameworks will be
available for inspection;
- Pressure groups are becoming more powerful. CNN broadcasts live
to the world, despite the censorship of the domestic media in many
countries. Greenpeace is a formidable exploiter of the media, as
witnessed over Shell’s attempts to ditch the Brent Spar oil
platform. Companies need to have a solid defence against any
allegations made by these groups.
Given all of this, no less an authority than Peters and Waterman
(quoted in Hodgson 1992) say that they ‘firmly believe that any
organisation, in order to survive and achieve success, must have a
sound set of beliefs on which it premises all of its policies and
actions.’ Desjardins (1993) sums it up by saying: imagine yourself
in a jungle. A guide is essential, whereas a map is useless, as you
don’t know where you are starting from.
There are, however, pitfalls in the articulation of codes:
- They must not become lists of do’s and don’ts, attempting to
cover every possible situation. The emphasis must be on providing
simple frameworks which can guide actions;
- Actions are much more significant in determining corporate
ethical culture than any code. The codes will not gain ownership
unless senior managers are seen to be living by them;
- They must be carefully thought out, with large numbers of
employees being involved in their development, rather than
knee-jerk reactions to particular crises. This re-emphasises the
need to have a policy in place, rather than attempting to develop
one ‘on the hoof’.
Johnson and Johnson’s Credo is in many ways a model example –
it includes phrases such as ‘we must maintain in good order the
property that we are privileged to use, protecting the environment and
natural resources’, and ‘everyone must be considered as an
individual’. The company’s philosophy is based on Kantian
principles of duty and fairness – nowhere is there mention of ends
justifying means. A former chairman of Johnson and Johnson (quoted in
Hodgson 1992) reinforced the need for the Credo to remain unspecific:
‘as soon as you make a rule, people argue about it. What is so
powerful about the Credo is that the document is so simple: you have
to decide what is the right course in a specific circumstance.’
What needs to be covered by a code? Work in Australia (Ryan 1994)
suggested seven issues which managers saw as key:
- Protection of the environment;
- Integrity and honesty;
- Standards of fairness in relations with vendors and suppliers;
- Providing a useful product/ service to customers;
- Providing a fair and safe workplace;
- Providing opportunities for creativity and innovation; and
- Providing an opportunity for people to reach their own goals
whilst working towards the company’s goals.
We must consider what must be added to the issues outlined above,
for professionals. The International Federation of Accountants (1992)
suggests that a profession is distinguished by the following
characteristics:
- Mastery of a particular intellectual skill, acquired by training
and application;
- Acceptance of duties to society as a whole, in addition to
duties to the client or employer;
- An outlook which is essentially objective; and
- Rendering professional services to a high standard of conduct
and professionalism.
It is the second of these points that need concern us most here: as
with public sector bodies, the situation is complicated by the
interaction of more than one key stakeholder – and such an
interaction will, inevitably, lead to ethical conflicts on occasions.
The FIG Model Code of Professional Conduct is an example of a code
which attempts to outline potential sources of conflict, and to
provide guiding principles which should be applied by surveyors.
Aside from the FIG work, most national associations of surveyors
have developed ethical codes, often detailed further into codes of
conduct, transgression of which can mean expulsion from the
associations after deliberation by a ‘court’ of your peers. Codes
are necessary to guide professionals, publicly set standards which
other stakeholders can expect to be met, and define the sanctions
which will be applied when professionals fall short of those
standards. They are an important part of the confidence-building
process.
5. APPLYING THE CODES
Taking the next step on our journey from academic treatise to
practice, we need to consider the issue of applying the codes that are
created. It is perhaps helpful to consider such a process as a
filtering exercise. As De George (1995) suggests, ‘ethics [alone]
will not tell a business how to act, but can tell a business how not
to act. In this sense [an ethical code] is a sieve through which
business decisions have to pass’.
The Cranfield work referred to earlier took the different tests
applied in different countries and constructed five filters, which
differed in relative importance between countries. The filters were
religion/ ideology; family and friends; corporate culture; national
culture; and personal values. Corporate culture, for instance, was
found to be stronger in the east, and personal values stronger in the
west.
Conflicts will arise when these different filters produce different
results, unless one filter predominates over all others. The
suggestion above was that codes should not attempt to cover every
eventuality; this is reinforced in a professional environment by the
quality of judgement expected from a professional. The FIG, ACSM and
Danish Association of Chartered Surveyors’ codes follow these
general principles, enunciating values and principles rather than
detailed lists of do’s and don’ts; the RICS Working Party on
professional ethics agreed with this line. Work in New Zealand (SSC
1999) notes some variation between countries in the balance between
control (such as laws), guidance (such as codes of conduct) and
structure (such as ensuring strong leadership). For instance, the USA
majors on control whereas The Netherlands concentrates on guidance.
The report also makes the point that rules and guidance are generally
created in response to something that has gone wrong.
Schmidt (1999), an American writer on the subject of ethics,
comments that most practitioners are unlikely to be closely familiar
with the contents of ethical codes, and so it is their individual
filters which predominate, whatever may be written down. He cites as
an example that provisions in many US states’ codes prohibit the
review of another surveyor’s work before his contract has been
terminated. Such provisions are illegal under the Federal Trade
Commission Act and the Sherman Anti-Trust Act.
A further factor is the importance of leaders, stressing again a
point made earlier. This is developed further by Cuilla (1999), who
says that leaders must be morally good and effective – he
cites President Carter and Adolf Hitler as individuals who each passed
one test and failed the other.
Hodgson (1992) offers the following guidance for putting codes into
practice:
- Become more sensitive;
- Treat customs as legitimate and workable until proven otherwise;
- Find legitimate ways to operate from the host country’s
ethical business perspective;
- Avoid rationalising borderline actions;
- Refuse to do business when laws or general principles are
seriously compromised;
- Be as above-board as possible; and
- Avoid purely legalistic but ethically questionable strategies.
One element that can be immensely helpful in helping individuals to
develop explicit awareness of their personal filters, and confirming
how these fit with corporate and professional codes, is the use of
examples. Hoogsteden (1994, 2) explains how these are used in New
Zealand’s survey education. The RICS Working Party proposed the use
of examples in an expanded module on ethics in UK surveying education,
as well as in the entry process to becoming a chartered surveyor (the
Assessment of Professional Competence) and in CPD. Interestingly, the
RICS research showed that 75% of clients questioned felt that
chartered surveyors should look after their client’s interests,
irrespective of the interests of any other party; only 49%, however,
felt that this was the case in practice.
Summing up the discourse to date, it is ultimately the individual’s
values which win through – he/ she must be comfortable with the
decision taken. Their options, however, are constrained by the ‘front
page’ rule – would they be happy for their decision to be reported
on the front page of a newspaper?
6. THREE EXAMPLES
In an attempt to get under the skin of ethical issues a little
more, FIG Working Group 1.2 (Business Practices) constructed three
examples of ethical dilemmas which could be encountered by surveyors.
These were created with reference to a number of sources, in
particular with the help of Wilhelm Schmidt, Jerry Ives (one of the
authors of the ACSM code of practice) and Ken Allred (lead author of
the FIG Model Code of Professional Conduct).
The three dilemmas were published in the FIG Commission 1
newsletter, in the FIG Bulletin and on the FIG web site, and in
Surveying World in the UK. There was a very limited number of
responses, although the reach was good – responses included a
surveyor recently returned from Swaziland, and a surveyor in Burkina
Faso. The paucity of comment is in itself an issue of concern, given
the importance of ethics. Particularly interesting (and concerning)
was a comment from one country that surveyors there would not be
willing to comment, because they couldn’t be sure of anonymity.
The dilemmas were:
Dilemma 1 - the client and the environment
Whilst undertaking a site survey for a private sector client, it
becomes apparent to you that the client intends to ignore potentially
serious environmental impacts of the development of the site. You
reflect on your obligations to your client and to the community. What
do you do?
Dilemma 2 - cross-cultural issues
As a partner in a firm of surveyors, you have successfully won a
tender for some work in a country where bribes are considered a normal
part of doing business. In your own country, bribes are illegal (or,
at the very least, not accepted practice). Will you use bribes to get
the project completed successfully?
Dilemma 3 - commercial matters
You have successfully tendered for a survey. Other work means that
you cannot complete by the required date, so you subcontract the work
to another surveyor who only charges you a small fraction of the fee
you have agreed with the client. What do you charge the client?
The responses, although few in number, gave a range of answers to
each question. It was also noticeable that there was no correlation
between the responses on the different dilemmas (that is, two
individuals making the same response to one dilemma did not
necessarily do so with another dilemma).
7. UNPACKING THE EXAMPLES
Taking the dilemmas in turn, what do surveyors, schools of thought
and some of the codes say?
Dilemma 1 – the client and the environment
The responses included: withdraw from the contract unless I receive
a satisfactory explanation from the client, and consider ‘whistle-blowing’;
comment to the client, but trust in the planning processes; review the
terms of the contract.
The different schools of thought all seem to point in the same
direction: Consequentialism says that consequence is all, and
therefore that significant environmental impacts should cause the
surveyor to halt work; the social contract element of Contractarianism
also suggests that work should be halted until the issue is resolved.
Pluralism, with its focus on openness and honesty, reinforces this.
Even the aristocratic tradition suggests that, given that most
surveyors will be uncomfortable in proceeding, they should not do so.
The FIG code is clear: surveyors should take environmental concerns
into account in their operations and activities; and should bring any
matter of concern relating to the physical environment and sustainable
development to the attention of their clients or employers. The Danish
code makes no explicit mention of environmental issues. The codes shy
away from saying what should happen if the client ignores the surveyor’s
representations. Given the discussion in section 4 of this paper, that
is probably the appropriate place for the codes to stop.
More generally, earlier discussion has suggested that one of the
principal characteristics of professionals is that they accept duties
to society as well as to clients and employers. This introduces a
specific point of conflict into cases such as this.
Dilemma 2 – cross-cultural issues
The responses included: I would use bribes, following the culture
and custom of the country in which I was working; bribes would be
unacceptable but small unofficial payments for services rendered (10%
of the average daily wage of an administrator) would be bearable; find
some justification for the need to bribe; ‘I simply would not do
business under those conditions’.
Thinking is more mixed here: Consequentialism suggests ‘carry on’
whereas Contractarianism and pluralism suggest not proceeding, and the
aristocratic tradition leaves it with the individual.
The FIG code says: avoid any appearance of professional
impropriety; maintain the highest standards of honesty and integrity
towards those with whom you come into contact, either directly or
indirectly; and avoid associating with any persons or enterprises of
doubtful character. The Danish code is again silent on the matter, but
this is perhaps not unexpected in a national code in a western
democracy.
In a wider sense, there is also confusion: McDonald (1994) found
that only 32% of the Chinese population of Hong Kong realised that the
tipping of public body employees for prompt service was illegal; and
Dierkes and Zimmerman (1994) reported that the Italian government
expects citizens to under-declare their income for tax purposes by
30-70% (the size of the bustarella (bribe) given to tax officials is
an important element in determining tax bills). The Unfair Corrupt
Practices Act 1977 in the USA prohibits the payment of bribes to
foreign government officials. The RICS Working Party recommended that
the higher standard applying in a surveyor’s home country or the
country of operations should be applied. Shell (Segundo 1997) has a
very strict no-bribes policy, seeing long term gain in development
associated with this (and accepting any short term losses).
Dilemma 3 – commercial matters
The responses included: reduce your fee, passing on the
subcontractor’s charge and an administration fee of 15%; charge the
originally agreed fee; discuss the issue with the client and negotiate
an adjustment; stick with the original fee unless your conscience
forces you to discuss the matter with the client.
Schools of thought again give mixed advice: duty and fairness point
to disclosure whereas Consequentialism says ‘no one is being harmed,
so where’s the problem?’
The codes have rather more to say on pricing: ‘seek remuneration
commensurate with the technical complexity, level of responsibility
and liability for the services rendered’ (FIG); ‘the payment must
be fixed in such a way that it is reasonable to the client in
consideration of the extent of the task’ (Denmark).
The codes are therefore perhaps clearest on this dilemma: report
the issue to the client and reach agreement with him.
So what have the dilemmas taught us? That the use of examples has
brought value issues into focus; and that there are no clear universal
agreements on what is right and what is wrong in practice,
particularly when considering examples that are – following the
suggestions for successful codes – deliberately vague. We should
note that this is when asking professionals – those with some duty
to shape the values of technicians and others – for their views.
8. SUMMARY
Ethics is becoming an increasingly important topic for all
organisations, not least surveyors (the ‘green’ issues impact us
rather more directly than they do many other professions). The
creation of codes of ethical practice is an essential task for
companies, to ensure consistent application of principles, and to
provide all stakeholders with confidence in this regard. Societies are
continually developing their views of acceptable and unacceptable
practices and values, and corporate codes of practice need to reflect
(but not slavishly follow) these societal changes. Codes must also
reflect the basic principles of right and wrong which underlie much
thinking and practice – to answer Hamlet’s question posed in
section 3, there are things that are deemed fundamentally good
(and bad).
There is evidence that principled decision-making is compatible
with profitable decision-making. This requires corporations and
individuals to take time to develop their own sets of filters through
which they determine their actions when facing particular
circumstances; it is folly to believe that you can make rational,
thoughtful and consistent decisions on the hoof. Ultimately, it is the
individual’s filters which determine individual action. If these are
too far removed from corporate filters, the conflict must be resolved
within the organisation, or the individual asked to leave.
The use of examples can be a powerful way in which to debate the
issues. The responses submitted by surveyors to the dilemmas posed by
Working Group 1.2 show that many real-life situations are not clear
cut, and that a number of issues affect responses. Some of the common
balances (taken from Harpur 1999) that need to be struck are:
- Truth versus loyalty (particularly in dilemmas 1 and 3);
- The individual versus the community (particularly in dilemma 1);
- Short term versus long term (all dilemmas);
- Justice versus mercy (particularly in dilemma 2).
Surveyors, no less than any other professionals, must also be aware
that governments have a habit of intervening with legislation when
self-regulation by a professional body is deemed (by public opinion)
to have fallen into disrepute. Careful development of codes and
handling of individuals who fall short of them is therefore an
important role for professional bodies.
The next step for Working Group 1.2 is to create a guide for
managers and professionals covering issues of business practice,
including ethics. This paper has been designed to stimulate the debate
we see as essential before such a guide can be completed, and we
welcome further input.
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Biographical Note
After completing an M.A. in Engineering at Cambridge University and
an M.Sc. in Land Survey at University College London, Iain Greenway
joined Ordnance Survey in 1986. A variety of posts in geodetic and
topographic survey followed, including a key role in implementing the
GPS national control network for Great Britain, and short-term
consultancies supporting land reform in Bulgaria and Russia.
Ordnance Survey sponsored Iain through an MBA at Cranfield
University in 1994/95, which included a term studying at Macquarie
University, Sydney. Back in Ordnance Survey, he worked in strategic
planning, product management, sales, and strategic pricing. He is now
on a year’s secondment to Her Majesty’s Treasury, working on the
improvement of public sector productivity in the UK.
He has authored papers on the future of the land survey profession,
a variety of technical matters, and managing change in Ordnance
Survey, as well as completing a number of management consultancy
inputs in Swaziland and Lesotho.
Iain is a Chartered Surveyor (ARICS) and a member of the Chartered
Institute of Marketing (MCIM). He is the RICS delegate to FIG
Commission 1, Chair of the FIG Task Force on Standardisation and of
Working Group 1.2 (Business Practices). He is a member of the
Management and Editorial Boards of the journal Survey Review.
Iain Greenway
Chair of the FIG Task Force on Standards
E-mail: [email protected]
27 March 2000
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