Ethics

Question 1

List examples of ethical situations that may arise for a professional engineer.

Answer 1

• bribery
• fraud
• environmental protection
• fairness
• honesty
• conflict of interest

Question 2

What was the root cause of the Florida University bridge collapse?

Answer 2

Overestimated the strength of a critical section while underestimating the load.

Question 3

As engineers, why is it important to study ethics?

Answer 3

We have a responsibility to the public’s health and safety, business, and environment.

Question 4

How is ethics regulated among Peng’s?

Answer 4

• Licensing is no longer voluntary
• Only qualified professionals are admitted
• Established standards of professional practice and code of ethics
• negligent or incompetent practitioners are disciplined.

Question 5

What country was the first to regulate engineers?

Answer 5

USA, Wyoming, 1907

Question 6

Define the Practice of Professional Engineering

Answer 6

Any act of planning, designing, composing, evaluating, advising, reporting, directing or supervising, or managing any of the foregoing, that requires the application of engineering principles and that concerns the safeguarding of life, health, property, economic interests, the public welfare, or the environment.

Question 7

What is the difference between regulations and bylaws?

Answer 7

Regulations: rules that clarify the Act
Bylaws: rules governing the operation of the Association

Question 8

The Bre-X mining fraud occurred over what period of time?

Answer 8

1993-1997

Question 9

Bre-X Minerals Limited was a mining company based where?

Answer 9

Calgary

Question 10

Who was the founder, chairman, and CEO of Bre-X minerals?

Answer 10

David Walsh

Question 11

Where was the location of the gold deposit discovered by Bre-X minerals in May of 1993?

Answer 11

Busang, Indonesia

Question 12

Prior to the gold deposit discovery in Busang, Bre-X stock prices were valued at mere pennies. By September 1996 what had the value risen to?

Answer 12

$200

Question 13

Who was John Felderhof and what was his degree?

Answer 13

John Felderhof held a degree in geology from Dalhousie Univerisity and was the chief geologist of Bre-X Minerals. He has since declared that his role in the company was merely that of an administrator.

Question 14

Who was Michael de Guzman? What was his role with Bre-X?

Answer 14

Michael de Guzman was Bre-X’s #2 geologist. He ran four Bre-X camps in Indonesia.

Question 15

Who was Cesar Puspos?

Answer 15

The geologist who reportedly supervised much of the work at the Busand gold mine.

Question 16

By 1997, what was the official reserve estimate for the Busang mine?

Answer 16

Felderhof claimed 200 million ounces of gold.

Question 17

What was one of the main situations that attracted world attention to the fraud of Busang?

Answer 17

Michael de Guzman committed suicide by jumping from a helicopter en route to a meeting with a geological team to discuss discrepancies in the test results.

Question 18

How had Bre-X orchestrated the fraud in claiming that the Busang mine was worth approx $70 Billion in terms of 1997 gold prices?

Answer 18

The core samples that were drilled by Bre-X had had gold found in local rivers added to the samples to create a false image of the mine’s gold content.

Question 19

How was the Bre-X fraud discovered?

Answer 19

A company based in strathcona was hired to give an impartial analysis of the gold samples. Freeport Inc drilled holes directly beside the Bre-X holes and found very different results.

Question 20

How did Bre-X further breach sampling protocol?

Answer 20

Typically when drill cores are removed from the ground half is tested and the other half is stored in case it is needed for further testing. Bre-X did not do this.

Question 21

Who is suspected to have orchestrated the salting of the Bre-X core samples?

Answer 21

Michael de Guzman since he was the senior person responsible for the drill core samples.

Question 22

What is the estimated total loss to investors of the Bre-X fraud?

Answer 22

$6 billion

Question 23

Discussion*: Who should be more concerned about the welfare of the public: the professional person or the average person? Does professional status impose additional responsibilities? Should people in positions of great trust, whose actions could harm the public, obey a higher code of ethics?

Answer 23

Most answers could be considered right as long as it is properly justified

While everyone should be concerned with how their actions may effect the welfare of the public it is justifiable that the professional person should be more concerned. Based on Mill’s utilitarianism and the assumption that the professional person’s actions have a more powerful effect than those of the average person (i.e. effects a larger number of people) it is reasonable to expect the professional to obey a higher code of ethics