Engineering Entrepreneurship

Ron Lasser, Ph.D.

EN 0062 Class #1111-17-06

Quote for the Day

“Reading about ethics is about as likely to improve one’s behavior as reading about sports is to make one

into an athlete. .’”

— Mason Cooley

How it all starts…

“Discontent is the seed of ethics”

— Friedrich Wilhelm NietzschePhilospher

Stages of Venture Development

Stage 1

Pre-Start Up

Stage 2

Start Up

Stage 3

Growth

Stage 4

Mature

Stage 5

Innovationor

Decline

Situation #1

What do you do?

Situation #2

How do you handle this?

Situation #3

Have you done this?

Situation #4

Is this you?

Outline

EthicsEngineering Ethics

Why study ethics?

To raise moral issues directly impacted by technological activityTo eliminate moral dilemmasTo reach a moral consensus

Morality and Ethics

Voluntary action toward self and other living organismsMorality (Latin mores) – being in accord with standards of right or good conduct Ethics (Greek ethos) – a set of principles of right conduct based upon a system of moral values

Moral Dilemmas

Situations where obligations, duties, rights, or ideals come into conflictJudgment from multiple perspectives based upon facts may resolve the conflict

Some require timeMorals may evolve or change over time

Stages of Moral Development

Self – benefits oneself or avoids punishmentConventional – uncritical acceptance of society’s rulesEnlightened – work to evolve into a self-regulated moral autonomy

Moral Autonomy

Individuals do not assume that customs are always rightReason and live by general principlesThinking precedes all actionsMotivated to establish integrity, self-respect, and respect for others for it own sake

“One who breaks an unjust law must do so openly, lovingly, and with a willingness to accept the penalty. I submit that an individual who breaks a law that conscience tells him is unjust and willingly accepts the penalty… is in reality expressing the highest respect for the law.”Rev. Martin Luther King, Jr. in Letter from a Birmingham Jail, 1963.

The Existence of Right and Wrong

Principle: Certain aspects of right and wrong exist objectively, independent of culture or personal opinionAccepting this principle is essential for ethics to discern an objective reality rather than just define a subjective standard

Simple Model of a Person

Emotions Mind

Will

Decision

ActionPrudence (mind): to think about a moral problem clearly and completelyTemperance (emotions): control attraction to positive emotionsFortitude (emotions): control aversion for negative emotionsJustice (will): choose according to truth and fairness

The Four Virtues

From the General to the SpecificWhat is a professional?

Possesses specialized knowledge and skillsBelongs to and abides by the standards of a societyServes an important aspect of the public good

What is a professional engineer?Has a bachelor’s degree in engineering from an accredited schoolPerforms engineering workIs a registered P.E.Acts in a morally responsible way while practicing engineering

What is Engineering Ethics?Engineers shall hold paramount the safety, health and welfare of the public in the performance of their professional duties – Accreditation Board for Engineering and Technology (ABET)All benefits create new moral challenges

It our efforts to innovate, we make mistakesMistakes could lead to disaster

ChallengerHypothetical: new disease

There are always technological risksHarmMisuseAccident

The Major Themes of Engineering Ethics

Engineering projects are social experiments that generate new possibilities and risks, and engineers share the responsibility for creating benefits, preventing harm, and pointing out dangersMoral values permeate all aspects of technological development, and hence ethics and excellence in engineering go togetherPersonal meaning and commitments matter in engineering ethics, along with principles of responsibility that are stated codes of ethics and are incumbent on all engineersPromoting responsible conduct is even more important than punishing wrongdoingEthical dilemmas arise in engineering, as elsewhere, because moral values are myriad and can conflictEngineering ethics should explore both micro and macro issueswhich are often connectedTechnological development warrants cautious optimism—optimism, with caution

Source: Ethics in Engineering by Mike Martin, Roland Schinzinger, McGraw-Hill, 2004

Engineering: Social Experimentation?

Challenger exploded on February 1, 2003 killing the seven astronauts aboard

Cause: insulating foam struck the left wing 82 seconds after launch

New genetic treatments or an unstoppable disease

NIH provides rules and guidelines for researchersStem cells – moral or immoral

Ethics and Excellence: Moral Values are Embedded in Engineering

Ethical decisions involved: plausible building materials, caged or open areas, safe access (head and shoulder room, flooring for bare feet), humane conditions for chickens (space and ventilation), comfortable climate, food and water delivery, protection from local predators, cleaning procedures, chicken waste removal, and double chicken and egg productionMoral values: safety, structure of technological organizations, character of the people, skills impacting the public good, commitment, and punishment, duties, and dilemmas

Design a chicken coop that would increase egg and chicken production, using materials that were readily available and maintainable by local workers [at a Mayan cooperative in Guatemala]. The end users were to be the women of a weaving cooperative who wanted to increase the protein in their children’s diet in ways that are consistent with their traditional diet, while not appreciably distracting from their weaving

Personal Commitment and Meaning

Artificial lung product:Highly competitive marketLong hours of developmentHigh stressLittle customer contact

When engineers met real customers, they motivation was impactedThey saw how their efforts helped children breath

Promoting Responsible Conduct and Preventing Wrongdoing

Enron – worst corporate scandal in US history – erased $60B in shareholder valueCompliance issues are about making sure that individuals comply to professional standards and avoid wrongdoingFraud, theft, bribery, incompetence, perversion, negligence, recklessness, and cover upPreventive ethics – reflection and action aimed to prevent moral harm and unnecessary ethical problems

Promote mature and responsible behaviorEthics and excellence

Myriad Moral Reasons Generate Ethical Dilemmas

An engineer working at a computer manufacturing company discovers that large amounts of lead and arsenic are being discharged into the local sewerComplication: the city processes the sludge in fertilizer and sells it to local farmers—thus, there are limits to arsenic and lead dischargeThe dilemma: the companies discharge is within the confines of local laws and ordinancesWhat to do? Is this moral?How do we resolve such issues?

Micro and Macro IssuesMicro issues – decisions made by individuals and companies

Micro: Ford Explorer SUV and Bridgestone/Firestone—tread on tires separated causing 300 deaths and 1000+ injuries due to blowoutsMultiple sources: flawed tire design, poor quality control during manufacturing, misstated tire/SUV safety margin design target, reliance on proper maintenance by consumer, and reluctantly admitted to problem and agreeing to recall dangerous tires

Macro issues – decisions are more global – directions of technological development, laws that should or should not be passed, collective responsibilities by professional or consumer groups – made by governments

Macro: SUV are most harmful vehicles on the road, due to size and numbersProblems: instability (height and weight distribution) leads to rollovers, greater “kill rate”, reduce vision of shorter cars, blinding drivers with headlights

What would you do?

Cautious OptimismUnrealistic optimism in high-risk activities is potentially dangerous behaviorFast movement forward in exciting new technological areas must be tempered with time to evaluate the risks

Investment in the Internet and Internet related companies began in a cautious way – with the due diligence of the technology to solve a problem and meet its responsibilityThen—optimism took over and people believe the Internet would create a NEW ECONOMY and speculative and greed took overThe bubble broke – dot com disasterNow VCs and investors move forward with cautious optimism and new rules to prevent unrestrained activities

Cautious behavior, not tentative or hesitant—BEING RESPONSIBLE

Move forward while doing ethical homeworkiPod – solve the copyright and intellectual property problems while developing the technology

Codes of EthicsA code of ethics isn’t something you post on a bulletin boardIt’s something you live every day

The Code of Hammurabi

If a builder has built a house for a man and has not made his work sound, and the house he has built has fallen down and so caused the death of the householder, that builder shall be put to death. If it causes the death of the householder’s son, they shall put the builder’s son to death…

— Babylon, 1758 BC

Engineers shall…Uphold and advance the integrity, honor, and dignity of the engineering profession by:

using their knowledge and skill for the enhancement of the human race;being honest and impartial and serving with fidelity the public, their employers, and clients;striving to increase the competence and prestige of the engineering profession. hold paramount the safety, health, and welfare of the public in the performance of their duties;perform service only in areas of their competence;issue public statements only in an objective and truthful way;act in professional matters for each employer or client as faithful agents or trustees, and shall avoid conflicts of interest;

build their professional reputations on the merits of their services;

act in such manner as to uphold and enhance the honor of the engineering profession;

continue their professional development throughout their careers, and shall provide opportunities for the professional development of those engineers under their supervision.

Morals and Ethics – Safety and Risk

“A ship in harbor is safe, but that is not what ships are built for.” — John Shedd“A thing is safe if its risks are judged to be acceptable.” — William Lowrance“A thing is safe if, were its risks fully known, those risks would be judged acceptable in light of settled value principles.” — Martin & Schinzinger

New Venture EthicsSolves customer problemsImprove standard of livingProvide economic developmentCreate wealthGrow and make a responsible contribution to society

Is there a problem?

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2 M

Reversing switch for permanent magnet motorArms 1 and 2 of the switch are both raised by a solenoid not shown

Is there a problem? YES

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2 M

Reversing switch for permanent magnet motorArms 1 and 2 of the switch are both raised by a solenoid not shownIf either arm does not move – e.g. a contact sticks, while the other one does –there is a short across the batteryThe battery will discharge and be useless even after the trouble is detected

Is there a problem? NO

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Reversing switch for permanent magnet motorArms 1 and 2 of the switch are both raised by a solenoid not shownPosition of battery and motor switchedA stuck switch will cause no harm to the batteryThe motor can be shorted without harm

Commitment to SafetySimple motor – battery circuitNuclear reactor

Three Mile Island – 1979Chernobyl – 1986

Understanding how to assess riskPerception factors – is risk voluntary, the probabilities low, job-related or other pressures, what is the magnitude and proximity?Risk-benefit analysis – e.g. Ford PintoCost effectiveness – which design has the greatest meritSafe exits – design and procedures if product fails it will fail safely and the user has ability to escape

ConfidentialityKeeping secret all information deemed necessary to keep secretSecret with respect to whom?Privileged information – available only on the basis of special privilegeProprietary information – owned by the company and is property of the company that must be protectedWhat happens when you change jobs?

Information you know from on employer must remain there and not be used for anotherProblematic for engineers who are trained in new technologies

Insider information may not be used for personal gain

Workplace Responsibility

Conflicts of interest – if an objective is pursued, there is personal advantage

The profession is in a relationship or role that requires good judgment on behalf of the customer or clientThe professional has some additional side interest that could threaten the good judgment in the above situation

Conflicting interest is a different situationE.g. Two choices; watch the football game or go out for dinner

Honesty“The first principle is that you must not fool yourself—and you are the easiest person to fool”“By honest I don’t mean that you only tell what’s true. But you [also] make clear the entire situation. You make clear all the information that is required for somebody else who is intelligent to make up their mind” – Richard FeynmannTruthfulness, trustworthiness, integrity

Cheating, fabrication, plagiarism, facilitating academic dishonesty, misrepresentation, failure to contribute to a collaborative project, sabotage, theft

Reporting misconduct, whistle blowing, giving and claiming credit

Make sure you have all the facts

Environmental Ethics

What will your design impact directly? Indirectly?

Global IssuesInternet Access and Privacy

Is the role of multi-national U.S. companies to promote American values and ethics?

YahooMicrosoftGoogle

What are international rights? Do they affect product and service design?

Right of physical movement, property, freedom from torture, fair trial, nondiscriminatory treatment, physical security, speech and association, education, political participation, subsistence

Intellectual propertyIs it okay to pirate the work of others?

Weapons of war and mass destruction

What is the correct use of technology?

Technological Progress

The automobile created suburbiaInternal combustion engines and coal burning electrical power plants accelerated global warmingThe mechanical cotton picker set off the migration of southern Afro-American farm workers to northern citiesThe Pill produced a sexual revolutionTelevision changed civilizationThe personal computer change how we workMobile phones took communications everywhere

What is the impact of the technology you are working on?

Are you a luddite*?

* Luddite – used to denote reactionary opposition to technological development

It Is All About Your Dreams…

…and how you manage the risk. Good luck!