It would unethical for Roe to accept the contract and make the gifts as described.

On its face, the code is clear and direct to the point. There is no question under the factual situation that the gifts are a direct consideration for securing the work, and there is here no pretense about the intention of the foreign government officials. In Case 60-9 we acted upon a domestic case under Rule 4 of the then-prevailing Rules of Professional Conduct, which was the same as the present. In that case we dealt with three levels of gifts, involving 1. taking employees of a public agency to luncheon or dinner a few times during the year at an average cost of $5 per person; 2. engineers of an industrial firm receiving cash gifts of from $25 to $100 from salesmen for certain products, which may be specified by the engineers; and 3. a consulting engineer giving the chief engineer of a client an automobile of the value of approximately $4000 at the completion of a project as an expression of appreciation for the cooperation of the recipient of the gift. (Realistically, these figures would now be much higher than those amounts on account of inflation since l960.) It is now worth repeating the language used at that time to indicate the basic principles which should govern the question: "The question of when a gift is intended to or becomes an inducement to influence one's impartial decision, as distinguished from an expression of friendship or a social custom, has remained a perplexing one over the years. No blanket rule covering all situations has been discovered. The size of the gift is usually a material factor, but must be related to the circumstances of the gift. It would hardly be felt a token gift, such as a cigar, a desk calendar, etc., would be prohibited. It has been customary in the business world for friends and business associates to tender such tokens of recognition or appreciation, and 'picking up the tab' at a business luncheon or dinner is commonplace and well accepted in the mores of our society." "Recognizing the difficulties inherent in pas...

Richard Roe, P.E., is president and chief executive officer of an engineering firm which has done overseas assignments in various parts of the world. The firm is negotiating for a contract in a foreign country in which it has not worked previously. Roe is advised by a high-ranking government official of that country that it is established practice for those awarded contracts to make personal gifts to the governmental officials who are authorized to award the contracts, and that such practice is legal in that country. Roe is further advised that while the condition is not to be included in the contract, his failure to make the gifts will result in no further work being awarded to the firm and to expect poor cooperation in performing the first contract. He is further told that other firms have adhered to the local practice in regard to such gifts.

Would it be ethical for Roe to accept the contract and make the gifts as described?