It would not be ethical for Engineer A to provide cash payments or in-kind property to public officials in foreign countries in order to obtain and retain business from those public officials.

The issue in this case relates to the application of the NSPE Code of Ethics to international members of NSPE who are non-U.S. engineers that reside and practice under the laws and customs of another nation. While it would seem clear that all NSPE members should and must be bound by the NSPE Code of Ethics, a basic question arises as to what are the appropriate and acceptable standards of behavior and conduct, where the NSPE member is a non-U.S. engineer who is licensed, residing, and practicing under the laws of another nation, where certain practices deemed unacceptable in the U.S. are determined to be legal and acceptable in the home country (See Code Section II.5.b.). NSPE recently considered a similar set of facts in BER Case 96-5. There, an Engineer was a consulting engineer who did work in the U.S. and abroad. The Engineer was contacted by the government of Country A and asked to submit a proposal on a major water project being constructed in Country A. As part of the project, Engineer A was encouraged to associate with and retain Engineer B, a local engineer in Country A, who Engineer A had worked with in the past on private projects in Country A. One of the acceptable “customs” in Country A was for consultants such as engineers to give substantial gifts to public officials in connection with the awarding of public works contracts. Engineer A recognized that the giving of such gifts may be a violation of U.S. law -- although it might not technically have been a violation of the law in Country A. Engineer B proposed to Engineer A that if the project was awarded to Engineer A’s firm, Engineer B would handle “business arrangements” in Country A and that Engineer A would be involved in overall management of the project, as well as all technical matters. The Board reviewed the case and determined that it would not be ethical for Engineer A to proceed with the project under these circumstances. The Board noted that with the increase in international engineering p...

Engineer A, a legally recognized engineer and resident in his home country and an NSPE International Member, provides consulting, engineering, and construction contracting services to foreign national and local governments. Under the laws of Engineer A’s home country, it is not illegal for individuals and companies to provide cash payments or in-kind property to public officials in foreign countries in order to obtain and retain business from those public officials. In fact, the laws of Engineer A’s home country permit companies to claim a business tax deduction for cash payment or in-kind property to foreign officials in order to obtain or retain work.

Would it be ethical for Engineer A, an NSPE International Member governed by the laws of his home country and the local practices, to provide cash payments or in-kind property to public officials in foreign countries in order to obtain and retain business from those public officials?