AACE International Canons of Ethics Case Study See the attach file ( Project.pdf ), it has all information and the instructions you need to know. Use just

AACE International Canons of Ethics Case Study See the attach file ( Project.pdf ), it has all information and the instructions you need to know.

Use just the case study I give it to you ( Case Study ) and the file ( AACE Canons) as source. The two files related to each other.

Do not use any other source.

I have 5 question to answer (in red color) on file ( Project ), Read them carefully.

– The answer for Question 1 is from file ( AACE Canons).

– The other Questions from file ( Case Study ).

Be attention:

Use the questions as headings and an outline to work. Canons of Ethics
Preamble
Part I
AACE International Members shall uphold and advance the honor, dignity, and practices of Cost
Engineering and Cost Management.
In keeping with the high standards of ethical conduct members shall:
•
Be honest and impartial;
•
Serve employer, clients, and the public with dedication;
•
Strive to increase the competence and prestige of their practice;
•
Apply knowledge and skill to advance human welfare; and,
•
Ensure adherence to health, safety, and welfare standards.
Part II
Throughout the Canons of Ethics the term “Member” shall be read to include:
•
All classes of AACE International membership;
•
All AACE International certificants and those applying for certification and/or sitting
for examination whether they are AACE International members or non-members.
•
Other professionals providing expert input to AACE International through
professional courses of instruction using AACE International materials.
•
Other professionals supporting development of educational and technical products
that bear the AACE International imprimatur.
1
I. Relations with the Public
Members shall hold paramount the health, safety, and welfare of the public, including that of
future generations. [Paragraph: I.1]
Members shall endeavor to extend public knowledge and appreciation of Cost Engineering and
Cost Management and its achievements. [I.2]
Members shall oppose any untrue, unsupported, or exaggerated statements regarding Cost
Engineering and Cost Management. [I.3]
Members shall be dignified and modest, ever upholding the honor and dignity of their profession.
[I.4]
Members shall express an opinion on cost engineering or cost management subject only when it
is founded on adequate knowledge and honest conviction. [I.5]
Members, concerning Cost Engineering and/or/ Cost Management matters, shall issue no
statements, criticisms, or arguments that are inspired or paid for by an interested party or parties,
unless they preface their comments by identifying themselves, by disclosing the identities of the
party or parties on whose behalf they are speaking, and by revealing the existence of any
pecuniary interest they may have in matters under discussion. [I.6]
Members shall approve or seal only those documents, reviewed or prepared by them, which are
determined to be safe for public health and welfare in conformity with accepted cost engineering,
cost management and economic standards. [I.7]
Members whose judgment is overruled under circumstances where the health, safety, and welfare
of the public are endangered shall inform their clients and employers of the possible
consequences. [I.8]
Members shall work through professional societies to encourage and support others who follow
these concepts. [I.9]
Members shall work only with those who follow the concepts of health, safety, and welfare.
[I.10]
Members shall be objective and truthful in professional reports, statements, and testimony. They
shall include all relevant and pertinent information in such reports, statements, and testimony.
[I.11]
2
Unless authorized by the President or the Executive Director/CEO, no members shall represent
that any opinion they offer represents the opinion of AACE International. Further, no member
shall represent to commit AACE International to any task, responsibility, or contract without the
approval of the President or Executive Director/CEO. [1.12]
II. Relations with the Employees and Clients
Members shall act in all matters as a faithful agent or trustee for each employer or client.
[Paragraph: II.1]
Members shall act fairly and justly toward vendors and contractors and shall not accept any
commissions or allowances from vendors or contractors, directly or indirectly. [II.2]
Members shall inform their employer or client of financial interest in any potential vendor or
contractor, or in any invention, machine, or apparatus that is involved in a project or work for
either employer or client. Members shall not allow such interest to affect any decisions regarding
cost engineering or cost management services that they may be called upon to perform. [II.3]
Members, when as a result of their studies, find that a project or work shall not be successful, or
if their Cost Engineering and Cost Management or economic judgment is overruled, shall so
advise their employer or client. [II.4]
Members shall undertake only those Cost Engineering and Cost Management assignments for
which they are qualified. Members shall engage or advise their employers or clients to engage
specialists whenever their employer’s or client’s interests are served best by such an
arrangement. Members shall cooperate fully with specialists so engaged. [II.5]
Members shall treat information coming to them in the course of their assignments as
confidential and shall not use such information as a means of making personal profit if such
action is adverse to the interests of their clients, their employers, or the public. [II.6]
Members shall not disclose confidential information concerning the business affairs or technical
processes of any present or former employer, client, or bidder under evaluation, without consent,
unless required by law. [II.7]
Members shall not reveal confidential information or finding of any commission or board of
which they are Members, unless required by law. [II.8]
Members shall not duplicate for others, without express permission of the client(s), designs,
calculations, sketches, etc., supplied to them by clients or bidders. [II.9]
3
Members shall not use confidential information coming to them in the course of their
assignments as a means of making personal profit if such action is adverse to the interests of
their clients, employers, or the public. [II.10]
Members shall not accept compensation—financial or otherwise—from more than one party for
the same service, or for other services pertaining to the same project or work, without the consent
of all interested parties. [II.11]
Members, employed by others, shall engage in supplementary employment or consulting practice
only with the consent of their employer. [II.12]
Members shall not use equipment, supplies, laboratory, or office facilities of their employers to
carry on outside private practice without the consent of their employers. [II.13]
Members shall not solicit a contract from a governmental body on which a principal officer or
employee of their organization serves as a Member. [II.14]
Members shall not request, propose, or accept professional commissions on a contingent basis
under circumstances that compromise their professional judgment. [II.15]
Members shall act with fairness and justice to all parties when administering a project or work.
[II.15]
Members, before undertaking a project or work for others in which the Member may make
improvements, plans, designs, inventions, or records that may justify copyrights or patents, shall
enter into a positive agreement regarding the rights of respective parties. [II.16]
Members shall admit and accept their own errors when proven wrong and refrain from distorting
or altering the facts to justify their decisions. [II.17]
Members shall not attempt to attract an employee from another employer by false or misleading
representations. [II.18]
Members shall act in professional matters for each employer or client as faithful agents or
trustees and shall avoid conflicts of interest. [II.19]
Members shall avoid all known or potential conflicts of interest with their employers or clients
and shall promptly inform their employers or clients of any business association, interests, or
circumstances that could influence their judgment or the quality of their services. [II.20]
4
Members shall not solicit or accept gratuities, directly or indirectly, from contractors, their
agents, or other parties dealing with their clients or employers in connection with project or work
for which they are responsible. [II.21]
III. Relations with Other Professionals
Members shall acknowledge that credit for Cost Engineering and Cost Management work is
given to those to whom credit is properly due. [Paragraph: III.1]
Members shall provide prospective employees with complete information on working conditions
and their proposed status of employment. After employment begins, Members shall keep the
employee informed of any changes in status and working conditions. [III.2]
Members shall not maliciously or falsely, directly or indirectly, injure the professional
reputation, prospects, practice, or employment of another, or shall they indiscriminately criticize
another’s project or work. Proof that another cost professional has been unethical, unfair, or
illegal in their practice shall be cause for advising proper authority. [III.6]
Members shall not compete unfairly with other cost professionals. [III.7]
Members shall cooperate in advancing the Cost Engineering and Cost Management profession
by interchanging information and experience with other cost professionals and students, by
contributing to public communication media, to cost engineering, and cost management and
scientific societies, and schools. [III.8]
Members shall not seek to acquire or provide to other individuals certification examination
questions or any other certification examination materials, to include derivative materials, not in
the public domain. [III.9]
Members shall not falsify or permit misrepresentation of their own or their associates’ academic
or professional qualifications. They shall not misrepresent or exaggerate their degrees or
responsibility in or for the subject matter of prior assignments. Brochures or other presentations
incident to the solicitation of employment, shall not misrepresent pertinent facts concerning
employers, employees, associates, joint ventures, accomplishments, or membership in technical
societies. [III.10]
Members shall prepare articles for technical or lay press that are only factual, dignified, and free
from ostentatious or laudatory implications. Such articles shall not imply credit to the cost
professionals for other than their direct participation in the project or work described unless
credit is given to others for their share of the project or work. [III.11]
IV. Standards of Professional Performance
5
Members shall be dignified and modest in explaining their accomplishments and merit and shall
avoid any act tending to promote their own interests at the expense of the integrity, honor, and
dignity of the profession. [Paragraph IV.1]
Members, when serving as expert witnesses, shall express Cost Engineering and Cost
Management opinions only when it is founded upon adequate knowledge of the facts, upon a
background of technical competence, and upon honest conviction. [IV.2]
Members shall continue their professional development throughout their careers and shall
provide opportunities for the professional development of cost professionals under their
supervision. [IV.3]
Members shall encourage their Cost Engineering and Cost Management employees to attend and
present papers at professional and technical society meetings. [IV.6]
Members shall uphold the principle of mutually satisfying relationships between employers and
employees with respect to terms of employment, including professional grade descriptions,
salary ranges, and fringe benefits. [IV.7]
Members serving as AACE International Section Officers shall not claim that they or their
employers represent AACE International for the purposes of gaining or soliciting business.
[IV.8]
Administration
Ethics Complaints
Any AACE International member or AACE International staff member may file a complaint
against an AACE International member alleging a violation of this Canon of Ethics. Complaints
shall be filed in accordance with the Constitution and By-Laws and the Policies and Procedures
of Ethics Committee. Complaints from non-members who have direct knowledge of an alleged
violation may also be considered.
Recommendations for changes or corrections:
Recommendations for changes or corrections to the AACE International Canons of Ethics are
welcome. Changes or corrections shall be directed to: Chair, AACE International Ethics
Committee or the Executive Director, AACE International.
Each recommended change and/or correction shall have full consideration by the AACE
International Ethics Committee. The Chair of the Ethics Committee shall provide a full response
to the submitter and all other affected parties.
6
Administrative Management of the AACE International Canons of Ethics:
The Chair, appointed annually by the President, is responsible to the President and Board of
Directors for administrative management of the Canons of Ethics.
Changes and Approval of Changes to the AACE International Canons of Ethics are made
as follows:
Minor administrative corrections and/or changes will be coordinated between the Chair of the
AACE International Ethics Committee and the Executive Director. Suggestions considered to
have merit will be forwarded, with a recommendation, to the Executive Board of the Board of
Directors. The Executive Board will formulate their recommendation for action by the Board of
Directors. Resulting action will be implemented by the Executive Director/CEO.
Significant and/or major changes to the AACE International Canons of Ethics will be
coordinated between the Chair of the AACE International Ethics Committee and the Executive
Director. Suggestions considered to have merit will be forwarded, with a recommendation, to
the Executive Board of the Board of Directors. The Executive Committee will make a
determination if the proposal shall be presented for public comment or may direct the proposal to
the Board of Directors for action. Proposals recommended for public comment will be broadly
presented to AACE International Membership for comment over a thirty-day period. All
comments will be evaluated with responses to the submitter. The proposed change to the Canons
of Ethics will be resubmitted, with comments received. The Executive will formulate their
recommendation for action by the Board of Directors. Resulting action will be implemented by
the Executive Director/CEO.
Publication and maintenance of the current edition of Canons of Ethics:
The Executive Director/CEO is responsible to publication and maintenance of the AACE
International Canons of Ethics.
7
For the exclusive use of R. THOMPSON, 2020.
W14244
DAVID STERN’S DECISION
Kaitlin Thanasse wrote this case under the supervision of Professor John Haywood-Farmer solely to provide material for class
discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may
have disguised certain names and other identifying information to protect confidentiality.
This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.
Copyright © 2014, Richard Ivey School of Business Foundation
Version: 2015-03-06
At 6:05 a.m. on May 8, 2013, Golden Horseshoe Constructors’ (GHC’s) head office in Mississauga,
Ontario, was understandably empty and very quiet when David Stern, P. Eng., vice-president of
purchasing, settled in at his desk. Stern was reviewing bids for an upcoming condominium project and
had to decide which window and door installation firm 1 to recommend for that portion of the job. GHC’s
president, Robert Smithson, was expecting Stern’s decision first thing that morning. Just a day earlier,
Smithson had strongly suggested that the work be given to Monyash Doors and Windows, a firm that had
not submitted the lowest bid. In practice, all else being equal, the firm with the lowest priced bid would
win the contract. Stern was unsure how to proceed with the request and which of the four bids he should
recommend.
INDUSTRY
2
Canada’s construction industry, worth some $280 billion in 2012, was relatively mature and displayed
cycles that lagged about two to three years behind that of the economy as a whole. Since 2006, the
compounded annual growth rate of construction spending had averaged 2.56 per cent (in constant (2002)
dollars). A distinct drop in activity occurred in 2009 and a rebound in 2010. Growth in the industry was
expected to continue. From 2013 to 2016, growth was forecast to continue at 1.46 per cent per year.
Growth rates varied considerably by province and by the category of construction (residential buildings,
37.8 per cent of total construction spending; commercial buildings, 9.4 per cent; industrial buildings, 2.6
per cent; institutional buildings, 6.3 per cent; and engineering construction, 43.9 per cent). Despite the
growth of residential construction in and around Toronto, growth in Ontario had been particularly slow
compared to that in other provinces and was expected to continue to be so.
1
Despite their different functions, because of their structural similarities, doors and windows are usually treated as being
equivalent during installation.
2
The numerical data in this section originated in Statistics Canada and are reported by Reed Construction, which is
responsible for the 2013 to 2016 forecasts. See www.dcnonl.com/images/canadata/canconforecasts091013.pdf, accessed
April, 2014.
This document is authorized for use only by RICHARD THOMPSON in 2020.
For the exclusive use of R. THOMPSON, 2020.
Page 2
9B14D007
Although there was a trend towards consolidation, the industry was highly fragmented. Many individual
professional engineers began their own firms, outpacing the rate of acquisitions.
PROFESSIONAL ENGINEERING IN ONTARIO
3
In Canada, engineering and other professions came under provincial legislation. In Ontario, the relevant
law was the Professional Engineers Act, which effectively delegated the responsibility to regulate the
profession and the conduct of its members to Professional Engineers Ontario (PEO), which had been
established in 1922. PEO served a role similar to that of other professional bodies such as the College of
Physicians and Surgeons of Ontario, the Law Society of Upper Canada and the Canadian Institute of
Chartered Accountants. PEO was responsible for licensing and disciplining engineers and companies that
provided engineering services. 4 Its principal objective was to regulate the practice of professional
engineering and to govern its members in order to serve and protect the public interest. To meet this goal,
it tried to ensure that only properly qualified individuals were licensed and practised engineering.
Licensed professional engineers and organizations with a Certificate of Authorization from PEO could
issue qualified opinions signified by the use of the designation “Professional Engineer” (P. Eng.) after
their name. It was illegal for unlicensed individuals or unauthorized companies to used P. Eng. or similar
designations that might lead to the belief that they were qualified to practise professional engineering.
Through its licensing standards, PEO attempted to ensure that all professional engineers appreciated the
importance of doing work that was not only technically competent but also based on sound professional
ethics. Towards this end, PEO had established a code of ethics (see Exhibit 1).
To become a professional engineer, individuals had to complete a baccalaureate degree from a qualified
engineering school, demonstrate 48 months of verified and accepted engineering work experience and
pass the professional practice exam set by PEO. Upon successful completion of these three requirements,
engineers were deemed professional and able…
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