Background
The development of new, more complex technologies continues at an accelerating pace. Many of these technologies have risks that have not been seen before or adequately assessed. The risks these technologies incur are frequently exported to developing countries, which lack the infrastructure to support and implement these technologies safely. For manufacturers developing countries offer multinational corporations a competitive cost advantage compared to manufacturing in highly industrialized countries. Companies building plants in developing countries have the benefit of cheap labor and low operating costs. Health and safety regulations are often non-existent or at best inadequate to address the risks new technologies incur. There may be little incentive to promote environmental ethics, safety procedures and community investment. Even if regulations exist firms may find it economically advantageous to avoid compliance and pay penalties rather than to meet statutory safety or environmental requirements.
There have been numerous instances where plants established in developing countries have experienced workplace and community disasters that would be much less likely to have happened in industrialized nations. The 1984 catastrophe at the Union Carbide Plant in Bhopal, the capital city of Madhya Pradesh, in India is a prime example. Recently workers were trapped in manufacturing facilities with inadequate fire suppression or emergency exits as another example. Longer term health issues arise when workers are exposed to hazardous materials without adequate protective gear. Hazardous waste maybe introduced into communities without adequate treatment. The ethical responsibilities of multinational corporations and their senior management, engineers and scientists working for these organizations are frequently ignored.
Often there is a demonstrable difference in design, safety, operating and maintenance procedures when comparing plants in developing countries with similar plants in highly industrialized countries. Developing countries frequently lack community information and emergency response procedures to deal with large-scale disasters. The governments of developing countries may contribute to the risks if highly placed governmental officials are susceptible to corruption to overlook serious health and safety issues.
The following fictitious scenario is based on a composite of real events.
Reduced Safety Standards In Design Specifications
Joe Martin is the Chief Design Engineer for a major multinational corporation. He leads a multidisciplinary team of engineers that have years of experience in the safe design of manufacturing plants in his home country, a highly industrialized nation. Joe and his team have been tasked with the design and startup of a new plant in Ethicana (a fictitious developing country). The plant will manufacture advanced solar cells and complete solar panels using a proprietary nanotechnology process that has never been used before. The decision to build the plant in Ethicana was primarily driven by the lengthy process to get approval by regulatory agencies in his home country. There has been very little research or data collected on the safe use of this new nanotechnology in manufacturing solar cells.
An important issue that Joe and his engineering team face is the design specifications set by management for the new plant have safety standards well below those for similar plants in his home country where the corporate headquarters is located. New computerized safety systems specified for use in his home country have not been incorporated into the design specifications for the new Ethicana plant to reduce costs. Joe’s team has been given a restricted list of approved low-cost instrumentation for the new plant that has a reputation of being unreliable.
Joe and his design team are very concerned. When Joe approaches senior management with his concerns he is sternly rebuffed and told that regulations in Ethicana do not require the same safety and environmental measures as those in his home country. Joe and his team feel very uncomfortable at the reduced design and safety standards for the new plant, but are keenly aware of management's negative reaction to their feelings. They feel compelled to design the plant to meet the specifications management provided. The plant is built accordingly.
Starting up the plant.
Joe’s team immediately becomes aware that even existing safety standards are not being upheld. Nevertheless, the new plant is scheduled for startup. Joe reports back to corporate headquarters that even though he has requested a safety inspection, the regulatory agencies of Ethicana have never inspected the plant and are not enforcing safety and environmental regulations. Joe requests permission from senior management to delay startup until safety inspections have been made. He is told to start up the plant immediately and that safety inspections will occur when local agencies can schedule time for a visit.
During startup, the operating technicians have reported the following problems to Joe and his team:
- Temperature and pressure gauges are unreliable and are frequently ignored.
- Process waste chemical volumes are exceeding the recommended capacity of the holding tank.
- The reserve waste storage tank is averaging 70% full and occasionally overflows.
- The refrigeration unit that keeps potentially explosive chemicals at low temperatures shuts down intermittently and requires manual restarting.
- The gas scrubber, which is designed capture flammable gases escaping from the process, has been shut down due to an electrical problem. Escaping gases are being routed to the flare tower.
- The flare tower – which is designed to burn off flammable gases escaping from the scrubber -- has a defective automatic igniter. Periodically when the flame is blown out by high winds it does not re-ignite. An unknown quantity of unburned flammable gas containing nanoparticles escapes to the atmosphere until the flame is manually ignited.
- The water curtain -- which should capture any process gas containing nano-particles in the works area – lacks adequate volume. Process gas containing nano-particles escapes into the worker’s operating area.
- The warning system for the local community in the event of a plant emergency has never been tested and is not known whether it is operable.
- Recent nationalization policies of the Ethicana government have resulted in the premature replacement of members of Joe’s team of experienced engineers with less knowledgeable local citizens. Due to training cutbacks, most replacement technicians at the plant are poorly trained, inexperienced and have little understanding of the manufacturing process. This has resulted in several accidents during operation exposing workers to hazardous materials including nano-particles whose long-term health effects are unknown.
Corporate Response to Safety Concerns
Joe reported his concerns to senior management at corporate headquarters and requested that the Ethicana plant operations be suspended until the faulty equipment, safety and operational issues are addressed. To make his point Joe tells senior management that this is a disaster waiting to happen and that if nothing is done he will be compelled to file a report with the Ethicana Worker Safety and Environmental Protection Agency. Senior management tells him to keep the plant in operation at all cost. He is told that ethics and morals have no role in operating a manufacturing facility profitably.
Out of frustration Joe reported his immediate supervisor to the senior vice president for corporate operations regarding potential risks to persons living near the plant. He is told that there are no regulations in Ethicana requiring the communication of risks to the local population living near the plant. Nothing is done to inform the surrounding community of any potential risks.
Because Joe and many of his team lived in the local community during their assignment in Ethicana they are aware that there are no emergency response plans to cope with any events at the plant that could have a negative impact the local community. Joe knows that there is an inadequate supply of water and electricity which could affect the operation of safety equipment currently installed at the plant in the event of an emergency.
Consequences
Joe is quietly replaced by a local citizen as the plant manager and transferred back to corporate headquarters. Joe receives a less than favorable performance evaluation from his supervisor for his work on the Ethicana project. The rest of Joe’s engineering team is replaced by local citizens and the team is transferred back to corporate headquarters. To add to Joe’s frustration, he finds out from an article in an Ethicana newspaper that the new Ethicana plant manager is the brother in law of the mayor of the city where the plant is located. The new plant manager's industrial experience is limited to vehicle maintenance for the city where the plant is located.
Responsibility of the Governments of Industrialized and Developing Nations
Currently, international law does not involve itself in industrial hazards, pollution or regulating multinational corporations in general. Any disaster that results will be litigated in the country where the plant operates. The legal systems of most developing countries lack experience in dealing with multinational corporations or the consequences of a major disaster resulting from poorly designed and operated plants outsourced from highly industrialized countries.
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As you read and analyze this case study, your reflective comments are requested on all of the following:
- Who are the stakeholders, and how are they impacted both positively and negatively?
- What knowledge and skills are needed to implement sophisticated, appropriate and workable solutions to the complex global problems facing the world today?
- What interdisciplinary perspectives would help identify innovative and non-obvious solutions?
- What insights can you articulate, based on your culture and other cultures with which you are familiar, to help understand your worldview and enable greater civic engagement?
- What is your position on the right thing(s) to do?
After you submit your comment, please view and evaluate the feedback to your response that is automatically provided on the screen
Also, please take a moment to provide a comment on someone else's comment.
Comments
Addressing these complex global issues requires a broad set of knowledge and skills, including a deep understanding of ethical business practices, engineering laws, environmental science, and public health. Also, skills in communication as well as negotiation are also critical to working with the diverse interests involved. Implementing workable solutions demands coordination that can only be achieved with cooperation with very likeminded and humble people.
Perspectives from people in fields such as engineering, and environmental science, would be helpful in finding innovative solutions. Engineers can provide technical expertise in designing safer technologies and processes, while environmental scientists can assess potential impacts on ecosystems and public health.
Insights from multiple cultural perspectives can enhance understanding and enable greater civic engagement by highlighting the importance of community involvement and getting various perspectives involved which will also help the community feel more involved with decisions, which will improve relationships.
My opinion on the right thing to do is to prioritize the safety and wellbeing of the workers and the community over the goal of making a short-term profit. I believe this is the best solution since in order to make money, corporations need to work like a well-oiled machine, and making a long-term profit will benefit not only the executives but the whole corporation in the long run.
There are many skills and knowledge that are necessary in this situation to overcome this issue from an ethical standpoint. First being understanding and expertise in the engineering and machinery aspect of the foreign plants. As well as basic skills in data analysis and problem solving. The next being a valid and unbiased understanding of basic human safety protocols. As well as the knowledge and empathy to be able to accurately assess the risks based on the ideals of prioritizing human life and safety.
Interdisciplinary perspectives can include fields such as social and environmental sciences to see how this problem might affect surrounding environments and people within these environments. Other fields include economics and technology, to try and find more cost efficient (not necessarily cheaper) and more efficient technology could positively affect the plant. The most important field involved is Law, to make sure the changes that are being made are legal and not causing other issues.
Living in America, I have witnessed many different cultures and think that culture is very valuable and helps people understand people all around the world. By understanding other cultures it allows for a more positive environment and contributes to equality. Learning from other cultures can help me better understand the worldview and promote civil engagement.
I believe, in the instance of Ethicana, that Joe Martin had the right to do what he did. I personally believe that the health and safety of people is more valuable than cost efficiency. I believe in prioritizing human and environmental rights to keep the world safe and clean. I believe that all individuals deserve the right to equality and safety.
In this unfolding narrative, a diverse cast of stakeholders plays pivotal roles, each harbouring unique interests and concerns. The multinational corporation, alongside its senior management, engineers, and scientists, anticipates significant positive impacts in the form of cost savings. The local population in Ethicana potentially stands to gain employment opportunities, a positive outcome in its own right. Nonetheless, the adverse repercussions are far-reaching. Workers in the plant face hazardous conditions compounded by the unreliability of equipment, imperiling their safety and well-being. The local community, devoid of adequate safety measures, remains exposed to potential hazards, endangering their livelihoods. Furthermore, the environment faces degradation due to improper hazardous waste disposal and unchecked emissions.
In grappling with these complex global challenges, professionals, especially engineers, must possess a deep-seated understanding of safety standards, environmental ethics, and risk assessment. Equally vital are their skills in ethical decision-making, effective communication, and the courage to champion safety and ethics, even amidst formidable obstacles.
Drawing on interdisciplinary insights can provide novel solutions to ethical dilemmas as depicted in this scenario. Experts hailing from diverse fields such as environmental science, law, sociology, and international relations can offer invaluable perspectives on creating a more ethical and secure working environment in developing countries. These multifaceted viewpoints can bridge cultural divides and instigate a shift towards responsible business practices.
Cultural disparities loom large in this narrative. The friction between Joe, the Chief Design Engineer, and Ethicana's government mirrors the divergence in values and priorities. Recognizing and respecting the local culture and ethics is paramount in fostering deeper civic engagement. Joe's unwavering ethical stance emphasizes the primacy of safety and ethics, even at the cost of delaying plant operations or incurring higher expenses. In contrast, senior management's profit-driven approach highlights a stark cultural contrast in values and priorities.
Joe's ethical position is unwavering: profit should never eclipse safety and ethics. He firmly believes that the right course of action lies in ensuring the safety of workers, the local community, and the environment, even if it necessitates postponing the plant's startup or incurring additional costs. In stark contrast, senior management prioritizes profit over safety and ethics—a common ethical dilemma faced by MNCs in similar situations.
The multinational corporation's response encapsulates a recurring ethical conundrum in the business world. Senior management's reluctance to address ethical concerns and their disregard for safety and environmental responsibilities raise profound questions. Their unwillingness to prioritize safety over profit underscores a pressing issue that demands redress.
This case study underscores the ethical predicaments confronting multinational corporations as they outsource risks to developing countries. It underscores the pivotal role of professionals, particularly engineers, in advocating for ethical practices and stringent safety standards, even when buffeted by corporate pressures. Furthermore, it underscores the exigency of international regulations and legal frameworks that effectively address such issues, preventing disasters and safeguarding the welfare of all stakeholders. In a world where technology continues its inexorable advance, ethical considerations must reign supreme in the boardrooms of MNCs, irrespective of geographical locations or profit margins.
The overlooking of the potential risks the Outsourcing Company imposes on the country can negatively impact the public opinion of the government's officials. However, The plant brings a consistent revenue source for a developing country’s government and infrastructure.
Although, local communities are provided stable jobs for locals in the community and could potentially boost their economy The escaped emissions and hazardous waste could potentially affect the health of locals or anyone who consumes natural resources from the area ex: animal products, local water sources.
The shady practices of the multinational corporation Joe Martin works for could damage its reputation and potentially result in legal trouble and fines in the event of a disaster. Though the company benefits through the cheaper labor as well as building and manufacturing costs due to the laid back regulations of Ethicana.
Joe and his team are ethically responsible for the well being of others when it comes to their work. Their work could potentially harm others, which could result in consequences for Joe and his team. However, Joe’s team has the opportunity to lead a successful mission in creating solar panels with developing technology that could potentially change the world.
Workers at the plant are directly exposed to the hazardous waste frequently as well as work in an unsafe environment which could compromise their health and well-being. Their jobs at the plant provide stable sources of income in a country that could have a struggling economy and widespread poverty.
The world needs ethical engineers to help combat the problems it is facing today with corporations outsourcing projects like this hypothetical Ethicana scenario. People who are designing these projects must be knowledgeable in the principles of ethics and must have the skills and discipline to do everything in their power to hold corporations that violate ethics accountable. Even if doing so involves, going to their higher up superiors or even whistleblowing.
The political and legal perspective combined with cultural and social perspectives could create solutions to companies who exploit underdeveloped nations for financial gain. New laws could be put in place to discourage outsourcing labor and goods from domestic nations who plan to exploit these countries with their laid back regulations and abundance of cheap labor.
Large corporations in the United States often prioritize efficiency and return on investment over the safety of workers and even the environment. However, not only are there bureaucratic agencies to keep them in check legally, but also the public opinion on companies can largely affect their profitability based on their endeavors and potentially shady methods if exposed.
Not only should Ethicana enforce stricter rules and regulations to hold corporations in check for the safety of their citizens and domestic labor force, but the corporation Joe Martin works under should enact laws that hold multinational countries operating or based within their borders to higher ethical standards even when operating in other countries. These laws should hold corporations like this one outsourcing from Ethicana responsible for the damages and potential risks they pose on all people and the environment.
Ethical engineers play a crucial role in addressing complex global challenges. They should possess the knowledge and skills necessary to prioritize the well-being of all project stakeholders. This involves acting ethically, even in the face of challenges, and collaborating across disciplines to ensure the best outcomes.
Consulting environmental scientists, urban planners, and disaster relief specialists can provide valuable insights. Their perspectives can contribute to preventing environmental damage, informing the local community about potential health concerns, and preparing for emergencies.
The case underscores the importance of prioritizing human life and health over profit. International companies can create mutually beneficial scenarios by implementing ethical safety measures and ensuring effective plant management. While outsourcing to developing countries is not inherently unethical, differences in culture and environmental laws create room for legal but unethical practices.
In this scenario, Joe and his design team demonstrated ethical responsibility by raising concerns with upper management. However, the company's adherence to legal but unethical practices requires rectification. The company should prioritize building a functional and safe plant. This involves thorough testing of technology, using quality materials, and obtaining proper safety inspections before operation.
The right course of action for the company is to align its practices with ethical standards. Building a plant that prioritizes functionality and safety not only benefits the company but also ensures the well-being of workers and the local community. By adopting ethical engineering principles and collaborating with diverse experts, companies can navigate international operations responsibly, contributing to positive global outcomes.
A very dynamic skillset is required to implement solutions to the complex global problems the world is facing today. An understanding of the specific field the problem is based upon is crucial, for instance if the problem involves technical knowledge then that knowledge is essential to understand its depth and offer a viable solution. Additionally, soft skills are required to deal with the people involved in the problem and be able to communicate and understand insights. Furthermore, being able to analyze data and interpret how decisions will impact it is crucial to understand how to solve complex problems.
Being from Costa Rica, I am very aware of the interest in multinational corporations for low cost labour in developing countries. These companies bring many jobs and nurture the companies economy, but they also don’t pay any direct taxes and their prioritization for profit can lead to a myriad of issues. The policy issue isn’t particularly prevalent where I’m from, but I have visited multiple places where unsafe work conditions put laborers at risk. This is inhumane, and I believe the best way to ensure it doesn’t occur is for companies to be subject to inspections by non governmental agencies, following a structure that prevents corruption.
Regarding the case study, I believe the right thing to do would be to shut down the plant and prioritize the workers’ and local citizens’ safety. Joe’s decision to push the information to upper management was the right thing to do, once replaced he could have also gone public with the information.