Codes of Ethics Case 5

This case is about a consultant and a nonprofit organization board. The board wants some advice from the consultant on what software package to buy in order to invest a lot of money. The consultant then suggest the board different software packages and give the advantages and disadvantages for each of them. The consultant then suggest the board to buy a certain package, in which the consultant is a stock holder from that software company, but he doesn't tell the board about this.

This passage violates many codes of the ethics.

IEEE Codes of Ethics

1. To avoid real or perceived conflicts of interest when ever possible, and to disclose them to affected parties when they do exist.
• This person is creating a huge conflict of interest between him and the board because he has a benefit being a stock holder of a certain software. Here the consultant is clearly not avoiding the conflict.
2. To be honest and realistic in stating claims or estimates based on available data.
• This person is not honest because he is not stating the whole claim, that he is one of the stock holders of the software he is suggesting.
3. To avoid injuring others, their property, reputation, or employment by false or malicious action.
• This personal is giving false information because the software he is suggesting might no be beneficial to that organization in which it could harm the employment rate of the organization because they needed to invest in that software.
4. To assist colleagues and co-workers in their professional development and to support them in following this code of ethics.
• This guy is not assisting or helping anything, he's just talking to benefit himself by not caring anything about the company who is going to invest on the software.

ACM Code of Ethics

1. Avoid harm to others.
• Creating harm to others by tricking them to invest in a software that gives the consultant profit, by not thinking about the money that the organization will invest in the software that might no be beneficial.
2. Be honest and trustworthy.
• The consultant is not honest by not telling the full truth, so he's not trustworthy.
3. Accept and provide appropriate professional review.
• This person is not providing the board with professional information about different soft-wares, in which he is suggesting the one that benefits him.

Consequences of doing it wrong

• Company will lose money investing in the wrong software.
• The organization that is already non profiting, depending on the software to be able to stand again will end up being bankrupt.
• The consultant will not only harm the organization but the workers who need to find new jobs in order to live their life.

The consultant should tell the absolute truth and suggest the company the real software that will allow the organization to benefit in their investment. He will be able to save many people from losing their job, if he did the right thing.

Consequences of doing it right

• The money that is invested on the software allows the company to form back up again.
• The organization that is non profiting, recovers and becomes a profitable organization.
• People get more money from bonuses, due to the peak of the profit made.
• The consultant is rewarded, but in a more honorable way than suggesting the wrong software an earning the money.