UNIT –I

ENGINEERING ETHICS

Syllabus: Senses of 'Engineering Ethics' - variety of moral issues - types of inquiry - moral dilemmas - moral
autonomy - Kohlberg's theory - Gilligan's theory - consensus and controversy – Models of Professional Roles -
theories about right action - Self-interest - customs and religion - uses of ethical theories.

SENSES OF ‘ENGINEERING ETHICS’

The word ethics has different meanings but they are correspondingly related to each
other. In connection with that, Engineering ethics has also various senses which are related to
one another.

Comparison of the senses of Ethics and Engineering Ethics

Ethics Engineering Ethics

1. Ethics is an activity which concerns 1. Like the ethics, engineering ethics

with making investigations and also aims at knowing moral values
knowing about moral values, finding related to engineering, finding
solutions to moral issues and accurate solutions to the moral
justifying moral issues and justifying problems in engineering and
moral judgments. justifying moral judgments of
engineering.

2. Ethics is a means of contrasting moral

questions from non-moral problems. 2. Engineering Ethics gives a total view
of the moral problems and how to
solve these issues specifically related
3. Ethics is also used as a means of to engineering field.
describing the beliefs, attitudes and
habits related to an individual‟s or
group‟s morality. Eg. : Ethics given 3. Engineering ethics is also using some
in the Bhagavat Gita or the Bible or currently accepted codes and
the Quran. standards which are to be followed by
group of engineers and engineering
societies.
4. As per the definition of dictionaries –
„moral principles‟ is about the actions
and principles of conduct of the 4. Engineering ethics also concerns with
people. i.e. ethical or unethical. discovering moral principles such as
obligation, rights and ideals in
engineering and by applying them to
take a correct decision.
 From these senses of Engineering ethics, one can realize that it is the study of
morality.

What is morality?

The term „morality‟ concerns with (a) what ought or ought not to be done in a
given situation, (b) what is right or wrong in handling it, (c) what is good or bad about
the persons, policies and principles involved in it.

If an action is said to be morally right or a principle is said to be morally good,

then they are said to be had some moral reasons in supporting it.

Moral reasons include respecting others and ourselves, respecting the rights of
others, keeping promises, avoiding unnecessary problems to others and avoiding
cheating and dishonesty, showing gratitude to others and encourage them to work.

So, if an engineering decision is said to be a good one, it has to meet out all the
specifications. These specifications must be covered both the technical and the moral
specifications such as safety of the product, reliability, easy maintenance and the
product should be user-friendly with environment.

VARIETY OF MORAL ISSUES

There are so many engineering disasters which are greater / heavier than the
level of acceptable or tolerable risk. Therefore, for finding and avoiding such cases such
as nuclear plant accident at Chernobyl (Russia), Chemical plant at Bhopal (India) where
a big disaster of gas leakage, occurred in 1980, which caused many fatal accidents. In
the same way, oil spills from some oil extraction plants (the Exxon Valdez plant),
hazardous waste, pollution and other related services, natural disasters like floods, earth
quake and danger from using asbestos and plastics are some more cases for engineering
disasters. These fields should be given awareness of engineering ethics. Hence, it is
essential for engineers to get awareness on the above said disasters. They should also
know the importance of the system of engineering.

When malfunction of the system is a rapid one, the disaster will be in greater
extent and can be noticed immediately. When they ate slow and unobserved, the impact
is delayed. So, the engineers should not ignore about the functions of these systems.

These cases also explain and make the engineers to be familiar with the outline
of the case in future and also about their related ethical issues.

Approaches to Engineering Ethics:

 i. Micro-Ethics: This approach stresses more about some typical and
everyday problems which play an important role in the field of engineering and
in the profession of an engineer.
ii. Macro-Ethics: This approach deals with all the social problems which are
unknown and suddenly burst out on a regional or national level.

So, it is necessary for an engineer to pay attention on both the approaches by

having a careful study of how they affect them professionally and personally.
The engineers have to tolerate themselves with the everyday problems both from
personal and societal point of view.

Where and How do Moral Problems arise in Engineering?

Any product or project has to undergo various stages such as planning, idea,
design, and manufacturing which is followed by testing, sales and services. This has to
be done by engineers of various branches like Civil, Mechanical, Electrical, Chemical
etc. These engineers may be grouped together as a team or they may be separated from
each other with an interconnection or co-ordination.

Inspite of the engineers‟ full attention and care, sometimes the product or project
may be unsafe or less useful. This may be due to some reasons 1) The product or project
may be designed for early obsolescence or 2) due to under pressure because of running
out of time, budgetary etc or 3) by ignorance on the size of the project, or 4) because of
the large number of a products sold on the mass market, people may be affected.

Some cases with which different areas covered by engineering ethics:

1. An inspector finds a faulty part in the manufacture of a machine, which prevents

the use of that machine for a longer period. But his superior, takes this as a
minor mistake and orders that the faulty part to be adjusted so that the delay in
the process has to be avoided. But the inspector doesn‟t want this and so he is
threatened by the supervisor.
2. An electronic company applies for a permit to start a Nuclear Power Plant. When
the licensing authority comes for visit, they enquire the company authorities on
the emergency measures that have been established for safety of the
surroundings. The engineers inform them about the alarm system and
arrangements have been made in local hospitals for the treatment of their
employees and they have no plan for the surrounding people. They also inform
that it is the responsibility of the people.
3. A Yarn Dyeing company which dumps its wastes in the nearby river. It causes
heavy damage to the people those who are using the river. The plant engineers
 are aware of this, but they do not change the disposal method because their
competitors also doing similarly as it happens to be a cheaper. They also say that
it is the responsibility of the local government.

The above given examples clearly explain how the ethical problems arise most
often because of wrong judgments and expectations of engineers. These necessitate
for establishing some codes of conduct which has to be imposed on engineers‟
decisions on the basis of ethical view.

TYPES OF INQUIRY

Inquiry means an investigation. Like general ethics, Engineering ethics also involves
investigations into values, meaning and facts. These inquiries in the field of Engineering
ethics are of three types.

1. Normative Inquiries
2. Conceptual Inquiries
3. Factual or Descriptive Inquiries

Normative Inquiries

These inquiries are mostly helpful to identify the values which guide the
individuals and groups in taking a decision. These are meant for identifying and
justifying some norms and standards of morally desirable nature for guiding individuals
as well as groups. In most of the cases, the normative questions are given below:

1. How do the obligations of engineers protect the public safety in given situations?
2. When should an engineer have to alarm their employers on dangerous practices?
3. Where are the laws and organizational procedures that affect engineering
practice on moral issues?
4. Where are the moral rights essential for engineers to fulfill their professional
obligations?

From these questions, it is clear that normative inquiries also have the theoretical
goal of justifying moral judgments.

Conceptual Inquiries

These are meant for describing the meaning of concepts, principles, and issues
related to Engineering Ethics. These inquiries also explain whether the concepts and
ideas are expressed by single word or by phrases. The following are some of the
questions of conceptual inquiries:
 1. What is the safety and how it is related to risk?
2. What does it mean when codes of ethics say engineers should protect the safety,
health and welfare of the public?
3. What is a „bribe‟?
4. What is a „profession‟ and „professional‟?

Factual / Descriptive Inquiries

These help to provide facts for understanding and finding solutions to value
based issues. The engineer has to conduct factual inquiries by using scientific
techniques. These help to provide information regarding the business realities such as
engineering practice, history of engineering profession, the effectiveness of professional
societies in imposing moral conduct, the procedures to be adopted when assessing risks
and psychological profiles of engineers. The information about these facts provide
understanding and background conditions which create moral problems. These facts are
also helpful in solving moral problems by using alternative ways of solutions.

These types of inquiries are said to be complementary and interrelated. Suppose

an engineer wants to tell a wrong thing in an engineering practice to his superiors, he
has to undergo all these inquiries and prepare an analysis about the problem on the basis
of moral values and issues attached to that wrong thing. Then only he can convince his
superior. Otherwise his judgment may be neglected or rejected by his superior.

MORAL DILEMMAS

Why study engineering ethics?

Engineering ethics is not only teaching moral behaviour in knowing about

immoral and amoral in a set of beliefs, but also increasing the ability of engineers and
other professionals to face boldly with the moral problems arising from technological
advancements, changes and other related activities. This can be possible be imparted
among the engineers, only through college courses, seminars, etc. which are involved
individual study.

Moral Dilemmas

Dilemmas are certain kind of situations in which a difficult choice has to be

made.

Moral dilemmas can also be called moral problems. Moral dilemmas have two or
more foldings - moral obligations, duties, rights, goods or ideals come into
disagreement with each other. One moral principle can have two or more conflicting
applications for a particular given situation. Moral dilemmas can be occurred in so
many ways. For example, suppose one gives a promise to his friend that he will meet
him on the evening of a particular day, but unfortunately on the same day his brother
has met with an accident and he has to take him to hospital. The dilemma here consists
of a conflict between the duty to keep promise and obligations to his brother. In this
situation, to solve his moral problem, he can make a phone call to his friend and make
apology for his inability to come. So, from the above it is clear that the duty to keep
promise always has two different and conflicting applications.

The moral dilemmas cannot easily be addressed or resolved always. It requires

an elaborate searching which sometimes causing extreme suffering and reflection of a
situation. The modern engineering practice compels that all the engineers have to face
boldly about the moral dilemmas in their careers.

To find a simple and clear solution to the moral problems in the field of
engineering, there must be some provision to allocate time to for learning ethics in
engineering courses. But at the same time, it should not be ignored in the following
three categories of complex and gloomy moral situations:

The Problem of Vagueness

The problem of vagueness is related to individuals. The individuals may not

know how to moral considerations or principles in resolving a moral problem at a
particular situation. For example, an engineer in a higher position of a company, is
responsible and having the sole right to make purchases on his own and behalf of the
company. There may be many suppliers for supplying materials. In this situation, a sales
representative from one of the suppliers approaches him with a moderating gift. In this
case, the engineer may have some doubts like (i) Whether this is an acceptance of a
bribe? (ii) Does it create a conflict of interest? The solution is only with that engineer.
He can also discuss with his colleagues about the problem. The colleague may find the
solution on the basis of previous experiences, - it may not be a kind of bribe, but at the
same time it should not be encouraged in future because there is the possibility of
supplying substandard materials. It is difficult to arrive at the conclusion whether the
gift is an innocent amenity or an unacceptable bribe.

The problems of Conflicting reasons

These occur more frequently. In a difficult situation of a moral problem, an

individual may clearly know about what moral principle has to be applied to resolve the
problem. When it arises, there are two or more principles with clear solutions lead into
conflict with one another or one particular moral principle. Simultaneously there can be
of two different directions. In this case, that individual has to choose a better one among
them on the basis of the importance and the applicability. For example, an engineer has
given a promise to his employer and another one to a colleague. If it is difficult to fulfill
both the promises, he can drop off one promise which is of least importance. If he
explains the situations to his colleagues, it can be understood.

The problems of disagreement

The individuals and groups in engineering companies may disagree with

resolving moral problems in difficult situations. The disagreement will be normally
about how to interpret, apply and balance the moral problems. In this situation they
have to use the following steps to resolve the problems.

Steps / Procedures in facing / confronting moral dilemmas

All the above said three problems pave the way for the need of several steps in
resolving the moral dilemmas. All the steps are interrelated and they can also be used
jointly.

1) Identifying the relevant moral factors and reasons: i.e. Finding solutions for (i)
the conflicting responsibilities (ii) the competing rights and (iii) the clashing
ideals involved.
2) Collecting and gathering all the available facts which are relevant to the moral
factors while resolving.
3) Ranking the moral considerations or principles on the basis of importance as
applicable to the situation. But sometimes it is not possible when the objective is
to find a way to meet equally urgent responsibilities and to promote equally
important ideals.
4) Considering alternative courses of action for resolving the problems and tracing
the full implications of each. i.e. conducting factual inquiries.
5) Having talked with the colleagues, friend about the problem getting their
suggestions and alternative ideas on resolving that dilemma and
6) Arriving at a careful and reasonable judgment or solution by taking into
consideration of all important moral factors and reasons on the basis of the facts
or truths. But it seems to be difficult.

To conclude, only the study of Engineering Ethics can help in developing the
skills and attitudes to follow the above steps in resolving a moral problem among
the engineers and other professionals by means of case studies, class room
discussions and debating.
MORAL AUTONOMY

Meaning and Causes

Autonomy means self-governing or self-determining i.e act independently. Moral

autonomy means the right or the wrong conduct which is of independent on ethical
issues. It deals with the improvement of an individual‟s moral thoughts which make hi
to adopt good habits. Moral autonomy is concerned with the independent attitude of a
person related to ethical issues. It helps to improve the self-determination among the
individuals.

The need for moral autonomy in the field of engineering ethics

The objectives of engineering ethics are not related to implanting particular

moral beliefs on engineers. In other way they help the engineers and other
professionalists to strength their professional values such as honesty, respect the
colleagues and think for the welfare of the general public. Though the above said values
have been already in the minds of the engineers, engineering ethics helps to improve
these qualities in a better manner among the engineers, and not inculcating newly. The
structural objective of engineering ethics is to be enable the individuals to understand
the moral responsibilities in a clear and careful manner. So, the main aim of studying
engineering ethics is to increase the moral autonomy within him.

Moral autonomy is a skill and habit of thinking ethical problems in a rational

manner. These ethical issues are to be found out on the basis of moral problems. These
general responsiveness of moral values are derived only from the training what we have
received as a child with response to the sensitive and right of others and ourselves.
Suppose the training is not given in the childhood itself, those children may be ill-
treated or neglected by the society. These children in future may grow up with lack of
senses on moral issues and they become as sociopaths. They are never morally
autonomous. They won‟t regret for their mistakes and wrong doings.

These moral concerns can be initiated or imparted among the engineers, mainly
engineers of various subjects and also by the way of their friends, or by social events
occurring around them or by books and movies. So the main aim of all the courses of
Applied Ethics is only to improve their abilities in order to face the moral issues
critically. This can only be achieved by improving the practical skills which are helping
in producing effective independent or self-determination thoughts among the
individuals about the moral problems.

Skills for improving moral autonomy

 1. The engineers must have the competence for identifying the moral problems and
ethical issues related to the field of engineering – they must have the ability to
distinguish and relate these moral problems with the problems of law,
economics, religions principles etc.
They must possess the skills of understanding, clarifying and assessing the
arguments which are against the moral issues.
2. They must have the ability to suggest the solutions to moral issues, on the basis
of facts. These suggestions must be consistent and must include all the aspects of
the problem.
3. They must have the imaginative skill to view the problems from all view points
and also be able to suggest a proper alternative solution.
4. They must be able to tolerate while giving moral judgments and decisions which
may cause trouble. i.e. they have to understand the difficulties in making moral
decisions.
5. They must have adequate knowledge and understanding about the use of ethical
language so as to defend or support their views with others.
6. They must have some better knowledge in understanding the importance of
suggestions and better solutions while resolving moral problems and also about
the importance of tolerance on some critical situations.
7. They must understand the importance of maintaining the moral honesty i.e. the
personal convictions and beliefs and individual‟s professional life must be
integrated. They must have this skill of doing so.

Conclusion

From the above decisions on moral autonomy, we can conclude that moral
autonomy helps an engineer to increase his moral outlook in an appreciable manner. It
also helps him to be morally responsible in his daily activities.

KOHLBERG’S THEORY

Moral Autonomy is based on the psychology of moral development. The first

psychological theory was developed by Jean Piaget. On the basis of Piaget‟s theory,
Lawrence kohlberg developed three main levels of moral development which is based
on the kinds of reasoning and motivation adopted by individuals with regard to moral
questions.

The Pre Conventional Level

It is nothing but self-centered attitude. In this level, right conduct is very

essential for an individual which directly benefits him. According to this level,
individuals are motivated by their willingness to avoid punishment, or by their desire to
satisfy their own needs or by the influence of the power exerted by them. This level is
related to the moral development of children and some adults who never want to go
beyond a certain limit.

The Conventional Level

The level deals with the respect for conventional rules and authority. As per this
level the rules and norms of one‟s family or group or society has been accepted as the
final standard of morality. These conventions are regarded as correct, because they
represent with authority. When individuals are under this level, always want to
please/satisfy others and also to meet the expectations of the society and not their self-
interest. Loyalty and close identification with others have been given much importance.
No adult tries to go beyond this level.

The Post Conventional Level

This level is said to be attained when an individual recognizes the right and the
wrong on the basis of a set of principles which governing rights and the general good
which are not based on self-interest or social conventions. These individuals are called
“autonomous”, because they only think for themselves and also they do not agree t hat
customs are always correct. They want to live by general principles which are
universally applied to all people. They always want to maintain their moral integrity,
self-respect and the respect for other autonomous peoples.

Kohlberg‟s theory of moral development is very much related to the goals of

studying ethics at college level. To become morally responsible, an individual must be
able and willing to undergo with moral reasoning. Moral responsibility comes out of the
foundation of early moral training given by an individual‟s parents and culture. This
early training helps to complete the above said three levels of moral development by an
individual.

As per Kohlberg‟s view only few people would reach the post conventio nal level
which is based on assumption that movement towards autonomous is morally desirable.

GILLIGAN’S THEORY

Gilligan‟s argument

Caorl Gilligan was one of the students of Kohlberg. She criticizes Kohlberg‟s
theory on the basis of approached made by both male and female towards morality. On
the basis of her studies and researches, she criticizes Kohlberg‟s theory which is only
based on male bias and his studies are of typically male preoccupation with general
rules and rights.

She also suggest that men are always more interested in resolving moral
dilemmas by applying some most important moral rules. But women always want to
keep up the personal relationship with all those involved in a situation and they always
give attention only on the circumstances responsible for that critical situation and not on
general moral rules.

She also states that Kohlberg‟s theory is only on ethics of rules and rights. But
her theory is known as ethics of care. i.e. context oriented emphasis required to
maintain the personal relationship.

Levels of Moral Development

Gilligan recasts Kohlberg‟s three levels of moral development on the basis of her
own studies of women, as follows:

The Pre-Conventional Level

This is more over the same as Kohlberg‟s first level i.e. Right conduct is a
selfish thing as solely one what is good for oneself.

The Conventional Level

This level differs from Kohlberg‟s second level. According to her, women don‟t
want to hurt others and want to help others i.e. women always want to give up their
interests in order to help the others to fulfill their needs.

The Post Conventional Level

This level is also differed from Kohlberg‟s level. In this level, individual
(particularly women) want to balance between caring about other people and their
interests. The main aim here is to balance an individual‟s needs with those of others on
the basis of mutual caring. This can be achieved only through context -oriented
reasoning and not by abstract rules.

Heinz‟s Dilemma

Gilligan‟s criticism on the Kohlberg‟s theory can be made very clear with the
help of a famous example used by Kohlberg in his questionaries and interviews. This is
called Heinz‟s Dilemma.
 This example was about a woman and Heinz, her husband living in Europe. The
woman was affected by cancer. The doctors told her to use an expensive drug to save
her life. The pharmacist who also invented that medicine charged ten times the cost of
making the drug. Besides his poverty, Heinz took a lot of effort to borrow money, but
he could get only half of the amount needed. He approached to the pharmacist and
begged him to sell the medicine at a cheaper price or allow him to pay for it later. But
the pharmacist refused to do so. Finally, without any hope, Heinz forcibly entered into
the pharmacy and stolen the drug. The question here is “Was the theft morally right or
wrong?”

By asking this question among the male, Kohlberg has received two sets of
answers: One is based on the conventional level i.e. Heinz did a wrong thing. Another
one is based on the post conventional level i.e,Heinz was correct as the life of the wife
is more important than the property right of the pharmacist.

But when the same question was asked among the women, they gave (all women)
same answers. They replied that Heinz was wrong. They further told that instead of
stealing the medicine, Heinz could have tried other alternative solutions. They also told
that Heinz should have convinced still the pharmacist to get the medicine.

From the above, Kohlberg concluded that women‟s decisions are always based
on conventional rule and they always have different opinions in applying the general
moral rules and principles about the right to live.

On the basis of the Kohlberg‟s comment on the women, Gilligan came to a

different conclusion. She tells that it shows greater sensitivity to people and personal
relationships. She concluded that the decision taken by women is context -oriented and
not on the basis of general rules ranked inorder of priority.

Now, the question here is, how Gilligan‟s theory of moral development relates to
moral autonomy as a goal of studying ethics at the college level?

Autonomy requires independent reasoning on the basis of moral concern and not
separated from other people. As per Gilligan‟s theory and Kohlberg‟s theory, moral
autonomy should be consistent with context-oriented and also with an awareness of
general moral principles and rights.

CONSENSUS AND CONTROVERSY

Consensus means „agreement‟ and „controversy‟ means disagreement. The

consensus and the controversies are playing the vital roles while considering the moral
autonomy.
 When an individual exercises the moral autonomy, he cannot get the same results
as others get in applying moral autonomy. Surely there must be some moral differences
i.e. the results or verdicts will be of controversy. This kind of disagreements is
unavoidable. These disagreements require some tolerances among individuals those who
are autonomous, reasonable and responsible.

As per the principle of tolerance, the goal of teaching engineering ethics is not
merely producing an agreed conformity on applying moral principles among engineers
but also to reveal the ways of promoting tolerances to apply moral autonomy.

Both the goals of engineering ethics and the goals of engineering courses have
some similarities. These similarities have to be extended with the help of exercising
authority. For example, in the class room, the teachers are having the authority over
students and in the work place, the managers are having the authority over engineers.

There are two general points regarding the relationship between autonomy and
authority with reference to the class room:

1) Moral autonomy and respect for the authority cannot be differentiated or

separated from each other. Moral autonomy is exercised on the basis of
moral concern for other people and also recognition of good moral
reasons. Authority provides for the framework in which learning can take
place. It is based on the acceptance of authority by both the students and
the professors. Without this acceptance, the classes cannot be conducted
in a smooth way. On the other hand, cheating will be encouraged and the
trust between faculty and the students may be reduced to some extent.
These kind of deviations are due to the absence of moral views and
respect for authority. They must be coincide with each other.
2) Generally a tension may arise among the individuals regarding the need
for consensus about authority and need for autonomy. This tension can be
reduced by discussing openly regarding a moral issue between students
and faculty with the help of the authority.

In short, conflicts will arise between autonomy and authority, when the authority
is misused. For example, in small classes, the students are having the authority to
express their own views. But when the professor doesn‟t allow them to do so, he
misuses his authority. This will create some moral problems between the students and
the faculty.

MODELS OF PROFESSIONAL ROLES

 The main aim of the profession of engineering is to improve the public safety,
wealth and welfare. In order to perform these functions, the engineer has to play various
models to channalise his attitudes towards the achievements of objectives. They are as
follows:

1. Savior
The engineers are responsible for creating an utopian society in which
everything is possible and can be achieved without much effort – This can only
be achieved through technological developments made by the engineers for safe-
guarding the society from poverty, inefficiency, waste and manual labour.
2. Guardian
Engineers only know the directions through which technology will be
developed. So, they should be given position of high authority based on their
expertise skills in determining what is in the best interests of the society. They
should act as guardians to the technological improvements.
3. Bureaucratic Servant
Engineer‟s role in the management is to be the servant who receives and
translates the directive of management into better achievements. They have to
solve the problems given by the management, within the limits set by the
management.
4. Social Servant
The role of engineers is not only providing service to others but also their
responsibility to the society. The interests of the society can be expressed to the
engineers either directly or indirectly. So, the engineers, with the co -operation of
the management have the work of receiving society‟s directives and satisfying
the desires of the society.
5. Social enabler and Catalyst
The engineer has to play a role of creating a better society and should be
the cause of making social changes. Service given by the engineers to the society
includes carrying out the social directives. Engineers are needed to help the
management and the society to understand their needs and to create decisions
about technological development.
6. Game Player
We cannot say that engineers are servants or masters of anyone. They are
playing the economic game rules which may be effective at a given time. Their
aim is to play successfully within the organization enjoying the happiness of
technological work and the satisfaction of winning and moving ahead in a
completive world.
THEORIES ABOUT RIGHT ACTION

There are four types of theories on ethics, which help to create the fundamental
principles of obligation suitable and applicable to professional and personal conduct of
a person in his everyday life. These theories are essential for cause of right action and
morality. They are:

1. “Golden mean” ethics (Aristotle, 384 – 322 B.C.). The best solution is achieved
through reason and logic and is a compromise or “golden mean” between
extremes of excess and deficiency. For example, in the case of the environment,
the golden mean between the extremes of neglect and exploitation might be
protection.

Problem: Variability from one person to another in their powers of reasoning

and the difficulty in applying the theory to ethical problems.

2. “Rights – based” ethics (John Locke, 1632 – 1704). Every person is free and
equal and has the right to life, health, liberty and possessions (in effect
prohibiting capital punishment, medical charges, jails and income taxes).

Problem: One person‟s right may be in conflict with another‟s rights.

3. “Duty – based” ethics (Immanual Kant, 1724 – 1804). Each person has a duty to
follow a course of action that would be universally acceptable for everyone to
follow without exception. (Thus we would all be honest, kind, generous and
peaceful).

Problem: Universal application of a rule can be harmful.

4. “Utilitarian” ethics (John Stuart Mill, 1806 – 1873). The best choice is that
which produces the maximum benefit for the greatest number of people (which
could endanger minority rights).

Problem: Qualification of the benefits can be difficult.

All these theories can be differentiated on the basis of what they provide
for moral concept, good results for all, duties and human rights.

SELF – INTEREST, CUSTOMS AND RELIGION

Moral justifications and principles form a distinct category of value, which are
different from other category of values. This can be more clear by relating and
contrasting moral values to three other types of values namely self-interest, customs and
religion. Focus must be made in each case, how we can reduce morality to these types
of value.

Self –Interest and Ethical Egoism

Self-interest is nothing but one‟s personal good. It refers to the goodness of

oneself in the long run.

Each of the ethical theories recognizes the importance of self-respect. Utilitarian

considers one‟s own good as well as the good of others. Duty ethicists stresses duties to
ourselves and for won well-being. Ethicists of rights emphasize our rights to pursue our
own good. Virtue ethicists accent the importance of self – respect.

Each of these theories insists that the pursuit of self – interest must be balanced
and kept under control by moral responsibilities to other people. Now let us consider a
view called “ethical Egoism” which challenges all the ethical theories and it tries to
reduce morality to the pursuit of self-interest. It is called „egoism‟, because it says that
the main duty of us is to maximize our own good. According to Thomas Hobbes and
Any Rand, moral values are reduced to concern for oneself but always a rational
concern which requires consideration of a person‟s long-term interests.

The Supporters of ethical egoism make a differentiation between narrower and

wider forms of self-interest. When a person who selfishly preoccupies his own private
good and disregard for the good of others, will be off from rewarding friendships and
love. Personal well-being generally requires taking some large interest in others. But the
rational egoist insists that the only reason for showing an interest in others is for the
sake of oneself.

Ethical Egoists try to protect their positions by arguing that an ironic importance
of everyone rationally pursuing one‟s self-interest is that every one get benefited. The
society benefits mostly when (i) individuals pursue their private good and (ii)
corporations pursue maximum profits in a competitive free market. The main idea here
is that leads to the improvement of economy through which benefiting everyone.

Because, both the individual and the corporation know very well that what is
good for them and how best to pursue that good.

As per ethical egoism, people should always and only pursue their self – interest
in a very cautious manner to value the interest rationally on the basis of facts.
 Morality essentially needs a willingness on the part of both individuals and
corporations to place some restrictions on the pursuit of private self – interests.
Accepting these constraints is presupposed in what is meant by moral concern
Engineering Ethics also has one task of exhibiting the moral limits on the pursuit of self
interest in the Engineering profession.

The above said remarks do not constitute a wrong proof for ethical egoism.
Morality stresses that we have to give value and we are concerned for the good of other
people. Ethical egoism is not a persuasive or probable theory to state what is morality
but it is only a convinced rejection of morality.

Customs and Ethical Relativism

As we live in a society which is of increasingly diverse nature, it is more

important to have tolerance for various customs and outlooks. Hence the concept of
ethical pluralism emerges. It views that there may be alternative moral attitudes that are
reasonable. But none of the moral perspectives can be accepted completely by all the
rational and the morally concerned persons. Ethical pluralism allows the customs which
plays an important role in deciding how we should act. Moral values are many, varied
and flexible. So, these moral values allow considerable variation in how different
individuals and groups understand and apply them in their day-today activities. In other
words, to be precise, reasonable persons always have reasonable disagreement on moral
issues, including issues in engineering ethics.
Ethical Relativism, an objectionable view, should not be confused with Ethical
Pluralism. As per Ethical relativism says that actions are morally right when they are
approved by law or custom and they are said to be wrong when they violate laws or
customs. Ethical relativism tries to reduce moral values to laws, conventions and
customs of societies.

What is the necessary for a person to accept ethical relativism? There are so
many reasons for accepting ethical relativism –

I. The laws and customs seem to be definite, real and clear – cut. They help to
reduce the endless disputes about right and wrong. Moreover, laws seem to be an
objective way to approach values. The above argument is some what weak. This
reason underestimates the extent to which ordinary moral reasons are sufficiently
objective to make possible criticism of individual prejudice and bias. Moreover,
moral reasons allow objective criticism of the given laws as morally inadequate.
For example, the apartheid laws (racial segregation) in south Africa. This law
violated the human rights are not given any legal protections to the majority of
the blacks, but morally ought to be.
 II. The second reason for accepting ethical relativism is because it believes the
values are subjective at the cultural level. They also state that the moral
standards are varied from one culture to another. The only kind of objectivity is
relative to a given set of laws in a given society. This relativity of morality
encourages the virtue of tolerance of difference among societies.

The above said argument is also confusing one. It assumes that ethical relativism
is implied by descriptive relativism. i.e., values and beliefs differ from culture to
culture. There is nothing self-certifying about the laws and beliefs. This can be
explained by the following illustration. Ethical relativism would allow that Hitler and
his followers (Nazis) acted correctly when they killed 6 million Jews, for their laws,
customs, and beliefs which were based on anti – Semitism (hostile to Jews).

So, ethical relativism refers anything but for the tolerant doctrine it pretends to be.
But there is nothing tolerant in accepting Nazi beliefs about morality Admitting
intolerant anti-semitic beliefs is not an act of tolerance.

The supporters of ethical relativism, generally say that an action is right “for
cultures” when believe it as the right one.i.e., it is right “for them” though not “for us”.
So, beliefs, however customary or widely shared, are not self-certifying whether we are
talking about moral beliefs or scientific beliefs.

The third reason is based on the moral relationalism or moral contextulaism. This
states that moral judgments must be made in relation to some factors which varies from
case to case. Making simple and absolute rules are impossible in this way. In most of
the cases, customs and laws are considered as morally important factors for making
judgments.

All philosophers accepted this moral relationalism. But contemporary duty and
right ethicists like „Kant‟ do not accept. As per their views, respecting people require
some sensitiveness to special circumstances. The virtue ethicists stress the role of
practical wisdom in identifying the facts which are relevant to assessment of conduct
based on virtual manner.

The ethical relativism was accepted by early cultural anthropologists because

they had a specified tendency to overstress the scope of moral difference between
cultures. Absorbed with unusual practices such as head – hunting, human sacrifices and
cannibolism (cannibal is a person who eats human flesh); these persons who shifted
their idea quickly form moral views differ greatly to “Morality is a simply a culture as
such”. But modern anthropologists states that all cultures by virtual show some
commitment to promote social co-operation and protect their members against needless
death and suffering. Moral differences are based only on the circumstances and facts,
not on the difference in moral attitudes. For example, we can consider the practice of
human sacrifice in the Aztecs. [Members of a former Indian people who ruled Mexico
before the 16 th century]. This practice seems to be a sign of cruelty an lack of concern
for life. But a full examination of their beliefs reveal that they believed their gods are
pleased by such sacrifice to ensure the survival of their people and also it was
considered an honour for the victims. Refer to the sacrifice or placing chicken and goal
to god.

Religion and Divine Command Ethics

Moral responsibilities and religious belief are interwined in many positive ways.
First, they are related historically. Our moral views have been shaped by the most
known central moral values within the major world religions. For example, the Judeo -
Christian tradition has been influential in Western countries like England, USA etc.
Islam has been having a great influence in middle east countries such as Saudi Arabia,
Kuwait, Pakistan etc. Confucianism has been influential in China and Buddhism,
Hinduism and Taoism have been famous in Asian countries.

Second, most of the people still having beliefs and show some important and
inevitable psychological connections between their moral and religious beliefs.
Religious views frequently support moral responsibility by providing additional
motivation for being moral. Faith in Religions or religious hopes imply trust. This trust
gives an inspiration to be moral.

The main social functions of religion is motivating right action based on ethical
principles. Religion supports many people to follow their beliefs and promote tolerance
and moral concern for others. Many of the engineers are motivated by the religious
beliefs.

Thirdly, religions form a set of higher moral standards. For example, Christianity
suggests for loving neighbors. Many religions include virtue ethics that stresses about
particular virtues. For example, the ethics if Christianity focuses in the virtue of hope,
faith and love. Buddhism emphasizes a feeling of pity (compassion). Islam pressures
“insane” (being religious and pursuit of excellence).

Some times, religious set standards below the level of acceptable moral
standards. Some religions do not give equal rights to women, as in Islam (particularly in
Iran, Iraq). In this situation the conflict is not only between secular morality and
religion but also among other religions.
 By giving stress on the positive connections between secular morality and
religion, we go for defining Divine Command ethics. It views that right action is
defined by the commands of God, and without a belief in God there could be no moral
values and if an action is said to be wrong, it means that it is forbidden by God.

The Major difficulties in Divine Command ethics are: how to know what God‟s
commands are and whether God exists or not. Judaism, Christianity, Islam and
Hinduism are mostly God-centered i.e., they believe in God. But some other religions
such as Buddhism, Taoism and Confucianism calls for only faith in a right path from
which code of ethics can be derived. For example in Buddhism the right path included
eight steps such as right understanding, right intention, right intention, right action,
right livelihood, right effort, right mindfulness and right concentration.

Questions on the belief in God were rejected by most of he theologians,

[Theology – study of God] based on the question asked by Socrates. Socrates asked why
does god make certain commands and not others? Are these commands made on the
basis of sudden fancy? The answer is surely no. Because God is supposed to be morally
good and He never commands bad acts such as irresponsible killing, rapes, tortures and
other immoralities.

Suppose a man claimed that God commands him to kill people randomly without
making any religious inquiry, we can say that the main is mistaken.

Divine Command ethics has things backwards. A morally divine being

commands on the basis of moral reasons which determines the wrongness of actions and
rightness of other actions. Moral reasons are presupposed as the foundation for making
certain commands. Moral reasons can not force hard to religious matters. Religious
beliefs provides an added inspiration for responding to moral reasons.

USES OF ETHICAL THEORIES

Ethical theories have so many uses. Out of them, the following three are the most
important uses:

1. Understanding moral dilemmas.

2. Justifying professional obligations and ideas and
3. Relating ordinary and professional morality
 UNIT –II

ENGINEERING AS SOCIAL EXPERIMENTATION

Syllabus: Engineering as experimentation - engineers as responsible experimenters - codes of ethics - a
balanced outlook on law - the challenger case study

ENGINEERING AS EXPERIMENTATION

Experimentation plays an important role in the process of designing the product.

When it is decided to change a new engineering concept into its first rough design,
preliminary tests or simulation should be conducted. Using formal experimental methods, the
materials and methods of designing are tried out. These tests may be based on more detailed
designs. The test for designing should be evolved till the final product produced. With the
help of feedback of several tests, further modification can be made if necessary. Beyond these
tests and experiments, each engineering project has to be viewed as an experiment.

Similarities to Standard Experiments

There are so many aspects, which are of virtual for combining every type of
engineering works to make it suitable to look at engineering projects as experiments. The
main three important aspects are:

1) Any engineering project or plan is put into practice with partial ignorance because
while designing a model there are several uncertainities occurred. The reason to the
fact that engineers don‟t have all the needed facts available well in advance before
starting the project. At some point, both the theoretical examining and the laboratory
testing must be by-passed for the sake of completing the project. Really, the success
of an engineer is based on the his talent which is exactly being the ability to succeed
in achieving jobs with only a partial knowledge of scientific laws about the nature and
society.

2) The final outcomes of engineering projects are generally uncertain like that of
experiments what we do.

In engineering, in most of the cases, the possible outcomes may not be known and even
small and mild projects itself involve greater risks.

The following uncertainities occur in the model designs

1. Model used for the design calculations

2. Exact characteristics of the material purchased.

3. Constancies of materials used for processing and fabrication.

 4. About the nature of the pressure the finished product will encounter.

For instance, a reservoir may cause damage to the surroundings and affect the eco-
system. If it leaks or breaks, the purpose will not be served. A special purpose fingerprint
reader may find its application in the identification and close observation on the disagreeing
persons with the government. A nuclear reactor may cause unexpected problems to the
surrounding population leading to a great loss to the owners. A hair dryer may give damage
to the unknowing or wrong users from asbestos insulation from its barrel.

3) Good and effective engineering depends upon the knowledge possessed about the
products at the initial and end stages.

This knowledge is very useful for increasing the effectiveness of the current products
as well as for producing better products in future. This can be achieved by keenly observing
on the engineering jobs by the way of experimentation. This monitoring is done by making
periodic observations and tests by looking at for the successful performance and the side
effects of the jobs. The tests of the product‟s efficiency, safety, cost-effectiveness,
environmental impact and its value that depends upon the utility to the society should also be
monitored. It also extends to the stage of client use.

Learning from the past

It has been expected that the engineers have to learn not only form their own design
and the production system but also the results of others. Due to lack of communication,
prejudiced in not asking for clarification, fear of law and also mere negligence, these things
can happen to the continuation of past mistakes. The following are some of the examples:

1. The tragedy of „Titanic‟ happened because of the sufficient number of life boats. The
same disaster took place in the steamship “the Arctic” some years before, because of
the same problem.

2. The fall down of “the Sunshine Skyline Bridge” in the bay of Thamba at Sweden in
1980, on a moving ship due to improper matching of horizontal impact forces in
mind. This could have been avoided of the engineers had known about the striking of
the ships with the Maracaibo Bridge at Venezulea in 1964 and the Tasman Bridge of
Australia in 1975.

3. The nuclear reactor accident at Three Mile Island on March 1979, was due to
malfunctioning of the valves. Valves though minute items, are being among the least
reliable components of hydraulic systems. It was a pressure relief valve and lack of
information about its opening or closing state contributed to a nuclear reactor accident
at Three Mile Island. This malfunction was already happened because of the same
reasons at other locations.
 4. The disaster of Tettron Dam in Los Angles was due to rapid flow of water and sudden
break down. The builder didn‟t consider the case of the Fontenelle Dam, which was
also collapsed due to the same problem.

So, to say that engineers should not fully depend on handbooks and they should have
some review of the past cases relating to their current task.

Comparisons with standard Experiments

Engineering is entirely different from standard experiments in few aspects. Those

differences are very much helpful to find out the special responsibilities of engineers and also
help them in knowing about the moral irresponsibilities which are involved in engineering.

1. Experimental Control

Members for two groups should be selected in a standard experimental control, i.e
Group A and Group B. The members of the group „A‟ should be given the special
experimental treatment. The group „B‟ do not receive the same though they are in the same
environment. This group is called the ‘control group’

Though it is not possible in engineering but for the projects which are confirmed to
laboratory experiments. Because, in engineering the experimental subjects are human beings
who are out of the control of the experimenters. In engineering, the consumers have more
control as they are the selecting authority of a project. So in engineering it is impossible to
follow a random selection. An engineer has to work only with the past data available with
various groups who use the products.

So engineering can be viewed as a natural experiment which uses human subjects. But
today, most of the engineers do not care for the above said Experimental Control.

2. Informed Consent

Engineering is closely related to the medical testing of new drugs and techniques on
human beings as it also concerned with human beings.

When new medicines have been tested, it should be informed to the persons who
undergo the test. They have moral and legal rights to know about the fact which is based on
“informed consent” before take part in the experiment. Engineering must also recognize
these rights. When a producer sells a new product to a firm which has its own engineering
staff, generally there will be an agreement regarding the risks and benefits form that testing.

Informed consent has two main principles such as knowledge and voluntariness.

First, the persons who are put under the experiment has to be given all the needed
information to make an appropriate decision. Second, they must enter into the experiment
without any force, fraud and deception. The experimenter has also to consider the
fundamental rights of the minorities and the compensation for the harmful effects of that
experiment.
 In both medicine and engineering there may be a large gap between the experimenter
and his knowledge on the difficulties of an experiment. This gap can be filled only when it is
possible to give all the relevant information needed for drawing a responsible decision on
whether to participate in the experiment or not.

In medicine, before prescribing a medicine to the patient, a responsible physician

must search for relevant information on the side effects of the drug. The hospital management
must allow him to undergo different treatments to different patients and finally the patient
must be ready to receive that information from the physician. Similarly it is possible for an
engineer to give relevant information about a product only when there is a better co-operation
by the management and quick acceptance from the customers.

The following conditions are essential for a valid informed consent

a. The consent must be given voluntarily and not by any force.

b. The consent must be based on the relevant information needed by a rational person
and should be presented in a clear and easily understandable form.

c. The consenter must be capable of processing the information and to make rational
decisions in a quick manner.

d. The information needed by a rational person must be stated in a form to understand

without any difficulty and has to be spread widely.

e. The experimenter‟s consent has to be offered in absentia of the experimenter by a

group which represents many experiments.

Knowledge Gained

Scientific experiments have been conducted to acquire new knowledge. Whereas

engineering projects are conducted as experiments not for getting new knowledge. Suppose
the outcomes of the experiment is best, it tells us nothing new, but merely affirms that we are
right about something. Mean while, the unexpected outcomes put us search for new
knowledge.
ENGINEERS AS RESPONSIBLE EXPERIMENTERS

The engineers have so many responsibilities for serving the society.

1. A primary duty is to protect the safety of human beings and respect their right of
consent. [A conscientious commitment to live by moral values].
2. Having a clear awareness of the experimental nature of any project, thoughtful
forecasting of its possible side effects, and an effort to monitor them reasonably. [A
comprehensive perspective or relative information].
3. Unrestricted free personal involvement in all the steps of a project. [Autonomy]
4. Being accountable for the results of a project [Accountability]
5. Exhibiting their technical competence and other characteristics of professionalism.

Conscientiousness

Conscientiousness implies consciousness (sense of awareness). As holding the

responsible profession with maintaining full range moral ethics and values which are
relevant to the situation. In order to understand the given situation, its implications, know-
how, person who is involved or affected, Engineers should have open eyes, open ears and
open mind.

The present working environment of engineers, narrow down their moral vision fully
with the obligations accompanied with the status of the employee. More number of
engineers are only salaried employees, so, they have to work within large bureaucracies
under great pressure to work smoothly within the company. They have to give importance
only to the obligations of their employers. Gradually, the small negative duties such as
not altering data by fraud, not violating patent right and not breaking confidentiality, may
be viewed as the full extent of moral desire.

As mentioned, engineering as social experimentation brings into light not only to the
person concerned but also to the public engineers as guardians of the public interest i.e.,
to safeguard the welfare and safety of those affected by the engineering projects. This
view helps to ensure that this safety and welfare will not be affected by the search for new
knowledge, the hurry to get profits, a small and narrow follow up of rules or a concern
over benefits for the many and ignoring the harm to the few.

The social experimentation that involved in engineering should be restricted by the

participants consent.

Relevant Information
 Without relevant factual information, conscientious is not possible. For showing
moral concern there should be an obligation to obtain and assess properly all the available
information related to the fulfillment of one‟s moral obligations. This can be explained as:

1) To understand and grasp the circumstance of a person‟s work, it is necessary

to know about how that work has a moral importance. For example, A person
is trying to design a good heat exchanger. There is nothing wrong in that. But
at the same time, if he forgets the fact that the heat exchanger will be used in
the manufacture of an illegal product, then he is said to be showing a lack of
moral concern. So a person must be aware of the wider implication of his
work that makes participation in a project.
2) Blurring the circumstance of a person‟s work derived from his specialization
and division of labour is to put the responsibilities on someone else in the
organization. For example if a company produces items which are out of
fashion or the items which promotes unnecessary energy wastage, then it is
easy to blame sales department.

The above said means, neglecting the importance of a person‟s works also makes it
difficult in acquiring a full perspective along a second feature of factual information i.e.,
consequence of what one does.

So, while giving regard to engineering as social experimentation, points out the
importance of circumstances of a work and also encourage the engineers to view his
specialized activities in a project as a part of a large social impact.

Moral Autonomy

This refers to the personal involvement in one‟s activities. People are morally
autonomous only when their moral conduct and principles of actions are their own i.e.,
genuine in one‟s commitment to moral values.

Moral beliefs and attitudes must be integrated into an individual‟s personality which
leads to a committed action. They cannot be agreed formally and adhered to merely verbally.
So, the individual principles are not passively absorbed from others. When he is morally
autonomous and also his actions are not separated from himself.

When engineering have seen as a social experimentation, it helps to keep a sense of

autonomous participation in a person‟s work. An engineer, as an experimenter, is undergoing
training which helps to form his identity as a professional. It also results in unexpected
consequence which helps to inspire a critical and questioning attitudes about the current
economic and safety standards. This also motivates a greater sense of personal involvement
in a person‟s work.

Accountability

The people those who feel their responsibility, always accept moral responsibilities
for their actions. It is known as accountable. In short, „accountable‟ means being culpable and
hold responsible for faults. In general and to be proper, it means the general tendency of
being willing to consider one‟s actions to moral examinations and be open and respond to the
assessment of others. It comprises a desire to present morally convincing reasons for one‟s
conduct when called upon in specific circumstances.

The separation of causal influence and moral accountability is more common in all
business and professions and also in engineering. These differences arising from several
features of modern engineering practices are as follows:

1. Large – scale engineering projects always involve division of work. For each and
every piece of work, every person contributes a small portion of their work towards
the completion of the project. The final output us transmitted from one‟s immediate
work place to another causing a decrease in personal accountability.
2. Due to the fragmentation of work, the accountability will spread widely within an
organization. The personal accountability will spread over on the basis of hierarchies
of authority.
3. There is always a pressure to move on to a different project before finishing the
current one. This always leads to a sense of being accountable only for fulfilling the
schedules.
4. There is always a weaker pre-occupation with legalities. In other words this refers to a
way a moral involvement beyond the laid down institutional role. To conclude,
engineers are being always blamed for all the harmful side effects of their projects.
Engineers cannot separate themselves from personal responsibilities for their work.

CODES OF ETHICS

The codes of ethics have to be adopted by engineering societies as well as by

engineers. These codes exhibit the rights, duties, and obligations of the members of a
profession. Codes are the set of laws and standards.

A code of ethics provides a framework for ethical judgment for a professional. A code
cannot be said as totally comprehensive and cover all ethical situations that an engineer has to
face. It serves only as a starting point for ethical decision-making. A code expresses the
circumstances to ethical conduct shared by the members of a profession. It is also to be noted
that ethical codes do not establish the new ethical principles. They repeat only the principles
and standards that are already accepted as responsible engineering practice. A code defines
the roles and responsibilities of professionals.

Roles of codes and its functions

1. Inspiration and Guidance

Codes give a convinced motivation for ethical conduct and provide a helpful
guidance for achieving the obligations of engineers in their work. Codes contribute mostly
general guidance as they have to be brief. Specific directions may also be given to apply the
code in morally good ways. The following engineering societies have published codes of
ethics.

AAES - American Association of Engineering Societies

ABET - Accreditation Board for Engineering and Technology (USA)

NSPE - National Society of Professional Engineer (USA)

IEEE - Institute of Electrical and Electronics Engineering (USA)

AICTE - All India Council for Technical Education (India)

Most of the technological companies have established their own codes such as
pentagon (USA), Microsoft etc. These codes are very much helpful to strengthen the moral
issues on the work of an engineer.

2. Support
Codes always support an engineer who follows the ethical principles. Codes
give engineers a positive, a possible good support for standing on moral issues. Codes
also serve as a legal support for engineers.
3. Deterrence and Discipline
Codes act as a deterrent because they never encourage to act immorally. They
also provide discipline among the Engineers to act morally on the basis of codes does
not overrule the rights of those being investigated.
4. Education and Mutual Understanding
Codes have to be circulated and approved officially by the professionals, the
public and government organizations which concern with the moral responsibilities of
engineers and organizations.
5. Contributing to the profession’s Public Image
Codes help to create a good image to the public of an ethically committed
 profession. It helps the engineers in an effective manner to serve the public. They also
gives self-regulation for the profession itself.
6. Protecting the Status Quo
Codes determine ethical conventions which help to create an agreed upon
minimum level of ethical conduct. But they can also suppress the disagreement within
the profession.
7. Promoting Business Interests
Codes help to improve the business interests. They help to moralize the
business dealings to benefit those within the profession.

Limitations of Codes

1. Codes are restricted to general and vague wordings. Due to this limitation they cannot
be applicable to all situations directly. It is also impossible to analyze fully and
predict the full range of moral problems that arises in a complex profession.
2. Engineering codes often have internal conflicts. So they can‟t give a solution or
method for resolving the conflict.
3. They cannot be treated as the final moral authority for any professional conduct.
Codes represent a compromise between differing judgments and also developed
among heated committee disagreements.
4. Only a few practicing engineers are the members of Professional Societies and so they
can not be compelled to abide by their codes.
5. Many engineers who are the members of Professional Societies are not aware of the
existence of the codes of their societies and they never go through it.
6. Codes can be reproduced in a very rapid manner.
7. Codes are said to be coercive i.e., implemented by threat or force.

A BALANCED OUTLOOK ON LAW

A balanced outlook on laws stresses the necessity of laws and regulations and their
limitations in directing engineering practice.

In order to live, work and play together in harmony as a society, there must be a
balance between individual needs and desires against collective needs and desires. Only
ethical conduct can provide such a balance. This ethical conduct can be applied only with the
help of laws. Laws are important as the people are not fully responsible and because of the
competitive nature of the free enterprise system which does not encourage moral initiative.

The model of engineering as social experimentation allows for the importance of clear
laws to be effectively enforced.
 Engineers ought to play an effective role in promoting or changing enforceable rules
of engineering as well as in enforcing them. So the codes must be enforced with the help of
laws. The following are the two best examples.

1. Babylon’s Building Code: (1758 B.C.)

This code was made by Hammurabi, king of Babylon. He formed a code for
builders of his time and all the builders were forced to follow the code by law. He
ordered

“If a builder has built a house for a man and has not made his work
sound, and the house which he has built was fallen down and so caused the death
of the householder, that builder shall be put to death. If it causes the death of the
house holder’s son, they shall put that builder’s son to death. If it causes the
death of the house holder’s slave, he shall give slave to the householder. If it
destroys property he shall replace anything it has destroyed; and because he has
not made the house sound which he has built and it has fallen down, he shall
rebuild the house which has fallen down from his own property. If a builder has
built a house for a man and does not make his work perfect and the wall bulges,
that builder shall put that wall in to sound condition at his own cost”.

The above portion of Babylon‟s building code was respected duly. But the
aspects find only little approval today. This code gives a powerful incentive for self-
regulation.

2. The United States Steamboat Code: [1852 A.D]

Steam engines in the past were very large and heavy. James Watt, Oliver
Evans and Richard Trevethik modified the old steam engines by removing condensers
and made them compact. Beyond careful calculations and guidelines, explosions of
boiler happened on steam boats, because of the high speed of the boats. The safety
valves were unable to keep steam pressure up causing explosion. During that period in
18th century, more than 2500 people were killed and 2000 people were injured
because of the explosion of boilers in steam boats.

Due to this, the ruling congress in USA passed a law which provided for
inspection of the safety aspects of ships and their boilers and engines. But his law
turned out to be ineffective due to the corruptions of the inspectors and also their
inadequate training regarding the safety checking. Then Alfred Guthiro, an engineer
of Illinoise had inspected about 200 steam boats on his own cost and found out the
reasons for the boiler explosions and made a report. His recommendations were
 published by a Senator Shields of Illinoise and incorporated in senate documents.
With the help of this, another law was passed. Now it is in the hands of the American
Society of Mechanical Engineers who formulated the standards for producing steam
boats.

THE CHALLENGER CASE STUDY

The world has known about many number of accidents. Among them the explosion of
the space shuttle „Challenger‟ is the very familiar one. In those days this case had been
reviewed vigorously by media coverage, government reports and transcripts of hearings. This
case deals with many ethical issues which engineers faced. It poses many questions before us.
What is the exact role of the engineer when safety issues are concern? Who should have the
ultimate authority for decision making to order for a launch? Whether the ordering of a
launch be an engineering or a managerial decision?

Challenger space shuttle was designed to be a reusable one. The shuttle mainly
consisted of an orbiter, two solid propellant boosters and a single liquid-propeller booster. All
the boosters was ignited and the orbiter was lifted out the earth. The solid rocket booster was
of reusable type. The liquid propellant booster was used to finish the lifting of the shuttle in
to the orbit. This was only a part of the shuttle which has been reused.

The accident took place on 28 th January 1986, due to the failure of one of the solid
boosters. In the design of the space shuttle, the main parts which needed careful design of the
fields joints where the individual cylinders were placed together. The assembly mainly
consists of tang and clevis joints which are sealed by two O-rings made up of synthetic
rubber only, not specifically hat resistant. The function of the O-rings are to prevent the
combustion gases of the solid propellant from escaping. The O-rings were eroded by hot
gases, but this was not a serious problem, as the solid rocket boosters were only for reuse
initially for the few minutes of the flight. If the erosion of the O-rings could be in a controlled
mannaer, and they would not completely burnt through, then the design of the joint would be
acceptable, however the design of the O-rings in this shuttle was not so.

In the post flight experiment in 1985, the Thiokol engineers noticed black soot and
grease on the outside of the boosters due to leak of hot gases blown through the O-rings. This
raised a doubt on the resiliency of the materials used for the O-rings. Thiokol engineers
redesigned the rings with steel billets to withstand the hot gases. But unfortunately this new
design was not ready by that time of flight in 1986.

Before launching, it was necessary to discuss the political environment under which
NASA was operating at that time. Because the budget of NASA has decided by Congress.
These factors played the main cause for unavoidable delay in the decision to be taken for the
shuttle performance, the pressures placed for urgency in launching in 1986 itself, before the
launch of RUSSIAN probe to prove to the congress that the program was on processing. The
launching date had already been postponed for the availability of vice president GEORGE
BUSH, the space NASA supporter. Later further delayed due to a problem in micro switch in
the hatch-locking mechanism. The cold weather problem and long discussions went on
among the engineers. The number of tele-conferences further delayed the previous testing in
1985 itself. The lowest temperature was 53o F but O-ring temperature during the proposed
launch period happened to be only 29 F,o which was far below the environment temperature
at which NASA had the previous trail. Somehow, the major factor that made the revised final
decision was that previous trial. Somehow, the major factor that made the revised final
decision was that with the available data at that time there seemed to be no correlation
between the temperature and the degree at which O-rings had eroded by the blow-by gas in
the previous launch. Assuming a safety concern due to cold weather, though the data were
not concluded satisfactorily, a decision was taken not to delay further for so many reasons,
and the launch was finally recommended.

But unexpectedly the overnight temperature at the time of launch was 8 Fo colder than
ever experienced. It was estimated that the temperature of the right hand booster would be
only at 28 oF. The camera noticed a puff of smoke coming out from the field joints as soon as
the boosters were ignited. But the O-rings were not positioned properly on their seats due to
extreme cold temperature. The putty used as heat resistant material was also too cold that it
failed to protect the O-rings. All these effects made the hot gases to burn past both the O-
rings, leading to a blow-by over an arc around the O-rings. Though immediately further
sealing was made by the by-products of combustion in the rocket propulsion, a glassy oxide
formed on the joints. The oxides which were temporarily sealing the field joints at high
temperature, later were shattered by the stresses caused by the wind. Again the joints were
opened and the hot gases escaped from the solid boosters. But the boosters were attached to
the large liquid fuel boosters as per the design. This made the flames due to blow-by from the
solid fuel boosters quickly to burn through the external tank. This led to the ignition of the
liquid propellant making the shuttle exploded.

Later the accident was reviewed and investigations were carried out by the number of
committees involved and by various government bodies. President Regan appointed a
commission called Rogers Commission which constituted many distinguished scientists and
engineers. The eminent scientists in the commission after thorough examination and
investigations gave a report on the flexibility of the material and proved that the resiliency of
the material was not sufficient and drastically reduced during the cold launch.

As the result of commission hearings, a lot of controversial arguments went on among

the Thiokol engineers. Thiokol and NASA investigated possible causes of the explosion.
Mr.Boisjoly, the main member in the investigation team, accused Thiokol and NASA of
intentionally downplaying the problems with the O-rings while looking for the other causes
of the accidents. The hot discussions hurted the feelings and status of the headed engineers
like Mr.Boisjoly, Mr.Curtis and Mr.Mellicam. Finally the management‟s atmosphere also
became intolerable. This event shows the responsibility, functions, morality, duties of the
engineers leading to ethical problems.
 UNIT –III

ENGINEER’S RESPONSIBILITY FOR SAFETY

Syllabus: Safety and risk - assessment of safety and risk - risk benefit analysis and reducing risk - the three mile
island and chernobyl case studies.

SAFETY AND RISK

Risk is akey element in any engineering design.

Concept of Safety:

A thing is safe if its risks are judged to be acceptable. Safety are tactily value judgments
about what is acceptable risk to a given person or group.

Types of Risks:

Voluntary and Involuntary Risks

Short term and Long Term Consequences

Expected Portability

Reversible Effects

Threshold levels for Risk

Delayed and Immediate Risk

Risk is one of the most elaborate and extensive studies. The site is visited and
exhaustive discussions with site personnel are undertaken. The study usually covers risk
identification, risk analysis, risk assessment, risk rating, suggestions on risk control and risk
mitigation.
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 Interestingly, risk analysiscan beexpanded to fullfledgerisk managementstudy. The
risk management study also includes residual risk transfer, risk financing etc.
Stepwise, Risk Analysis will include:

• Hazards identification
• Failure modes and frequencies evaluation from established sources and best practices.
• Selection of crediblescenarios and risks.
• Fault and event trees for various scenarios.
• Consequences-effect calculations with work out from models.
• Individual and societal risks.
•ISO risk contours superimposed on layouts for various scenarios.
• Probability and frequency analysis.
• Established risk criteria of countries, bodies, standards.
• Comparison of risk against defined risk criteria.
• Identification of risk beyond the location boundary, if any.
• Risk mitigation measures.

The steps followed are need based andall or some of these may be required from the above
depending upon the nature of site/plant.

Risk Analysis is undertaken after detailed site study and will reflect Chilworth
exposureto varioussituations. Itmay also includestudy on frequency analysis, consequences
analysis, risk acceptability analysis etc., if required. Probability and frequency analysis
covers failure modes and frequencies from established sources and best practices for various
scenarios and probability estimation.

Consequences analysis deals with selection of credible scenarios and consequences

effect calculation including worked out scenarios and using software package.

RISK BENEFIT ANALYSIS AND REDUCING RISK

Risk-benefit analysisis the comparison of theriskof a situation to its related benefits.

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 For research that involves more than minimal risk of harm to the subjects, the
investigator must assure that the amount of benefit clearly outweighs the amount of risk.
Only if there is favorable risk benefit ratio, a study may be considered ethical.

Risk Benefit Analysis Example

Exposure to personal risk is recognized as a normal aspect of everyday life. We

accept a certain level of risk in our lives as necessary to achieve certain benefits. In most of
these risks we feel as though we have some sort of control over the situation. For example,
driving an automobile is a risk most people take daily. "The controlling factor appears to be
their perception of their individual ability to manage the risk-creating situation." Analyzing
therisk ofasituation is, however, very dependenton theindividualdoing theanalysis. When
individuals are exposed to involuntary risk, risk which they have no control, they make risk
aversion their primary goal. Under these circumstances individuals require the probabilty of
risk to be as much as one thousand times smaller then for the same situation under their
perceived control.

Evaluations of future risk:

 Real future risk as disclosed by the fully matured future circumstances when they
develop.
 Statistical risk, as determined by currently available data, as measured actuarially for
insurance premiums.
 Projected risk, as analytically based on system models structured from historical
studies.
 Perceived risk, as intuitively seen by individuals.

Air transportation as an example:

 Flight insurance company -statistical risk.

 Passenger -percieved risk.

 Federal Aviation Administration(FAA) -projected risks.

How to Reduce Risk?

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1.Define the Problem

2.Generate Several Solutions

3. Analyse each solution to determine the pros and cons ofeach

4. Test the solutions

5.Select the best solution

6. Implement the chosen solution

7. Analyse the risk in the chosen solution

8. Try to solve it. Or move to next solution.

Risk-Benefit Analysis and Risk Management

Informative risk-benefit analysis and effectiverisk managementare essential to the ultimate

commercial success of your product. We are a leader in developing statistically rigorous,
scientifically valid risk-benefit assessment studies that can be used to demonstrate the level of
risk patients and other decision makers are willing to accept to achieve the benefits provided
by your product.

Risk-Benefit Systematically quantify the relative importance of risks and

Modeling benefits to demonstrate the net benefits of treatment

Risk-Benefit Quantify patients’ maximum acceptable risk for specific

Tradeoffs therapeutic benefits

CHERNOBYL CASE STUDIES

What Happened?

At 1:24 AM on April 26, 1986, there was an explosion at the Soviet nuclear power plant at
Chernobyl. Oneof thereactorsoverheated, igniting apocket ofhydrogen gas. Theexplosion
blew the top off the containment building, and exposed the molten reactor to the air. Thirty-
one power plant workers were killed in the initial explosion, and radioactive dust and debris
spewed into the air.
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Ittook severaldaysto putoutthefire. Helicoptersdropped sand and chemicalson thereactor

rubble, finally extinguishing the blaze. Then the Soviets hastily buried the reactor in a
sarcophagus of concrete. Estimates of deaths among the clean-up workers vary widely. Four
thousand clean-up workers may have died in the following weeks from the radiation.

The countries now known as Belarus and Ukraine were hit the hardest by the radioactive
fallout. Winds quickly blew the toxic cloud from Eastern Europe into Sweden and Norway.
Within a week, radioactive levels had jumped over all of Europe, Asia, and Canada. It is
estimated thatseventy-thousand Ukrainianshavebeen disabled, and fivemillion peoplewere
exposed to radiation. Estimates of total deaths due to radioactive contamination range from
15,000 to 45,000 or more.

To give you an idea of the amount of radioactive material that escaped, the atomic bomb
dropped on Hiroshima had a radioactive mass of four and a half tons. The exposed
radioactive mass at Chernobyl was fifty tons.

In themonthsand yearsfollowing, birth defectswerecommon for animalsand humans. Even

the leaves on the trees became deformed.

Today, in Belarusand Ukraine, thyroid cancer and leukemiaarestillhigher than normal. The
towns of Pripyat and Chernobyl in the Ukraine are ghost towns. They will be uninhabitable
due to radioactive contamination for several hundred years. The worst of the contaminated
area is called “The Zone,” and it is fenced off. Plants, meat, milk, and water in the area are
stillunsafe. Despitethecontamination, millionsofpeoplelivein and near TheZone, too poor
to move to safer surroundings.

Further, human genetic mutations created by the radiation exposure have been found in
children who have only recently been born. This suggests that there may be another whole
generation of Chernobyl victims.

Recentreportssay thattherearesomeindicationsthattheconcretesarcophagusatChernobyl
is breaking down.

How a Nuclear Power Plant Works

The reactor at Chernobyl was composed of almost 200 tons of uranium. This giant block of
uranium generated heat and radiation. Water ran through the hot reactor, turning to steam.
The steam ran the turbines, thereby generating electricity. The hotter the reactor, the more
electricity would be generated.

Leftto itself, the reactor would become too reactive—it would become hotter and hotter and
more and more radioactive. If the reactor had nothing to cool it down, it would quickly
meltdownÑa process where the reactor gets so hot that it meltsÑmelting through the floor.
So, engineers needed a way to control the temperature of the reactor, to keep it from the
catastrophic meltdown. Further, the engineers needed to be able to regulate the temperature
of the reactor—so that it ran hotter when more electricity was needed, and could run colder
*

when less electricity was desired.

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The method they used to regulate the temperature of the reactor was to insert heat-absorbing
rods, called control rods. These control rods absorb heat and radiation. The rods hang above
the reactor, and can be lowered into the reactor, which will cool the reactor. When more
electricity is needed, the rods can be removed from the reactor, which will allow the reactor
to heat up. The reactor has hollow tubes, and the control rods are lowered into these reactor
tubes, or raised up out of the reactor tubes. At the Chernobyl-type reactors, there are 211
control rods. The more control rods that are inserted, the colder the reactor runs. The more
control rods that are removed, the hotter the reactor becomes.

How a Nuclear Power Plant

Works

Soviet safety procedures demanded that at least 28 rods were inserted into the Chernobyl
reactor at all times. This was a way to make sure that the reactor wouldn’t overheat.

Water was another method to moderate the temperature of the reactor. When more water ran
through the reactor, the reactor cooled faster. When less water ran through the reactor, the
reactor stayed hot.

Chernobyl Background
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The list of senior engineers at Chernobyl was as follows: Viktor Bryukhanov, the plant
director, was a pure physicist, with no nuclear experience.

Anatoly Dyatlov, the deputy chief engineer, served as the day-to-day supervisor. He had
worked with reactor cores but had never before worked in a nuclear power plant. When he
accepted the job as deputy chief engineer, he exclaimed, “you don’t have to be a genius to
figure out a nuclear reactor.”

Theengineers were Aleksandr Akimov, serving his first position in this role; NikolaiFomin,
an electrical engineer with little nuclear experience; Gennady Metlenko, an electrical
engineer; and Leonid Toptunov, a 26 year-old reactor control engineer. The engineers were
heavy in their experience of electric technology, but had less experience with the uniqueness
of neutron physics.

The confidence of these engineers was exaggerated. They believed they had decades of
problem-freenuclear work, so they believed thatnuclear power wasvery safe. Theengineers
believed that they could figure out any problem. In reality, there had been many problems in
the Soviet nuclear power industry. The Soviet state tried to keep problems a secret because
problems are bad PR.

TheSovietshad anumber ofnuclear accidents(thisisapartiallistofSovietaccidentsbefore

Chernobyl). In 1957 in Chelyabinsk, therewasasubstantialreleaseofradioactivity caused by
a spontaneous reaction in spent fuel; in 1966 in Melekess the nuclear power plant
experienced a spontaneous surge in power, releasing radiation; In 1974, there was an
explosion at the nuclear power plant in Leningrad; Later in 1974, at the same nuclear power
plant, threepeoplewerekilled and radiation wasreleased into theenvironment;in1977, there
wasapartialmeltdown ofnuclear fuelatByeloyarsk;in 1978 atByeloyarsk, thereactor went
out of control after a roof panel fell onto it; In 1982 at Chernobyl, radioactivity was released
into the environment; In 1982, there was there was a fire at Armyanskaya; In 1985, fourteen
people were killed when a relief valve burst in Balakovo.

Had the engineers at Chernobyl had the information of the previous nuclear accidents,
perhaps they would have known to be more careful. It is often from mistakes that we learn,
and the engineers at Chernobyl had no opportunity to learn.

As a footnote, don’t think that the problems were just those mistake-laden Soviets. Here is a
partial list of American accidents before Chernobyl: In 1951, the Detroit reactor overheated,
and air was contaminated with radioactive gasses; In 1959, there was a partial meltdown in
Santa Susanna, California; In 1961, three people were killed in an explosion at the nuclear
power plant at Idaho Falls, Idaho; In 1966, there was a partial meltdown at a reactor near
Detroit;In 1971, 53,000 gallonsofradioactivewater werereleased into theMississippiRiver
from the Monticello plant in Minnesota; In 1979, there was population evacuation and a
discharge of radioactive gas and water in a partial meltdown at Three Mile Island; in 1979
there was a discharge of radiation in Irving Tennessee; In 1982, there was a release of
radioactive gas into the environment in Rochester, New York; In 1982, there was a leak of
radioactive gasses into the atmosphere at Ontario, New York; In 1985, there was a leak of
radioactive water near New York City; In 1986, one person was killed in an explosion of a
tank of radioactive gas in Webbers Falls, Oklahoma.
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The engineers at Chernobyl didn’t know about these nuclear accidents. These were secrets
thattheSovietskeptfromthenuclear engineers. Consequently, no onewasableto learn from
the mistakes of the past. The nuclear plant staff believed that their experience with nuclear
power was pretty much error-free, so they developed an overconfidence about their working
style.

So, according to Gregori Medvedev (the Soviet investigator of Chernobyl), their practice
becamelazy and their safety practicesslipshod. Further, theheavy bureaucracy and hierarchy
of the Soviet system created an atmosphere where every decision had to be approved at a
variety of higher levels. Consequently, the hierarchical system had quelled the operators'
creativity and motivation for problem-solving.

April 25th, 1:00 PM

The engineers at Chernobyl had volunteered to do a safety test proposed by the Soviet
government. In theeventofareactor shutdown, aback-up systemofdieselgeneratorswould
crank up, taking over the electricity generation. However, the diesel engines took a few
minutes to start producing electricity. The reactor had a turbine that was meant to generate
electricity for a minute or two until the diesel generators would start operating. The
experiment at Chernobyl was meant to see exactly how long that turbine would generate the
electricity.
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The experiment required that the reactor be operating at 50% of capacity. On April 25 ,
1986, at 1:00 PM, the engineers began to reduce the operating power of the reactor, by
inserting the control rods into the reactor. This had the effect, you may recall, of cooling off
the reactor—making it less reactive.

They also shutdown theemergency cooling system. They wereafraid thatthecooling system
might kick in during the test, thereby interfering with the experiment. They had no
authorization to deactivate the cooling system, but they went ahead and deactivated it.

The experiment called for running the reactor at 50% capacity, thereby generating only half
the electricity. At 2:00 PM, a dispatcher at Kiev called and asked them to delay the test
because of the higher-than-expected energy usage. They delayed the test, but did not
reactivate the emergency cooling system.

April 25th, 11:00 PM

At11:00 PM, they began thetestagain. Toptunov, thesenior reactor controlengineer, began
to manually lower the reactor to 50% of its capacity so that they could begin the turbine
safety experiment.

Lowering the power generation of a nuclear reactor is a tricky thing. It is not like lowering
thethermostatin ahouse. When you lower thethermostatinthehousefrom72 to 68 degrees,
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the temperature in the house will drop to 68 degrees and stay there. But in a nuclear reactor,
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thedropping ofthetemperatureisnotonly theresultoflowering thereactivity, butitisalso a

cause of lowering the reactivity. In other words, the coldness of the reactor will make the
reactor colder. This is called the self-damping effect. Conversely, when the reactor heats up,
the heat of the reactor will make itself hotter (the self-amplifying effect).

So, when the control rods are dropped into the reactor, the reactivity goes down. And the
water running through the reactor also lessens reactivity. But the lower reactivity also makes
thereactor itselflessreactive. So, theChernobylreactor damped itself, even asthewater and
the control rods damped its reactivity.

It is typically hard for people to think in terms of exponential reduction or exponential

increase. Wenaturally think ofalinear (straight-line) reduction or alinear increase. Wehave
trouble with self-damping and self-amplifying effects, because they are nonlinear by
definition.

So, theengineersoversteered theprocess, and hitthe50% mark, butthey wereunableto keep

it there. By 12:30 AM, the power generation had dropped to 1% of capacity.

Chernobyl-type reactors are not meant to drop that low in their capacity. There are two
problemswith thenuclear reactor running at1% ofcapacity. When reactivity dropsthatlow,
the reactor runs unevenly and unstably, like a bad diesel engine. Small pockets of reactivity
can begin thatcan spread hotreactivity through thereactor. Secondly, thelowrunning ofthe
reactor creates unwanted gasses and byproducts (xenon and iodine) that poison the reactor.
Because of this, they were strictly forbidden to run the reactor below 20% of capacity.

In the Chernobyl control room, Dyatlov (the chief engineer in charge of the experiment),
upon hearing thereactor wasat1%, flewinto arage. With thereactor capacity wasso low, he
would notbeableto conducthissafety experiment. With thereactor at1% capacity, Dyatlov
had two options:

1. One option was to let the reactor go cold, which would have ended the experiment,
and then they would have to wait for two days for the poisonous byproducts to
dissipate before starting the reactor again. With this option, Dyatlov would no doubt
have been reprimanded, and possibly lost his job.
2. The other option was to immediately increase the power. Safety rules prohibited
increasing the power if the reactor had fallen from 80% capacity. In this case, the
power had fallen from 50% capacity—so they were not technically governed by the
safety protocols.

Dyatlov ordered the engineers to raise power.

Today, we know the horrible outcome of this Chernobyl chronology. It is easy for us to sit
back in our armchairs, with the added benefit of hindsight, and say Dyatlov made the wrong
choice. Of course, he could have followed the spirit of the protocols and shut the reactor
down. However, Dyatlov did nothavethebenefitofhindsight. Hewasfaced with thechoice
ofthesuretyofreprimand and theharming ofhiscareer vs. thepossibilityofsafety problems.
And, we know from engineers and technical operators everywhere, safety protocols are
routinely breached when faced with this kind of choice. Experts tend to believe that they are
experts, and that the safety rules are for amateurs.
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Further, safety rules are not designed so that people are killed instantly when the safety
standard isbroken. On a55-mileper hour limiton ahighway, carsdo notsuddenly burstinto
flames at 56 miles per hour. In fact, there is an advantage to going 56 miles an hour as
opposed to 55 (you get to your destination faster). In the same way, engineers frequently
view safety rules as troublesome, and there is an advantage to have the freedom to disregard
them.

In fact, we experience this psychologic every day, usually without thinking about it. When
you come toward an intersection, and the light turns yellow, you reach a point where you
either haveto go through on ayellowlight, or cometo astop. Many peoplego through on the
yellow, even though thereisagreater risk. So, in asplitsecond, wedecidebetween thesurety
of sitting at a red light or the possibility, albeit slight, of a safety problem to go through the
yellowlight. Thereisaclear advantageto taketherisk (aslong asyou aren'tin an accident).
While the stakes were higher at Chernobyl, the same psychologic applies.

At this point in the Chernobyl process, there were 28 control rods in the reactor—the
minimumrequired. Increasing power would mean thateven morecontrolrodswould haveto
be removed from the reactor. This would be a breach of protocol--the minimum number of
rods was 28. Dyatlov gave the order to remove more control rods.

Toptunov, the reactor control engineer, refused to remove any more rods. He believed it
would be unsafe to increase the power. With the reactor operating at 1%, and the minimum
number of control rods in the reactor, he believed it would be unsafe to remove more rods.
He was abiding by a strict interpretation of the safety protocols of 28 rods.

But Dyatlov continued to rage, swearing at the engineers and demanding they increase
power. Dyatlov threatened to fire Toptunov immediately if he didn’t increase the power.

The 26-year-old Toptunov was faced with a choice. He believed he had two options:

1. He could refuse to increase power—but then Dyatlov would fire him immediately,
and his career would be over.
2. His other choice was to increase power, recognizing that something bad might
happen.

Toptunov looked around. Alltheother engineers—including hissupervisors—werewilling to

increase power. Toptunov knew he was young and didn't have much experience with
reactors. Perhaps this kind of protocol breach was normal. Toptunov was faced with that
choice of the surety of his career ending, vs the possibility of safety problems. Toptunov
decided to agree and increase the power.

Tragically, it would be the last decision Toptunov would ever make.

April 26th, 1:00 AM

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By 1:00 AM, the power of the reactor was stable at 7% of capacity. Only 18 control rods
were in the reactor (safety protocols demanded that no less than 28 control rods should
always be in the reactor).

At1:07 AM, theengineerswanted to makesurethereactor wouldn'toverheat, so they turned

on more water to ensure proper cooling (they were now pumping five times the normal rate
of water through the reactor). The extra water cooled the reactor, and the power dropped
again. Theengineersresponded by withdrawing even morecontrolrods. Now, only 3 control
rods were inserted in the reactor.

The reactor stabilized again. The engineers, satisfied with the amount of steam they were
getting (they needed steamfor their experiment) shutoffthepumpsfor theextrawater. They
shut off the water, apparently only considering the effect that the water would have on the
experiment—and did notconsider theeffectthatthewater washaving on thereactor. Atthis
point, with only 3 control rods in the reactor, the water was only thing keeping the reactor
cool. Without the extra cool water, the reactor began to get hot. Power increased slowly at
first. As the reactor got hotter, the reactor itself made the reactor hotter—the self-amplifying
effect. The heat and reactivity of the reactor increased exponentially.

The engineers were trying to watch multiple variables simultaneously. The water, the steam,
the control rods, and the current temperature of the reactor all were intertwined to affect the
reactivity of the reactor. People can easily think in cause and effect terms. Had their only
been one variable that controlled the reactivity, the results would probably have been
different. However, people have difficulty thinking through the process when there are a
multitude of variables, all interacting in different ways.

Peoplearenotprocessorsofunlimited information. Thereisalimited amountofinformation

with which a person can work. With the safety of hindsight, we can sit back and make a
judgment saying, "they didn't think through all their information." However, this kind of
linear judgment does not tell uswhythey didn't see what is obvious to our hindsight.

At1:22 AM(90 secondsbeforetheexplosion), theengineerswerestillrelaxed and confident.

Dyatlov, in fact, wasseeing histurbinesafety experimentcoming to asuccessfulconclusion.
In whatturned outto beatragicirony, heencouraged hisengineersby suggesting, “in two or
three minutes it will all be over.”

Thirty seconds before the explosion, the engineers realized the reactor was heating up too
fast. With only 3 control rods in the reactor, and then shutting off the water, the reactor was
superheating. In a panic, they desperately tried to drop control rods into the reactor, but the
heat of the reactor had already melted the tubes into which the control rods slid.

Thefloor ofthebuilding began to shake, and loud banging started to echo through thecontrol
room. Thecoolantwater began to boilviolently, causing thepipesto burst. Thesuper-heating
reactor was creating hydrogen and oxygen gasses. This explosive mixture of gasses
accumulated abovethereactor. Theheatofthereactor wasbuilding fast, and thetemperature
of the flammable gasses was rising.
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April26th, 1:24 AM

Finally, the gasses detonated, destroying the reactor and the protectivecontainmentbuilding.
The control room was far enough away from the containment building to escape destruction,
but the explosion shook the entire plant. Debris caved in around the control room members,
and Dyatlov, Akimov, Toptunov, and the others were knocked to the floor. Dust and chalk
filled the air. While they knew there had been an explosion, they hoped and prayed the
explosion had not come from the reactor. Toptunov and Akimov ran over the broken glass
and ceiling debris to the open door, and ran across the compound toward the containment
building. There, they saw the horrifying, unspeakable sight. There was rubble where the
reactor had been. They sawflamesshooting up 40 feethigh, burning oilsquirting frompipes
onto theground, black ash falling to theground, and abrightpurplelightemanating fromthe
rubble.

Within a few minutes, fire fighters had arrived. The fire fighters, most with no protective
equipment, heroically worked to extinguish the fire, hoping to prevent further damage to the
three other reactors at the plant. Most of the fire fighters died from the radiation exposure.

Bryukhanov (theplantdirector), who wasnotattheplantatthetime, had been contacted and

told about an explosion. In the chaos, those informing Bryukhanov of the explosion still did
not know the total amount of devastation. Bryukhavov, still desperately hoping that the
reactor wasintact, called Moscowto informthemthatwhiletherehad been an explosion, the
reactor had not sustained any damage.

Again, with thebenefit of hindsight, we can say that Bryukhanov should have acted quicker.
It's true that many lives could have been saved if he had acted differently. However, his
actions are not uncommon in these kinds of situations. A common reaction is called
"horizontalflight,"wherepeopleretreatfromtheworst-casescenario, convincing themselves
to believethebest-casescenario. Bryukhanov had convinced himselfthatthereactor wasnot
in danger. And after all, someonefromtheplanthad called and given an ambiguousmessage.
Surely they would have known if the reactor had been destroyed.

April 26th, 4:00 AM

At 4:00 AM, the command from Moscow came back: Keep the reactor cool. The authorities
in Moscow had no idea that the damage was so catastrophic.

Akimov, Dyatlov, and Toptunov, their skin brown from the radiation, and their bodies
wrenched from internal damage, had already been taken away to the medical center.

At 10:00 AM, Bryukhanov, the plant director, was informed that the reactor had been
destroyed. Bryukhanov rejected the information, preferring to believe that the reactor was
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still intact. He informed Moscow that the reactor was intact and radiation was within normal
limits.
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Later that day, experts from around the Soviet Union came to Chernobyl, and found the
horrifying truth. Thereactor had indeed been destroyed, and fifty tonsofradioactivefuelhad
instantly evaporated. The wind blew the radioactive plume in a northwesterly direction.
Belarus and Finland were going to be in the path of the radioactive cloud.

The Days Afterward

The secretive Soviet state was slow to act. Soviet bureaucracy debated whether to evacuate
nearby cities, and how much land should be evacuated. They were slow in their response,
slow to evacuate, and slow to inform the world of the disaster. It took over 36 hours before
authorities began to evacuate nearby residents. Two days later, the nightly news (the fourth
story) reported that one of the reactors was “damaged.”

Within a few days, radiation detectors were going off all over the world. The Soviets
continued to try to hide the issue from the world and their own residents.

Several months later, Bryukhanov was arrested, still believing that he did everything right.
Dyatlov survived the radiation sickness, and was arrested in December of that year. He
believed hewasascapegoatfor theaccident. Akimov died afewweeksafter thedisaster, but
till the very end continued to say, “I did everything right. I don’t know how it happened.”

The radiation cloud on April 27th, 1986

THREE MILE ISLAND ACCIDENT

(March 2001, minorupdateJan 2010)

%(
!"#$

(
  In 1979 at Three Mile Island nuclear power plant in USA a cooling malfunction
caused part of the core to melt in the # 2 reactor. The TMI-2 reactor was
destroyed.
 Some radioactive gas was released a couple of days after the accident, but not
enough to cause any dose above background levels to local residents.
 There were no injuries or adverse health effects from the Three Mile
Island accident.

The Three Mile Island power station is near Harrisburg, Pennsylvania in USA. It had two
pressurized water reactors. OnePWR wasof800 MWe(775 MWenet) and entered servicein
1974. It remains one of the best-performing units in USA. Unit 2 was of 906 MWe (880
MWe net) and almost brand new.

Theaccidentto unit2 happened at4 amon 28 March 1979 when thereactor wasoperating at
97% power. Itinvolved arelatively minor malfunction in thesecondary cooling circuitwhich
caused the temperature in the primary coolant to rise. This in turn caused the reactor to shut
down automatically. Shut down took about one second. At this point a relief valve failed to
close, butinstrumentation did notrevealthefact, and so much oftheprimary coolantdrained
away that the residual decay heat in the reactor core was not removed. The core suffered
severe damage as a result.

The operators were unable to diagnose or respond properly to the unplanned automatic
shutdown of the reactor. Deficient control room instrumentation and inadequate emergency
response training proved to be root causes of the accident
%)
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)
The chain of events during the Three Mile Island Accident

Within seconds of the shutdown, the pilot-operated relief valve (PORV) on the reactor
cooling system opened, as it was supposed to. About 10 seconds later it should have closed.
But it remained open, leaking vital reactor coolant water to the reactor coolant drain tank.
The operators believed the relief valve had shut because instruments showed them that a
"close"signalwassentto thevalve. However, they did nothavean instrumentindicating the
valve's actual position.

Responding to thelossofcooling water, high-pressureinjection pumpsautomatically pushed

replacement water into the reactor system. As water and steam escaped through the relief
valve, cooling water surged into thepressuriser, raising thewater levelin it. (Thepressuriser
is a tank which is part of the primary reactor cooling system, maintaining proper pressure in
the system. The relief valve is located on the pressuriser. In a PWR like TMI-2, water in the
primary cooling system around the core is kept under very high pressure to keep it from
boiling.)

Operatorsresponded by reducing theflowofreplacementwater. Their training told themthat

thepressuriser water levelwastheonly dependableindication oftheamountofcooling water
in the system. Because the pressuriser level was increasing, they thought the reactor system
was too full of water. Their training told them to do all they could to keep the pressuriser
from filling with water. If it filled, they could not control pressure in the cooling system and
it might rupture.

Steam then formed in the reactor primary cooling system. Pumping a mixture of steam and
water caused the reactor cooling pumps to vibrate. Because the severe vibrations could have
damaged the pumps and made them unusale, operators shut down the pumps. This ended
forced cooling of the reactor core. (The operators still believed the system was nearly full of
water becausethepressuriser levelremained high.) However, asreactor coolantwater boiled
away, the reactor?s fuel core was uncovered and became even hotter. The fuel rods were
damaged and released radioactive material into the cooling water.

At 6:22 am operators closed a block valve between the relief valve and the pressuriser. This
action stopped thelossofcoolantwater through thereliefvalve. However, superheated steam
and gases blocked the flow of water through the core cooling system.

Throughout the morning, operators attempted to force more water into the reactor system to
condense steam bubbles that they believed were blocking the flow of cooling water. During
the afternoon, operators attempted to decrease the pressure in the reactor system to allow a
low pressure cooling system to be used and emergency water supplies to be put into the
system.

Cooling Restored

By late afternoon, operators began high-pressure injection of water into the reactor cooling
system to increase pressure and to collapse steam bubbles. By 7:50 pm on 28 March, they
restored forced cooling of the reactor core when they were ableto restartonereactor coolant
pump. They had condensed steam so that the pump could run without severe vibrations.
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Radioactive gases from the reactor cooling system built up in the makeup tank in the
auxiliary building. During March 29 and 30, operators used a system of pipes and
compressors to move the gas to waste gas decay tanks. The compressors leaked, and some
radioactive gas was released to the environment.

The Hydrogen Bubble

When the reactor's core was uncovered, on the morning of 28 March, a high-temperature
chemicalreaction between water and thezircaloy metaltubesholding thenuclear fuelpellets
had created hydrogen gas. In the afternoon of 28 March, a sudden rise in reactor building
pressure shown by the control room instruments indicated a hydrogen burn had occurred.
Hydrogen gas also gathered at the top of the reactor vessel.

From 30 March through 1 April operators removed this hydrogen gas "bubble" by
periodically opening the vent valve on the reactor cooling system pressuriser. For a time,
regulatory (NRC) officials believed the hydrogen bubble could explode, though such an
explosion was never possible since there was not enough oxygen in the system.

Cold Shutdown

After an anxious month, on 27 April operators established natural convection circulation of

coolant. The reactor core was being cooled by the natural movement of water rather than by
mechanical pumping. The plant was in "cold shutdown".

Public concern and confusion

When the TMI-2 accident is recalled, it is often in the context of what happened on Friday
and Saturday, March 30-31. The drama of the TMI-2 accident-induced fear, stress and
confusion on those two days. The atmosphere then, and the reasons for it, are described well
in the book "Crisis Contained, TheDepartmentofEnergyatThreeMileIsland," by Philip L
Cantelon and Robert C. Williams, 1982. This is an official history of the Department of
Energy's role during the accident.

"Friday appears to have become a turning point in the history of the accident because of two
events:thesudden risein reactor pressureshown by controlroominstrumentson Wednesday
afternoon (the "hydrogen burn") which suggested a hydrogen explosion? became known to
the Nuclear Regulatory Commission [that day]; and the deliberate venting of radioactive
gases from the plant Friday morning which produced a reading of 1,200 millirems (12 mSv)
directly above the stack of the auxiliary building.

"Whatmadethesesignificantwasaseriesofmisunderstandingscaused, in part, by problems

of communication within various state and federal agencies. Because of confused telephone
conversationsbetween peopleuninformed abouttheplant'sstatus, officialsconcluded thatthe
1,200 millirems (12 mSv) reading was an off-site reading. They also believed that another
hydrogen explosion was possible, that the Nuclear Regulatory Commission had ordered
evacuation and that a meltdown was conceivable.
%+

"Garbled communications reported by the media generated a debate over evacuation.

!"#$

Whether or not there were evacuation plans soon became academic. What happened on
+

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Techno Script Solutions (www.technoscriptz.com)

Friday was not a planned evacuation but a weekend exodus based not on what was actually
happening at Three Mile Island but on what government officials and the media imagined
might happen. On Friday confused communications created the politics of fear." (Page 50)

Throughout the book, Cantelon and Williams note that hundreds of environmental samples
were taken around TMI during the accident period by the Department of Energy (which had
the lead sampling role) or the then-Pennsylvania Department of Environmental Resources.
But there were no unusually high readings, except for noble gases, and virtually no iodine.
Readings were far below health limits. Yet a political storm was raging based on confusion
and misinformation.

No Radiological Health Effects

TheThree Mile Islandaccident caused concerns about the possibility of radiation-induced

health effects, principally cancer, in the area surrounding the plant. Because of those
concerns, the Pennsylvania Department of Health for 18 years maintained a registry of more
than 30,000 people who lived within five miles of Three Mile Island at the time of the
accident. Thestate's registry was discontinued in mid 1997, withoutany evidenceof unusual
health trends in the area.

Indeed, more than a dozen major, independent health studies of the accident showed no
evidence of any abnormal number of cancers around TMI years after the accident. The only
detectable effect was psychological stress during and shortly after the accident.

The studies found that the radiation releases during the accident were minimal, well below
any levelsthathavebeen associated with health effectsfromradiation exposure. Theaverage
radiation dose to people living within 10 miles of the plant was 0.08 millisieverts, with no
more than 1 millisievert to any single individual. The level of 0.08 mSv is about equal to a
chestX-ray, and 1 mSv isaboutathird oftheaveragebackground levelofradiation received
by U.S. residents in a year.

In June1996, 17 yearsafter theTMI-2 accident, Harrisburg U.S. DistrictCourtJudgeSylvia

Rambo dismissed a class action lawsuit alleging that the accident caused health effects. The
plaintiffs have appealed Judge Rambo's ruling. The appeal is before the U.S. Third Circuit
Court of Appeals. However, in making her decision, Judge Rambo cited:

· Findings that exposure patterns projected by computer models of the releases compared so
well with data from the TMI dosimeters (TLDs) available during the accident that the
dosimeters probably were adequate to measure the releases.

·Thatthemaximumoffsitedosewas, possibly, 100 millirem(1 mSv), and thatprojected fatal

cancers were less thanone.

· The plaintiffs' failure to prove their assertion that one or more unreported hydrogen
"blowouts"in thereactor systemcaused oneor moreunreported radiation "spikes", producing
a narrow yet highly concentrated plume of radioactive gases.
%,

Judge Rambo concluded: "The parties to the instant action have had nearly two decades to
!"#$

muster evidencein supportoftheir respectivecases.... Thepaucity ofproofalleged in support

www.notesengine.com
Techno Script Solutions (www.technoscriptz.com)

of Plaintiffs' case is manifest. The court has searched the record for any and all evidence
which construed in a light most favourable to Plaintiffs creates a genuine issue of material
fact warranting submission of their claims to a jury. This effort has been in vain."

More than a dozen major, independent studies have assessed the radiation releases and
possible effects on the people and the environment around TMI since the 1979 accident at
TMI-2. The most recent was a 13-year study on 32,000 people. None has found any adverse
health effects such as cancers which might be linked to the accident.

The TMI-2 Cleanup

The cleanup of the damaged nuclear reactor system at TMI-2 took nearly 12 years and cost
approximately US$973 million. The cleanup was uniquely challenging technically and
radiologically. Plant surfaces had to be decontaminated. Water used and stored during the
cleanup had to be processed. And about 100 tonnes of damaged uranium fuel had to be
removed from the reactor vessel--all without hazard to cleanup workers or the public.

Acleanup plan wasdeveloped and carried outsafely and successfully by ateamofmorethan

1000 skilled workers. Itbegan in August1979, with thefirstshipmentsofaccident-generated
low-level radiological waste to Richland, Washington. In the cleanup's closing phases, in
1991, finalmeasurementsweretaken ofthefuelremaining in inaccessiblepartsofthereactor
vessel. Approximately onepercentofthefueland debrisremainsin thevessel. Also in 1991,
the last remaining water was pumped from the TMI-2 reactor. The cleanup ended in
December 1993, when Unit 2 received a license from the NRC to enter Post Defueling
Monitored Storage (PDMS).

Early in the cleanup, Unit 2 was completely severed from any connection to TMI Unit 1.
TMI-2 today isin long-termmonitored storage. No further useofthenuclear partoftheplant
isanticipated. Ventilation and rainwater systemsaremonitored. Equipmentnecessary to keep
the plant in safe long-term storage is maintained.

Defueling theTMI-2 reactor vesselwastheheartofthecleanup. Thedamaged fuelremained

underwater throughout the defueling. In October 1985, after nearly six years of preparations,
workers standing on a platform atop the reactor and manipulating long-handled tools began
lifting the fuel into canisters that hung beneath the platform. In all, 342 fuel canisters were
shipped safely for long-term storage at the Idaho National Laboratory, a program that was
completed in April 1990.

TMI-2 cleanup operations produced over 10.6 megalitres of accident-generated water that
was processed, stored and ultimately evaporated safely.

In February 1991, the TMI-2 Cleanup Program was named by the National Society of
Professional Engineers as one of the top engineering achievements in the U.S. completed
during 1990.

In 2010 the generator was sold by FirstEnergy to Progress Energy to upgrade its Harris
nuclear power plant in North Carolina. It is being shipped in two parts, the rotor, which
weighs 170 tonnes, and the stator, which weighs about 500 tonnes.
%-
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The NRC website has afactsheet on Three Mile Island.

TMI-1: Safe and World-Class

From its restart in 1985, Three Mile Island Unit 1 has operated at very high levels of safety
and reliability. Application of the lessons of the TMI-2 accident has been a key factor in the
plant's outstanding performance.

In 1997, TMI-1 completed the longest operating run of any light water reactor in the history
of nuclear power worldwide - 616 days and 23 hours of uninterrupted operation. (That run
wasalso thelongestatany steam-driven plantin theU.S., including plantspowered by fossil
fuels.) And in October 1998, TMI employees completed threemillion hours of work without
a lost-work day accident.

AtthetimeoftheTMI-2 accident, TMI-1 wasshutdown for refueling. Itwaskeptshutdown

during lengthy proceedings by the Nuclear Regulatory Commission. During the shutdown,
the plant was modified and training and operating procedures were revamped in light of the
lessons of TMI-2.

When TMI-1 restarted in October 1985, GeneralPublicUtilitiespledged thattheplantwould

be operated safely and efficiently and would become a leader in the nuclear power industry.
Those pledges have been kept.

 The plant's capability factor for 1987, including almost three months of a five-month
refueling and maintenanceoutage, was74.1 percent, compared to an industry average
of 62 percent. (Capability factor refers to the amount of electricity generated
compared to the plant'smaximum capacity.)
 In 1988 a 1.3% (11 MWe) uprate was licensed.
 For 1989, TMI-1's capability factor was 100.03 percent and the best of 357 nuclear
power plants worldwide, according to NucleonicsWeek.
 In 1990-91, TMI-1 operated 479 consecutive days, the longest operating run at that
point in the history of US commercial nuclear power. It was named by the NRC as
one of the four safest plants in the country during this period.
 By the end of 1994, TMI-1 was one of the first two plants in the history of US
commercial nuclear power to achieve a three-year average capability factor of over
90% (TMI-1 had 94.3%).
 In October 1998, TMI workers completed two full years without a lost workday
injury.
 Since its restart, TMI-1 has earned consistently high ratings in the NRC's program,
Systematic Assessment of Licensee Performance (SALP).
 In 2009, the TMI-1 operating licence was renewed, extending it life by 20 years to
2034.
 Immediately following this, both steam generators were replaced as TMI's "largest
capital project to date"

In 1999, TMI-1 waspurchased by AmerGen, anewjointventurebetween British Energy and

%.

PECO Energy. In 2003 the BE share was sold so that the plant became wholly-owned by
Exelon, PECO's successor. It is now listed as producing 786 MWe net.
!"#$
)

Training improvements

Training reforms are among the most significant outcomes of the TMI-2 accident. Training
became centred on protecting a plant's cooling capacity, whatever the triggering problem
mightbe. AtTMI-2, theoperatorsturned to abook ofproceduresto pick thosethatseemed to
fittheevent. Nowoperatorsaretaken through asetof"yes-no"questionsto ensure, first, that
thereactor'sfuelcoreremainscovered. Thenthey determinethespecificmalfunction. Thisis
known as a "symptom-based" approach for responding to plant events. Underlying it is a
style of training that gives operators a foundation for understanding both theoretical and
practical aspects of plant operations.

The TMI-2 accident also led to the establishment of the Atlanta-based Institute of Nuclear
Power Operations (INPO) and its National Academy for Nuclear Training. These two
industry organisationshavebeen effectivein promoting excellencein theoperation ofnuclear
plants and accrediting their training programs.

INPO was formed in 1979. The National Academy for Nuclear Training was established
under INPO's auspices in 1985. TMI's operator training program has passed three INPO
accreditation reviews since then.

Training hasgonewellbeyond button-pushing. Communicationsand teamwork, emphasizing

effective interaction among crew members, are now part of TMI's training curriculum.

Close to half of the operators' training is in a full-scale electronic simulator of the TMI
controlroom. The$18 million simulator permits operatorsto learn and betested on allkinds
of accident scenarios.

Increased safety & reliability

Disciplinesin training, operationsand eventreporting thatgrewfromthelessonsoftheTMI-

2 accident have made the nuclear power industry demonstrably safer and more reliable.
Those trends have been both promoted and tracked by the Institute for Nuclear Power
Operations(INPO). To remain in good standing, anuclear plantmustmeetthehigh standards
set by INPO as well as the strict regulation of the US Nuclear Regulatory Commission.

A key indicator is the graph of significant plant events, based on data compiled by the
Nuclear Regulatory Commission. The number of significant events decreased from 2.38 per
reactor unit in 1985 to 0.10 at the end of 1997.

On the reliability front, the median capability factor for nuclear plants - the percentage of
maximum energy that a plant is capable of generating - increased from 62.7 percent in 1980
to almost 90 percent in 2000. (The goal for the year 2000 was 87 percent.)

Other indicators for US plants tracked by INPO and its world counterpart, the World
Association of Nuclear Operators (WANO) are the unplanned capability loss factor,
unplanned automatic scrams, safety system performance, thermal performance, fuel
reliability, chemistry performance, collective radiation exposure, volume of solid radioactive
'/

waste and industrial safety accident rate. All are reduced, that is, improved substantially,
! #$

from 1980.
!"#$ ''
 UNIT-IV

RESPONSIBILITIES & RIGHTS

Collegiality and loyalty - respect for authority - collective bargaining - confidentiality - conflicts of interest -
occupationalcrime-professionalrights-employee rights-IntellectualPropertyRights(IPR) -discrimination.

COLLEGIALITY AND LOYALTY

Colleagues are those explicitly united in a common purpose and respecting each other's abilities
to work toward that purpose. A colleague is an associate in a profession or in a civil or
ecclesiastical office.

Thus, the word collegiality and loyality can connote respect for another's commitment to the
common purpose and ability to work toward it.

Case Study:

The unique structural characteristic of a collegial body such as the Supreme Court
is the equality of formal authority of the members. Tension exists between the individual
responsibility to formviews in each caseand thenecessity for cooperation to producecollective
decisions in the Court's collegial structure. Cooperation and the appearance of unity serve to
increase power and respect for a collegial institution. Chief Justice John Marshall arranged
accommodations in one boardinghouse to foster fellowship and developed the single opinion of
theCourtto createasymbolofjudicialsolidarity (seeSeriatimOpinions). Yet, within theCourt's
collegial structure, contemporary justices freely exhibit individualism, as seen in the increase of
separate opinions.

Effective action requires the cooperative participation of every justice. Collegiality does not
mandate unanimity but does demand loyalty to the institution and civil treatment of colleagues.
Evidences of the justices' strong commitment to the Court are long tenures, unanimity in cases
that threaten institutional integrity, and resolution of internal difficulties without appeals for
external intervention. Collegial relationships sometimes may be threatened by biting opinions,
such asthosewritten by JusticeAntonin Scaliadirecting harsh languageatopposing justices, and
by divisive cases like Bush v. Gore. Still, justices assert that disagreements have not affected
their relationships and that they remain friends who respect each other and enjoy each other's
company. Justices have maintained cordial relations across ideological lines and warm
friendships have developed between some pairs with shared values. Justice Ruth Bader
Ginsburg, for instance, recounts a visit by Justice Scalia to give her a draft of his dissenting
opinion so she would have time to respond. Court practices remind the justices of their mutual
dependence, equal power, and personal esteem; for example, the handshakes before conference
initiated by Chief Justice Melville W. Fuller, and the luncheons, letters, or gifts for significant
personal occasions.
!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

Other structural characteristics and changes in the Court's environment have affected the
requirements of collegiality. The Court has remained a small group in size; therefore, skillful
chief justices can satisfy individuals and harmonize Court functioning. However, the growth of
the federal court system and the Court bureaucracy has diverted the chief justice's attention to
other duties (see Bureaucratization of the Federal Judiciary). In the nineteenth century, short
Court terms, circuit duties, and home offices limited contacts among justices. Longer Court
terms and a separate building have brought justices into proximity, and the longevity of the
current Court (with no personnel changes since 1994) has reinforced the justices' collegiality.
Conversely, heavy workloads, personal staffs, and new office technologies have focused their
energies upon individual rather than collective decision making. Resolution of the tensions
between equal authority and collective duty requires different strategies in the twenty 6first
century, when the Court has become a powerful institution and the justices work in relative
isolation.

COLLECTIVE BARGAINING

Collective bargaining is a process of voluntary negotiation between employers and trade

unions aimed at reaching agreements which regulate working conditions. Collective agreements
usually set out wage scales, working hours, training, health and safety, overtime, grievance
mechanisms and rights to participate in workplace or company affairs. [1]

The union may negotiate with a single employer (who is typically representing a
company's shareholders) or may negotiate with a federation of businesses, depending on the
country, to reach an industry wide agreement. A collective agreement functions as a labor
contract between an employer and one or more unions. Collective bargaining consists of the
process of negotiation between representatives of a union and employers (generally represented
by management, in some countries [which?] by an employers' organization) in respect of the terms
and conditions of employment of employees, such as wages, hours of work, working conditions
and grievance-procedures, and about the rights and responsibilities of trade unions. The parties
often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a
collective employment agreement (CEA).

Different economic theories provide a number of models intended to explain some aspects of
collective bargaining:

1. Theso-called Monopoly Union Model(Dunlop, 1944) statesthatthemonopoly union has

the power to maximise the wage rate; the firm then chooses the level of employment.
(Recent literature has started to abandon this model. [citationneeded]
2. The Right-to-Manage model, developed by the British school during the 1980s (Nickell)
views the labour union and the firm bargaining over the wage rate according to a typical
Nash Bargaining Maximin (written as ! = U # β 1-β, where U is the utility function of the
labour union, #theprofitofthefirmand "representsthebargaining power ofthelabour
unions).
!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

3. Theefficientbargainingmodel(McDonald and Solow, 1981) seestheunion and thefirm

bargaining over both wagesand employment(or, morerealistically, hoursofwork). [citation
needed]

The underlying idea of collective bargaining is that the employer and employee
relations should not be decided unilaterally or with the intervention of any third
party. Both parties must reconcile their differences voluntarily through
negotiations, yielding some concessions and making sacrifices in the process.
Both should bargain from a position of strength; there should be no attempt to
exploit the weaknesses or vulnerability of one party. With the growth of union
movement all over the globe and the emergence of employers’ association, the
collective bargaining process has undergone significant changes. Both parties
have, more or less, realized the importance of peaceful co-existence for their
mutual benefit and continued progress

CONFIDENTIALITY

Confidentiality is an ethical principle associated with several professions (e.g., medicine,

law, religion, professional psychology, and journalism). In ethics, and (in some places) in law
and alternative forms of legal dispute resolution such as mediation, some types of
communication between aperson and oneoftheseprofessionalsare"privileged"and may notbe
discussed or divulged to third parties. In thosejurisdictionsin which thelawmakesprovision for
such confidentiality, there are usually penalties for its violation.

Confidentiality has also been defined by the International Organization for

Standardization (ISO) in ISO-17799 [1] as "ensuring that information is accessible only to those
authorized to haveaccess"and isoneofthecornerstonesofinformation security. Confidentiality
isoneofthedesign goalsfor many cryptosystems, madepossiblein practiceby thetechniquesof
modern cryptography.

Confidentiality ofinformation, enforced in an adaptation ofthemilitary'sclassic"need to

knowβ principle, forms the cornerstone of information security in today's corporations. The so
called 'confidentiality bubble' restricts information flows, with both positive and negative
consequences. [2]

Both theprivilegeand theduty servethepurposeofencouraging clientsto speak frankly

about their cases. This way, lawyers will be able to carry out their duty to provide clients with
zealous representation. Otherwise, the opposing side may be able to surprise the lawyer in court
with something which hedid notknowabouthisclient, which makesboth lawyer and clientlook
stupid. Also, a distrustful client might hide a relevant fact which he thinks is incriminating, but
which a skilled lawyer could turn to the client's advantage (for example, by raising affirmative
defenseslike self-defense).
!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

However, most jurisdictions have exceptions for situations where the lawyer has reason
to believethattheclientmay killor seriously injuresomeone, may causesubstantialinjury to the
financial interest or property of another, or is using (or seeking to use) the lawyer's services to
perpetrate a crime or fraud.

In such situations the lawyer has the discretion, but not the obligation, to disclose
information designed to prevent the planned action. Most states have a version of this
discretionary disclosure rule under Rules of Professional Conduct, Rule 1.6 (or its equivalent).

A few jurisdictions have made this traditionally discretionary duty mandatory. For
example, see the New Jersey and Virginia Rules of Professional Conduct, Rule 1.6.

In somejurisdictionsthelawyer musttry to convincetheclientto conformhisor her conductto t

he boundaries of the law before disclosing any otherwise confidential information.

Note that these exceptions generally do not cover crimes that have already occurred, even in
extreme cases where murderers have confessed the location of missing bodies to their lawyers
butthepolicearestilllooking for thosebodies. TheU.S. SupremeCourtand many statesupreme
courtshaveaffirmed therightofalawyer to withhold information in such situations. Otherwise,
it would be impossible for any criminal defendant to obtain a zealous defense.

California is famous for having one of the strongest duties of confidentiality in the world; its
lawyers must protect client confidences at "every peril to himself or herself." Until an
amendment in 2004, California lawyers were not even permitted to disclose that a client was
about to commit murder.

Recent legislation in the UK curtails the confidentiality professionals like lawyers and
accountants can maintain at the expense of the state. Accountants, for example, are required to
disclose to the state any suspicions of fraudulent accounting and, even, the legitimate use of tax
saving schemes if those schemes are not already known to the tax authorities.

INTELLECTUAL PROPERTY RIGHTS

Intellectual property (IP) is a term referring to a number of distinct types of creations of

[1]
themind for which property rightsarerecognized—and thecorresponding fieldsoflaw. Under
intellectual property law, owners are granted certain exclusive rights to a variety of intangible
assets, such as musical, literary, and artistic works; discoveries and inventions; and words,
phrases, symbols, and designs. Common types of intellectual property include copyrights,
trademarks, patents, industrial design rightsand trade secretsin some jurisdictions.

Richard Stallman argues that, although the term intellectual property is in wide use, it
should be rejected altogether, because it "systematically distorts and confuses these issues, and
its use was and is promoted by those who gain from this confusion." He claims that the term
"operates as a catch-all to lump together disparate laws [which] originated separately, evolved
differently, cover different activities, have different rules, and raise different public policy
[15]
issues" and that it confuses these monopolies with ownership of limited physical things
!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

Stallman advocates referring to copyrights, patents and trademarks in the singular and warns
against abstracting disparate laws into a collective term.

Somecriticsofintellectualproperty, such as thosein thefreeculturemovement, pointat

intellectual monopolies as harming health, preventing progress, and benefiting concentrated
intereststo thedetrimentofthemasses, [16][17] and arguethatthepublicinterestisharmed by ever
expansivemonopoliesin theformofcopyrightextensions, softwarepatentsand businessmethod
patents.

There is also criticism [by whom?] because strict intellectual property rights can inhibit the
flow of innovations to poor nations. Developing countries have benefitted from the spread of
developed country technologies, such as the internet, mobile phone, vaccines, and high-yielding
grains. Many intellectual property rights, such as patent laws, arguably go too far in protecting
[citation needed]
those who produce innovations at the expense of those who use them. The
Commitment to Development Index measures donor government policies and ranks them on the
"friendliness" of their intellectual property rights to the developing world.

Some libertarian critics of intellectual property have argued that allowing property rights
in ideas and information creates artificial scarcity and infringes on the right to own tangible
property. Stephan Kinsella uses the following scenario to argue this point:

Imagine the time when men lived in caves. One bright guy—let's call him Galt-
Magnon—decidesto build alog cabin on an open field, near hiscrops. To besure, thisisagood
idea, and others notice it. They naturally imitate Galt-Magnon, and they start building their own
cabins. But the first man to invent a house, according to IP advocates, would have a right to
prevent others from building houses on their own land, with their own logs, or to charge them a
fee if they do build houses. It is plain that the innovator in these examples becomes a partial
owner ofthetangibleproperty (e.g., land and logs) ofothers, duenotto firstoccupation and use
ofthatproperty (for itisalready owned), butdueto hiscoming up with an idea. Clearly, thisrule
flies in the face of the first-user homesteading rule, arbitrarily and groundlessly overriding the
very homesteading rule that isat the foundation of all property rights. [18]

Other criticism of intellectual property law concerns the tendency of the protections of
intellectual property to expand, both in duration and in scope. The trend has been toward longer
copyrightprotection [19] (raising fearsthatitmay someday beeternal). [20][21][22][23] In addition, the
developers and controllers of items of intellectual property have sought to bring more items
under the protection. Patents have been granted for living organisms, [24] and colors have been
trademarked. [25] Because they are systems of government-granted monopolies copyrights,
patents, and trademarks are called intellectual monopoly privileges, (IMP) a topic on which
several academics, including Birgitte Andersen [26] and Thomas Alured Faunce[27] have written.

In 2005 the RSA launched the Adelphi Charter, aimed at creating an international policy
statement to frame how governments should make balanced intellectual property law.

Intellectual Property Rights

!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

Intellectual property rights is a legal concept that confers rights to owners and creators of the
work, for their intellectual creativity. Such rights can be granted for areas related to literature,
music, invention etc, which are used in the business practices. In general, the intellectual
property law offers exclusionary rights to the creator or inventor against any misappropriation or
useof work without his/her prior knowledge. Intellectual property law establishes an equilibrium
by granting rights for limited duration of time.

Every nation has framed their own intellectual property laws. But on international level it is
governed by the World Intellectual Property Organization (WIPO). The Paris Convention for the
Protection of Industrial Property in 1883 and the 'Berne Convention for the Protection of Literary
and Artistic Works' in 1886 were first conventions which have recognized the importance of
safeguarding intellectual property. Both the treaties are under the direct administration of the
WIPO. The WIPO convention lays down following list of the activities or work which are
covered by the intellectual property rights-

 Industrial designs
 Scientific discoveries
 Protection against unfair competition
 Literary, artistic and scientific works
 Inventions in all fields of human endeavor
 Performances of performing artists, phonograms and broadcasts
 Trademarks, service marks and commercial names and designations
 All other rights resulting from intellectual activity in the industrial, scientific, literary or
artistic fields.

Types of Intellectual Property Rights

Intellectual Property Rights signifies to the bundle of exclusionary rights which can be further
categorized into the following heads-

 Copyright

Copyright, one of the form of intellectual property right, offers exclusive rights for
protecting the authorship of original & creative work like dramatic, musical and literary
in nature. Symbolized as "©", here the term ....

Patent

A patent is termed as the exclusionary rights given by the government or the authorized
authority to its inventor for a particular duration of time, in respect of his invention. It is
the part of the intellectual property right ....

Trademark
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The trademark or trade mark, symbolized as the â„¢ and ®, is the distinctive sign or
indication which is used for signifying some kind of goods or/and services and is
distinctively used across the business ....

 Trade Secrets

Trade secret points towards a formula, pattern, any instrument, design which is kept
confidential and through which any business or trade can edge over its rival and can
enjoy economic gain. Trade secrets can be ....

 Utility Model

The utility model is the intellectual property right for protecting the inventions. It is
somehow described as the statutory monopoly which is bestow upon for the fixed
duration of time in exchange to the inventor for ....

 Geographical Indication

Geographical Indication (GI) signifies to the name or sign, used in reference to the
products which are corresponding to the particular geographical area or somewhat related
to the origin like town, region or nation.

 Industrial Design Rights

Industrial design rights are defined as the part of the intellectual property rights which
confers the rights of exclusivity to the visual designs of objects whichare generally not
popular utilitarian. It safeguards the ....

Advantages of Intellectual Property Rights

Intellectual property rights help in providing exclusive rights to creator or inventor, thereby
induces them to distribute and share information and data instead of keeping it confidential. It
provides legal protection and offers them incentive of their work. Rights granted under the
intellectual property act helps in socio and economic development.

Intellectual Property Rights in India

India has defined the establishment of statutory, administrative and judicial framework for
protecting the intellectual property rights in the Indian territory, whether they connotes with the
copyright, patent, trademark, industrial designs or with other parts.

Tuning with the changing industrial world, the intellectual property rights have continued to
!"#$%&(#)*+,(&-.,*&%/01112,"#$%&/#)*+,32#&45

strengthen its position in the India. In 1999, the government has passed the important legislation
in relation to the protection of intellectual property rights on the terms of the worldwide practices
and in accordance to the India's obligations under the Trade Related Aspects of Intellectual
Property Rights. It consists of-

 The Patents(Amendment) Act, 1999 which was passed on 10th March, 1999 in the Indian
Parliament for amending the Patents Act of 1970 which in turns facilitate to establish the
mail box system for filing patents and accords with the exclusive marketing rights for the
time period of 5 years.
 The Trade Marks Bill, 1999 was passed in the India parliamentduring the winter session
for replacing the Trade and Merchandise Marks Act, 1958. It was passed on 23rd
December, 1999.
 The Copyright(Amendment) Act, 1999 was passed by both upper house and lower house
of the Indian parliament and was later on signed by the Indian president on 30th
December, 1999.
 The sui generis legislation was approved by both houses of the Indian parliament on 23rd
December, 1999 and was named as the Geographical Indications of Goods (Registration
& Protection) Bill, 1999.
 The Industrial Designs Bill, 1999 was passed in the Upper House of the Indian
parliament for replacing the Designs Act, 1911.
 The Patents (Second Amendment) Bill, 1999 was itroduced in the upper house of the
parliament for further amending the Patents Act 1970 andmaking it compliance with the
TRIPS.

Along with the above legislative measures, the Indian government has introduced several
changes for streamlining and bolstering the intellectual property administration system in the
nation. Several projects concerning to the modernizing of the patent information services and
trademark registry have been undergone with the help of the World Intellectual Property
Organization/ United Nations Development Programme.

DISCRIMINATION

Discrimination is a sociological term referring to the prejudicial treatment of an

individual based solely on their membership (whether voluntary or involuntary) in a certain
group or category. Discrimination is the actual behavior towards members of another group. It
involves excluding or restricting members of one group from opportunities that are available to
other groups. [1] The United Nations explains: "Discriminatory behaviors take many forms, but
they all involve some form of exclusion or rejection." [2] Discriminatory laws such as redlining
have existed in many countries. In some countries, controversial attempts such as racial quotas
have been used to redress negative effects of discrimination.

Racial discrimination differentiates between individuals on the basis of real and perceived racial
differences, and hasbeen officialgovernmentpolicy in severalcountries, such asSouth Africain
theapartheidera, and the USA.
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In the United States, racial profiling of minorities by law enforcement officials has been
called racial discrimination. [3] As early as 1865, the Civil Rights Act provided a remedy for
intentional race discrimination in employment by private employers and state and local public
employers. TheCivilRightsActof1871appliesto publicemploymentor employmentinvolving
state action prohibiting deprivation of rights secured by the federal constitution or federal laws
through action under color of law. Title VII is the principal federal statute with regard to
employment discrimination prohibiting unlawful employment discrimination by public and
private employers, labor organizations, training programs and employment agencies based on
race or color,religion, gender, and national origin.

TitleVII also prohibitsretaliation againstany person for opposing any practiceforbidden

by statute, or for making acharge, testifying, assisting, or participating in aproceeding under the
statute. The Civil Rights Act of 1991 expanded the damages available in Title VII cases and
granted Title VII plaintiffs the right to a jury trial. Title VII also provides that race and color
discrimination against every race and color is prohibited.

In the UK the inquiry following the murder of Stephen Lawrence accused the police of
institutional racism.

 Weaver v NATFHE (now part of the UCU) Race/sex dicrimination case. An Industrial
(Employment) Tribunalin theUKin 1987 decided thatatradeunion wasjustified in not
assisting a black woman member complaining of racist/sexist harassment, regardless of
the merits of the case, because the accused male would lose his job. The Employment
Appeal Tribunal upheld the decision, which still stands today as the definitive legal
precedent in this field. It is also known as the Bournville College Racial Harassment
issue.

Within the criminal justice system in some Western countries, minorities are convicted and
imprisoned disproportionately when compared with whites. [4][5] In 1998, nearly one out of three
black men between theagesof 20-29 were in prison or jail, on probation or paroleon any given
day in the United States. [6] First Nations make up about 2% of Canada's population, but account
[7]
for 18% ofthefederalprison population asof2000. According to theAustralian government's
June2006 publication ofprison statistics, indigenouspeoplesmakeup 24% oftheoverallprison
population in Australia. [8] In 2004, Māori made up just 15% of the total population of New
[9]
Zealandbut49.5% ofprisoners. M$oriwereentering prison at8 timestherateofnon-M$ori. A
quarter ofthepeoplein England'sprisonsarefroman ethnicminority. TheEquality and Human
Rights Commission found that five times more black people than white people per head of
population in England and Wales are imprisoned. Experts and politicians said over-
representation of black men was a result of decades of racial prejudice in the criminal justice
system. [10]

!"#%&'()&*&+,-&.+
Main article: Ageism

Agediscriminationis discrimination on thegroundsof age. Although theoretically theword can

refer to the discrimination against any age group, age discrimination usually comes in one of
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three forms: discrimination against youth (also called adultism), discrimination against those 40
years old or older,[11] and discrimination against elderly people.

In the United States, the Age Discrimination in Employment Act prohibits employment
discrimination nationwide based on age with respect to employees 40 years of age or older. The
Age Discrimination in Employment Act also addresses the difficulty older workers face in
obtaining new employment after being displaced from their jobs, arbitrary age limits.

On the other hand, the UK Equality Act 2010 protects young employees as well as old. Other
countries go even further and make age discrimination a criminal offence. [12]

In many countries, companies more or less openly refuse to hire people above a certain age
despite the increasing lifespans and average age of the population. The reasons for this range
from vague feelings younger people are more "dynamic" and create a positive image for the
company, to more concrete concerns about regulations granting older employees higher salaries
or other benefits without these expenses being fully justified by an older employees' greater
[13]
experience. Unions cite age as the most common form of discrimination in the workplace.
Workers ages 45 and over form a disproportionate share of the long-term unemployed – those
who have been out of work for six months or longer, according to the U.S. Bureau of Labor
Statistics.[14]

Somepeopleconsider thatteenagersand youth(around 15–25 yearsold) arevictimsofadultism,

age discrimination framed as a paternalistic form of protection. In seeking social justice, they
feelthatitisnecessary to removetheuseofafalsemoralagendain order to achieveagency and
empowerment.

Thisperspectiveisbased on thegroundsthatyouth should betreated morerespectfully by adults

and not as second-class citizens. Some suggest that social stratification in age groups causes
outsiders to incorrectly stereotype and generalize the group, for instance that all adolescents are
equally immature, violentor rebellious, listen to rock tunes, and do drugs. Somehaveorganized
groups against age discrimination.
[citation needed]
Ageism is the causal effect of a continuum of fears related to age. This continuum
includes:

 Ephebiphobia: the fear of youth.

 Gerontophobia: the fear of elderly people.
 Pediaphobia: the fear of infants or small children.

Related terms include:

 Adultism: Also called adultarchy, adult privilege, and adultcentrism/adultocentrism, this

is the wielding of authority over young people and the preference of adults before
children and youth.
 Jeunism:Also called "youthism"istheholding ofbeliefsor actionstaken thatpreference
'younger' people before adults.
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/#0,+%1#+%#)%&'()&*&+,-&.+

Though gender discrimination and sexismrefers to beliefs and attitudes in relation to thegender
ofaperson, such beliefsand attitudesareofasocialnatureand do not, normally, carry any legal
consequences. Sexdiscrimination, on the other hand, may have legal consequences.

Though what constitutes sex discrimination varies between countries, the essence is that it is an
adverse action taken by one person against another person that would not have occurred had the
person been ofanother sex. Discrimination ofthatnaturein certain enumerated circumstancesis
illegal in many countries.

Currently, discrimination based on sex is defined as adverse action against another person, that
would not have occurred had the person been of another sex. This is considered a form of
prejudiceand is illegal in certain enumerated circumstances in most countries.

Sexual discrimination can arise in different contexts. For instance an employee may be
discriminated againstby being asked discriminatory questionsduring ajob interview, or because
an employer did not hire, promote or wrongfully terminated an employee based on his or her
gender, or employers pay unequally based on gender.

In an educational setting there could be claims that a student was excluded from an educational
institution, program, opportunity, loan, studentgroup, or scholarship dueto hisor her gender. In
the housing setting there could be claims that a person was refused negotiations on seeking a
house, contracting/leasing a house or getting a loan based on his or her gender. Another setting
where there have been claims of gender discrimination is banking; for example if one is refused
credit or is offered unequal loan terms based on one’s gender. [15]

Another setting wherethereisusually gender discrimination iswhen oneisrefused to extend his

or her credit, refused approval of credit/loan process, and if there is a burden of unequal loan
terms based on one’s gender.

Socially, sexual differences have been used to justify different roles for men and women, in
some cases giving rise to claims of primary and secondary roles. [16]

Whiletherearealleged non-physicaldifferencesbetween men and women, major reviewsofthe

academic literature on gender difference find only a tiny minority of characteristics where there
are consistent psychological differences between men and women, and these relate directly to
experiences grounded in biological difference. [17] However, there are also some psychological
differences in regard to how problems are dealt with and emotional perceptions and reactions
which may relate to hormones and the successful characteristics of each gender during
longstanding roles in past primitive lifestyles.

Unfair discrimination usually follows thegender stereotypingheld by a society.

The United Nations had concluded that women often experience a "glass ceiling" and that there
are no societies in which women enjoy the same opportunities as men. The term "glass ceiling"
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is used to describe a perceived barrier to advancement in employment based on discrimination,

especially sex discrimination.

In theUnited Statesin 1995, theGlassCeiling Commission, agovernment-funded group, stated:

"Over half of all Master’s degrees are now awarded to women, yet 95% of senior-level
managers, ofthetop Fortune1000 industrialand 500 servicecompanies are men. Ofthem, 97%
are white." In its report, it recommended affirmative action, which is the consideration of an
employee's gender and race in hiring and promotion decisions, as a means to end this form of
discrimination. [18] In 2008, women accounted for 51% of all workers in the high-paying
management, professional, and related occupations. They outnumbered men in such occupations
as public relations managers; financial managers; and human resource managers. [19]

TheChina'sleading headhunter, Chinahr.com, reported in 2007 thattheaveragesalary for white-

collar men was 44,000 yuan ($6,441), compared with 28,700 yuan ($4,201) for women. [20]

The PwC research found that among FTSE 350 companies in the United Kingdom in 2002
almost 40% of senior management posts were occupied by women. When that research was
repeated in 2007, the number of senior management posts held by women had fallen to 22%. [21]

Transgender individuals, both male to female and female to male, often experience problems
which often lead to dismissals, underachievement, difficulty in finding a job, social isolation,
and, occasionally, violent attacks against them. Nevertheless, the problem of gender
discrimination does not stop at trandgender individuals nor with women. Men are often the
victimin certain areasofemploymentasmen begin to seek work in officeand childcaresettings
traditionally perceived as "women's jobs". One such situation seems to be evident in a recent
case concerning alleged YMCA discrimination and a Federal Court Case in Texas. [citation needed]
Thecaseactually involvesalleged discrimination againstboth men and blacksin childcare, even
when they pass the same strict background tests and other standards of employment. It is
currently being contended in federal court, as of fall 2009, and sheds light on how a workplace
dominated by a majority (- women in this case) sometimes will seemingly "justify" whatever
they wish to do, regardlessofthelaw. Thismay bedoneasan effortatself-protection, to uphold
traditional societal roles, or some other faulty, unethical or illegal prejudicial reasoning.

Affirmative action also leads to white men being discriminated against for entry level and blue
collar positions. An employer cannot hire a white man with the same "on paper" qualifications
over a woman or minority worker or the employer will face prosecution
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UNIT – V

GLOBAL ISSUES

Syllabus: Multinational corporations - Environmental ethics - computer ethics - weapons

development - engineers as managers-consulting engineers-engineers as expert witnesses and
advisors -moral leadership-sample code of Ethics like ASME, ASCE, IEEE, Institution of
Engineers (India), Indian Institute of Materials Management, Institution of electronics and
telecommunication engineers (IETE),India, etc.

MULTINATIONAL CORPORATIONS

A multinational corporation (MNC), also called a transnational corporation (TNC), or

multinational enterprise (MNE), is a corporation or an enterprise that manages production or
delivers services in more than one country. It can also be referred to as an international
corporation. The International Labour Organization (ILO) has defined[citation needed] an
MNC as a corporation that has its management headquarters in one country, known as the
home country, and operates in several other countries, known as host countries.

The Dutch East India Company was the first multinational corporation in the world
and the first company to issue stock. It was also arguably the world's first megacorporation,
possessing quasi-governmental powers, including the ability to wage war, negotiate treaties,
coin money, and establish colonies.

The first modern multinational corporation is generally thought to be the East India
Company. Many corporations have offices, branches or manufacturing plants in different
countries from where their original and main headquarters is located.

Some multinational corporations are very big, with budgets that exceed some nations' GDPs.
Multinational corporations can have a powerful influence in local economies, and even the
world economy, and play an important role in international relations and globalization

Multinational corporations have played an important role in globalization. Countries and

%

sometimes subnational regions must compete against one another for the establishment of
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MNC facilities, and the subsequent tax revenue, employment, and economic activity. To
compete, countries and regional political districts sometimes offer incentives to MNCs such
as tax breaks, pledges of governmental assistance or improved infrastructure, or lax
environmental and labor standards enforcement. This process of becoming more attractive to
foreign investment can be characterized as a race to the bottom, a push towards greater
autonomy for corporate bodies, or both.

However, some scholars for instance the Columbia economist Jagdish Bhagwati, have
argued that multinationals are engaged in a 'race to the top.' While multinationals certainly
regard a low tax burden or low labor costs as an element of comparative advantage, there is
no evidence to suggest that MNCs deliberately avail themselves of lax environmental
regulation or poor labour standards. As Bhagwati has pointed out, MNC profits are tied to
operational efficiency, which includes a high degree of standardisation. Thus, MNCs are
likely to tailor production processes in all of their operations in conformity to those
jurisdictions where they operate (which will almost always include one or more of the US,
Japan or EU) that has the most rigorous standards. As for labor costs, while MNCs clearly
pay workers in, e.g. Vietnam, much less than they would in the US (though it is worth noting
that higher American productivity—linked to technology—means that any comparison is
tricky, since in America the same company would probably hire far fewer people and
automate whatever process they performed in Vietnam with manual labour), it is also the case
that they tend to pay a premium of between 10% and 100% on local labor rates.[10] Finally,
depending on the nature of the MNC, investment in any country reflects a desire for a long-
term return. Costs associated with establishing plant, training workers, etc., can be very high;
once established in a jurisdiction, therefore, many MNCs are quite vulnerable to predatory
practices such as, e.g., expropriation, sudden contract renegotiation, the arbitrary withdrawal
or compulsory purchase of unnecessary 'licenses,' etc. Thus, both the negotiating power of
MNCs and the supposed 'race to the bottom' may be overstated, while the substantial benefits
that MNCs bring (tax revenues aside) are often understated

Market withdrawal

Because of their size, multinationals can have a significant impact on government

policy, primarily through the threat of market withdrawal. For example, in an effort to reduce
health care costs, some countries have tried to force pharmaceutical companies to license
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their patented drugs to local competitors for a very low fee, thereby artificially lowering the
price. When faced with that threat, multinational pharmaceutical firms have simply
withdrawn from the market, which often leads to limited availability of advanced drugs. In
these cases, governments have been forced to back down from their efforts. Similar corporate
and government confrontations have occurred when governments tried to force MNCs to
make their intellectual property public in an effort to gain technology for local entrepreneurs.
When companies are faced with the option of losing a core competitive technological
advantage or withdrawing from a national market, they may choose the latter. This
withdrawal often causes governments to change policy. Countries that have been the most
successful in this type of confrontation with multinational corporations are large countries
such as United States and Brazil[citation needed], which have viable indigenous market
competitors.

Lobbying

Multinational corporate lobbying is directed at a range of business concerns, from

tariff structures to environmental regulations. There is no unified multinational perspective on
any of these issues. Companies that have invested heavily in pollution control mechanisms
may lobby for very tough environmental standards in an effort to force non-compliant
competitors into a weaker position. Corporations lobby tariffs to restrict competition of
foreign industries. For every tariff category that one multinational wants to have reduced,
there is another multinational that wants the tariff raised. Even within the U.S. auto industry,
the fraction of a company's imported components will vary, so some firms favor tighter
import restrictions, while others favor looser ones. Says Ely Oliveira, Manager Director of
the MCT/IR: This is very serious and is very hard and takes a lot of work for the owner.pk

Multinational corporations such as Wal-mart and McDonald's benefit from government

zoning laws, to create barriers to entry.

Many industries such as General Electric and Boeing lobby the government to receive
subsidies to preserve their monopoly.

Patents
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Many multinational corporations hold patents to prevent competitors from arising. For
example, Adidas holds patents on shoe designs, Siemens A.G. holds many patents on
equipment and infrastructure and Microsoft benefits from software patents. The
pharmaceutical companies lobby international agreements to enforce patent laws on others.

Government power

In addition to efforts by multinational corporations to affect governments, there is

much government action intended to affect corporate behavior. The threat of nationalization
(forcing a company to sell its local assets to the government or to other local nationals) or
changes in local business laws and regulations can limit a multinational's power. These issues
become of increasing importance because of the emergence of MNCs in developing
countries.

Micro-multinationals

Enabled by Internet based communication tools, a new breed of multinational

companies is growing in numbers.(Copeland, Michael V. (2006-06-29). "How startups go
global". CNN.
http://money.cnn.com/2006/06/28/magazines/business2/startupsgoglobal.biz2/index.htm.
Retrieved 2010-05-13.) These multinationals start operating in different countries from the
very early stages. These companies are being called micro-multinationals. (Varian, Hal R.
(2005-08-25). "Technology Levels the Business Playing Field". The New York Times.
http://www.nytimes.com/2005/08/25/business/25scene.html. Retrieved 2010-05-13.) What
differentiates micro-multinationals from the large MNCs is the fact that they are small
businesses. Some of these micro-multinationals, particularly software development
companies, have been hiring employees in multiple countries from the beginning of the
Internet era. But more and more micro-multinationals are actively starting to market their
products and services in various countries. Internet tools like Google, Yahoo, MSN, Ebay and
Amazon make it easier for the micro-multinationals to reach potential customers in other
countries.

Service sector micro-multinationals, like Facebook, Alibaba etc. started as dispersed

virtual businesses with employees, clients and resources located in various countries. Their
)
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rapid growth is a direct result of being able to use the internet, cheaper telephony and lower
traveling costs to create unique business opportunities.

Low cost SaaS (Software As A Service) suites make it easier for these companies to
operate without a physical office.

Hal Varian, Chief Economist at Google and a professor of information economics at U.C.
Berkeley, said in April 2010, "Immigration today, thanks to the Web, means something very
different than it used to mean. There's no longer a brain drain but brain circulation. People
now doing startups understand what opportunities are available to them around the world and
work to harness it from a distance rather than move people from one place to another."

ENVIRONMENTAL ETHICS

Environmental ethics believes in the ethical relationship between human beings and
the natural environment. Human beings are a part of the society and so are the other living
beings. When we talk about the philosophical principle that guides our life, we often ignore
the fact that even plants and animals are a part of our lives. They are an integral part of the
environment and hence have a right to be considered a part of the human life. On these lines,
it is clear that they should also be associated with our guiding principles as well as our moral
and ethical values.

What is Environmental Ethics?

We are cutting down forests for making our homes. We are continuing with an
excessive consumption of natural resources. Their excessive use is resulting in their
depletion, risking the life of our future generations. Is this ethical? This is the issue that
environmental ethics takes up. Scientists like Rachel Carson and the environmentalists who
led philosophers to consider the philosophical aspect of environmental problems, pioneered
in the development of environmental ethics as a branch of environmental philosophy.

The Earth Day celebration of 1970 was also one of the factors, which led to the
development of environmental ethics as a separate field of study. This field received impetus
when it was first discussed in the academic journals in North America and Canada. Around
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the same time, this field also emerged in Australia and Norway. Today, environmental ethics
is one of the major concerns of mankind.

When industrial processes lead to destruction of resources, is it not the industry's

responsibility to restore the depleted resources? Moreover, can a restored environment make
up for the originally natural one? Mining processes hamper the ecology of certain areas; they
may result in the disruption of plant and animal life in those areas. Slash and burn techniques
are used for clearing the land for agriculture.

Most of the human activities lead to environmental pollution. The overly increasing
human population is increasing the human demand for resources like food and shelter. As the
population is exceeding the carrying capacity of our planet, natural environments are being
used for human inhabitation.

Thus human beings are disturbing the balance in the nature. The harm we, as human
beings, are causing to the nature, is coming back to us b resulting in a polluted environment.
The depletion of natural resources is endangering our future generations. The imbalance in
nature that we have caused is going to disrupt our life as well. But environmental ethics
brings about the fact that all the life forms on Earth have a right to live. By destroying the
nature, we are depriving these life forms of their right to live. We are going against the true
ethical and moral values by disturbing the balance in nature. We are being unethical in
treating the plant and animal life forms, which coexist in society.

Human beings have certain duties towards their fellow beings. On similar lines, we
have a set of duties towards our environment. Environmental ethics says that we should base
our behavior on a set of ethical values that guide our approach towards the other living beings
in nature.

Environmental ethics is about including the rights of non-human animals in our

ethical and moral values. Even if the human race is considered the primary concern of
society, animals and plants are in no way less important. They have a right to get their fair
share of existence.

We, the human beings, along with the other forms of life make up our society. We all
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are a part of the food chain and thus closely associated with each other. We, together form
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our environment. The conservation of natural resources is not only the need of the day but
also our prime duty.

COMPUTER ETHICS

Ethics is a set of moral principles that govern the behavior of a group or individual.
Therefore, computer ethics is set of moral principles that regulate the use of computers. Some
common issues of computer ethics include intellectual property rights (such as copyrighted
electronic content), privacy concerns, and how computers affect society.
For example, while it is easy to duplicate copyrighted electronic (or digital) content,
computer ethics would suggest that it is wrong to do so without the author's approval. And
while it may be possible to access someone's personal information on a computer system,
computer ethics would advise that such an action is unethical.

As technology advances, computers continue to have a greater impact on society.

Therefore, computer ethics promotes the discussion of how much influence computers should
have in areas such as artificial intelligence and human communication. As the world of
computers evolves, computer ethics continues to create ethical standards that address new
issues raised by new technologies.

WEAPONS DEVELOPMENT

A weapon is an instrument used for the purpose of causing harm or damage to people,
animals or structures. Weapons are used in hunting, attack, self-defense, or defense in combat
and range from simple implements like clubs and spears to complicated modern machines
such as intercontinental ballistic missiles. One who possesses or carries a weapon is said to be
armed.

In a broader context weapons include anything used to gain an advantage over an

adversary or to place them at a disadvantage. Examples include the use of sieges, tactics, and
psychological weapons which reduce the morale of an enemy

Classification

By user
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 Personal weapons (or small arms) - designed to be used by a single person.

 Hunting weapon - primarily for hunting game animals for food or sport

 Infantry support weapons - larger than personal weapons, requiring two or more to
operate correctly.
 Fortification weapons - mounted in a permanent installation, or used primarily within
a fortification.
 Mountain weapons - for use by mountain forces or those operating in difficult terrain.

 Vehicle weapons - to be mounted on any type of military vehicle.

 Railway weapons - designed to be mounted on railway cars, including armored trains.

 Aircraft weapons - carried on and used by some type of aircraft, helicopter, or other
aerial vehicle.

 Naval weapons - mounted on ships and submarines.

 Space weapons - are designed to be used in or launched from space.

By function

- the construction of the weapon and principle of operation

 Antimatter weapons (theoretical) would combine matter and antimatter to cause a

powerful explosion.
 Archery weapons operate by using a tensioned string to launch a projectile.

 Artillery are capable of launching heavy projectiles over long distances.

 Biological weapons spread biological agents, causing disease or infection.

 Chemical weapons, poisoning and causing reactions.

 Energy weapons rely on concentrating forms of energy to attack, such as lasers or

sonic attack.

 Explosive weapons use a physical explosion to create blast concussion or spread

shrapnel.
 Firearms use a chemical charge to launch projectiles.

 Improvised weapons are common objects, reused as weapons.

 Incendiary weapons cause damage by fire.

 Non-lethal weapons are designed to subdue without killing.

 Magnetic weapons use magnetic fields to propel projectiles, or to focus particle

beams.
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 Melee weapons operate as physical extensions of the user's body and directly impact
their target.
 Missiles are rockets which are guided to their target after launch. (Also a general term
for projectile weapons).
 Nuclear weapons use radioactive materials to create nuclear fission and/or nuclear
fusion detonations.
 Primitive weapons make little or no use of technological or industrial elements.

 Ranged weapons (unlike Mêlée weapons), target a distant object or person.

 Rockets use chemical propellant to accelerate a projectile

 Suicide weapons exploit the willingness of their operator to not survive the attack.

 Trojan weapons appear on face value to be gifts, though the intent is to in some way
to harm the recipient.

By target

- the type of target the weapon is designed to attack

 Anti-aircraft weapons target missiles and aerial vehicles in flight.

 Anti-fortification weapons are designed to target enemy installations.

 Anti-personnel weapons are designed to attack people, either individually or in

numbers.
 Anti-radiation weapons target sources of electronic radiation, particularly radar
emitters.
 Anti-satellite weapons target orbiting satellites.

 Anti-ship weapons target ships and vessels on water.

 Anti-submarine weapons target submarines and other underwater targets.

 Anti-tank weapons are designed to defeat armored targets.

 Area denial weapons target territory, making it unsafe or unsuitable for enemy use or
travel.
 Hunting weapons are civilian weapons used to hunt animals.

 Infantry support weapons are designed to attack various threats to infantry units

CONSULTING ENGINEERS
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Consultants are individuals who typically work for themselves but may also be associated with a
consulting firm. They, for a fee, gives advice or provides a service in a field of specialized
knowledge or training. Most consultants carry their own life and health insurance, pay their own
taxes, most have their own tools and equipment. The consultant can work alone or with the client's
staff.

Consultants can play a multi-faceted role. They can, for example function as advisors, fixers,
bosses, generalists, stabilizers, listeners, advisors, specialists, catalysts, managers or quasi-
employees. The actual work that consultants perform for one company to another may vary greatly,
i.e. tax account to office decoration. However, the typical underlying reasons that a consultant is
hired are universal. A problem exists and the owner or manager of the company has decided to seek
the help of an expert.

Bringing in an expert can save time, effort and money. It has been estimated that approximately 3/4
of all companies call upon consultants at one time or another. Many companies claim that they
receive a higher return for their invested dollars by using consultants for specific tasks.

Most companies have experienced the problem of needing short-term technical expertise. Perhaps
the company's existing staff is already working to capacity. In many cases, the engineering skills
required for a project can be satisfied with a full time employee. When they can not fully justify
bringing someone on board full time, their answer is to hire a consultant. By doing so, the
businessman solves his immediate problem without permanently increasing his payroll and payroll
taxes.

Consultants can be hired when the company may not have anyone on staff capable of solving the
specific problem. At such times, a costly learning curve on the part of the engineering staff is
associated with the project. One example is using a consultant as a viable alternative during the
development stages of new products. Hiring a consultant with experience in a given area can then
cut days, weeks or even months off a project schedule. In addition, he can help the staff avoid
mistakes they may otherwise make. When the project reaches a certain point, the permanent staff
can then take over.

Consultants can deal directly with owners and upper management. In this role, consultants can
provide an objective third-party view point. Critical objectives can then be identified and advise
given in confidence.

Consultants are a viable alternative in assisting in feasibility studies or in proposal preparation.

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Perhaps the manager cannot justify shifting the duties of existing staff members.

Another time that consultants become useful is when a company is just starting a business. The
development of the company's new product can be begun by the consultant while a full time
permanent technical staff member is being hired.

Finding the right consultant can be difficult. Managers can rely on referrals from their friends or
hire the consultant who happens to call at the right time. Once the decisions is made to hire a
consultant, the need is immediate and one may not have the time to shop for a consultant. As a part
of planning ahead, it is wise to meet various consultants on an informal basis before the need to
hire one arises. Then when the time comes, you will know exactly who to call for you have already
established an informal relationship

ETHICS IN ASCE

To preserve the high ethical standards of the civil engineering profession, the Society's ethics
program includes:

 Edict
The Society maintains a Code of Ethics.

 Enforcement
The Society enforces the Code by investigating potential violations of the Code and
taking disciplinary action if warranted.

 Education
The Society endeavors to educate its members and the public on ethics issues.

IEEE code of Ethics

1. to accept responsibility in making decisions consistent with the safety, health and
welfare of the public, and to disclose promptly factors that might endanger the public
or the environment;
2. to avoid real or perceived conflicts of interest whenever possible, and to disclose
them to affected parties when they do exist;
3. to be honest and realistic in stating claims or estimates based on available data;
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4. to reject bribery in all its forms;

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5. to improve the understanding of technology, its appropriate application, and potential

consequences;
6. to maintain and improve our technical competence and to undertake technological
tasks for others only if qualified by training or experience, or after full disclosure of
pertinent limitations;
7. to seek, accept, and offer honest criticism of technical work, to acknowledge and
correct errors, and to credit properly the contributions of others;
8. to treat fairly all persons regardless of such factors as race, religion, gender,
disability, age, or national origin;
9. to avoid injuring others, their property, reputation, or employment by false or
malicious action;
10. to assist colleagues and co-workers in their professional development and to support
them in following this code of ethics

Ethics in Indian Institute of Materials and Management

 To consider first, the TOTAL interest to one’s organization in all transactions

without impairing the dignity and responsibility to one’s office;

 To buy without prejudice, seeking to obtain the maximum ultimate value for each
Rupee of Expenditure;

 To subscribe and work for honesty and truth in buying and selling, to denounce all
forms and manifestations of commercial bribery and to eschew anti-social
practices;

 To accord a prompt and courteous reception so far as conditions will permit, to all
who call upon a legitimate business mission;

To respect one’s obligations and those of one’s organization, consistent with good business
practice

Ethics in Institute of Engineers

1.1 Engineers serve all members of the community in enhancing their welfare, health and
safety by a creative process utilising the engineers’ knowledge, expertise and experience.
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1.2 Pursuant to the avowed objectives of The Institution of Engineers (India) as enshrined
in the presents of the Royal Charter granted to the Institution, the Council of the Institution
prescribed a set of "Professional Conduct Rules" in the year 1944 replacing the same with the
"Code of Ethics for Corporate Members" in the year 1954 which was revised in the year
1997.

1.3 In view of globalisation, concern for the environment and the concept of sustainable
development, it has been felt that the prevailing "Code of Ethics for Corporate Members"
needs review and revision in letter and spirit. The engineering organisations world over have
updated their Code of Ethics.

1.4 The Council of the Institution vested with the authority in terms of the Present 2(j) of
the Royal Charter adopted at its 626th meeting held on 21.12.2003 at Lucknow the "Code of
Ethics for Corporate Members" as provided hereinafter.

1.5 The Code of Ethics is based on broad principles of truth, honesty, justice,
trustworthiness, respect and safeguard of human life and welfare, competence and
accountability which constitute the moral values every Corporate Member of the Institution
must recognize, uphold and abide by.

1.6 This "Code of Ethics for Corporate Members" shall be in force till the same is revised
by a decision of the Council of the Institution.

CODE OF ETHICS FOR Institute of Engineers

1.0 Preamble

1.1 The Corporate Members of The Institution of Engineers (India) are committed to
promote and practice the profession of engineering for the common good of the community
bearing in mind the following concerns :

1.1.1 Concern for ethical standard;

1.1.2 Concern for social justice, social order and human rights;
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1.1.3 Concern for protection of the environment;

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1.1.4 Concern for sustainable development;

1.1.5 Public safety and tranquility.

2.0 The Tenets of the Code of Ethics

2.1 A Corporate Member shall utilise his knowledge and expertise for the welfare, health
and safety of the community without any discrimination for sectional or private interests.

2.2 A Corporate Member shall maintain the honour, integrity and dignity in all his
professional actions to be worthy of the trust of the community and the profession.

2.3 A Corporate Member shall act only in the domains of his competence and with
diligence, care, sincerity and honesty.

2.4 A Corporate Member shall apply his knowledge and expertise in the interest of his
employer or the clients for whom he shall work without compromising with other obligations
to these Tenets.

2.5 A Corporate Member shall not falsify or misrepresent his own or his associates'
qualifications, experience, etc.

2.6 A Corporate Member, wherever necessary and relevant, shall take all reasonable steps
to inform himself, his employer or clients, of the environmental, economic, social and other
possible consequences, which may arise out of his actions.

2.7 A Corporate Member shall maintain utmost honesty and fairness in making statements
or giving witness and shall do so on the basis of adequate knowledge.

2.8 A Corporate Member shall not directly or indirectly injure the professional reputation
of another member.

2.9 A Corporate Member shall reject any kind of offer that may involve unfair practice or
may cause avoidable damage to the ecosystem.

2.10 A Corporate Member shall be concerned about and shall act in the best of his abilities
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2.11 A Corporate Member shall not act in any manner which may injure the reputation of
the Institution or which may cause any damage to the Institution financially or otherwise.

3.0 General Guidance

The Tenets of the Code of Ethics are based on the recognition that –

3.1 A common tie exists among the humanity and that The Institution of Engineers (India)
derives its value from the people, so that the actions of its Corporate Members should
indicate the member’s highest regard for equality of opportunity, social justice and fairness;

3.2 The Corporate Members of the Institution hold a privileged position in the community
so as to make it a necessity for their not using the position for personal and sectional interests.

4.0 And, as such, a Corporate Member –

4.1 should keep his employer or client fully informed on all matters in respect of his
assignment which are likely to lead to a conflict of interest or when, in his judgement, a
project will not be viable on the basis of commercial, technical, environmental or any other
risks;

4.2 should maintain confidentiality of any information with utmost sincerity unless
expressly permitted to disclose such information or unless such permission, if withheld, may
adversely affect the welfare, health and safety of the community;

4.3 should neither solicit nor accept financial or other considerations from anyone related
to a project or assignment of which he is in the charge;

4.4 should neither pay nor offer direct or indirect inducements to secure work;

4.5 should compete on the basis of merit alone;

4.6 should refrain from inducing a client to breach a contract entered into with another duly
appointed engineer;
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4.7 should, if asked by the employer or a client, to review the work of another person or
organisation, discuss the review with the other person or organisation to arrive at a balanced
opinion;

4.8 should make statements or give evidence before a tribunal or a court of law in an
objective and accurate manner and express any opinion on the basis of adequate knowledge
and competence; and

4.9 should reveal the existence of any interest – pecuniary or otherwise – which may affect
the judgement while giving an evidence or making a statement.

5.0 Any decision of the Council as per provisions of the relevant Bye-Laws of the
Institution shall be final and binding on all Corporate Members

ASME Code of Ethics of Engineers

ASME requires ethical practice by each of its members and has adopted the following Code
of Ethics of Engineers as referenced in the ASME Constitution, Article C2.1.1.

CODE OF ETHICS OF ENGINEERS

The Fundamental Principles

Engineers uphold and advance the integrity, honor and dignity of the engineering profession
by:

I. Using their knowledge and skill for the enhancement of human welfare;
II. Being honest and impartial, and serving with fidelity the public, their
employers and clients; and
III. Striving to increase the competence and prestige of the engineering profession.

The Fundamental Canons

1. Engineers shall hold paramount the safety, health and welfare of the public in
the performance of their professional duties.
2. Engineers shall perform services only in the areas of their competence.
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3. Engineers shall continue their professional development throughout their

careers and shall provide opportunities for the professional and ethical
development of those engineers under their supervision.
4. Engineers shall act in professional matters for each employer or client as
faithful agents or trustees, and shall avoid conflicts of interest or the
appearance of conflicts of interest.
5. Engineers shall build their professional reputation on the merit of their
services and shall not compete unfairly with others.
6. Engineers shall associate only with reputable persons or organizations.
7. Engineers shall issue public statements only in an objective and truthful
manner.
8. Engineers shall consider environmental impact in the performance of their
professional duties.

The ASME criteria for interpretation of the Canons are guidelines and represent the
objectives toward which members of the engineering profession should strive. They are
principles which an engineer can reference in specific situations. In addition, they provide
interpretive guidance to the ASME Board on Professional Practice and Ethics on the Code of
Ethics of Engineers.

1. Engineers shall hold paramount the safety, health and welfare of the public in
the performance of their professional duties.

a. Engineers shall recognize that the lives, safety, health and welfare of the
general public are dependent upon engineering judgments, decisions and
practices incorporated into structures, machines, products, processes and
devices.

b. Engineers shall not approve or seal plans and/or specifications that are not
of a design safe to the public health and welfare and in conformity with
accepted engineering standards.
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c. Whenever the Engineers' professional judgments are over ruled under

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endangered, the Engineers shall inform their clients and/or employers of the
possible consequences.

(1) Engineers shall endeavor to provide data such as published standards, test codes, and
quality control procedures that will enable the users to understand safe use during life
expectancy associated with the designs, products, or systems for which they are responsible.

(2) Engineers shall conduct reviews of the safety and reliability of the designs, products, or
systems for which they are responsible before giving their approval to the plans for the
design.

(3) Whenever Engineers observe conditions, directly related to their employment, which they
believe will endanger public safety or health, they shall inform the proper authority of the
situation.

d. If engineers have knowledge of or reason to believe that another person or firm may be in
violation of any of the provisions of these Canons, they shall present such information to the
proper authority in writing and shall cooperate with the proper authority in furnishing such
further information or assistance as may be required.

2. Engineers shall perform services only in areas of their competence.

a. Engineers shall undertake to perform engineering assignments only when qualified by

education and/or experience in the specific technical field of engineering involved.

b. Engineers may accept an assignment requiring education and/or experience outside of their
own fields of competence, but their services shall be restricted to other phases of the project
in which they are qualified. All other phases of such project shall be performed by qualified
associates, consultants, or employees.

3. Engineers shall continue their professional development throughout their

careers, and should provide opportunities for the professional and ethical
development of those engineers under their supervision.
4. Engineers shall act in professional matters for each employer or client as
faithful agents or trustees, and shall avoid conflicts of interest or the
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appearance of conflicts of interest.

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a. Engineers shall avoid all known conflicts of interest with their employers or clients and
shall promptly inform their employers or clients of any business association, interests, or
circumstances which could influence their judgment or the quality of their services.

b. Engineers shall not undertake any assignments which would knowingly create a potential
conflict of interest between themselves and their clients or their employers.

c. Engineers shall not accept compensation, financial or otherwise, from more than one party
for services on the same project, or for services pertaining to the same project, unless the
circumstances are fully disclosed to, and agreed to, by all interested parties.

d. Engineers shall not solicit or accept financial or other valuable considerations, for
specifying products or material or equipment suppliers, without disclosure to their clients or
employers.

e. Engineers 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 work for
which they are responsible. Where official public policy or employers' policies tolerate
acceptance of modest gratuities or gifts, engineers shall avoid a conflict of interest by
complying with appropriate policies and shall avoid the appearance of a conflict of interest.

f. When in public service as members, advisors, or employees of a governmental body or

department, Engineers shall not participate in considerations or actions with respect to
services provided by them or their organization(s) in private or product engineering practice.

g. Engineers shall not solicit an engineering contract from a governmental body or other
entity on which a principal, officer, or employee of their organization serves as a member
without disclosing their relationship and removing themselves from any activity of the body
which concerns their organization.

h. Engineers working on codes, standards or governmental sanctioned rules and

specifications shall exercise careful judgment in their determinations to ensure a balanced
viewpoint, and avoid a conflict of interest.
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i. When, as a result of their studies, Engineers believe a project(s) will not be successful, they
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j. Engineers 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.

(1) They will not disclose confidential information concerning the business affairs or
technical processes of any present or former employer or client or bidder under evaluation,
without his consent, unless required by law or court order.

(2) They shall not reveal confidential information or finding of any commission or board of
which they are members unless required by law or court order

(3) Designs supplied to Engineers by clients shall not be duplicated by the Engineers for
others without the express permission of the client(s).

k. Engineers shall act with fairness and justice to all parties when administering a
construction (or other) contract.

l. Before undertaking work for others in which Engineers may make improvements, plans,
designs, inventions, or other records which may justify seeking copyrights, patents, or
proprietary rights, Engineers shall enter into positive agreements regarding the rights of
respective parties.

m. Engineers shall admit their own errors when proven wrong and refrain from distorting or
altering the facts to justify their mistakes or decisions.

n. Engineers shall not accept professional employment or assignments outside of their regular
work without the knowledge of their employers.

o. Engineers shall not attempt to attract an employee from other employers or from the
market place by false or misleading representations.

5. Engineers shall build their professional reputation on the merit of their

services and shall not compete unfairly with others.

a. Engineers shall negotiate contracts for professional services on the basis of demonstrated
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b. Engineers shall not request, propose, or accept professional commissions on a contingent

basis if, under the circumstances, their professional judgments may be compromised.

c. Engineers shall not falsify or permit misrepresentation of their, or their associates,

academic or professional qualification. They shall not misrepresent or exaggerate their
degrees of responsibility in or for the subject matter of prior assignments. Brochures or other
presentations used to solicit personal employment shall not misrepresent pertinent facts
concerning employers, employees, associates, joint venturers, or their accomplishments.

d. Engineers shall prepare articles for the lay or technical press which are only factual.
Technical Communications for publication (theses, articles, papers, reports,etc.) which are
based on research involving more than one individual (including students and supervising
faculty, industrial supervisor/researcher or other co-workers) must recognize all significant
contributors. Plagiarism, the act of substantially using another's ideas or written materials
without due credit, is unethical. (See Appendix.)

e. Engineers shall not maliciously or falsely, directly or indirectly, injure the professional
reputation, prospects, practice or employment of another engineer, nor shall they
indiscriminately criticize another's work.

f. Engineers shall not use equipment, supplies, laboratory or office facilities of their
employers to carry on outside private practice without consent.

6. Engineers shall associate only with reputable persons or organizations.

a. Engineers shall not knowingly associate with or permit the use of their names or firm
names in business ventures by any person or firm which they know, or have reason to
believe, are engaging in business or professional practices of a fraudulent or dishonest nature.

b. Engineers shall not use association with non-engineers, corporations, or partnerships to

disguise unethical acts.

7. Engineers shall issue public statements only in an objective and truthful

manner.
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a. Engineers shall endeavor to extend public knowledge, and to prevent misunderstandings of

the achievements of engineering.

b. Engineers shall be completely objective and truthful in all professional reports, statements
or testimony. They shall include all relevant and pertinent information in such reports,
statements or testimony.

c. Engineers, when serving as expert or technical witnesses before any court, commission, or
other tribunal, shall express an engineering opinion only when it is founded on their adequate
knowledge of the facts in issue, their background of technical competence in the subject
matter, and their belief in the accuracy and propriety of their testimony.

d. Engineers shall issue no statements, criticisms, or arguments on engineering matters which

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 financial interest they may have in
matters under discussion.

e. Engineers shall be truthful in explaining their work and merit, and shall avoid any act
tending to promote their own interest at the expense of the integrity and honor of the
profession or another individual.

8. Engineers shall consider environmental impact in the performance of their

professional duties.

a. Engineers shall concern themselves with the impact of their plans and designs on the
environment. When the impact is a clear threat to health or safety of the public, then the
guidelines for this Canon revert to those of Canon 1.

9. Engineers accepting membership in The American Society of Mechanical

Engineers by this action agree to abide by this Society Policy on Ethics and
procedures for its implementation.
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Moral Leadership

Moral Leadership brings together in one comprehensive volume essays from leading scholars
in law, leadership, psychology, political science, and ethics to provide practical, theoretical
policy guidance. The authors explore key questions about moral leadership such as:

 How do leaders form, sustain, and transmit moral commitments?

 Under what conditions are those processes most effective?

 What is the impact of ethics officers, codes, training programs, and similar
initiatives?

 How do standards and practices vary across context and culture?

 What can we do at the individual, organizational, and societal level to foster moral
leadership?

ENGINEERS AS EXPERT WITNESS AND ADVISORS

Engineering expert witnesses are highly credentialed mechanical, safety & civil,
geotechnical, chemical and electrical engineers specializing in the areas of design,
construction & structural engineering, failure analysis, human factors, occupational safety,
metallurgy and more. They provide litigation support through review and evaluation of
distressed structures for land slide and erosion cases; performance of forensic studies on
hydraulics, power plants, pipelines, boiler systems, traffic, automotive, electrical fire
involving electrical systems of machinery; site research and inspection, laboratory testings,
report writing, depositions and court testimony.

Engineers shall endeavor to extend public knowledge, and to prevent misunderstandings of

the achievements of engineering.

b. Engineers shall be completely objective and truthful in all professional reports, statements
or testimony. They shall include all relevant and pertinent information in such reports,
statements or testimony.

c. Engineers, when serving as expert or technical witnesses before any court, commission, or
other tribunal, shall express an engineering opinion only when it is founded on their adequate
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knowledge of the facts in issue, their background of technical competence in the subject
matter, and their belief in the accuracy and propriety of their testimony.

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 Chapter 5
LAW OF CONTRACTS AND CONSUMER PROTECTION

Learning Objectives:
After reading through this chapter, the reader will be able to:

• Define the term contract

• State the difference between agreement and contract
• Discuss the essential elements of a contract
• Discuss the procedure for forming a contract
• Define the term free consent and coercion
• State the objectives of consumer protection law
• Detail out the structure for implementing the consumer protection law in the 1986 Act
• Discuss the changes made in the consumer protection act 2019
• Define the term tort giving two examples
• Explain the concept of law of torts and state how it differs from other laws
• Explain the meaning of damnum sine injuria and injuria sine damnum

5.1 INTRODUCTION
This chapter deals with some important aspects of laws of interest. The idea is not to present the laws
from a legal or lawyers' point of view but to understand some of the features of these laws. Law of
contracts is a law coming from the British era (in 1872). As times changed, two sections of this law
have been removed from this and made into separate laws. Law of Torts is an uncodified law and
depends on case laws and judgments for hearing and deciding the cases. Another important aspect of
interest is consumer protection. The Consumer Protection Act 1986 has been specially enacted to
protect the interests of the consumers of both Goods and Services. This Act has now been replaced by
the Consumer Protection Act 2019 with some modification in the earlier act considering the new ways
of buying goods and marketing like E-commerce, teleshopping and multi-level marketing.

5.2 INDIAN CONTRACT LAW 1872

The Indian Contract Law 1872 is a British Law made applicable to the Indian State in 1872. The law
as made applicable at that time had 266 sections. Over a period of time, in addition to amendments as
required by demand of situations, some sections were removed from the Act. The sections originally
included are:
1 to 75 — General provisions
76 to 123 — Sales of Goods
124 to 147 — Indemnity/Guarantee
148 to 181 — Bailment and Pledge
182 to 238 — Agency
239 to 266 — Partnerships
Two of these categories, 76 to 123 (Sale of goods) and 239 to 266 (Partnerships) were removed from
the Contract Law and have been made into separate laws.
Agreement and Contract: All contracts are agreements but all agreements are not contracts. An
agreement enforceable by law is a contract. Enforceable by law means legal remedy is available in
case of any breach of contract to the aggrieved party.
Essential elements: Some essential elements of a valid contract are:

• At least two (or more parties) must participate in the contract (One makes an offer and the
other(s) accept it)
• Offer made is accepted by the other party
• Acceptance is by free consent (and not by force or any form of coercion)
• Both parties agree to have a legal relationship
• Agreement must be on potentially possible actions
• Capacity or eligibility for entering into contract (not a minor or of unsound mind etc.)
• Objective of contract must be lawful
• Both the parties understand the contract in the same way
• Contract cannot be on illegal activities
• Legal formalities, as required, are completed like written and signed agreements, registration,
payment of dues, witnesses etc.)

Proposal and Acceptance:

(a) When one person signifies to another his willingness to do or to abstain from doing anything, with
a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal;
(b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to
be accepted. A proposal, when accepted, becomes a promise;
The consideration or object of an agreement is lawful, unless—

• it is forbidden by law; or
• is of such a nature that if permitted, it would defeat the provisions of any law; or
• is fraudulent; or
• involves or implies injury to the person or property of another; or
• the Court regards it as immoral or opposed to public policy.

5.3 FORMATION OF CONTRACTS

Sections 2 to 6 of the act deal with this aspect:
a) Making a proposal: to do or not to do something. Person to whom the proposal is made signifies
his assent, the proposal is accepted; Person making the proposal is the ‘promisor’ and person
accepting it is the ‘promisee’. When the promisee acts according to the desire of the promisor, it is
‘consideration for the promise’. Every promise in consideration of each other is an agreement.
Agreements not enforceable by law is said to be void. Legally enforceable agreements are
contracts.
b) Formation of contract involves communicating the proposal and acceptance of the proposal.
c) A proposal can be revoked by communication to the other party or if the acceptance is not made in
time as specified or by nonfulfillment of conditions by any of the parties.
5.4 ESSENTIALS OF CONTRACTS
Sections 10 to 23 deal with this aspect of contracts.
a) All agreements are contracts if the if they are made with the free consent of the parties competent
to contract, object of contract is lawful, for a lawful consideration and are not declared void. All
legal requirements like contract in writing, registration of documents and signature of witnesses
need to be complied with.
b) Competent to contract means the person(s) of legal maturity, of sound mind and is not disqualified
by any law.
c) Sound mind means the person capable of understanding the contract and is able to form rational
judgments about its effect on his interests.
d) Consent by two or more persons means that they agree upon some thing with the same
understanding on all its aspects.
e) Free consent happens when it is free of any coercion, undue influence, fraud, misrepresentation or
mistake.
f) Coercion is committing any unlawful act forbidden by Indian penal laws.
g) Undue influence (in entering into a contract) happens when one of the parties hold such powers as
to dominate the decision of the other by apparent authority or the other party is of weal disposition.
h) Fraud means making a suggestion that something is true when it is not, concealing facts, making
promises with no intention of doing it or by doing anything fraudulent.
i) Misrepresentation means positively asserting something as true when it is not, breach of duty to
gain some advantage and causing someone to make a mistake.
j) An agreement arrived at by coercion is voidable; same is the case for fraud and misrepresentation.
k) The agreement is also voidable if both the parties make mistake in understanding substance of the
agreement.
l) Lawful object of any agreement means that the object is not specifically forbidden in law.
(Example: agreement to supply prohibited drugs or make forbidden weapons)

5.5 SAFETY IN PRODUCTS

It is important to recognize that there is much greater awareness about safety today than earlier.
Engineered products can cause harm to individuals (such as shock from an electrical appliance), harm
to a community (such as the breaching of a dam), economic loss (due to fi re in an automobile), and
environmental degradation (due to the construction of dams). The risk involved can be in the short
term like an economic loss or in the long term as in environmental degradation.
Individuals can be at harm when an engineering product’s designs are faulty or when the materials
used are defective. A mobile phone that explodes due to a defective battery is an example. A person
who buys an electric iron and gets an electric shock from it has reasons to complain.
The construction of a dam, which causes displacement of people due to water storage and also results
in environmental degradation, is an example of an engineering product that can cause both economic
loss and suffering to people. However, a dam is an essential part of our lives and necessary for the
benefit of the community. The ethical aspect is involved in the way we deal with the risks. Dams are
necessary, but the risks must be properly accounted for.
When we discussed the skill sets of engineers in Chapter 4, we included many points that are not part
of the curriculum of an engineering course. Their importance becomes evident when we look at the
designing and implementation of engineering products. Engineering needs to have a human face to
look at the safety aspects. The risks, if any, take place in the future. The engineer needs to ascertain
the risks and provide measures for their avoidance. This involves innovative and creative abilities.
This is more so when a new product is designed. There is no past experience to fall back upon in such
a case. The engineer needs to think creatively, and perceive and provide for the likely risks. This is the
crux of engineering design from an ethical point of view.

Risk & Cost

A safe design involves building in safety features, which of course involves some cost. Also, some of
the obvious risks, as in the case of a dam where rehabilitation of people displaced is a humane aspect,
need to be considered. There are many misconceptions about cost. Some of hem are as follows:
• Designing for safety is a costly affair. While the substance of this statement is true, the perception
needs to be clarified. Providing safe products is ethical and mandatory. In addition, it is the duty of
the manufacturer to ensure safety of the product and he/she cannot compromise safety considering
the expenses involved in providing for it. The engineer must always look at the cost aspect even if
he/she does not want to make provisions for safety. For one, designing a safe product will not be as
costly as modifying the design later to build in safety features. The loss of the company’s credibility
due to unsafe products will also prove to be very costly, affecting the business in the future. Even a
redesigned safe product can be economical in the long run considering the lifecycle of the product.
• As the safety of the product is not known beforehand, it can be ascertained only during the testing
stage. Many products do not show lapses in safety until they are tested. Design for safety must be
initiated in advance because some harm could occur during the testing of the product.
• Customers may misuse the product and come to harm, which cannot be accounted for. This is again
a false notion. We have to take into account the customer while designing the product. A computer,
for example, is used by many people who are not engineers and are completely unaware of its
intricacies. However, a personal computer is so designed that it does not depend upon the
knowledge of the user. In addition to proper documentation for the use of a consumer, the product is
so designed and helplines are provided so that the consumer does not find it difficult to use. Safety
devices in automobiles and other equipment can help prevent accidents even if the operators make
mistakes.
That laxity in safe product preparation can be costly is easily seen. The case of the Delhi Metro Rail
Corporation (DMRC) is an example. The DMRC has received recognition for efficiency, timely
completion of projects, and safety. However, the collapse of a girder causing a lot of damage has put a
question mark on its credibility. The overturning of a crane pressed into service for removing the
girder has further damaged the image of the company. Whether the mishap is due to faulty design or
any other cause does not matter. There are a number of questions being raised about the company’s
methods and procedures.
Engineer’s Responsibility for Safety
Engineers are responsible for designing, manufacturing/constructing, and controlling quality of safe
products. They must be aware of this responsibility and the ethics involved in their functioning. While
a corporate leader may think of finances, costs and profit, and bottom lines, engineers need to think
about safe products and the likely risks. The engineers involved in the design of products must be sure
that the product satisfies the minimum standards laid down for product safety. Such standards are well
known and available for perusal. Engineers must constantly refer to safety standards while designing
products. Designing a conceived engineering product is an iterative process. The design is iterative
because some assumptions are made in the design. The design is repeated with the data from the first
design to make better assumptions. Alternative solutions and an optimum solution may be available
and can be found. This calls for greater ingenuity and creativity on the part of engineers to look for
alternate solutions that may be safer. It is a tedious process to arrive at alternative solutions and
evaluate each one of them based on technical criteria and safety standards. The best solution must be
arrived at after due consideration of all aspects of the design. As an example, consider the following.
The Australian Competition and Consumer Commission (ACCC) enforces mandatory product safety
and information standards and bans on unsafe goods declared under the Trade Practices Act. Fair
Trading Offices also have an important role in product safety within their own states. The following
guidelines have been prescribed for product safety:

Product Safety
Product suppliers and manufacturers have an obligation to ensure that only safe products are
marketed. This can be done by providing clear instructions for use, including
• warnings against possible misuse;
• being aware of and meeting industry and mandatory standards;
• developing product recall plans and procedures including effective communication strategies to
the public (e.g., advertisements in papers);
• incorporating safety into product design;
• developing appropriate safety standards through product improvement;
• implementing a quality assurance programme, which includes consumer feedback; and
• responding quickly to safety concerns that arise.
While designing a product, engineers must first consider the current accepted engineering practice.
Design methods and materials available for use keep changing with time, and with advanced
computational techniques, the possibility of looking at alternatives becomes easier. Secondly,
engineers need to constantly update themselves on the design practices. In addition, they can update
themselves through training programmes available in their area of work. They must recognize that
there is a need for continuous learning, as learning never stops (even after leaving college) and this
alone can give them a competitive edge.
The third consideration that engineers need to keep in mind is that the product is likely to go into the
hands of a user not conversant with the intricacies of engineering design. Therefore, it is a good idea
to prepare and give a product information document to the consumer. At the same time, the pitfalls
and risks created by not-so-well-informed consumers must be taken into account. The consumer may
misuse the product and come to harm despite the documentation, demonstration, and advice given on
the use of the product. This requires engineers to foresee and provide for all kinds of risks associated
with the product. Great ingenuity, study, and knowledge about the likely consumers are needed to
make a safe product.5.3
Designing for Safety
In the realization of a product, the point at which the question of safety must be considered is the
design stage. It is at this stage that the product takes a physical form and many of the intricacies of the
practical aspects of the conceived product are seriously considered. This involves product detailing,
analysis and design, prediction or assessment of possible risks, and incorporating safety features in the
product. In assessing the possible risks, the consumers of the product need to be considered. There is
no doubt that everyone wants a safe product. Engineers are responsible for ensuring that the product is
safe for the consumer. Safety does cost more but will be worth it, and so cost should not be a prime
consideration at this stage.

Product Costs

The cost of a product can be divided into two parts. The product has a primary cost due to the
materials involved, production cost, overhead cost, etc. If you draw a graph between the primary cost
and safety, you will see that the cost increases as the safety components are increased (refer to Fig.
5.1a). This costing is straightforward as all engineers are familiar with the costing of known
components. On the other hand, there are secondary costs, which include downtime, warranty
liability, loss of customer goodwill, etc. These increase with low-safety designs (refer to Fig. 5.1b).
The costing of these is difficult as the cost cannot be exactly estimated and has to be surmised based
on experience. The combination of these two costs is the total cost of the engineering product (refer to
Fig. 5.1c). The total product cost curve is a sagging curve with a minimum appearing somewhere in
between. This shows that the minimum cost is obtained when the primary cost and secondary cost
increases balance each other after a certain point ‘L’. Absolute safety cannot be built in nor is it
attainable. The highest acceptable risk needs to be evaluated and the costing done at this or a higher
level.

Probability of Safety and Risk

Safety and risk are both probability based. As shown in Fig. 5.2, we can make curves of statistical
distribution of loads on a machine component and the load carrying capacity of that component. Most
design codes now have a probabilistic method of strength design. Figure 5.2(a) shows a situation
when the loads on the component and the capacity of the component are such that the capacity is more
and the two curves do not overlap. The curves are asymptotic but can be terminated at a certain
confidence level. The peaks of the curves in the two cases are the expected values, while the load and
capacity may vary and reach the two extremes. The situation shown in Fig. 5.2(a) is a safe design.
Figure 5.2(b) shows a situation where, while the expected values seem to indicate a safe design, the
possible values at a certain probability level show an unsafe zone due to the overlap between the two
curves. This is a danger zone and can lead to possible failure.
With increasing consumer activism and awareness, faulty designs are likely to lead to much higher
secondary costs by way of litigation and replacement costs. The product safety standards in India are
presently not very satisfactory. The Bureau of Indian Standards has product standards for only a few
products such as electrical appliances, but many countries have very stringent product safety
standards and marketing any product not satisfying those standards is punishable.

5.6 CONSUMER PROTECTION

You often hear in business conferences that “consumer is king.” If consumer is king, why does he
need protection? Many practices by companies, sales personnel are unethical and fraudulent. Some of
the reasons for the vigorous steps taken by governments of many countries for consumer protection
are because of the following:

• Advertisements making tall and fraudulent claims on products and services

• The goods and services supplied are not the same as what is advertised and promised
• Sales personnel act very consumer-friendly only till they effect a sale; they do not respond
afterwards
• Many provisions in the warranty or product information are not explained to the consumer
• Lot of information in fine print is not generally studied in detail by the consumer and also not
explained to him; consumer feels cheated later on.
• Consumer desirous of seeking legal remedies finds the process very costly and time
consuming.
• Consumers not being aware of their rights and remedy available in case they feel cheated by
business entities.
Consumer protection became a key element of fair and ethical business practices and many laws were
enacted and remedial structures were set up for the purpose. We briefly look at salient aspects of
consumer protection.

5.6.1 Product Safety Standards

Almost all countries have product safety standards. The objectives of standardization are to:

• Ensure quality of goods

• Ensure uniformity (compatibility and interoperability) of goods by different manufacturers
• Ensure safety in goods supplied to consumers
• Enable certification of goods by standards organization of different countries
Three types of standards are generally considered

• De facto standards followed by convention and use

• De jure standards that are enforceable by law and regulations
• Voluntary standards that are available for the user to decide their quality and use
Products having certification by standards organizations have greater acceptance in the market though
they may not necessarily be true all the time. Standardization deals with materials, processes,
dimensions, test procedures, permitted variability etc. Standardization helps manufacturers and
consumers by

• Guaranty quality of a manufactured product

• Improving productivity of business as the standards can reduce time by standardizing process
without any confusion
• Uniformity and predictability by standardized processes
• Creating brand value for products
• Customers get better products and services

Some details of standards organization in some countries are given below.

a) USA: USA has a consumer product safety commission established under the consumer product
safety act. The objectives of the commission are to:

• To protect the public against unreasonable risks of injury associated with consumer products;
• To assist consumers in evaluating the comparative safety of consumer products;
• To develop uniform safety standards for consumer products and to minimize conflicting State
and local regulations; and
• To promote research and investigation into the causes and prevention of product-related
deaths, illnesses, and injuries

The web site of CPSC states: “CPSC is charged with protecting the public from unreasonable risks of
injury or death associated with the use of the thousands of types of consumer products under the
agency's jurisdiction. Deaths, injuries, and property damage from consumer product incidents cost the
nation more than $1 trillion annually. CPSC is committed to protecting consumers and families from
products that pose a fire, electrical, chemical, or mechanical hazard. CPSC's work to ensure the safety
of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals -
contributed to a decline in the rate of deaths and injuries associated with consumer products over the
past 40 years.”
There are many acts passed to ensure safety in all consumer products. These can be seen at cpsc.gov.
b) Australia: The Australian Competition and Consumer Commission is authorized to enforce
mandatory product safety and information standards. This is as per the Consumer and Competition
Act (2010). The general principles are:

• Any one selling products to Australian consumers in physical stores or on-line should ensure
that the products satisfy the Australian Consumer Law
• All manufacturers and suppliers are mandatorily required to comply with the Australian
Safety Standards
• Selling products not complying with safety standards is illegal and invites penalties
Businesses are required to:

• Ensure mandatory levels of safety in products

• Ensure that the products are tested to ensure safety
• Ensure that products do not cause harm when used in a reasonable manner and reasonable
misuse
Product safety is ensured by:

• providing clear instructions for use, including warnings against possible misuse
• being aware of and meeting industry and mandatory standards
• developing product recall plans and procedures including effective communication strategies
to the public (eg. advertising)
• incorporating safety into product design
• developing appropriate safety standards through product improvement
• implementing a quality assurance program which includes consumer feedback
• responding quickly to safety concerns that arise.
There are two types of mandatory product standards:
*Safety standards - goods must comply with particular performance, composition, contents, methods
of manufacture or processing, design, construction, finish or packaging rules.
*Information standards - prescribed information must be given to consumers when they purchase
specified goods (e.g. labelling for cosmetics, tobacco products and care labelling for clothing and
textile products).
c) European Union: European Union is a union of 29 countries in Europe who adopt standards
developed at the Union level for compatibility and acceptability across all countries. There are
National Standard Boards in countries who adopt the union standards and delete those that are in
conflict.
European standards are adopted by one of the three European Standardisation Organizations:
• European Committee for Standardisation (CEN)
• European Committee for Electro-technical Standardization (Cenelec)
• European Telecommunications Standards Institute (ETS)
Businesses and consumers are helped by compliance to standards in many ways:
 • Building consumer confidence
• Ensures high level of safety and quality for consumers
• Help consumer health
• Protecting the environment
• Open up markets for better accessibility
• Ensuring Compatibility and interoperability

d) India: Bureau of Indian Standards (BIS) is the National Standards Body of India established under
the BIS Act 2016 for the harmonious development of the activities of standardisation, marking and
quality certification of goods and for matters connected therewith or incidental thereto. BIS has
helped in the following through standardisation, certification and testing.
• providing safe reliable quality goods;
• minimising health hazards to consumers;
• promoting exports and imports substitute;
• control over proliferation of varieties etc.
To protect the interests of consumers as well as the industry, BIS is involved in various activities as
given below:
• Standards Formulation
• Product Certification Scheme
• Compulsory Registration Scheme
• Foreign Manufacturers Certification Scheme
• Hall Marking Scheme
• Laboratory Services
• Laboratory Recognition Scheme
• Sale of Indian Standards
• Consumer Affairs Activities
• Promotional Activities
• Training Services, National & International level
• Information Services
The Bureau publishes a number of standards related to products, processes and services.

5.6.3. Product Information

Product information is mandatory under consumer protection acts of different countries. The present
times witness a global market for many products. Product information has thus to satisfy customers
across the world. Product information is given in a booklet or a leaflet to the consumer. Product
information includes a user manual that informs the user of the correct use of the product. The
following features are common:
Multi-lingual: As the product gets marketed worldwide, product information is given in many
languages. Even items considered local today have instructions in many languages. Many spices,
packaged foods, frozen foods have instructions given in many languages. It is mandatory to give
ingredients, manufacturing and expiry dates and storage information.
Clarity: Clarity comes from step-by-step detailing of assembling and use. The user must be able to
read and put the product to use in many instances. Some products do need installation and
commissioning by a qualified engineer.
Illustrations: Figures, photographs or diagrams are commonly used for clarity. Japanese firms are
known to use a lot of illustrations in their user manuals.
Technical details: Many customers may not understand the technical details like power requirements
in terms of voltage and frequency of power supply. Power connections used are also different in
different countries. Technical details must be explained to the consumer at the time of purchase.
Precautions: Customers need to be told the correct use, storage, transportation and other precautions
to be taken while using the equipment. Many times customers are told not to open the product to
check as there may not be any parts that are serviceable by users. Warnings against possible misuse
should be given clearly in terms of ‘don’t’ lists.
Simple troubleshooting: Most companies give some simple checks that the consumer can undertake
before rushing with complaints but generally advise them to call a qualified technician mandatory
declarations. In many products, radiation levels may be important as in smart phones. These
declarations are to ensure that the product satisfies such requirements of the country where it is sold.
Medium for product information: Product information can be provided through a variety of media.
• Printed: The most common form is the written or printed form. This is used for small or large
amount of information. As there is a need to move towards a paperless, alternate medium, other
forms are becoming popular.
• E-versions: E-formats for catalogues and product information are very common now-a-days.
Many user manuals are downloadable from the Internet. Product help (for use) is also many
times provided.
• Combination mode: A combined form using paper and e-versions are also provided. A small
product information booklet can be provided with detailed user manuals provided in the e-
format. The choice depends upon the product and extent of detailing of information.
• Video clips: These are becoming popular both as advertising material and for giving product
information through demonstration. They can be useful for people who need such a mode of
information and can see a CD again as per need.
Product information management is a new area that helps in marketing and selling of products. This
requires the creation of a central product database. This can be used then to supply information to a
variety of users in different places and in a form suitable to them. The information can be used to print
catalogues and place information on web sites or for other people as per their needs. Information
made available in this form helps to market and sell products through a variety of distribution
channels and modes.
Product information management systems are useful to:
• Create a central database of a large number of products
• Preparation of electronic catalogues
• Get product information in hard copy form
• Cater to different geographic locations in local language
• Global access to marketing and sales personnel
• Facility for making changes on product modification and maintenance of records

5.6.4 Consumer Protection

As mentioned in the beginning, ‘Consumer is king’ is the common refrain among business managers.
Consumers can make or break a product. If consumer is the king, why does he/she need protection?
This is probably because consumers get cheated by businesses i) with spurious products, ii) by not
offering any services after an item is sold and iii) sometimes even supplying unsafe products.
Consumer activism was unheard of earlier. At present, consumer protection is legally enforced by
enacting consumer protection laws. Consumer protection is applicable to products and services.
Almost all countries have such laws.
A consumer is one who purchases goods or services by paying for it and for personal use. A consumer
can be cheated in many different ways:

• Product not conforming to the specifications advertised or told to the consumer at the time of
purchase
• Not informed of actual pricing or cost of accessories necessary to operate the product.
• Spurious product being supplied as a branded product.
• Many things in fine print not explained to the consumer
• Overcharging for the product or service
• High cost of replacement parts
• Absence of appropriate maintenance service or high service charges
• Supplying old refurbished product as original and new
With consumer complaints mounting about many products and services, thinking about consumer
rights and laws to protect them became imperative. It is also in the interest of the business to ensure
that consumer remains satisfied about any product or service. Consumer rights can be generally stated
as:
Safe product: Consumer is entitled to receive a safe product that does not cause any harm during use.
Safety has already been highlighted in the earlier discussion as well. An electrical product like an iron
or washing machine that gives an electrical shock to the user is definitely an unsafe product.
Similarly, many children’s toys need to be so designed as to be safe for the type of use that children
generally do. No toxic material should be used in making the product. Even if the children bite or
press the toy on their face, no harm should result. Depending upon the type of product, many safety
considerations should go into the design of the product. Consumers can also ask for certification that
ensures quality and safety. Many goods are purchased for use over a long period of time. The product
must be able to give reasonably good and safe service over the expected use by the consumer.
Product Choice: The availability of goods/service at reasonable price is a right of the consumer.
Competition in the market generally ensures variety of choices and fair prices for the consumer.
Monopoly by any company for a particular good or service will affect availability and fair pricing. If
you take the case of automobiles, four decades ago, there was very little choice. There were two car
brands (Ambassador and Fiat) and two two-wheeler brands (Bajaj and Lambretta). Availability was
very much restricted and the models did not advance technologically. Today, we have many, many
brands of cars (entry level, mid-size, luxury segment) and consumer has a great choice. Due to
competition, there are enough discounts and freebies that the companies are ready to give away.
Choice and free availability are consumer rights.
Product Information: It has been discussed earlier. Product information has to be clear and accurate
and in sufficient detail to enable the consumer to make an informed decision about purchase and use.
This is generally done by advertising through a variety of media, through product brochures and
product labeling. The consumer has the right to get all the information about the product and it must
be available to him from people trying to sell the product/service to him/her. The product quality,
service requirements and availability, cost and yearly payments, precautions in use etc. are important
for the consumer to decide about purchase. Many consumers fall for high-pitched advertisements and
buy goods which finally prove to be highly unsatisfactory. Consumers have to be on guard and the
protection laws are meant to help him get justice. In certain areas, where public health and safety are
involved, stringent requirement of product information is mandatory. All the ingredients need to be
disclosed in food items and the manufacturing date and expiry period are to be clearly specified.
Consumer grievance and redressal: When a consumer has purchased a product, it is quite possible
that the product malfunctions or the consumer has problems with it. There must be a mechanism by
which his grievances are heard and if required appropriate action is taken to address the same.
Generally, retailers act only as selling points and the consumer complaints are to be dealt with by the
company people only. Toll free numbers, local service centre contact details and the person to contact
are invariably required by the customer in case he has any complaints. The company should ensure a
strong follow-up action plan with the customer at least during the warranty period. Customers have a
right to be heard and the grievances addressed and set right in good time.
Consumer Education: Consumer education is important to get an informed and active consumer
community. Consumer education is the responsibility of the government, consumer activist groups
and the business itself. Essentially, consumer education educates the consumers about their rights,
about various goods and services, prices, quality and durability, trade practices and also about being
an ethical consumer.
Consumer education needs to promote critical thinking, problem solving, and action. The objectives
of consumer education are:

• Gain knowledge to act as informed consumers. For example, knowledge of consumer rights
• Develop an understanding of society's function as a whole and the specific role of consumers.
For example, the understanding of the role of companies in the economic system; the role of
the government in society and the role of consumer organizations.
• Master skills to function as informed and responsible consumers. For example, the methods
and procedures for complaint redressal; spotting sales gimmicks and using products
knowledgeably.
• Appreciate the importance of being an informed consumer.
• Act as informed, educated and responsible and ethical consumers.

Generally consumer education focuses on developing understanding about buying quality goods at
low prices, and avoiding marketing and sales gimmicks in the marketplace. The focus should be on
maximizing personal benefits at minimum cost. Consumer education also needs to focus on being an
informed and ethical consumer.

• Learn to buy only in absolute need; must be able to ask informed questions.
• Consumer education gives the consumer knowledge and skills to demand their rights and
ensure that their voices are heard.
• Consumers must be aware of the impact of their actions on others, particularly the
disadvantaged.
• Consumers should make an informed choice of buying goods and services that do not harm
the environment or violates basic human and animal rights.
• Possible to be effective by forming consumer groups; groups are more effective to fight for
consumer rights.

5.6.5 Consumer Protection Acts: Consumer protection acts addresses the rights of consumers given
above. The objectives of the Consumer Protection Act are to:

• Give a legal status to consumer rights

• Facilitate formation of consumer organizations
• Provide a forum for the consumers to go to with their complaints
• Provide a structure for speedy redressal of grievances
• Give the consumer a speedy but simpler and cost-effective means to get his complaints
resolved
We will briefly see the consumer protection laws in many countries including India.
USA: The Federal Trade Commission has a Bureau of Consumer Protection with the objective of:

• Stopping unfair deceptive and fraudulent business practices

• Receive complaints from consumers and conduct investigations
• Promote competitive business environment
• Prosecute companies and people breaking the law
• Developing rules to ensure fair trade practices
• Educating consumers and businesses about theur rights and duties
European Union: In 2012 the European Commission adopted the European consumer agenda that
identifies the key measures needed to empower consumers and to maximize their participation. The
agenda outlines the strategic vision on consumer policy with 62 action points grouped around 4 pillars
of
• promoting consumer safety
• enhancing knowledge of consumer rights
• strengthening the enforcement of consumer rules
• integrating consumer interests into key sectorial policies
As a long-term objective, the Commission also works to empower consumers through
• choice of product/service
 • information about product/service
• awareness of consumer rights and means of redressal

Australia: The Australian Consumer Law sets out consumer rights that are called consumer
guarantees. These include your rights to a repair, replacement or refund as well as compensation for
damages and loss and being able to cancel a faulty service.
Guarantees: Under the Australian Consumer Law, when you buy products and services they come
with automatic guarantees that they will work and do what you asked for. If you buy something that
isn't right, you have consumer rights.
Repair, replace, refund: If a product or service you buy fails to meet a consumer guarantee, you have
the right to ask for a repair, replacement or refund under the Australian Consumer Law. The remedy
you're entitled to will depend on whether the issue is major or minor.
Cancelling a service: Under the Australian Consumer Law, you have certain rights to cancel a service.
Compensation for damages & loss: You can seek compensation for damages and losses you suffer
due to a problem with a product or service if the supplier could have reasonably foreseen the problem.
This is in addition to your repair, replacement or refund rights.
Warranties: Under the Australian Consumer Law, automatic consumer guarantees apply to many
products and services you buy regardless of any other warranties suppliers sell or give to you.

India: Consumer Protection Act (1986) is the main legislation to protect the interests of consumers in
India. In addition to detailing the consumer rights and consumer empowerment, the act provides for
quasi-judicial structures for speedy and less-costly processes for grievance redressal for consumers.
Earlier, consumer awareness was less. Also the only forum for redressal of complaints was the normal
judicial system. Consumers were unwilling to register complaints due to the high cost and extreme
delay in getting justice. The Consumer Protection Act recognizes the rights of consumers as:

• Right to be protected against marketing of goods and services that are hazardous to life and
property
• Right to be informed about the quality, quantity, standard, and price of goods or services so as
to protect the consumer against unfair trade practices
• Right to receive assured access, wherever possible, to a variety of goods and services at
competitive prices
• Right to be heard and to be assured that consumers interests will receive due consideration at
appropriate forums.
• Right to seek redressal against unfair trade practices.
• Right to consumer education

The consumer protection act seeks to protect the interest of consumers against deficiencies or defect
in product or service. The act applies to only individual consumers purchasing goods/services for
personal use and applies to all goods and services unless specifically mentioned otherwise.
Consumer Protection Act, 1986 was enacted to facilitate quick redressal of consumer grievances by
avoiding long-drawn litigation and court fees. A structure is created from the district level to National
Level for smoother, simpler and quicker functioning of the system. The essential idea is to help the
consumer and supplier to negotiate and arrive at a consensus to solve the problems of the consumer.
The Act covers all goods and Services (unless exempted specifically) and covers public, private and
co-operative sectors. Consumer courts provide relief only to goods and services bought for personal
use and does not cover items meant for commercial use.

5.7 CONSUMER PROTECTION ACT 2019

We have outlined the consumer protection act 1986 giving some salient features. This act has been
replaced by the Consumer Protection Act 2019 which came into effect in 2020. While many features
remain the same, there are some significant changes which only will be discussed here.
The Consumer Protection Act 2019 (CPA 2019) is given in 8 chapters (31 sections) as:
CHAPTER I PRELIMINARY
CHAPTER II CONSUMER PROTECTION COUNCILS
CHAPTER III CENTRAL CONSUMER PROTECTION AUTHORITY
CHAPTER IV CONSUMER DISPUTES REDRESSAL COMMISSION
CHAPTER V MEDIATION
CHAPTER VI PRODUCT LIABILITY
CHAPTER VII OFFENCES AND PENALTIES
CHAPTER VIII MISCELLANEOUS
In 1986, consumers in general used to go to physical stores and purchase goods or services by paying
a price. By 2019, the purchase methods have considerably changed with a number of E-commerce
platforms having come into existence. In addition, telemarketing and multi-level marketing became
common. The CPA 2019 takes into account this change also.
The Act provides:

• Enhanced protection to consumers from fraudulent or unfair trade practices;

• Covers consumers who purchase from online platforms/telemarketing or multilevel
marketing;
• Makes it easier for consumers to make a complaint against goods or service provider allowing
e-filing of complaints and online fighting of cases by video conferencing
Consumer: In CPA 2019, a consumer is defined as:

(i) buys any goods for a consideration which has been paid or promised or partly paid and partly
promised, or under any system of deferred payment and includes any user of such goods other than
the person who buys such goods for consideration paid or promised or partly paid or partly promised,
or under any system of deferred payment, when such use is made with the approval of such person,
but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any service for a consideration which has been paid or promised or partly paid
and partly promised, or under any system of deferred payment and includes any beneficiary of such
service other than the person who hires or avails of the services for consideration paid or promised, or
partly paid and partly promised, or under any system of deferred payment, when such services are
availed of with the approval of the first mentioned person, but does not include a person who avails of
such service for any commercial purpose.
Consumer Rights: CPA 2019 lists the rights as:
(i) the right to be protected against the marketing of goods, products or services which are
hazardous to life and property;
(ii) the right to be informed about the quality, quantity, potency, purity, standard and price of
goods, products or services, as the case may be, so as to protect the consumer against unfair
trade practices;
(iii) the right to be assured, wherever possible, access to a variety of goods, products or services at
competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will receive due consideration
at appropriate fora;
(iv) the right to seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
(v) the right to consumer awareness;
While the consumer is the person who buys it for a consideration for his own use or use by a house
member, a complainant going to make a complaint may be:
• Consumer individually
• Consumer associations
• Central or state Governments
• Two or more persons having common interest
• Legal heir of a consumer in case of his death
A complaint is generally made in written forming the case of
• Defective product or deficient service
• Unfair or restricted trade practice
• Excess charge or pricing
• Selling goods hazardous to health
Consumer Dispute Redressal Agency (CDRA): The new act has a name change for these authorities
and their jurisdiction has also been changed. There are three levels in which thee agencies function -
district, state and national.
District Consumer Forum: At the district level, the redressal forum will have three members:
president and two members (at least one of the two must be a woman). The President must be person
qualified to become a district judge.
The jurisdiction of this forum is up to 1 crore in monetary value. (In the 1986 Act, this limit was 20
lakhs)
The act also allows the setting up of more than one forum in a district.
State Consumer Commission: Similar to the district level forum, state level commission also will
have three members, president and three members. The president should be qualified enough to
become the judge of the High Court of the state. Of the two members, at least one should be a woman.
The jurisdiction of the Commission at state level is 10 crores. (In the 1986 Act, this limit was 1 crore.)
National Consumer Commission: The national level commission will have a president and four
members, with at least one woman among the four members. The President of the commission will be
person qualified enough to become a Supreme Court judge.
Consumer complaints involving monetary value of 10 crore and above can be filed directly filed in
the National commission. (This limit was 1 crore in the 1986 Act.)
All complaints can be entertained only if filed within 2 years of the cause of action.
Appeal: A complainant can go in appeal within 30 days of order from any forum or commission.
From district to state to national will be the order of appeal. A complainant can go to the Supreme
Court against national commission’s order.
Mediation: At every level of complaint hearing, there will be a mediation facility available to the
complainant and the supplier of goods/services. Councillors or mediators will be available to the
parties to help them arrive at a settlement of the case between them.
Central Consumer Protection Authority: The act proposes many structures for consumer protection:
Central consumer protection council is an agency set up by the central government to give advice on
matters related to consumer protection under the Act. Minister in charge of the department of
consumer affairs will be the chair person with a number of members as may be specified. Similar
structures at the state level will be formed with the state minister as chairperson for the state council
and the District collector as chairperson for the district council.
The central government will establish a Central Consumer Protection Authority (CCPA) to "regulate
matters relating to violation of rights of consumers, unfair trade practices and false or misleading
advertisements which are prejudicial to the interests of public and consumers and to promote, protect
and enforce the rights of consumers as a class."
CCPA will be headed by a chief commissioner and will have as many commissioners as may be
prescribed by the central government. The purpose of CCPA is to (as stated in the Act):

• protect, promote and enforce the rights of consumers as a class, and prevent violation of
consumers rights under this Act;
• prevent unfair trade practices and ensure that no person engages himself in unfair trade
practices;
• ensure that no false or misleading advertisement is made of any goods or services which
contravenes the provisions of this Act or the rules or regulations made thereunder;
• ensure that no person takes part in the publication of any advertisement which is false or
misleading.
CCPA will have the powers to take actions like (as stated in the Act):
(a) inquire or cause an inquiry or investigation to be made into violations of consumer rights or unfair
trade practices, either suo motu or on a complaint received or on the directions from the Central
Government;
(b) file complaints before the District Commission, the State Commission or the National
Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State Commission or the
National Commission, as the case may be, in respect of any allegation of violation of consumer
rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of, consumer rights, including
safeguards provided for the protection of consumers under any other law for the time being in
force and recommend appropriate remedial measures for their effective implementation;
(e) recommend adoption of international covenants and best international practices on consumer
rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working in the field of consumer
rights to co-operate and work with consumer protection agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as may be necessary, to
prevent unfair trade practices and to protect consumers' interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments on consumer welfare
measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect consumers' interest.

The Structure for Consumer Protection in India

The structure includes i) National Consumer Disputes Redressal Commission (NCDRC) ii) State
Consumer Disputes Redressal Commission (SCDRC) and iii) District Consumer Disputes Redressal
Commission.
National Consumer Disputes Redressal Commission: NCRDC is a national level quasi-judicial
commission to hear grievances of consumers for defective product or deficiency in service. The
jurisdiction of NCRDC is:

• To entertain complaints having a value of more than Rs 10 Million

• To have appellate and revisional jurisdiction on cases heard by the District and State level
commissions.
The Commission is normally headed by a sitting or retired judge of the Supreme Court. The
Commission will have four members with at least one woman member. The order given by the
National level Commission can be challenged in the Supreme Court of India within a period of 30
days.
However, the Supreme Court of India has held that the jurisdiction of National Commission under
Revision Jurisdiction is very limited and can only be exercised when State Commission exceeds its
jurisdiction, fails to exercise its jurisdiction or there is material
State Consumer Disputes Redressal Commission: These are set up by the State Governments. There
may be one or more State Level Consumer Commissions in a state. The State level Commissions can
be approached by consumers in situations where the value is more than 2 million but less than 10
million. The state level commission is headed by a sitting or retried High court judge and will have at
least three members. The State level Commission can entertain:
Complaints where the value of the goods or services and compensation, if any, claimed exceeds
rupees twenty lakhs but does not exceed rupees one crore (R10 million); and
 • Appeals against the orders of any District Forum within the State; and
• To call for the records and pass appropriate orders in any consumer dispute
District Consumer Disputes Redressal Commission: DCDRCs are established by the state
governments in every district of the state. Each district of the state will have at least one district level
commission to whom consumers can approach with their complaints. The District level commission
will be chaired by a sitting or retired district court judge and will have at least three members. Subject
to the provisions in the Consumer Protection Act.
The District Forum shall have jurisdiction to entertain complaints where the value of the goods or
services and the compensation, if any, claimed does not exceed rupees twenty lakhs.
Consumer protection Councils: Consumer protection Act also stipulated the establishment of
consumer protection councils at the central and state levels. The primary aim of establishing such
councils was to create awareness about consumer rights and promote participation of consumers in
activities promoting and protecting consumer rights. The Objectives of the councils can be stated as
the right to be:

• Protected against the marketing of goods and services which are hazardous to life and
property
• informed about the quality, quantity, potency, purity, standard and price of goods or services,
as the case may be so as to protect the consumer against unfair trade practices;
• assured, wherever possible, access to a variety of goods and services at competitive prices;
• heard and to be assured that consumer's interests will receive due consideration at appropriate
forums
• seek redressal against unfair trade practices or restrictive trade practices or unscrupulous
exploitation of consumers and;
• given access to consumer education.

There are three levels at which such councils are established:

Central Consumer protection Council is established by the Central Government with Minister in-
charge of consumer affairs as its chairman. The council will have as many number of official and non-
official members representing the government and other interest groups as required for its working.
The council will be reconstituted after a period of three years. The Council may also constitute a
working group with the member secretary as the chairman.
State Consumer protection Councils are established by the State Governments. Minister holding the
charge of Consumer affairs will be the chairman of the council. There will be ten representatives of
the Central government in addition to the official and non-official members representing varied
interest groups.
District Consumer Protection Councils are established by the State Governments in every district of
the state. The District Collector will be the chairman of the council. A number of official and non-
official members will be appointed to the council to represent a wide spectrum of interests in
consumer protection.

5.8 PRODUCT AND PRDUCT LIABILITY:

"Product" means any article or goods or substance or raw material or any extended cycle of such
product, which may be in gaseous, liquid, or solid state possessing intrinsic value which is capable of
delivery either as wholly assembled or as a component part and is produced for introduction to trade
or commerce, but does not include human tissues, blood, blood products and organs;(as defined in the
Act).

Defect and Deficiency:

"Defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time being in force or under
any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to
any goods or product and the expression "defective" shall be construed accordingly;
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under any law for the time being in
force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in
relation to any service and includes:
(i) any act of negligence or omission or commission by such person which causes loss or injury to the
consumer; and
(ii) deliberate withholding of relevant information by such person to the consumer;

Product Liability:
"Product liability" means the responsibility of a manufacturer or seller, of any product or service, to
compensate for any harm caused to a consumer by such defective product manufactured or sold or by
deficiency in services relating thereto;
"Product liability action" means a complaint filed by a person before a District Commission or State
Commission or National Commission, as the case may be, for claiming compensation for the harm
caused to him;
A product manufacturer shall be liable in a product liability action, if
(a) the product contains a manufacturing defect; or
(b) the product is defective in design; or
(c) there is a deviation from manufacturing specifications; or
(d) the product does not conform to the express warranty; or
(e) the product fails to contain adequate instructions of correct usage to prevent any harm or any
warning regarding improper or incorrect usage.

A product service provider shall be liable in a product liability action, if

(a) the service provided by him was faulty or imperfect or deficient or inadequate in quality, nature or
manner of performance which is required to be provided by or under any law for the time being in
force, or pursuant to any contract or otherwise; or
(b) there was an act of omission or commission or negligence or conscious withholding any
information which caused harm; or
(c) the service provider did not issue adequate instructions or warnings to prevent any harm; or
(d) the service did not conform to express warranty or the terms and conditions of the contract.

A product seller who is not a product manufacturer shall be liable in a product liability action, if
(a) he has exercised substantial control over the designing, testing, manufacturing, packaging or
labelling of a product that caused harm; or
(b) he has altered or modified the product and such alteration or modification was the substantial
factor in causing the harm; or
(c) he has made an express warranty of a product independent of any express warranty made by a
manufacturer and such product failed to conform to the express warranty made by the product
seller which caused the harm; or
(d) the product has been sold by him and the identity of product manufacturer of such product is not
known, or if known, the service of notice or process or warrant cannot be effected on him or he is
not subject to the law which is in force in India or the order, if any, passed or to be passed cannot
be enforced against him; or
(e) he failed to exercise reasonable care in assembling, inspecting or maintaining such product or he
did not pass on the warnings or instructions of the product manufacturer regarding the dangers
involved or proper usage of the product while selling such product and such failure was the
proximate cause of the harm.

5.9 LAW OF TORTS

In the Oxford dictionary, you find the meaning of tort as “something wrong that somebody does to
somebody else that is not criminal but that can lead to action in a civil court”, Law of torts apply in
cases where a ‘civil wrong' has been committed by one person against another. Defamation is a
typical example of tort. The word ‘tort’ is derived from a Latin word ‘tortum’, meaning twisted or
crooked. Law of torts is not a codified law like the criminal procedure code. Law of torts essentially
comes from case laws or judgments given in different cases. There are no sections in Tort law as in
the penal code. There are also no pre-defined punishment or damages in tort law.
The main purpose tort law is to enforce the duties and rights of citizens. This also leads to damages
claimed by the person whose right is violated. The rights can in general be considered as:
• Right of reputation
• Right to bodily safety and freedom
• Right of property
Tort law is applicable where a civil wrong is committed. Civil wrong is different from a criminal
wrong: A civil wrong under tort is a violation somebody’s right by another person and is a private
wrong, there is no codified rules for dealing with torts, monetary compensation is the most common
claim for the injury (right violation) caused and compensation is not pre-determined and is decided by
the court in each case. A criminal wrong on the other hand is a public wrong, case is generally given
by the state and is dealt with procedures detailed in the code and punishment is generally laid out in
the code for different types of criminal wrongs.
Every wrong act may not come under the law of torts. Three conditions need to be fulfilled for dealing
with it under the law of torts:
• Existence of wrongful act causing injury (violation of right)
• Legal damages (Existence of actual damages or legally received damages)
• Legal remedy ('ubi jus ibi remedium’ For every wrong, law provides a remedy.)
All the three conditions must be fulfilled for considering the incident under the law of torts. You can
generally classify torts into three types:
• Intentional torts like defamation
• Negligence, not taking proper care to avoid wrong to others
• Strict liability, hazardous activities with potential for damage
Two important tort principles are:
Injuria sine Damnum (injury without damage) is a case where right violation happens but without
damage. An exemplary case for this is a case of voting rights (Ashby Vs White). A person was
prevented from voting by the returning officer of a voting station. The candidate to whom this person
wanted to vote did win the election despite this person not voting. The person, who was not allowed
to vote went to the court for damages for violation of the right to vote. The returning officer’s case
was that the candidate for whom the person wanted to vote has won the election in any case. There
was no damage done and hence they are not liable to compensate the person. The court took the view
that there was violation of right to vote and the entitlement to compensation remained irrespective of
there being no damage.
Damnum Sine injury (Damage without injury) is the second principle governing the violation of right
and damage. An example quoted to illustrate this principle is that of a school teacher who left the
school he was working with and started a school nearby. This act led to the loss of students for the old
school and in order to be competitive the school had to reduce fees as well. They suffered a loss
because of this act of the old teacher. In this case, while there is damage and loss to the school, they
are not entitled to any compensation as there was no violation of any of their rights. The teacher who
left the school was well within his right to start a school and this act was not a violation of any right of
the school. The school was not this entitled to any claim of compensation.
Some exceptions to the Tort law can come from:
• Personal fault of the injured party
• Act of God (vis major)
• Consent of plaintiff (violent non-fit injuria)
• Inevitability
• Necessity
Act done by a statutory authority (like police or IT personnel coming into your property as a part of
investigation; it is not trespassing) Vicareous liability comes as a part of third party liability, as in the
case of the liability of an employer for a wrongful act by the employee.
Absolute liability comes because of dangerous activity which has a potential to cause damage even if
the actual damage is caused by not an individual fault. (Bhopal gas leak case)
Law of Torts is not a codified law but is based of previous cases and pronounced judgments. Remedy
in Tort cases is mainly monetary compensation and is decided by the court in each case based upon
the extent of injury and other factors.

REVIEW QUESTIONS:

I) Explain the difference between an agreement and a contract giving an example of each.
ii) Explain the statement: All contracts are agreements but all agreements are not contracts.
iii) List any six essential elements of a legally valid contract.
iv) Explain the formation of contracts giving the steps required to make a valid contract.
v) Enlist the rights of a consumer
vi) Explain the structure in India for consumer grievance redressal.
vii) Briefly state the new provisions in the consumer protection Act 2019.
viii) Explain the concept of product liability.
ix) List the powers of the Central Consumer Protection Authority.
x) Explain the meaning of the term’Tort’ with examples.
xi) Explain the basis for dealing with a tort case as it is not a codified law.
xii) Explain the concept of tort cases with three examples.
xiii) Explain the essential features of a tort case.
xiv) Explain the terms ‘injuria sine damnum’ and ’damnum sine injuria’ with examples.
xv) Explain the concept of product safety with examples.
xvi) Explain the consideration risk and cost in product design with an example.
 Chapter 6
ENVIRONMENT AND HUMAN HEALTH

Learning Objectives:
After reading through this chapter, the reader will be able to:
• Appreciate the importance of clean environment for human health
• Discuss salient features of environmental Protection Act 1986
• State the objectives of the environmental protection act.
• State the objectives of environmental Impact assessment notification 2006
• Explain the steps involved in environmental impact assessment and providing
environmental clearance for a project
• State the advantages and disadvantages of EIA
• State the major air pollutants considered in emission standards
• Define air quality index and how it is notified

6.1 Introduction
In this chapter, we discuss the very important issue of environmental protection which many in
the scientific community feel is crucial to the very existence of liveable healthy planet Earth.
India is a signatory to the Stockholm Convention and Paris accord on climate change.
Environmental protection Act 1986 was introduced to fulfil our commitment to protecting the
climate. As a part of this act and developments thereafter, the Environmental impact assessment
notification was issued in 2006. India also stipulated emission standards for various type of
industries to achieve overall emission reduction commitments. These will be discussed in brief
in this chapter followed by two case studies related to these ideas.

6.2 Understanding the environment: We need to first understand the term environment,
what it means and its importance.
The Stanford Encyclopedia of Philosophy defines environmental ethics as ‘the discipline that
studies the moral relationships of human beings to, and also the values and moral status of, the
environment and its non-human contents’. Over the years, environmental ethics has developed
into a discipline by itself after remaining a branch of philosophy for many years. That is
indicative of the critical nature of the discipline as well. Environmental issues are often local
to a particular community. However, many environmental issues have now been recognized as
truly global, with ominous ramifications for planet Earth in general and human society in
particular.

While individuals, professionals in particular, must be aware of their roles and responsibilities
in protecting the environment in their specific areas of work, some environmental issues have
assumed gigantic proportions that need to be tackled at a global level. The following are some
major issues that concern environmental ethics today:
• Anthropocentrism or human-centredness in development that is at the core of many of the
environmental issues
• Conservation of biodiversity in the biosphere
• Energy conservation including nuclear energy
• Global climate changes
• Overpopulation and destruction of forests or animal habitats
• Exponentially increasing depletion of natural resources
• Genetic engineering, cloning, genetically modifi ed foods
• Waste disposal and e-waste
• Intensive farming and overuse of pesticides
• Ozone depletion
There are many more such issues connected with environmental ethics.

Environment
By environment, we mean the space that we live in. This is called biosphere as this is the
space that supports life. It is interesting to note that in spite of the very extensive search of the
galactic space around us, we are yet to find a similar biosphere in any other location. By all
counts, we live in a very unique planet. The biosphere consists of three media for life—air,
water, and land. There are millions of life forms living in the three elements of the biosphere.
The living forms are classified as humans, animals, and plants. A major ethical problem
concerned with the environment is the concept that human beings are the only life forms
having a right to live and prosper and other elements, living or otherwise, are for them to
exploit and use for their own well-being. Challenging this philosophy is the genesis for
environmental ethics as a discipline.

Many people consider this a western philosophy that has caused immeasurable, and possibly
irreparable, damage to the environment. Many of the environmental ills that we see today,
such as climatic changes, depletion of ice cover, and ozone depletion, are the result of this
human-centred development. Many claim that such development is not sustainable.
Protecting the environment and maintaining the ecosystem’s balance is just not an aesthetic
fad but an economic necessity.

Challenge of Environmental Ethics

Environmental ethics developed as a discipline in the 1970s. Attention was drawn to the
global effect of environmental damage and it was felt that the root cause of this disaster is
ethical.

Rachel Carson was the first to draw attention to this. She highlighted the damage caused to
other life forms and also to public health by commercial farming practices aimed at producing
high yield and profits. She also warned that the use of high level of pesticides would make its
way into the food chain, causing health hazards. Lynn White in his writings on the historical
cause of our ecological crisis has pointed out that the way we deal with the environment is
unethical and faulty, and we will have to finally pay for such extravagance in using the
natural resources. Garret Hardin in his essay Tragedy of the Commons highlighted the same
view.

Aldo Leopold claimed that the roots of the ecological crisis were philosophical. In the
western developed world, the philosophy was to exploit natural resources for the benefit of
the human society at the expense of other life forms. This view holds that humans are the
only life forms having intrinsic value, that is, value as an end in itself. Other elements of the
biosphere, living and non-living, have only instrumental value, as a means to an end.
According to environmental ethicists, this philosophy is at the root of the environmental crisis
that we face today. Environmental ethics tries to look at development from a new perspective
of coexistence of all life forms and development of the human society in a sustainable
manner.

Anthropocentrism
Anthroprocentrism is a word that has been coined to indicate the human-centredness in
development. This philosophy puts human beings at the centre of the universe. Their wellbeing
is the priority. All other living and non-living things have value only to the extent that they are
of use to human beings. The apparent prosperity in the western world is said to be due to this
philosophy. Human-centred development considers that humans are living beings with all the
rights and that all other resources, including other living elements, are exclusively for use by
them. This does not recognize the right of animals and plants to live. Anthropocentrism is an
extended form of egoism. Typical expressions of this ideology can be seen in the western world.

A herbal plant has instrumental value as it can be used as a medicine. It may not have any
intrinsic value. As the human population increases, we look for space to live and encroach upon
the habitat of animals by clearing forests. Unless we recognize that other life forms also have
intrinsic value and recognize their right to live and multiply, we will have development that
would finally lead to catastrophe for the human beings themselves. The philosophical view that
gives equal importance to all living forms and recognizes their right can be called biocentrism.

Biocentrism puts all living elements in one basket recognizing their right to live, prosper, and
coexist, and also share equally the resources available in the planet. It may be noted that some
ethicists working in the area feel that there is no need to have a non-anthropocentric philosophy
to overcome the environmental crisis. A change in outlook, called prudential or benign
anthropocentrism, is suffi cient for overcoming the environmental crisis. This would be an
outlook between highly human-centred development and biocentrism.

A third view considers the inherent stabilizing power of nature and holds that the present
environmental crisis, if any, will be overcome by nature in the course of time. There is no need
for the human society to be unduly concerned about the present state.

Sustainable Development
Sustainable development is a term credited to the Brundtland Commission, which defined it as
‘development that meets the needs of the present generation without compromising the ability
of future generations to meet their own needs.’ Sustainable development is thus a pattern of
resource utilization that meets the needs of the present but at the same time takes care of the
needs of posterity. The three competing requirements of this model are the environment,
society, and economy. Sustainable development is at the confluence of the three major elements
of this diagram. Sustainable development can be seen as economic development of the society
in equilibrium with the supporting ecosystems.

Sustainability has to satisfy the three competing requirements of economic prosperity,

environmental quality, and social equity. As the human society pursues the goal of economic
prosperity, it has to take care of environmental stability and social equity. Heavy and speedy
use of natural resources results in development that cannot be sustained.
Green development is a still narrower term used by some. Protagonists of this theory believe
that environmental stability should be given priority over the other two elements of the
development paradigm. The key to sustainable development is the development of technologies
that lead to sustainable elements of the development paradigm. The western developed world’s
technologies are considered to be the root cause of the present environmental crisis. The
unabashed and extreme use of natural resources for development is at the root of the present
crisis. The UN has formed a commission for sustainable development after the Earth Summit
at Rio de Janeiro in 1992. The politics of development started from there. While the world
agrees on the concept of sustainable development, the implementation of this concept has been
a critical issue. The poor nations, which cannot afford and do not have the resources to develop
and use modern, sustainable technologies for development, want the developed nations to bear
the burden of developing such technologies. It is their moral responsibility to do so as they are
responsible for the present mess. The developed economies do not come forward to the desired
extent.

There have been many critics of the sustainable development concept. They argue that
the term is very vague to give any pragmatic ways of achieving it. While not disagreeing
with the basic idea, there is a need to clarify the concept in specific areas for a workable solution
to the present problems facing our environment.

Ecosystem
The term ecosystem was coined in 1930 by Roy Clapham. He defined it as the combined
physical and biological components of an environment. Central to the idea of ecosystem is the
fact that the living organisms of the ecosystem interact with every other element of the
ecosystem. The elements of the ecosystem are interdependent for their survival. Ecosystems
are classified as follows:
• Terrestrial ecosystem, when the ecosystem is land-based
• Aquatic ecosystem, when it is based in water bodies
• Marine ecosystem, when it is based in oceans
• Desert ecosystem, when it is based in deserts
• Rainforest ecosystems, when it is based in rainforests, and so on

An ecosystem has thousands of life forms. The interdependence of life forms is critical for the
survival of the ecosystem. An oil spill in the ocean (a very common occurrence) or dredging of
shorelines to make a port, etc., destroys the ecosystem present there.

Food Chain and Food Web

Many studies conducted on ecosystems have proved the existence of food chains. Food chains
are linear depictions of how the energy needs of life forms are taken care of in nature. Animals
that eat plants (herbivorous) derive energy from the plants they eat. The plants in turn derive
energy from sunlight by photosynthesis. Other animals eating these herbivorous animals, thus
get energy to sustain themselves.

The food chain is a sequence, generally linear, through which energy transfer takes place to
sustain life. A simple example is given here: An insect survives by eating the leaf of a plant,
the insect is eaten by a frog, the frog is consumed by a snake, and the snake is eaten by a vulture.

Such a linear energy transfer mechanism is called a food chain. In practice, many food chains
overlap, leading to a complex mechanism of interdependence. Such a mechanism is known as
a food web. At the bottom of the food chain is the basic producer of energy, that is, the green
plant that absorbs energy from the sun.

Biodiversity
The term biodiversity refers to the myriad variety of life forms thriving in an ecosystem.
Biodiversity is very rich in tropical forests, both in terms of plant and animal species. It has
been observed that developmental activities have disturbed ecosystems in many parts of the
world and many species have become extinct. Tigers in India are an example. They are in the
endangered list due to poaching and the loss of habitat. Whales are also in the endangered list
due to extensive killing by humans. Preserving biodiversity is critical to preserving ecosystems.

Biodiversity is often defined as the totality of genes, species, and ecosystems of a region. It
is often used as a measure of the health of ecosystems. This reflects the three levels at which
biological diversity has been identified: genetic diversity, species diversity, and ecosystem
diversity. The UN has defined biodiversity as ‘variability among living organisms from all
sources including terrestrial, marine and other aquatic systems and ecological complexes of
which they are a part. This includes diversity of species, between species and between
ecosystems.’

The importance of biodiversity comes from the fact that it is a very beneficial concept to the
society. Biodiversity contributes in maintaining air quality, water purification, climate, disease
control, prevention of pollution, prevention of erosion, biological pest control, etc.

Climate Changes
Over the years, the climate in various places has undergone perceptible changes. In India,
delayed monsoons, excessive rains and floods, drought conditions, etc., have become common.
It is believed that these are due to many man-made causes. The factors that contribute to climate
change are called climate forcings. These can include factors such as changes in solar radiation
patterns, changes in the earth’s orbit, and concentration of greenhouse gases. It is the last factor
that is essentially man-made.

Greenhouse Effect
The greenhouse effect is due to the presence of green house gases in the atmosphere. Gases
producing greenhouse effect are water vapour, carbon dioxide (CO2), methane, ozone, and
chlorofluorocarbon (CFC). The sun’s rays provide energy to the earth. The greenhouse gases
have the effect of trapping infrared radiation, which is essentially heat radiation. The trapped
heat is radiated both upwards and downwards. This results in the warming of the atmosphere.

Global Warming
As we have seen, the greenhouse effect increases the temperature of the earth’s atmosphere.
In fact, the greenhouse effect makes life possible on the earth, as without it if all the radiation
is sent back to space, the temperature on the earth would not support so many life forms.
However, the presence of greenhouse gases in the atmosphere increases the temperature more
than it should. The presence of excessive CO2 in the atmosphere causes warming. This
excessive CO2 is due to the excessive burning of gaseous fuels coupled with the decrease in
forest cover, which could have absorbed the gas. Aerosols, which are suspensions of solid–
liquid particles in gas, have the opposite effect. Man-made aerosols in the atmosphere are due
to the burning of fossil fuels and tend to have a cooling effect, compensating the warming effect
of gases such as CO2. Global studies have indicated that the average temperature has increased
marginally over the years.
The effect on the climates of regions around the world has been remarkable. Studies on
climatic conditions have brought out many changes in the climates, as well as other factors.
Rising sea levels have the effect of reducing land area and damaging ecosystems that thrive
there. The frequency of floods have increased, and so have drought conditions and hurricanes.
The conclusion is that changes in climate have been natural and are due to factors that point to
man-made changes to the environment.

Exhibit 7.4 discusses the concept of carbon credits.

Carbon Credits
Carbon credits and carbon markets are attempts by national and international agencies to reduce
pollution and decrease the concentration of greenhouse gases. A carbon credit is a certificate
or permit representing the right to emit one tonne of carbon dioxide or an equivalent of other
greenhouse gases. The certificate is tradable through carbon trade exhanges. The concept is
essentially to mitigate the growth in the concentration of greenhouse gases that affect the
environment and climate.

The concept of tradable carbon credits is to allow market mechanisms to drive and control
industrial processes in the direction of low emissions. The major industries using fossil fuel
that produce greenhouse gases are cement, steel, textile, fertilizer, etc. The concept of carbon
credits came as a result of the increasing level of greenhouse gas (GHG) pollution due to the
burning of fossil fuels. The Intergovernmental Panel on Climate Change (IPCC) has observed
the following:
‘Policies that provide a real or implicit price of carbon could create incentives for producers
and consumers to significantly invest in low-GHG products, technologies and processes. Such
policies could include economic instruments, government funding and regulation, while noting
that a tradable permit system is one of the policy instruments that has been shown to be
environmentally effective in the industrial sector, as long as there are reasonable levels of
predictability over the initial allocation mechanism and long-term price.’

Kyoto’s ‘Flexible Mechanisms’

The Kyoto Protocol (htt p://en.wikipedia.org/) provides three mechanisms that enable countries
or operators in developed countries to acquire greenhouse gas reduction credits:
• Under Joint Implementation (JI) a developed country with relatively high costs of domestic
greenhouse reduction would set up a project in another developed country.
• Under the Clean Development Mechanism (CDM) a developed country can ‘sponsor’ a
greenhouse gas reduction project in a developing country where the cost of greenhouse
gas reduction project activities is usually much lower, but the atmospheric effect is globally
equivalent. The developed country would be given credits for meeting its emission reduction
targets, while the developing country would receive the capital investment and clean
technology or beneficial change in land use.
• Under International Emissions Trading (IET) countries can trade in the international carbon
credit
market to cover their shortfall in the assigned amount units. Countries with surplus units can
sell them to countries that are exceeding their emission targets under Annex B of the Kyoto
Protocol.

Do you think carbon credits are an effective way to save the planet?
Energy Concerns
Development activities require energy. Energy is generated and used in many forms by
conversion. Water power is used in generating electricity by constructing dams. Electricity
is generated using coal and oil also. The world is moving towards a high energy consuming
lifestyle. The natural sources of energy, such as oil, gas, and coal, are getting depleted fast.
People in many developed countries follow a lifestyle that requires a considerable amount of
energy. Energy concerns arise from the fact that the world is consuming energy at a rate that is
not sustainable for very long. Conservation efforts and the search for alternate forms of energy
are required to tide over this crisis.

The energy-guzzling lifestyle of the people in developed countries is a matter of concern.

They have to take a lead in changing this pattern of energy consumption. Developing countries,
such as India and China, with huge populations, are following in the footsteps of developed
countries and need to seriously rethink about the development paradigm. At the individual
level, everyone has to be conscious of conserving energy. Many efforts are on to find alternate
and non-conventional sources of energy such as photovoltaic (PV) energy from the sun, wind
energy, bio-fuels, and wave energy.

Ozone Depletion
Ozone is the layer of gas found in the stratosphere. Recent years have witnessed a 4 per cent
per decade depletion of the volume of ozone gas. A larger but seasonal depletion of ozone layer
has also been found in the polar regions. Depletion of ozone in the polar regions is known as
the ozone hole.
The depletion in ozone volume is thought to be due to the presence of CFCs in the atmosphere,
which break down the ozone. The CFCs are present in commonly used refrigerants. The ozone
layer has the effect of preventing harmful ultraviolet (UV) rays from reaching the earth’s
atmosphere. UV rays are harmful to plants and humans.
The increased UV radiation reaching the earth’s atmosphere is believed to be the cause of
increased skin cancer in humans. Though global warming and ozone depletion are not directly
related, the same gases that cause global warming also cause ozone depletion.

Pollution
Pollution is the contamination of the three elements—air, land, and water—of the biosphere.
This leads to many diseases of the life forms in the biosphere.
Air Pollution
Air pollution is due to the increased presence of solid particles, harmful liquids, and gases in
the air. While pollution can also arise due to natural causes, such as earthquakes and volcanic
eruptions, the pollution that we see today is due to developmental activities. Air pollution is
severe in urban centres where human activities are concentrated. Smoke and exhaust gases
from industries and automobiles are the major cause of air pollution.

The pollutants in the air we breathe are solid particles such as soot, asbestos, dust, and
liquids such as acid droplets and oxides of carbon. Nitrogen, sulphur, methane, and benzene
are also present in the air. The major causes of air pollution in the megacities and urban sprawls
are as follows:
• Burning of fossil fuels in automobiles, cooking and heating devices, power stations using coal
and many industries
• Extensive mining operations to extract coal and other minerals
• Wastes from nuclear fuels, biofuels, etc.
• Construction activities
• Decaying organic matter
• In war zones due to explosion of bombs and gunfire
• Natural disasters

Many cities in India have extreme levels of air pollution. Smog, a combination of dust
particles and smoke in the air reduces visibility. Air pollution is becoming an increasing risk
for human health.

The harmful effects of air pollution have been studied by many. These studies have clearly
indicated the increased levels of deterioration in health among children and adults. At low
levels, air pollution causes eye irritation and inflammation of the respiratory tract. Pollution
also corrodes metals and affects buildings. At very high levels, air pollution can lead to acid
rain, ozone depletion, and global warming.

Land Pollution
A major concern with land is the reduction in area of forest land, which is the habitat of
a wide variety of animals, birds, and insects, in addition to plants. As the human population
grows, land is needed for housing and other developmental activities. Forests are cleared
to make land available for this purpose. As the number of mouths to feed increases, more
agricultural land is required for growing vegetables and grains, and again the casualty is the
forest land.

Land pollution is mainly due to intensive agricultural practices using chemical fertilizers and
pesticides. These pesticides damage the land and destroy the ecosystem thriving there. Land
pollution is also caused by excessive dumping of domestic and industrial waste in dumping
grounds. As more and more waste is generated, more land is acquired for dumping. Mining
and other activities also damage the land.

Land pollution causes severe damage to virgin land and makes it a health hazard. Over the
years, the fertility of the land decreases. Land pollution kills the ecosystem present in the area.

Excessive use of pesticides can damage crops and kill birds and animals.
Many suggestions have been made to avoid the pollution of land. Organic farming practices
using conventional fertilizers will reduce land pollution. We need to also look at using a
reduced quantity of pesticides. Recycling of waste is a necessity. More efficient garbage
disposal mechanisms are required if we want to save the land and remove health hazards.

Water Pollution
Water bodies form the lifeline of many communities in India. Ground water is also extensively
used by communities for various purposes. Many studies have indicated that most of the small
water bodies are severely polluted by the residue pesticides washed away from land. They are
not potable and cannot even be used for other purposes. There are a large number of cases of
fluorosis in many communities due to the presence of high levels of fluoride. Fluorosis is
present in large quantities in deep borewell water.

Water also gets contaminated by industrial waste being discharged without treatment, and
leakage of sewage water into water bodies. Arsenic poisoning and metal contaminants have
been found in many water bodies.
Our rivers are heavily polluted. Perennial rivers, such as the Yamuna and the Ganga, have
shown increased levels of pollution. Rivers that have clean water at the origin get polluted as
they pass through habitats and industrial towns, due to industrial effluents, seepage of sewage
water, and contaminants drawn from land pollutants.

Oceans are also getting severely polluted. Marine pollution is a result of industrial and
agricultural pollutants. Sewage water is a major source of sea water pollution near the
coasts. Oil spills from sea carriers is a major cause of concern as they destroy the ecosystem
in the area.

Nowadays, there is greater awareness of the problem of pollution in the international

communities. However, the question remains—Are we doing enough to reduce pollution?

Land Use
Nearly 70 per cent of the earth’s surface is covered with water. The land area available is very
limited. All terrestrial life forms have to live and survive on this area. The use of available land
is thus critical. As human population increases, there is a need to fi nd more and more land for
our living and other developmental activities. We have, thus, encroached upon the land area
originally occupied by other life forms. A major factor has been the cutting of forests to make
land available for the human population. This encroachment upon land area by humans has
destroyed the ecosystem in these areas. An example is the tiger population in India. Despite the
Save the Tiger project undertaken by the government, their population has dwindled due to
poaching and a reduction in their habitat. While there is a lot of awareness about this and
dedicated animal parks have been made, we still have the problem of making more land area
available to the ever-increasing human population.

Noise Pollution
A rather recent phenomenon in our country is noise pollution. This has become a serious issue
for many people. With technology providing us with high watt amplifiers and batteries to run
them on mobile vehicles, we are in an era of high level of noise pollution.

Noise is measured in decibels (dB). Noise levels beyond about 60 to 70 dB become

uncomfortable to many. Many times we raise noise levels to three digits and that clearly
becomes noise pollution.

All our celebrations have become just din and decibels. In religious festivals, marriages, and
any other kind of celebrations, noise-making is considered the best way to show that you are
doing it well or enjoying it.

Noise levels can cause many types of discomforts. It is particularly so for the elderly. High
noise levels can contribute to cardiovascular effects in humans and an increased incidence
of coronary diseases. Constant exposure to high noise levels can also cause hearing loss.
In animals, noise can increase the risk of death, interfere with reproduction and navigation, and
contribute to permanent hearing loss.

Noise pollution is a major problem in our country. The government of India has rules &
regulations against fire crackers and loudspeakers. It is found, however, that enforcement is
extremely lax. Awaaz Foundation is an NGO working to control noise pollution from various
sources through advocacy, public interest litigation, awareness, and educational campaigns.
In spite of existing laws and increased enforcement, laws have not been found to be very
effective in controlling noise pollution.

Ethical Issues
Having discussed the various environmental concerns, let us look at the present ethical issues
drawing attention globally:
• Should we do away with the paradigm of human-centred development and consider that
all life forms have intrinsic value? What specific actions are required to show that we have
indeed changed our view?
• What should be the responsibilities of the developed world, which is considered to be the
main cause of the present environmental crisis, to develop, adopt, and transfer environment-
friendly technologies to the poor, developing societies?
• There are a plethora of conventions and agreements on various aspects of the environment.
Is there an efficient mechanism to monitor unethical actions by member countries?
• What about the view that nature will take care and balance things by itself ? Is environmental
crisis a myth?
• How can countries, corporate entities, and individuals contribute to mitigate the crisis we
face today?
6.3 Environment Protection Act 1986
The Environmental Protection Act (EPA) 1986 was formulated after the Bhopal Gas tragedy
of 1984 to protect the Environment and human health. Two acts relating to the environment
existed before EPA was promulgated:
• Air (prevention and control of pollution) Act 1974
• Water (prevention and control of pollution) Act 1974
The Stockholm convention 1972 on human health and environment was another major
milestone in protecting the environment. India is also a signatory to the convention. The
convention focused on Persistent Organic Pollutants (POPs) like DDT and pesticides which
remain in the environment for a long time and cause ill health and damage the environment.
The Constitution of India, as originally drafted, had no provisions pertaining to environment.
The 42nd amendment added to the fundamental duties of citizens the protection of the
environment including forests, lakes, rivers and wild life.
Terminology: The following terms have the meaning as given in the act:
“environment” includes water, air and land and the inter-relationship which exists among and
between water, air and land, and human beings, other living creatures, plants, micro-organism
and property;
“environmental pollutant ” means any solid, liquid or gaseous substance present in such
concentration as may be, or tend to be, injurious to environment;
“environmental pollution” means the presence in the environment of any environmental
pollutant;
“handling”, in relation to any substance, means the manufacture, processing, treatment,
package, storage, transportation, use, collection, destruction, conversion, offering for sale,
transfer or the like of such substance;
“hazardous substance” means any substance or preparation which, by reason of its chemical
or physico-chemical properties or handling, is liable to cause harm to human beings, other
living creatures, plants, micro-organism, property or the environment;
“occupier”, in relation to any factory or premises, means a person who has control over the
affairs of the factory or the premises and includes, in relation to any substance, the person in
possession of the substance;
The central government has, under this act, powers to:
(i) co-ordinate of actions by the State Governments and other relevant authorities under this Act
and any other law in force which is relevant to the objects of this Act;
(ii) plan and execute nation-wide programmes for the prevention, control and abatement of
environmental pollution;
(iii) lay down appropriate standards for the quality of environment;
(iv) lay down standards for emission or discharge of environmental pollutants from various
sources;
(v) restrict or specify areas in which any industries, operations or processes shall be carried out
or shall not be carried out subject to specified safeguards;
(vi) laying down procedures and safeguards for the prevention of accidents which may cause
environmental pollution and remedial measures for such accidents;
(vii) lay down procedures and safeguards for the handling of hazardous substances; (viii)
examine and report of such manufacturing processes, materials and substances as are likely to
cause environmental pollution;
(ix) carry out and sponsor investigations and research relating to problems of environmental
pollution;
(x) inspect any premises, plant, equipment, machinery, manufacturing or other processes,
materials or substances and give directions to such authorities, officers or persons to take steps
for the prevention, control and abatement of environmental pollution;
(xi) establish or recognize environmental laboratories and institutes to carry out the functions
entrusted to such environmental laboratories and institutes under this Act;
(xii) collect and disseminate information in respect of matters relating to environmental
pollution;
(xiii) prepare manuals, codes or guides relating to the prevention, control and abatement of
environmental pollution;
(xiv) Take all other steps deemed necessary or expedient for the purpose of securing the
effective implementation of the provisions of this Act.
The 48th amendment added new directive principle of state policy to protect and improve the
environment and to safeguard the forests and wild life. This is stated as:
"The State shall endeavour to protect and improve the environment and to safeguard the forests
and wildlife of the country”.
Environmental Protection Act 1986 is drafted in four sections as:

Chapter 1 Preliminary
Chapter 2 General Powers of the Central Government
Chapter 3 Prevention, Control and Abatement of Environmental Pollution
Chapter 4 Miscellaneous

The origin and purpose is stated as:

The enactment of the Act arose from ‘decisions taken at the United Nations Conference on the
Human Environment held at Stockholm in June, 1972, in which India participated, to take
appropriate steps for the protection and improvement of human environment.’
The main goal of the Act is to initiate actions ‘further to implement the decisions aforesaid in
so far as they relate to the protection and improvement of environment and the prevention of
hazards to human beings, other living creatures, plants and property.’
The main aim of the act can be stated as:
• To initiate actions as per decisions taken in the Stockholm convention
• Enacting laws as per need to protect the environment
• Create an institutional authority and structure to regulate industry and take action for
any violation
• Coordinate activities by different agencies under existing laws for prevention and
control of pollution
• Set standards for emission by different industries
• Enforcing the environmental protection act and impose penalties for violation
• Attain the right to life in a healthy environment to every citizen of the country as assured
in the constitution
Central and State Pollution Control Boards: The central pollution control board is under the
Ministry of environment and forests. The functions of CPCB are (as given in their website)
• Advise the Central Government on any matter concerning prevention and control of
water and air pollution and improvement of the quality of air.
• Plan and cause to be executed a nation-wide programme for the prevention, control or
abatement of water and air pollution;
• Co-ordinate the activities of the State Board and resolve disputes among them;
• Provide technical assistance and guidance to the State Boards, carry out and sponsor
investigation and research relating to problems of water and air pollution, and for their
prevention, control or abatement;
• Plan and organise training of persons engaged in programme on the prevention, control
or abatement of water and air pollution;
 • Organise through mass media, a comprehensive mass awareness programme on the
prevention, control or abatement of water and air pollution;
• Collect, compile and publish technical and statistical data relating to water and air
pollution and the measures devised for their effective prevention, control or abatement;
• Prepare manuals, codes and guidelines relating to treatment and disposal of sewage and
trade effluents as well as for stack gas cleaning devices, stacks and ducts;
• Disseminate information in respect of matters relating to water and air pollution and
their prevention and control;
• Lay down, modify or annul, in consultation with the State Governments concerned, the
standards for stream or well, and lay down standards for the quality of air; and
• Perform such other function as may be prescribed by the Government of India.

There are similar boards at state level performing similar functions at state level.
Supporting Acts: The environmental act is supported by many acts in the efforts to save the
environment. Some of these are:
• Air (Control and prevention of pollution) act 1981,1987
• Water (control and prevention of pollution) act 1974,1988
• Coastal Regulation Zone (CRZ) 1991
• Wetlands Conservation and management rules 2010
• Biodiversity Act 2002

6.4 Environmental Impact Assessment 2006

All economic, developmental activities which create wealth, provide jobs and make available
goods and services for the community have necessarily some adverse effects as well. For
example,
• Construction of a dam stores water that is used for irrigation of agricultural land and
also hydropower generation. It benefits a large number of farmers in producing
agricultural crops and benefits us with grains, vegetables and fruits for consumption.
But the construction of the dam creates a water body that submerges many hectares of
human habitat, destroys an ecosystem of thriving flora and fauna and make many
people lose their livelihood.
• Highway project for construction of roads for ease of travel may require acquiring of
land that displaces many hundreds of people, cutting down of many thousands of trees
and disturbs the life of many live forms like birds, insects and other animals.
Recognizing this adverse effect of developmental projects, project planners used to simply
enlist the economic benefits of the projects and the steps that can be taken to alleviate any
hardships faced by displaced people. This is presented in the justification of projects. Even in
those times, many activists used to object to the projects pointing to the inadequate steps taken
to relocate and rehabilitate people displaced. Narmada dam is an example where agitation by
Medha Patkar went on for many years seeking justice to the displaced people. While there were
environmental activists even in those days, they had much less say in the matter due to lack of
any legislation for this purpose.
China is a typical example of the unhindered and uncaring industrialisation for economic
prosperity. China became an economic power by heavy emphasis of economic development
and large scale industrial activity. China not only faced heavy pollution of air and water bodies,
cities like Shanghai had to virtually close down for many days due to air pollution.
The concept of environmental impact assessment was initiated in the USA after the enactment
of the National Environmental Policy Act (NEPA) 1969. Many developed countries followed
with similar legislations for protecting the environment. The World bank, while financing large
projects in many countries, started a mandatory environmental impact study before finances
can be released for projects. In India, Air (prevention and control of pollution) Act 1974 and
Water (prevention and control of pollution) Act 1974 existed with respect protection of the
environment.
Before the introduction of the EIA notification, some measures were in place to check the
environmental impact of the projects but they were all administrative decisions on a case to
case basis. Statutory (mandatory) EIA came into force after the EIA notification of 2006.
The main aims of EIA are to:
• All projects are scrutinised in the very early stages for any impact on the environment
and health
• Alternatives are studied to arrive at the best project profile which is environment
friendly and cost effective
• Identify and predict the way the project impacts the environment
• Take steps to evaluate the mitigate any adverse environmental impact
• Ensure that economic objectives do not dominate decision making

EIA 2006 has categorized industries into A and B. This categorisation is based on spatial
extent of the project, impact on natural and man-made resources and human health.
According to EIA notification 2006, EIA is mandatory for
• All new projects
• Expansion of capacity and modernisation
• Change in product mix or change in process or technology

Category A projects are to be apprised by the central government through an expert advisory
committee. Category B projects are to be apprised by the State Environment Impact Assessment
Authority through a state level advisory committee.
Category B projects are also divided into B1 and B2 categories. If a project falls in B1 category
EIA is mandatory for the project, For B2 category projects, no EIA is required.
Environmental clearance report is necessary for the project to start real operations. While some
preliminary work like surveying and minor works may be permitted, projects cannot start
without an environmental clearance report from MOEF or the state authority, as the case may
be.
EIA Process: The EIA process involves four steps:
• Screening
• Scoping
• Public Consultation
• Appraisal and Reporting

Screening: Screening is the process of initial scrutiny to decide upon whether a full EIA report
is required for the project. Scrutiny is thus required only for category B projects. (Category A
projects will mandatorily require EC report) Based on guidelines issued by the MOEF the
project proposal is studies and the project is categorised as B1 or B2. In the case of B1 category
projects, EIA is required and in the case of category B2 projects no EIA is required. The
screening is thus limited to projects studied at state level only or falling under the purview of
SEIAA.
Scoping: Scoping is the process of developing Terms of Reference for the appraisal Committee
for EIA. The terms of reference will be developed to study all the environmental issues relevant
to the project.
Public Consultation: This can be done through local area consultation with people affected by
the project. The pollution control Boards can also invite written response if deemed necessary.
Appraisal and Reporting: The expert advisory Committee, based on the terms of reference,
different data provided by the applicant and consultation with the public and the dfferent studies
conducted by it will submit an appraisal report to the MOEF or the SEIAA as the case may be.
The environmental clearance for the project may be given or the application for EC rejected
depending upon the report.
The applicant while applying for EC has to detail out the impact on the environment and
mitigation measures proposed like:

• Land Environment • Aesthetics

• Water Environment • Socio-economic
• Vegetation • Building materials
• Fauna • Energy conservation
• Air environment

The applicant also has to prepare an environmental management plan based on the above.
The EC given is valid for a period of 10 to 30 years. It is 10 years for river valley projects and
30 years for mining projects. Half yearly compliance report may also be necessary if required.
Post EC, monitoring of the project’s performance and environmental audit may have to be
done.
EIA is necessary because it helps us to:
• Effect early termination of environmentally unsound projects
• Look at many alternatives and select the best from an environmental point of view
• Make well-informed decisions
• Have a well-planned scheme of mitigation of adverse effects

Some disadvantages of EIA may be:

• Project delays are very common because of the time-consuming process
• Cost overruns are very common
• Mitigation measures are invariably short of targets

6.5 Standards of Emission

Air pollution, water pollution, land pollution and noise pollution are major issues related to
human health today. Industrial and vehicle emissions are major hazards to our health. Vehicle
pollution is dealt with by vehicle emission standards as BS VI etc. Here we are concerned with
pollution by industries. Industries can pollute air, water and land by their emissions.
Recent events are a testimony to the importance of emissions. River Ganga has been severely
polluted by industrial discharges across its banks over thousands of kilometres. Air quality in
many cities in India is severely polluted as can be seen from the yearly winter smog in Delhi
leading to the closure of schools, stoppage of many forms of transport etc.
Emission standards are available for a few industries in the publications of pollution control
boards(s). Main air pollutants are oxides of sulphur and nitrogen and particulate matter, PM
2.5 and PM10. Pollutant levels are measured in g/N cu.m. As these values are in per cubic
meter of air, these have to be in standard conditions which are generally taken as 25 deg (C)
temperature, 760 mm Hg of pressure and zero moisture.
Central Pollution Control Board (CPCB) under the Ministry of Environment and Forests
(MOEF) has published standards for ambient air quality, vehicle emissions, industrial effluents
and emissions and noise in 2000-2001 (cpcbenvis.nic.in). These are listed for more than 69
polluting industries or other machines.
Ambient air quality standards in India are (for residential area values in microgram/ cu.m.):

S No Annual Average; bracketed value is in 24

hours

PM 10 140 (200)

PM 25 60 (100)

Lead 0.75 (1.0)

Ammonia 0.1 (0.4)

 CO 2.0 (4.0)

Air Quality Index: Air quality index (AQI) is based on multiple parameters. In India, AQI is
based on 8 pollutants like NO, SO, PM (Particulate Matter) 2.5 and 10, CO, O3, NH3 and Pb.
Based on this, AQI values have the following meaning:
0 to 50 - Good
51 to 100 - Satisfactory
101 to 200 - Moderately polluted
201 to 300 - Poor
#01 to 400 - Very poor
401 to 500 - Severely polluted
The AQI value in Delhi has reached figures like 900 in the winter months.

6.6 Landmark cases

Two case studies are presented below. The Bhopal gas tragedy is an industrial disaster resulting
in the release of poisonous methyl isocyanate gas in the air leading to many deaths and injuries.
This case actually led to the formulation of the environmental protection act 2008. Taj
trapezium case drew a lot of attention because it involved the damage to a world famous
Mughal structure visited by millions every year.

6.6.1 Bhopal gas Tragedy

The Bhopal gas tragedy is considered the worst industrial disaster in the Indian industry. The
leak of the methyl isocyanate gas from the Union Carbide India Limited (UCIL) plant at
Bhopal caused immense damage. It led to the loss of several lives and long-term health effects
to thousands of people. There is still no exact count of the number of dead and the number of
injured. Initial estimates put the number of deaths at 2259 but this was later officially modified
to 3787 by the local government. There are other estimates that put the death toll at a much
higher number of about 10,000. The tragedy happened on the midnight of 3 December 1984.
The UCIL was the Indian subsidiary of Union Carbide USA. UCIL was established in 1969 to
produce a pesticide called Sevin using methyl isocyanate as an intermediate. The methyl
isocyanate production plant came into existence in the plant premises in 1979.
During the night of 3–4 December 1984, water entered the tank containing 42 tonnes of methyl
isocyanate. This led to an exothermic reaction causing the temperature to rise to about 200°C
and also increased the pressure. This high pressure caused the release of the toxic gases into
the atmosphere. The gas spread over parts of the city due to an existing wind from the north-
westerly direction. The sequence of events leading to the gas leak was later worked out as
follows:
At the plant site,
• 21:00—Workers start cleaning a clogged pipe.
• 22:00—Water enters tank storing the deadly chemical.
• 22:30—Gases escape from the vent in the scrubber tower.
• 00:30—The large siren sounds and is turned off.
• 00:50—The siren is heard within the plant area; the workers escape.
Outside in the city,
• 22:30—People start feeling the effect of the gas (burning eyes, vomiting, suffocation).
• 1:00—Police are informed of the events. Evacuation of people from the affected area
begins.
Union Carbide denies any gas leak from their premises.
• 2:00—The affected people visit the Hamidia hospital. Symptoms included visual
impairment and blindness, respiratory difficulties, frothing in the mouth, and vomiting.
• 2:10—The alarm is heard outside the plant.
• 4:00—The situation is said to be under control.
• 7:00—A police loudspeaker announces that things are normal.

Thousands of children died and many others were disabled after the accident. Many children
born before the gas leak continued to suffer from respiratory diseases and defective eye sight.
Many women suffered miscarriages or gave birth to malformed babies after the accident. More
than half the children died when their mothers were exposed to the gas. Many others suffered
permanent disabilities.
The UCIL officials maintained that water could not have entered the tank in any normal way.
They said that it was an act of sabotage by a disgruntled worker. They suggested that water
was deliberately introduced into the tank, thus leading to the accident.
Enquiries conducted later came up with many shortcomings in the plant, its operations, and the
preparedness of the company and the city to cope with such an eventuality:
• The process used by the plant to produce the pesticide carbaryl was potentially dangerous as
it involved production and storage of dangerous chemicals. Methyl isocyanate was an
intermediate in the process employed and large quantities were stored as part of the production
process. This was potentially very dangerous as the plant was located in a densely populated
area. The plant also had a densely populated slum around it.
• The plant used a process in which the chemical methylamine was first reacted with phosgene
to form methyl isocyanate. This then reacted with 1-naphthol to produce the final product
carbaryl, the pesticide marketed with the name Sevin. With the same raw materials, an
alternative, safe process was possible by changing the order of reactions. The alternative
process involved the reaction of naphthol with phosgene first to produce chloroformate esther.
This product was then made to react with methylamine to produce the final product.
• It was also reported that there was a fall in demand for pesticides in early 1980 but the
production was not stopped, resulting in the storage of large quantities of the dangerous
chemical methyl isocyanate.
• The plant was poorly maintained and the operations were mainly manual, with the potential
danger of human error. Safety precautions and devices in the plant were also not up to the mark.
The alarm in the tank storing methyl isocyanate was not functional for many years. The
scrubber tower was also not functional and when the tank leaked, the scrubber did not treat the
gas as per requirement. According to investigations by the company itself, most of the safety
systems in the plant were not functional.
• There were many management deficiencies that were identified, including lack of skilled
operators, lack of safety management awareness, and a complete lack of any contingency in
case of an emergency.
• The exact sequence of events leading to the gas leak, resulting from the entry of water into
the tank, could not be ascertained. The plant management maintained that water could not have
entered the tank as it was isolated from any such supply. The operators assumed that due to
bad maintenance and many leaking pipes, water could have entered the tank. The
management’s assertion that there was sabotage by a disgruntled worker also could not be
substantiated.
• Methyl isocyanate was stored in large tanks and beyond recommended levels. This was
compounded by failure of safety systems due to poor maintenance.
• It was also reported that safety systems were switched off to save on expenses. The
refrigeration system of the tank was switched off. If this had been kept functional, the
temperature rise would have not been so severe.
• Even after the tragedy, large quantities of dangerous chemicals were still stored in the plant,
polluting the ground water in the region. This continued to affect thousands of residents who
depended on this supply for their daily water requirements.
• It was also reported that the UCIL management was on an economy drive, which resulted in
skilled operators being sent away and lack of training to workers working with such dangerous
chemicals. In addition, promotional opportunities were curbed, resulting in low morale among
employees. It was also alleged that the management pressurized workers to perform functions
that were potentially unsafe and dangerous.
• The management of the parent body, Union Carbide USA was also unconcerned about its
Indian operations. It did not take due care of the Indian subsidiary and the Indian operations
were left to the local management.
• The Indian plant was equipped and operated on different standards from the one in the US.
There was complete laxity in the standards of the Indian company.
• The company had neglected and turned a blind eye to many earlier warnings about a possible
mishap.
– Workers had complained and agitated about high pollution levels in the plant for long.
– Many earlier incidents went uncared for and were not taken seriously. In 1981, one worker
died of exposure to phosgene gas. In 1982, 24 workers were hospitalized due to phosgene leak.
There was also an earlier leak of methyl isocyanate affecting a number of workers. There were
no compulsions from the supervisors or management for workers to wear masks while working
with such dangerous chemicals.
– There were many similar minor incidents resulting in injury to workers and supervisors. No
significant steps were taken to enhance safety measures in the plant.
– There had been reports prepared by the plant engineers of possible mishaps of the nature that
happened in 1984. Such reports were not taken seriously. A report by the engineers from the
parent company also indicated possible mishaps in relation to the methyl isocyanate tank.

Subsequent Events
Many people died after inhaling the deadly gas. The following morning witnessed mass
funerals and cremations. More than 1.5 lakh people were treated at hospitals and temporary
dispensaries.
Many animals also died upon inhaling the gas. The gas was so deadly that leaves on trees
changed colour and fell off. There was also shortage of food due to fear of the food having
been affected by the gas. Fishing was also not allowed due to fear of food poisoning. The gas
cloud essentially consisted of methyl isocyanate, but according to many, it may also have
contained other deadly chemicals. The gas, being denser than air, settled close to the ground
surface and was dispersed by prevailing winds. This affected a much larger area. People
initially complained of eye irritation, vomiting, throat congestion, and suffocation. Those who
inhaled the gas immediately succumbed to the poisoning. People who had a vehicle escaped
earlier than those who merely ran, and were thus less affected.
The gas leak is estimated to have affected a population of more than 5 lakhs in 36 wards of the
city. Exact estimates of death and injuries were not available. In general, it caused thousands
of casualties, the figures vary from 4000 to 10,000. More than 2 lakh people were affected to
varying degrees by inhaling the gas. Later studies also showed much higher stillbirth rates and
neonatal mortality than the pre-accident years.

Lack of Disaster Preparedness

The tragedy exposed the complete lack of preparedness on the part of the company and the
civic administration. There was nothing in place to be called a disaster management system.
The healthcare system was not adequately equipped to handle the thousands of casualties and
lakhs of affected people. There was no information available on how to treat people affected
by such a deadly gas. The patients were only prescribed cough medicines and eye drops, which
were highly inadequate as treatments for such effects of the gas.
Bodies of more than 2000 animals that died by inhaling the gas had to be disposed off. This
was a huge task to be accomplished urgently, as the decaying carcasses could have created
further problems.
The company also emptied the contents of the tanks (gas remaining in them) within two weeks
of the tragedy. This again led to further evacuation due to lack of information. The company
also did not inform the civic administration of the possible effects and line of treatment to those
affected. The civic administration was also not prepared with contingency plans immediately.
The slow reaction to the tragedy and the lack of information further aggravated the situation.
Rehabilitation Measures
Many rehabilitation measures, on different dimensions, were initiated after the tragedy struck
Bhopal. The disaster preparedness of cities like Bhopal was exposed after the tragedy.
Healthcare Healthcare systems in the city were completely unprepared to deal with such a
large number of patients requiring medical care for various levels of exposure to the deadly
gas. In the aftermath of the tragedy, many steps were initiated:
• The state government established a number of hospitals, health clinics, and mobile health
centres for the treatment of patients affected by the tragedy.
• A large number of private practitioners opened their clinics in the affected areas. However,
many of them were found to be not adequately qualified and were not experts in treating
people affected by the gas.
• Healthcare centres worked for a few years after the tragedy and were set up by healthcare
groups.
• Many voluntary agencies gave free medical treatments to people based on allopathic and
Indian systems of medicine.
• A 350-bed hospital named the Bhopal Memorial Hospital was established with many super
specialities. Free healthcare was to be given to patients affected by the gas leak. This
facility faced many problems and there were allegations that the healthcare services were
not up to the mark.
• The central government opened many hospitals in Bhopal for treating the people affected by
the gas leak. In addition, a lot of medical facilities were created after the disaster by various
agencies.
• Yet, complaints about the healthcare facilities remained. People rushed to private doctors
and hospitals despite the government having opened adequate facilities.
Economic rehabilitation The various agencies of the government, both central and state,
came up with many compensation packages as short-term measures. The following were the
features of these measures:
• There was a lack of coordinated effort to identify and pay compensation to the victims. The
compensation claims were found to be difficult to verify, due to the large number of people
and allegations by people of false claims.
• Immediate relief was given within two days. Some efforts were also made for distribution
of food and ration cards to the affected people.
• Provision was made for widow compensation and monthly pension to families affected by
the tragedy.
• The claimants were required to be categorised and certified by a medical doctor. The
claimants were also required to prove that their affliction was due to the gas leak and not
due to any other cause. Many claimants were not medically examined for a long time after
the tragedy.
• The main compensation was to come later after a court battle from the company. In 2007,
after a long-drawn court battle, of the more than 1,00,000 cases that were registered, only
about 57,000 were found to be genuine and deserving of compensation. The final
compensation amount was decided by the apex court. The case is not yet over as there is a
demand for more compensation from the present owners, the Dow Chemical Company.

Other rehabilitation schemes Both occupational and housing schemes were started by the
central and state governments. Many of the schemes were not effective. The Madhya Pradesh
government invested in a special industrial area scheme in Bhopal for giving some form of
employment to those affected by the gas leak. Very few of these industrial work sheds are
now found to be working. While about 50,000 people were estimated to be in need of
lternative employment, only a small percentage of this could find regular employment in the
government.
The government also started housing schemes for women who lost their husbands in the
tragedy. Some 2400 flats were constructed. However, the scheme was not found satisfactory
by people as these houses suffered due to lack of water supply and other essential services
such as bus service and school facilities.

Environmental rehabilitation The following measures were taken for environmental

rehabilitation:
• UCIL closed its factory during the period 1985–86. Many items were cleaned up and sold.
However, hazardous chemicals were dumped in and around the factory.
• The water from tube wells and the ground water in general was found to be highly polluted.
A separate water supply project was planned to supply clean water to the area.
• On the orders of the Madhya Pradesh high court, the hazardous materials were to be
incinerated.
• The plant site is yet to be cleaned of hazardous materials.
Court Case
Warren Anderson, chairman and chief executive officer (CEO) of UCIL, addressed the US
Congress in 1984 and stressed the company’s commitment to safety. He assured that action
would be taken to prevent such incidents in the future. The Government of India (GOI) in the
meantime passed the Bhopal Gas Leak Act in 1985, appointing the government to act on behalf
of the victims of the tragedy.
The US courts agreed with the contention that the UCIL was a separate entity, owned,
managed, and operated by Indian citizens in India, which meant that the legal battle was to be
fought in India. The company was thus subjected to Indian jurisdiction.
Based upon a suggestion from the Supreme Court of India, an out-of-court settlement was
reached. The company was to pay US $470 million as damages for the Bhopal gas tragedy.
This was only 15 per cent of the US $3 billion claimed in the original law suit. There were
appeals against this settlement but the Supreme Court again ruled in favour of the settlement
reached. There is public outcry to bring Warren Anderson to India to face criminal charges for
this massive tragedy. In addition, it is being demanded that the new owners (The Dow Chemical
Company) of UCIL pay adequate compensation to the victims of the tragedy.

6.6.2 Taj Trapezium case

The Taj Trapezium case refers to a case filed in the Apex Court of India regarding the great
damage done to the World famous Taj Mahal due to pollution from the Mathura Refinery and
the many industries in and around the Agra area of Uttar Pradesh. The Taj Trapezium Zone
(TTZ) is an area of approximately 10400 Sq. km in the shape of a trapezium spread over five
districts in the Agra region of UP state, thus the name Taj Trapezium case.
On a visit to Taj Mahal, a wonderful example of Mughal architecture and listed as one of the
seven wonders of the world, a lawyer-activist, M C Mehta found yellow discolourations on the
white marble of the Taj Mahal, with brown and black spots at many places. Declared as a world
heritage site in 1983, Taj Mahal is visited by millions of people from around the world to see
this beautiful symbol of love built by Shajehan. This was essentially caused by air pollution
due to many industries and proliferation of vehicular traffic and the refinery. The sulphur-di-
oxide emissions from industries with oxygen and moisture from air results in "acid rain” which
caused immense damage to the white marble structure.
M C Mehta approached the Supreme Court of India with a public interest litigation seeking
directions from the court to the concerned authorities to take necessary steps to reduce pollution
in the TTZ and save Taj Mahal from further damage. Attached to the petition was a report of
the Varadarajan Committee which went into the impact of pollution by Mathura refinery on
the Taj Mahal. The petition also appealed to the court to take action under the Air (Prevention
and control of pollution) Act 1974, Water (Prevention and Control of Pollution) Act 1974 and
Environmental Protection Act, 1986 to save the Taj Mahal.
It was found that there were nearly 500 industrial units (other than the Mathura Refinery, which
was dealt with separately by the Court) which included Rubber and Lime processing units,
engineering units, foundries, chemical industries and brick kilns. In addition to these, there was
heavy pollution caused by passenger and commercial vehicles using fossil fuels plying in large
numbers in the area.
As a first step, the court considered reports by the Varadarajan Committee and National
Environmental Engineering Research Institute (NEERI) on subjects related to the issue. Both
the Central Pollution Control Board (CPCB) and UP Pollution Control Board (UPPCB) were
involved in the case. UPPCB was assigned the job identifying industries causing pollution in
the TTZ and send notices to them to change over to non-polluting fuels and setting up
installations to prevent pollution. Out of 511 industries identified, 262 were ready to change
over to natural gas or other cleaner fuels. CPCB and Oil and Natural Gas commission were to
take measures to supply clean fuels to these industries.
The industries which were not ready to go for cleaner fuels were to be relocated outside the
TTZ.
The final judgment in this case (considered a landmark in environmental protection) given in
1996 considered many aspects based on three considerations:
Sustainable development meaning that economic activities should go on but with safeguards
for the environment and health of people.
Precautionary principle stipulating that the state has to pro-actively put in place measures to
prevent any harm to the environment due to developmental activities.
“Polluter pays” principle stipulating that if any individual/industry does an activity that causes
harm to the environment or community, he is liable to pay for the damages even if he has taken
care to avoid such harm in doing that activity.
Industrial pollution: this is dealt with by 1) ensuring that industries remaining in the TTZ use
clean fuels or have installed environmental protection measures ii) Other industries are
relocated to areas outside the TTZ and iii) No industrial activity in TTZ except those in the first
category. The court gave clear timelines for all these and instructed the state and central
agencies to facilitate such change.
All brick kilns in the TTZ are to be closed.
Vehicular Pollution: Proposal to construct Agra bypass to prevent vehicles using city roads to
pass through Agra was given as a solution.
Later studies showed that these measures have actually reduced the suspended particulate
matter content in the air in the vicinity of the Taj Mahal.
REVIEW QUESTIONS
1. Discuss the importance of the environment for human survival.
2. Discuss the concept of anthropocentrism.
3. Explain the concept of sustainable development with examples.
4. Write briefly about different types of pollutions and the factors causing them.
5. List some major human activities that cause harm to the environment.
6. State the objectives of environmental protection act 1986.
7. List the functions of the central pollution control Board.
8. State the objectives of environmental impact assessment.
9. List the steps involved in EIA of a project and explain what happens in each step.
10. List the advantages and disadvantages of EIA
11. State the need for emission standards for industries.
12. Explain the concept of air quality and discuss the air quality index developed by central
pollution control board in India.
 Chapter 7
INTELLECTUAL PROPERTY LAW

Learning Objectives
After reading this chapter, you will be able to understand.

• The concept of "Intellectual Property Rights" and Law

• Definition of Patent, Industrial Design and Utility Model with illustrations
• Distinguishing features of Protecting Engineering Invention:
 The Patent Approach
 The Industrial Design Approach
 The US Utility Model Approach
• Need for Utility Model System in India
• Summary

“To develop the scientific temper, humanism and the spirit of inquiry and reform;” - Article
51 A (8) of the Fundamental Duties for the citizens in the Indian Constitution.

INTRODUCTION:

“Intellectual property means the legal rights which result from

intellectual activity in the industrial, scientific, literary and artistic
fields.” World Intellectual Property Organization.

Intellectual Property Rights (IPRs) are the rights are granted by the
State to persons for the creations of their intellect. Intellectual Property
is also similar like tangible properties such as lands, buildings, farms
etc., both have commercial value, but the only difference is that the
Intellectual Property is created using human intellect. Though they are
intangible in nature, are usually contained on a tangible fixed medium.
The concept of property is shifting its focus slowly from material property to new kind of
knowledge property known as intellectual property. Property creates a relationship between the
owner and the society for tangible or intangible possession. The Property right gives its owners
the right to possess, right to use, right to enjoy, right to sell, right to assign, right to license, right
to destroy or right to alienate his assets. Similarly, Intellectual Property Rights also enable the
owners to enjoy all the above rights and profit from their works, which will help them to prosper
and also contribute to a nation’s wealth through accelerated innovation and growth. It is a right
vested in the asset and not the asset itself. The exclusive rights are given as rewards to the creative
minds for utilizing and benefiting from their own creations, so that it encourages more and more
people to come forward to take up research and technological innovation. It is given for a fixed
term during which the owner enjoys all the rights. Once the rights are granted, it will enable
creators not only to exploit their own creations commercially, but also to prevent others from
misusing it without permission. The persons who are granted these rights are known as Intellectual
Property Rights Holders, Authors or Owners.

The most important features of intellectual property Rights are:

 Intangible in nature, protects the creator’s conceptual development.

 Affirmative rights created through proper legislation.
 Bundle of rights with separate and independent rights.
 It enables owners to file suit against transgressors.
 Rights are territorial in nature
 Right to transfer, sell, assign, license, surrender
 The rights are dynamic, subject to constant change
 They are subject to public policy
 Separate Laws for different Subject Matter
 All Rights Co-exist
 Creates Rights and Duties
 Creates exclusive rights of the Owner

Kinds of Intellectual Property Rights

Intellectual Property Rights can be classified into two kinds, Industrial Properties and Copyrights

Industrial Properties

 PATENTS – For Invention

 TRADEMARKS – or Business Marks
 INDUSTRIAL DESIGNS – Capable of Application on Articles
 GEOGRAPHICAL INDICATIONS – Unique to a Geographical Location
 TRADE SECRETS – Non Disclosure of Confidential Information
 PROTECTION OF NEW PLANT VARIETIES _ New Genetic Modifications
 LAYOUT AND INTEGRATED CIRCUIT DESIGNS
 UTILITY MODELS ETC.
Copyrights

 LITERARY, DRAMATIC, MUSICAL, ARTISTIC WORKS, COMPUTER PROGRAMS,

SOUND RECORDINGS, CINEMATOGAPH FILMS, BROADCASTING
ORGANIZATIONS, PERFORMERS RIGHTS

Evolution and Development of Intellectual Property Rights:

The word intellectual property may seem to be of recent origin, but the concept is as old as our
civilization. There are recorded instances in our history where rights were granted in 600 BCE in
Greece where innovation was considered as a gift from God.

In the year 1873, the empire of Austria-Hungary invited other

European nations to participate in an international exhibition of
inventions that was going to be held in Vienna. The foreign visitors
though attended, were not willing to exhibit their inventions as they
were apprehensive about the lack of adequate legal protection to their
works from infringements. This led to the creation of a special Austrian
law which gave temporary protection to all foreign innovators
participating in the exhibition for their inventions, trademarks and industrial designs. The efforts
to extend protection continued when a Congress of Vienna for Patent Reform was held in the
same year with an objective “to bring about an international understanding upon patent protection
as soon as possible.” Later in 1878, an International Congress on Industrial Property was
convened where it was decided that one of the participating nations would shoulder the
responsibility to convene an international diplomatic conference “with the task of determining the
basis of uniform legislation” in the field of industrial property. France took the initiative and
prepared a draft proposal containing the essence of the substantive provisions of protection to
industrial property with a proposal to establish an international “union”. An invitation was sent by
France to other countries for an International Conference to be held in Paris in 1880.

Paris Union for Industrial Property, 1883

Thus, in the beginning18th century, the debate and discussion proceeded on protecting intellectual
property among the global nations. As a result, in the year 1883, the Paris Convention for the
protection of Industrial property was signed in Paris for establishing a union for protection of
industrial property. It became one of the initial intellectual property treaties, which is still in force
with almost 177 member countries. The Paris Convention was initially signed by 11 States, and
then in the first quarter of the 20th century after the Second World War, many countries joined the
Paris Convention realizing the importance of protecting intellectual property, thus increasing its
membership to its current strength.

This Convention is applicable to industrial property, such as patents, trademarks, industrial

designs, utility models, service marks, trade names, geographical indications and unfair
competition etc.

The three most important principles of the Paris Union are:

National Treatment - which means each member nation must grant same protection to nationals
of other States that it grants to its own nationals.
Right of Priority - the applicants who apply first will be granted right over subsequent applications
based on the date of application.
Common Rules - The convention laid certain common rules of protection to be followed uniformly
by all the member countries.

After the establishment of Paris Union for Industrial Property, a need was felt by many countries
for a similar kind of protection for literary and artistic works. They wanted a uniform system of
Copyright protection, though there existed a number of bilateral treaties among the countries. This
led to the formulation and adoption of Berne Convention for the protection of literary and artistic
works in 1886. After the success of Paris Union and Berne Convention, many Treaties and
Conventions were signed for various other intellectual properties like Designs, Trade Marks,
Protection of New Plant Varieties, etc.

Another important development in the area of intellectual property was The Convention for
establishment of the World Intellectual Property Organization (WIPO) (1967) which deals with
the protection of trademarks, service marks, and commercial names and designations; industrial
designs; scientific discoveries, copyrights in literary and artistic works, protection against unfair
competition; rights of performers and broadcasters and “all other rights resulting from intellectual
activity in the industrial, scientific, literary or artistic fields.” WIPO facilitates international
applications in various countries for protection to Intellectual Property.

In the year 1995, World Trade Organization (WTO) was established after the Uruguay Round
of Talks. The TRIPS Agreement (Trade-Related Aspects of Intellectual Property Systems)
attached to it became an important minimum standard agreement for the members of WTO in
matters related to intellectual property rights. It lays down procedures for enforcement of rights,
remedies in case of infringement and a dispute resolution mechanism.
DEVELOPMENT OF IPR IN INDIA

Intellectual Property Protection became very important in the development of global economy in
the last few years. They are intersected with international trade, aided by rapid industrialization,
urbanization, growth in transport sector and manufacturing industry. Barriers for trade and
commerce across the borders is decreasing. It led to countries desirous of getting rights in other
countries enact their own intellectual property laws first for a stronger protection to inventions
originating in their own countries and also for protection in other countries. India is no exception.
As a member of Paris Union, Berne Convention and many other international conventions, it had
to fulfil its obligations, so enacted its first Patent Act in 1856 which was modified later as Indian
Patents and Designs Act of 1911, and post-independence, it was called as the Patents Act, 1970.
Designs were protected separately as Designs Act in 1911, Copyrights were regulated by the
Copyright Act of 1957, and trademarks were protected under the Trade and Merchandise Marks
Act, 1958. The establishment of World Trade Organization in 1995 and the signing of TRIPS
Agreement (Trade Related Aspects of Intellectual Property Rights) necessitated India to modify
its existing laws and make new laws to fulfil its commitments to comply with TRIPS Agreement.

The following are the various laws governing intellectual property rights in India.
The Copyright Act, 1957 and the Copyright (Amendment) Act, 2012.
The Patent Act, 1970 as amended in 2005.
The Designs Act, 2000
The Trademarks Act, 1999
Geographical Indications of Goods (Registration and Protection) Act, 1999
The Semi-Conductor Integrated Circuits Layout Design Act, 2000
Protection of Plant Varieties and Farmers’ Rights Act, 2001 etc.

DEFINE PATENT, INDUSTRIAL DESIGN AND UTILITY MODEL WITH ILLUSTRATIONS

Patent: A Patent is a kind of intellectual property right granted for technical inventions that are
novel and have inventive steps. Patents are granted to new inventions, they are invaluable, useful
and play an important role in everyday life. It is granted so as to reward ideas that help in
development of new technologies and encourage research. It is granted as an exclusive right for
products or process invented through new methods for a limited period of time, so that it can help
inventors to exploit their inventions commercially and enjoy the fruits of their labor. To get a
patent right, the inventors have to disclose all the technical information in the patent application
itself to prove their novelty.
These rights are generally granted to inventors as territorial rights according to the laws of the
country where the patent is filed and granted, and the rights are applicable only in that country of
origin. If an inventor wants protection in many countries, suitable provisions are incorporated in
the domestic laws for applying for international patent protection which is made possible by the
Patent Cooperation Treaty signed by most nations.

According to the Indian Patent Act, 1970, Patent is defined under sec 2 (m) as "patent" means a
patent granted under this Act.

Patents are granted for machines, manufactured products, industrial processes, food processes,
chemical compounds, and medicines which are new inventions as well as on substantial
improvements on the existing products. Some countries have granted patents to genetically
engineered new forms of plant or animal life.

The first ever known patent was granted in the year 1421 for a period of 3 years to an industrial
invention in Florence for manufacture of a barge with hoisting gear used to transport marble.

In 1790, Oliver Evans was granted a patent

by the US for his automatic gristmill which
produced flour from grain.

In India, in the year 1856 the first even

patent was granted in Calcutta for "An
efficient Punkha-Pulling Machine"

Industrial Designs: Designs are of two kinds, artistic design and industrial design. While artistic
design gives us aesthetic pleasure, Industrial design is more of an applied art, is defined as a
process whereby a design is applied to products that are capable of manufacturing through
techniques of mass production. Industrial Design is a professional task of designing various
devices, objects, products and services that are used by the mankind. Industrial designers
concentrate on designing the physical appearance, functionality and manufacturability of a product
in such a manner that it gives ultimate satisfaction for customers, value for money and a lasting
experience. Products developed through Industrial Designs provide solutions to problems, enhance
brand value, capture markets, sustain and increase sales for the industries thereby contribute for a
better quality of life as they are developed by a combination of intuition and scientific
temperament.
The first industrial design was supposed to have been granted to a famous
US designer Joseph Claude Sinel in 1919, who designed industrial scales,
typewriters and calculators etc.

Utility Model: Utility Models are like patents, where new technical
inventions are protected by granting limited exclusive right to minor inventions that are similar to
patents, but the difference is, utility model systems are less stringent in compliance and have
shorter duration of protection and have simple compliance procedures.

Some countries do not have protection for utility models because the so-called minor inventions
may not satisfy all the patentability requirements and may have lower level of inventive step.
Nevertheless, the right prevents others from commercially using them without permission as in
case of patents. Utility models are also called as petty patents or innovation patents.

In case of utility models, there is lack of clarity on subject matter of protection and they differ from
country to country. Though they are granted for same subject matter as that of patents, some
countries grant them for mechanical, chemical and technical processes while other countries grant
them only for shape and structure of mechanical devices.
Some Examples of Utility Model Rights granted by the United States are – parts of Machines, such
as engines or computers, Articles of manufacture such as brooms, candleholders, Processes such
as business processes, software and Compositions of matter such as pharmaceuticals.

DISTINGUISHING FEATURES OF PROTECTING ENGINEERING INVENTION

The Institute of Electrical and Electronics Engineers have stated in its publication Intellectual
Property and the Employee Engineer, that "Every schematic, each piece of software code, and
every drawing, diagram and prototype has intellectual property rights attached upon creation, these
rights are the legal essence of an engineer's output, for if an actual disk or prototype is lost, another
can always be had. But if the legal rights are lost, the disk or prototype may be worthless - even if
securely in hand".

Engineers are in the forefront of innovations. They work as designers, consultants, manufacturers,
scientists and programmers and contribute in the fields of mechanical, technical, computer and
manufacturing where most number of inventions happen in a confidential environment. Engineers
are often found to be over-enthusiastic about their inventions but may not entirely focus on finer
aspects of protecting intellectual property. They create industrial designs, copyright works or
patentable products with ease but may not be exactly aware of legally securing their inventions. If
their works are not protected, it may be lead to infringement which discourages them to continue
with their innovations. It is thus very essential make the Engineers aware of laws that protect their
intellectual property.

There are many laws on different intellectual property rights. All those laws may not be relevant
to Engineers, but they must get familiar with few ones likePatent Laws and Laws related to
Industrial Designs. The laws explain the method in which they can obtain a right and the manner
in which they can protect them. Knowledge in Patent Laws enables them to understand the entire
life cycle of a patent, right from the process of submitting preliminary patent application, public
disclosure and final submission of specifications to finally obtaining the right. It is absolutely
critical for protecting their works individually or for the companies rights and Law helps those
who are vigilant and if they are not, they lose their valuable creations to others.

Companies and manufacturing units rely a lot on Engineers for their logic and problem solving
skills. Engineers just don’t design and test new products, they build companies with their sheer
talent and out of box ideas and solutions. Companies invest heavily on them for their own growth
and development of industry. It is essential that every engineer knows the following three
approaches have to be adopted by them.
a) The Patent Approach
b) The Industrial Design Approach
c) The Utility Model Approach

A. THE PATENT APPROACH

A Patent is granted as a monopoly right conferred by the Patent Office of a Sovereign Authority
to an inventor. This grant provides the inventor exclusive rights to the patented process, which is
a product or a process, the inventor is entitled to exclude anyone else from commercially exploiting
his invention. Patent relates to invention.

In Telemecanique & Controls (I) Ltd v. Schneider Electric Industries SA, the Division Bench of
Delhi HC observed that patent created a statutory monopoly protecting the Patentee against any
unlicensed user of the patented devise. In Bajaj Auto Ltd v. TVS Motor Company Ltd, the court
held that ‘A monopoly of the patent is the reward of the inventor”.

The expression ‘patent ’ connotes a right granted to anyone who invents or discovers a new and
useful process, product, article or machine of manufacture, or composition of matter, or any new
and useful improvement of any of those. It is not only an affirmative right to practice or use the
invention; it is a right to exclude others from making, using, importing, or selling patented
invention unauthorized, during its term. It is a property right which the state grants to inventors in
exchange with their covenant to share the details with public.
To get a patent, technical information about the invention has to be disclosed to the authorities
through a patent application and if the innovation stands the test of novelty and usefulness, right
is granted. They are a form of incorporeal right. Patent is a legal document and gives an inventor
the exclusive right to make, use, and sell an invention for a specified number of years. Patents are
also available for significant improvements on previously invented items.

The exclusive rights conferred by the Patents Act on the inventor can be exercised by a person
other than the inventor with the latter’s previous authorization. The person to whom a patent is
granted in known as the ‘Patentee”. A Patentee has right to sell, assign or surrender the Patent.

The goal of the patent system is to encourage inventors to advance the state of technology by
awarding them special rights to benefit from their inventions.

Patent law centers on the concept of novelty and inventive step or lack of obviousness. The right
which they accord is to prevent all others, not just imitators but even independent devisors of the
same idea from using the invention for the duration of the patent. The special potential of a patent
is that it prevents all others from including any form of invention in their product and services
without permission. A patent thus poses serious difficulties for its competitors. Granting of patent
right is very difficult process, more so, if it is for industrial improvements as it should be judged
to qualify as a patentable invention.

Patents are territorial rights. In general, the exclusive rights are only applicable in the country or
region in which a patent has been filed and granted, in accordance with the law of that country or
region. A patent granted in one country cannot be enforced in another country unless the invention
is patented in that country also.

India became signatory to many international arrangements with an objective of strengthening its
patent law and coming in league with the modern world. One of the significant steps towards
achieving this objective was becoming the member of the Trade Related Intellectual Property
Rights (TRIPS) system. India also became signatory of the Paris Convention, the Patent
Cooperation Treaty(PCT) in 1998 and thereafter signed the Budapest Treaty in 2001. PCT
provides simplified procedure for filing of an application for the grant of patent to the invention in
each of its contracting member countries by filing an international application.

A patent for invention has always found its roots in statutes of Indian legislature, Based on the
interim report submitted by a committee headed by Dr. Bakshi Tekchand, and Ayyangar’s report
which contained recommendations for effecting radical changes to the Patent law prevailing in
India. Eventually, The Patents Act, 1970 was passed and it came into force on 20th April 1972.
The salient features of the Patent Act, 1970 are:

• a more elaborate definition of invention,

• declaration of certain inventions as non-patentable,
• abolition of product patents for drugs and medicines, stringent
requirements regarding description of the invention,
• extension of grounds for opposing the grant of a patent, etc were made.

According to Patents (Amendment) Act 1999, it is now possible to make an application for patent
claiming for a substance itself intended for use or capable of being used as medicine or drug
excepting the intermediate for a preparation of drug. Exclusive marketing rights would be valid
for a period of five years or till the date of grant of patent or date of rejection of the application for
the grant of patent whichever is earlier.

The Patents (Amendment) Act 2002 came into force from 20th May 2003, making the term of
every patent which is in force including a patent restorable under Section 16 as on 20th May 2003
to 20 years from the date of filing. As per this amendment, “Process” defined under S. 3(1) in case
of plants, are now patentable while a process which is diagnostic and therapeutic has now been
considered as non-patentable. By virtue of this amendment ,a new definition of “invention” has
now come into force ,that is, a new product or process involving inventive step and capable of
industrial application,. After this amendment, a method or process of testing during the process of
manufacture is now patentable, etc. Being a signatory to TRIPS, India was under a contractual
obligation to amend its Patents Act to comply with its provisions to give protection for product
patents and it started granting from 2005. The latest The Patents (Amendment) Act 2005 became
effective from 1st January 2005

The Head Patent Office is located at Kolkata and its branch offices are located at Delhi, Mumbai
and Chennai.

Patent system in India is administered by the Controller General of Patents, Designs, Trademarks
and Geographical Indications. Each office has its own territorial jurisdiction for receiving patent
applications and is empowered to deal with all sections of Patent Act.

The jurisdiction for filing the patent application depends upon:

Indian applicant(s): determined according to place of residence, place of business of the applicant
or where the invention actually originated.
Foreign applicant(s): determined by the address for service in India.
Patent Right is granted for a term of 20 years.
Patentable Inventions
To qualify for a patent, the invention must meet the following basic tests.
It must be novel, meaning that the invention did not previously exist.
The invention must be non-obvious, which means that the invention must be a significant
improvement to existing technology. Simple changes to previously known devices do not comprise
a patentable invention.
The proposed invention must be useful. Legal experts commonly interpret this to mean that no
patent will be granted for inventions that can only be used for an illegal or immoral purpose.
An Invention must involve an inventive step;
The invention must be capable of industrial application or utility;
The invention shouldn’t come under the inventions which are not patentable as defined under
Section 3 and 4 of the Patent Act of 1970.

Advantages of patents:

1. A patent gives the right to the inventor to stop others from copying, manufacturing, selling
or importing, invention without inventor’s permission.
2. Protection for a pre-determined period, allowing competitors at bay.
3. To use invention by the inventor himself.
4. Alternatively, it can be licensed for others to use it or it can be sold. This can provide an
important source of revenue.

Disadvantages of patents:

1. A Patent application means making certain technical information about invention publicly
available. Keeping the invention secret may keep competitors at bay more effectively.
2. Applying for a patent can be a very time-consuming and lengthy process (3-4 yrs) - markets
may change or technology may overtake the invention by the time a patent is granted.
3. It will cost money whether an inventor is successful or not - the application, searches for
existing patents and a patent attorney's fees can all contribute to a reasonable outlay. The
potential for making a profit should outweigh the time, effort and money it takes to get and
maintain a patent. Not all patents have financial value.
4. Annual fee needs to be paid or the patent will lapse.
5. Inventor needs to defend the patent & take action against an infringer can be very
expensive.
 B. THE INDUSTRIAL DESIGN APPROACH

A Design contains three-dimensional features, such as the shape of a product, or two dimensional
features such as ornamentation, patterns, lines or color of a product or, a combination of one or
more such feature applied to an ‘Article”. Article means any article manufactured, or natural or
partly artificial and partly natural, and includes any part of an article capable of being made and
sold separately. Industrial design in India is protected under Design Act 2000 and it refers to a type
of intellectual Property Right that gives the creator an exclusive rights to make, use, and sell
products designed by him. In general, these protection rights have a life span of 10 years, but can
be renewed for an additional time of five years. Industrial design protection is for the shape, color,
line, configuration, and surface pattern that either improves the visual appearance or increases the
aesthetics of the design.

To attain the protection under Indian law, a design must:

1. Be non-obvious,
2. Associate with shape, pattern, ornamentation, or configuration of any product
3. satisfy novelty and originality condition, it should not be have been published or used
anywhere earlier
4. Be non-contrary, i.e., doesn’t hurt the feelings of anyone.
5. Capable of applying to articles

Designs that Can’t Get Protection

1. Opposing to others moral values

2. Describing the process of construction of an object
3. Related to the appearance of books, calendars, jackets, certificates, forms, dressmaking
patterns, greeting cards, leaflets, maps, plan cards, postcards, stamps, and medals.
4. Associated with flags, emblems, or national symbols/signs of any country
5. Of integrated circuits.

Importance of Industrial Design

After the Globalization and liberalization, inter-country commerce gained momentum and
markets across the nations were flooded with wide variety of international products, providing
numerous choices for consumers. It became necessary for manufacturers to design their
products in such a manner that it suits and attracts the consumers so that they can stay relevant
in the market. Thus the importance of Industrial Design increased which led to manufacturers
exploring more distinct and attractive designs to create goods qnd products. Genuine products
create brand value to the manufacturers, and hence, going for protection became necessary
from counterfeiting and infringement. Obtaining exclusive rights gives them rights to make,
use and sell their designs.

Besides, there are several advantages to the companies that go for Industrial Design Protection.
Industrial Designs add commercial value to a product, attractive products generate decent
profits, promotes healthy competition and helps in economic development and fosters
creativity in the industrial and manufacturing sector.

Procedure to Obtain Industrial Design Protection

Applications have to be preferred before the Design registry after recognizing the
class/category of the design to be protected. Filing can be either paper filing or online filing.
After the application has been filed, the concerned office will examine them and raise any
objections, if any, and seeks response from the applicants. If the response is satisfactory, and
is received within three months, will grant the protection for a period of ten years.

C. THE UTILITY MODEL APPROACH

Utility models are a kind of protection granted to inventions which are similar to patents rights.
These rights are usually granted to small inventions. There are no International Treaty
obligations to implement Utility Model system under their National Laws. Though a number
of countries offer Utility model protection, India does not offer and it has not enacted any Laws
on it.

A utility patent is an exclusive right granted for an invention, which allows the right holder to
prevent others from commercially using the protected invention without his authorization for
a limited period of time. These are also known as 'petty patents' or 'innovation patents' or 'minor
patents' or 'small patents'.

USPTO defines Utility patent as "any new and useful process, machine, manufacture, or
composition of matter, or any new and useful improvement thereof,"

In some countries, Utility models can be granted for products that are eligible for grant of
patents, however, the subject matter varies from country to country. As there are no
International Treaty obligations on Utility Models, there is no uniformity in approach for
granting Utility Model Patents. The advantages of going in for utility patents is the less
stringent requirements, though the novelty, non-obviousness and utility components are
essential for the grant of utility patents. They may be set at a standard lower than the need for
a Patent.
 The objectives for providing utility model protection are similar to those for granting patents.
Utility models provide incentives for inventors to innovate by offering them recognition for
their creativity. To get the exclusive right provided by a utility model, the creator is required
to disclose the invention to public by providing detailed, accurate and complete written
description of the invention in the utility model application. Utility Models are often
considered favorable for supporting local or minor innovations by small companies due to its
specific features such as a shorter period of protection and easier and cheaper procedures to
obtain and maintain protection, are

Salient features of the utility patent are as follows:

Utility patents confer exclusive protection rights for the product and not process.
Novelty is essential though the standards of novelty are different in different countries.
The standards of non-obviousness and inventive step are much lower and differ.
Utility patents are more appropriate for incremental invention.
In most countries only a preliminary procedural examination is required for the grant.
There is no substantive examination for utility patent grant.
The rights conferred for the utility patents are similar to those granted by patent laws but have
a shorter term.
Utility Patents are cheaper to maintain and obtain.
The duration of registration of utility patents is less compared to patents since in most of the
jurisdictions the applications for utility patents are not examined prior to registration.

Advantages of Utility Models are

1. Procedure less stringent

2. Cheaper to obtain and maintain rights
3. Registration is simpler and faster without substantive examination

Disadvantages of Utility Models

1. No substantive examination, less legal security

2. Shorter term of protection (usually between 7 – 10 years)
3. Apprehensions on the quality and value of products

Utility models are considered suitable particularly for SMEs that make “minor” improvements to,
and adaptations of, existing products. Utility models are primarily used for mechanical
innovations.
NEED FOR UTILITY MODEL SYSTEM IN INDIA

India has undertaken major initiatives to promote and strengthen Intellectual Property Protection
with maximized incentives to the innovators. The Government of India has brought out an IPR
Policy Document in 2016 titled The National Intellectual Property Rights (IPR) Policy 2016 with
a theme “Creative India; Innovative India”. It brings all IPRs on to a single platform, aims to create
synergies between all forms of intellectual property (IP), concerned statutes and agencies. This
Policy puts in place an institutional mechanism for implementation, monitoring and review. It
aims to incorporate and adapt global best practices to the Indian scenario.

Objectives of the IPR Policy are:

To create awareness among public about the economic, social and cultural benefits of IPRs, to
stimulate the generation of IPRs, to have strong and effective IPR laws, which balance the interests
of rights owners with larger public interest, to modernize and strengthen service-oriented IPR
administration, get value for IPRs through commercialization, to strengthen the enforcement and
adjudicatory mechanisms for combating IPR infringements.

As a result of IPR Policy, there is a considerable improvement in India’s rank in the Global
Innovation Index (GII) issued by WIPO, reduction in pendency of applications, and increased IPR
filings. Though India has achieved so much in all areas of IPRs, it has so far not made laws to
grant or confer Utility Patents rights. Utility Models are generally granted to small inventions and
to make improvements to existing ones. They are granted for inventions that are less technically
complex and have a short commercial life. It is easier to obtain a utility model right when compared
to Patent. Not all countries offer the Utility Model Protection, but where ever it is offered, the
inventors have a choice between obtaining a patent right or a utility model right on their inventions.
Both the rights cannot be granted simultaneously. Utility Models help especially where due
consideration is not given for granting Patents for small and petty inventions. Inventors from India
wanting to obtain the Utility Patents have only one option of approaching the countries that offer
them.

As there are many advantages in obtaining Utility Patents because they are less stringent in
compliance, granted faster, and cheaper, perhaps, there is a need take a stand in granting Utility
Patents to Indian Innovators.

Utility Models act as alternatives to Patents and Industrial Designs to protect inventions
particularly those having lower level of inventiveness. Experience shows that this system is being
fully exploited by countries like Japan, China, Japan and United States to promote growth in
technological development.
The Government of India is ambitiously pushing for Make in India Program and promoting
MSMEs and startups in a big way, it is encouraging the small innovators to create intellectual
property by providing incentives, thus, time has come for bringing in suitable law for granting
utility patent to them as this sector may not get funds the kind of money required to conduct heavy
research and trials and also pay heavy patent fees.

In India there are about 48 million SME's generating employment to people, for such SMEs utility
patent protection can prove to be a boon, since they fail to protect their inventions and hence suffer
losses in terms of business growth. If handled properly, Utility Models can become a tool for
economic and technological development.

SUMMARY

Intellectual Property is knowledge based creation which can bring about technological and
economic development of a nation.
Intellectual Property Rights are given to persons for their innovative creations. These rights are
outlined in Article 27 of the Universal Declaration of Human Rights, which provides for the right
to benefit from the protection of moral and material interests resulting from authorship of
scientific, literary or artistic productions.

IPRs have its origins in Paris Convention for the Protection of Industrial Property, 1883 and Berne
Convention for the protection of Literary and Artistic Works, 1886.

World Intellectual Property Organization administers these treaties and also facilitates
International Protection to IPRs

IPRs are divided into Industrial Property and Copyrights.

Patent Rights are granted to inventions which are novel, useful and non-obvions. IPRs stimulate
innovation, design and the creation of technology.

Industrial Designs are new designs which are applicable to articles.

Utility Models are similar to Patents but are granted to small inventions.

India offers all IPR but does not offer Utility Model Protection.

Review Questions:
1. What is meant by Intellectual Property?
2. Why do we need to protect and promote Intellectual property?
3. List out the subject matter for patent protection and what inventions cannot be protected?
4. Enumerate the Salient features of the Design Act, 2000.
5. Write a short note on Utility Models?
 Chapter 8
INFORMATION TECHNOLOGY LAWS

Learning Objectives:
After reading through this chapter, the reader is able to:

• State the purpose and explain the main features of IT Act 2008
• Define cyber security
• Explain the methods to achieve cyber security
• Explain the importance of data security and the steps to be taken to achieve it
• Define the term privacy and list the steps to be taken to achieve privacy in cyber space
• Define electronic and digital signatures and list the differences between them
• State the purpose of E contracts and special features of E contracts

8.1 Introduction
In this chapter, we look at some aspects of our lives in the digital world that we are being ushered
into. The last 20 years or so witnessed a great change in our lives with much greater access to internet,
new ways of communication through mail and messenger services, many services like banking
services, payment and receiving services, purchase of goods being enabled to be done with a laptop or
mobile phone sitting at home. E-commerce has become as common as going to a shop to buy goods or
services. Information technology Act 2008 takes care of the procedural, contractual and legal aspects
of E-commerce. Many thousands of such transaction take place everyday and these come under the
class of E-contracts. The documents so produced are certified and secured using electronic and digital
signatures. The question data security is also an important issue. These are discussed briefly in this
chapter.

8.2 IT Act 2008

The IT Act 2000 of India was the result of a Model electronic commerce law passed by the UN
General Assembly in1997 leading to the UNCITRAL Model Law of E Commerce. India was the 12th
nation to pass a law on E commerce based on the UN initiative. IT Act 2008 is amendment to the IT
Act 2000 and is more focused on Security and data protection. The IT act can be read in the web site
of the Ministry of IT. Some very basic features only are given below.

The IT act 2008 is in 90 sections dealing with many aspects. Some of the important elements are as
follows:

• Electronic and digital signatures

• Electronic governance
• Attribution, acknowledgement and dispatch of data
• Security concerns and provisions
• Certifying authorities
• Electronic signature certificates
• Revocation, breach of contract
• Penalties and punishment

In the preamble, the act states the purpose as "to provide legal recognition for the transactions carried
our by means of electronic data interchange and other means of electronic communication, commonly
referred to as "Electronic Commerce", which involve the use of alternatives to paper based methods of
communication and storage of information , to facilitate electronic filings of documents with the
Government agencies and further to amend the Indian Penal Code, Indian Evidence Act, 1872,, The
Bankers' Books Evidence Act, 1891, and the Reserve Bank of India Act, 1934 and for matters
connected therewith or incidental thereto.”

Some basic definitions: (As given in the Act)

"Access" with its grammatical variations and cognate expressions means gaining entry into,
instructing or communicating with the logical, arithmetical, or memory function resources of a
computer, computer system or computer network;
"Addressee" means a person who is intended by the originator to receive the electronic record but
does not include any intermediary;
"Adjudicating Officer" means adjudicating officer appointed under subsection (1) of section 46;
"Affixing Electronic Signature" with its grammatical variations and cognate expressions means
adoption of any methodology or procedure by a person for the purpose of authenticating an electronic
record by means of Electronic Signature;
"Certifying Authority" means a person who has been granted a license to issue a Electronic Signature
Certificate under section 24;
"Certification Practice Statement" means a statement issued by a Certifying Authority to specify the
practices that the Certifying Authority employs in issuing Electronic Signature Certificates;
"Cyber Security" means protecting information, equipment, devices, computer, computer resource,
communication device and information stored therein from unauthorized access, use, disclosure,
disruption, modification or destruction.
"Data" means a representation of information, knowledge, facts, concepts or instructions which are
being prepared or have been prepared in a formalized manner, and is intended to be processed, is
being processed or has been processed in a computer system or computer network. ,.and may be in
any form (including computer printouts magnetic or optical storage media, punched cards, punched
tapes) or stored internally in the memory of the computer;
"Digital Signature" means authentication of any electronic record by a subscriber by means of an
electronic method or procedure in accordance with the provisions of section 3;
"Digital Signature Certificate" means a Digital Signature Certificate issued under sub-section (4) of
section 35;
"Electronic Form" with reference to information means any information generated, sent, received or
stored in media, magnetic, optical, computer memory, micro film, computer generated micro fiche or
similar device;
"Electronic Gazette" means official Gazette published in the electronic form;
"Electronic Record" means data, record or data generated, image or sound stored, received or sent in
an electronic form or micro film or computer-generated micro fiche;
"electronic signature" means authentication of any electronic record by a subscriber by means of the
electronic technique specified in the second schedule and includes digital signature
"Electronic Signature Certificate" means an Electronic Signature Certificate issued under section 35
and includes Digital Signature Certificate”

Controller of certification: The Government will appoint a controller of certification whose functions
are:

• exercising supervision over the activities of the Certifying Authorities;

• certifying public keys of the Certifying Authorities
• laying down the standards to be maintained by the Certifying Authorities;
• specifying the qualifications and experience which employees of the Certifying Authorities
should possess;
 • specifying the conditions subject to which the Certifying Authorities shall conduct their
business;
• specifying the content of written, printed or visual material and advertisements that may be
distributed or used in respect of a Electronic Signature Certificate and the Public Key;
• specifying the form and content of a Electronic Signature Certificate and the key;
• specifying the form and manner in which accounts shall be maintained by the Certifying
Authorities;
• specifying the terms and conditions subject to which auditors may be appointed and the
remuneration to be paid to them;
• facilitating the establishment of any electronic system by a Certifying Authority either solely
or jointly with other Certifying Authorities and regulation of such systems;
• specifying the manner in which the Certifying Authorities shall conduct their dealings with
the subscribers;
• resolving any conflict of interests between the Certifying Authorities and the subscribers;
• laying down the duties of the Certifying Authorities;
• maintaining a data-base containing the disclosure record of every Certifying Authority
containing such particulars as may be specified by regulations, which shall be accessible to
public.

For more information, the reader is advised to read the complete Act from the web site.

8.3 Security in cyber space

With more and more people gaining access to the internet through mobile phones and laptops, the
cyber space has become crowded with more and more people accessing and uploading information,
doing transactions, gaining access to entertainment and communicating with multiple friends or
colleagues. With so much activity going on in this space, it is natural that people intending to commit
fraud and earn quick money also are on the prowl. The fraudulent activities going on in this space is
called cyber crime. Sometimes it is just for fun, sometimes for adventure and testing one’s capabilities
and sometimes with intention to defraud.

Computer may be a target of attack by hacking into it for information, introducing many types of
malware to disable the system. Computer may also be used as a weapon for credit card fraud,
pornography, to fraudulently access personal data, to send hate messages, to defame someone etc.

Cyber security involves protecting information and devices from unauthorised access and destruction
or misuse.

Cyber crimes are of many types and for many purposes.

8.4 Data Security

Data security is very important for organisations and individuals. Corporate data security is very
important particularly for organisations that deal with sensitive information of their customers.
Hackers constantly are on the prowl to breach into security systems of corporate entities to steal data
for personal gain. Data can be made inaccessible to genuine users and can be also corrupted.
Customer data of bank accounts or card payment systems need very high level of security.

Data can be public, private or limited access. Private or limited access data needs to be secured by
various means to secure the data and prevent its misuse.
Data security may be lost because of

• Weak safety systems

• Unsafe or careless handling of data
• Carelessness on the part of individual customers
 • Hackers specifically targeting data for personal gains

For corporates, data breach can result in

• Financial loss
• Loss of customer trust
• Damage to reputation
• Customer rights lawsuits resulting in heavy legal costs and settlements

Survival of businesses in the modern digital world depends heavily on data security of its key assets
and personal data of customers. Many countries are introducing stringent regulations on data privacy
and any breach of data can evoke customer right legal action.
Data security risks can come from:

• Accidental exposure of data by employees who share critical information with others
• Phishing is a kind of message sent by attackers who pose as a legitimate source and prompt
the user to click on a link to share sensitive information; many times the attackers take
advantage of greed of people to make quick money.
• Ransomware is a malicious software that infects a corporate computer system and encrypts
the data making it unavailable for legitimate use. The data can be used only with a decryption
key which is provided on payment of ransom amount.
• Weak security systems which can be easily hacked and entered into.

Some steps that may be taken, though it costs more, are:

• Strong antivirus and anti-malware software and firewall installation

• Access control by strong passwords, fingerprint, retinal, voice and face recognition etc.
• Encryption of data
• Data masking; using duplicate data for some uses
• Replication of data on safe location
• Control with digital certification
• Security audit

8.5 Technical Privacy in Cyber space

Privacy is the ability or right of an individual or group to keep themselves in anonymity and any
information about the individual or group is made known by them at their discretion. Most of the
times, technology of cyber space does not allow you to do that. When you log on to internet and a
web site, invariably your actions are monitored, your messages are read (may be my machines) and
your interests are noted. Many times such information is sold by information brokers.

Where private information is taken:

Emails are not private any more. Many Email services tend to read the messages in the mails by
machines and select key words for further use.

Web sites use cookies which are just data packs sent to the client and returned to the site owner giving
a lot of information about the web sites you browse, your interest in topics, products etc.

Search Engines also collect data about your interest by tracking the specific items you search for
allowing them to focus on sending you highly targeted materials.

All your transactions like searching, purchasing by ordering, payment methods are all monitored.

By accessing the internet, your service provider has the ability to track whatever you do. You also
agree many times to provide personal information to the web site or a service provider.
Most of the customers have no control over what information is being taken from your personal data.
But people need to be careful about what they do.

• Use strong passwords and change them at intervals

• Do not exchange personal information through messaging services or email
• Do not respond to spam mails or download any attachments to emails from unknown sources
• Do not click on suspicious links in messages and emails
• Download from authorised and well-recognised sources
• All privacy safeguards should be activated
• Do not write down passwords and PINs in common places accessible to all

8.6 E Contracts
In chapter 5, conventional contracts generally in written form satisfying legal requirements was
outlined. A contract is a legally enforceable agreement having legal remedy in case of any breach. We
have seen the essential condition for a valid contract.

• Someone makes an offer

• Second party accepts the offer
• Meaningful consideration for the offer
• Offer and acceptance are done with full and free consent of the parties with no coercion and
undue influence
• The object of the contract is lawful
• Both the parties are competent to make such contract

E contracts are the contracts entered into in the course of E commerce activities generally done
through electronic means, Email or other messaging applications. No personal contacts are involved
and one or both of the parties may be an electronic agent as well.

E Commerce is the conduct of business transactions essentially using the internet. Buying or transfer
of goods and services and payment for them all come under this category. E commerce covers
transactions coming under B2B ( business to business), B2C, C2C and C2B.

In E contracts, there are two parties called the originator and addressee. Originator makes the offer to
the addressee. The parties generally do not have physical meetings. When the addressee accepts the
offer and communicates it, a contract is formed.

Certain contracts are not within the purview of E contracts like power of attorney, Property
transactions, Trust and will etc.

In general there are two ways in which such contracts are made:

Through Web sites: These are called click wrap, browse wrap and shrink wrap contracts.
Second way is through Email or other messaging services.
Clickwrap contracts are made when the buyer of a software clicks on “I agree” to accept the terms and
conditions of the contract. The addressee is given a chance to read the terms and conditions of the
contract if he so desires. If you do not click on 'I agree’, you cannot buy and install the product.
Browse wrap agreements are made available on a web site through a link on the main product page,
generally for use or downloadable product. The user has to agree before he can access or download
the product.
Shrink wrap agreements are the agreements generally shipped with a product in a plastic cover. These
generally cover right of use, warranties, liability limits, fees, licenses etc.

Email contracts are entered into by parties after exchange of communications between the parties.
As per IT Act 2000, such agreements are valid for the purpose of legal enforcement. Procedure and
guidelines are provided for this purpose in the Act for Electronic transactions. Data protection and
authentication of documents by electronic or digital signature is a primary requirement.
Section 10 A of IT Act 2008 states "Where in a contract formation, the communication of proposals,
the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are
expressed in electronic form or by means of an electronic record, such contract shall not be deemed to
be unenforceable solely on the ground that such electronic form or means was used for that purpose."

8.7 Electronic and Digital Signatures

Electronic signatures are easy to make and are less secure. An image of the signature of a person
made by photography or scanning is an electronic signature. It is used for verifying documents and is
less secure and any tampering cannot be verified.
Digital signature is, on the other hand, an electronic signature but is very secure with independent
verification, shows tamper evidence in documents and adheres to international standards.
Difference between electronic and digital signature can be listed as:

• Electronic signature (ES) is a digital form signature, legal and secure. Digital signature (DS)
is an electronic signature and works with Public key infrastructure by registration
• ES validation is not by any trusted authority while DS is validated by trusted certification
authorities.
• ES is not tamper proof and cannot show if tampered while DS is highly secure and can show
tamper evidence
• ES is any kind of image attached to the document for identity and consent; DS is encrypted
for identity
• ES is used for verification purpose only while DS is primarily for securing documents
• ES is not authorised while DS is authorised
• ES is less secure while DS is highly secure
• ES does not conform to coding standards while DS conforms to coding standards as provided
by Adobe or Microsoft

Authentication of Electronic Records (IT Act 2008)

(1) Subject to the provisions of this section any subscriber may authenticate an electronic record by
affixing his Digital Signature
(2) The authentication of the electronic record shall be effected by the use of asymmetric crypto
system and hash function which envelop and transform the initial electronic record into another
electronic record.
3A Electronic Signature (Inserted vide ITAA 2006)
(1) Notwithstanding anything contained in section 3, but subject to the provisions of sub-section (2), a
subscriber nay authenticate any electronic record by such electronic signature or electronic
authentication technique which-
(a) is considered reliable; and
(b) may be specified in the Second Schedule
(2) For the purposes of this section any electronic signature or electronic authentication technique
shall be considered reliable if-
(a) the signature creation data or the authentication data are, within the context in which they are used,
linked to the signatory or as the case may be, the authenticator and of no other person;
(b) the signature creation data or the authentication data were, at the time of signing, under the control
of the signatory or, as the case may be, the authenticator and of no other person;
(c) any alteration to the electronic signature made after affixing such signature is detectable
(d) any alteration to the information made after its authentication by electronic signature is detectable;
and
(e) it fulfills such other conditions which may be prescribed.
Secure Electronic Record
Where any security procedure has been applied to an electronic record at a specific point of time, then
such record shall be deemed to be a secure electronic record from such point of time to the time of
verification.

Secure Electronic Signature (Substituted vide ITAA 2008)

An electronic signature shall be deemed to be a secure electronic signature if-
(i) the signature creation data, at the time of affixing signature, was under the exclusive control of
signatory and no other person; and
(ii) the signature creation data was stored and affixed in such exclusive manner as may be prescribed
Explanation- In case of digital signature, the "signature creation data" means the private key of the
subscriber
Security procedures and Practices (Amended vide ITAA 2008)
The Central Government may for the purposes of sections 14 and 15 prescribe the security procedures
and practices
Provided that in prescribing such security procedures and practices, the Central Government shall
have regard to the commercial circumstances, nature of transactions and such other related factors as
it may consider appropriate.

Review Questions
1 State the focus of IT Act 2008 compared to the earlier version of IT Act 2000
2 Enlist some salient features the amendment bill IT Act 2008
3 Define the tern cyber space and enlist the security concerns in cyber space
4 List the steps that needs to be taken to ensure security of data and privacy in cyber space.
5 Define the term data and security issues concerned with it
6 List the steps corporates and individuals have to take to ensure data security
7 List the steps individuals have to take to ensure privacy in the digital media
8 Define electronic and digital signatures
9 List the differences between electronic and digital signatures
10 State the provisions in the IT act for authentication of electronic records