Gifts to Foreign Officials
Case 167
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2026-02-13 21:36
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It would unethical for Roe to accept the contract and make the gifts as described.
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On its face, the code is clear and direct to the point. There is no question under the factual situation that the gifts are a direct consideration for securing the work, and there is here no pretense about the intention of the foreign government officials.
In Case 60-9 we acted upon a domestic case under Rule 4 of the then-prevailing Rules of Professional Conduct, which was the same as the present. In that case we dealt with three levels of gifts, involving 1. taking employees of a public agency to luncheon or dinner a few times during the year at an average cost of $5 per person; 2. engineers of an industrial firm receiving cash gifts of from $25 to $100 from salesmen for certain products, which may be specified by the engineers; and 3. a consulting engineer giving the chief engineer of a client an automobile of the value of approximately $4000 at the completion of a project as an expression of appreciation for the cooperation of the recipient of the gift. (Realistically, these figures would now be much higher than those amounts on account of inflation since l960.)
It is now worth repeating the language used at that time to indicate the basic principles which should govern the question:
"The question of when a gift is intended to or becomes an inducement to influence one's impartial decision, as distinguished from an expression of friendship or a social custom, has remained a perplexing one over the years. No blanket rule covering all situations has been discovered. The size of the gift is usually a material factor, but must be related to the circumstances of the gift. It would hardly be felt a token gift, such as a cigar, a desk calendar, etc., would be prohibited. It has been customary in the business world for friends and business associates to tender such tokens of recognition or appreciation, and 'picking up the tab' at a business luncheon or dinner is commonplace and well accepted in the mores of our society."
"Recognizing the difficulties inherent in pas...
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Richard Roe, P.E., is president and chief executive officer of an engineering firm which has done overseas assignments in various parts of the world. The firm is negotiating for a contract in a foreign country in which it has not worked previously. Roe is advised by a high-ranking government official of that country that it is established practice for those awarded contracts to make personal gifts to the governmental officials who are authorized to award the contracts, and that such practice is legal in that country. Roe is further advised that while the condition is not to be included in the contract, his failure to make the gifts will result in no further work being awarded to the firm and to expect poor cooperation in performing the first contract. He is further told that other firms have adhered to the local practice in regard to such gifts.
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Would it be ethical for Roe to accept the contract and make the gifts as described?
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Components Populated9/9
With EmbeddingsCombined Embedding
Roles
R
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384D
NSPE Board of Ethical Review
Adjudicates the present case, applying Section 11b of the Code of Ethics and the principles articulated in Case 60-9...
NSPE Board of Directors
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Richard Roe Firm President Engineer
President and chief executive officer of an engineering firm negotiating for a contract in a foreign country, who is...
Foreign Government Prospective Client
The government of the foreign country in which the firm is negotiating for a contract, whose officials are...
High-Ranking Government Official
Advises Roe that personal gifts to the governmental officials authorized to award contracts are the established and...
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Principles
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Honor and Integrity Code Reading
The Board reads the flat gift prohibition of Section 11b not only literally but in the spirit of its purpose, as a...
Service to Public Before Profit
The Board answers the no-choice defense by holding that there is a choice, declining to be drawn into a seamy...
Public Confidence in Profession
The Board holds that accepting the foreign gift practice would compromise, in the public's eyes, the profession's...
Independent Judgment Free of Gifts
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Uniform Ethics for Foreign Work
The Board holds that the flat prohibition of Section 11b applies to foreign work even where local laws and customs...
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Obligations
O
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Roe Foreign Work Code Compliance Duty
Richard Roe must comply with the Code of Ethics, including the flat prohibition of Section 11b on gifts to secure...
Roe Code Spirit Adherence Duty
Richard Roe must adhere to the Code of Ethics in the spirit of its purpose of honor and integrity, upholding the...
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States
S
w=0.1
384D
Foreign Contract Negotiation Pending
Retaliation Risk For Withholding Gifts
Choice To Decline Availability
Profession Disrepute Exposure
Legal Local Gift Practice
Roe's Knowledge Of Gift Expectation
Gift Condition Kept Off Contract
Section 11b Foreign Work Applicability
Ethical Standards Erosion Risk
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Resources
Rs
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NSPE Code of Ethics
NSPE Code of Ethics (topic: prohibition on paying gifts, commissions, or other consideration to secure work)
BER Case 60-9
BER Case 60-9 (topic: when a gift becomes an inducement intended to influence an engineer's impartial professional judgment)
2 entities
Actions
A
w=0.1
384D
Gift Practice Advisement
When in Rome Adoption
Payments to Officials
Board Ethical Determination
Foreign Contract Negotiation
Precedent Gift Ruling
When in Rome Rescission
Improper Foreign Gifts
8 entities
Events
E
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Ethical Dilemma Onset
Press Investigation Reports
Payment Scheme Revelation
Inflation Since 1960
Code Section Repeal
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Capabilities
Ca
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384D
Roe Firm Engineering Service Provision
Roe's engineering firm has performed overseas assignments in various parts of the world, evidencing its exercised...
BER Precedent Reasoning
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BER Gift Threshold Distinction
The Board applies the reasonable-men criterion distinguishing token gifts and social customs from inducements, and...
Roe Work Refusal Judgment
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Roe Firm Contract Negotiation
As president and chief executive officer, Roe exercises the competence to negotiate for an engineering contract on...
Roe Code Spirit Interpretation
Roe's duty to adhere to the Code of Ethics not only literally but in the spirit of its purpose presupposes the...
6 entities
Constraints
Cs
w=0.08
384D
Roe No Choice Rationalization Bar
Richard Roe must not justify the firm's participation in the foreign gift practice by the claim of having no choice,...
Roe Firm Gift Prohibition
Richard Roe, P.E. must not make, or cause his firm to make, personal gifts to the governmental officials authorized...
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