Ethics in Professional Practice
What a software professional owes to clients, users, colleagues and the public, set out in the ACS Code of Professional Ethics (2023), and a step-by-step method for spotting an ethical problem in a scenario, naming the clauses it breaches and recommending what to do. The exam asks exactly this, with a case to analyse.
- You willdefine ethics and organisational ethics, and tell micro-ethics from macro-ethics.
- You willknow the four ACS values and every lettered clause, and cite them as "Honesty (b)" or 2.1(b).
- You willanalyse a dilemma in seven steps and climb the escalation ladder in proportion.
- You willwrite the staff's answer pattern: issue name, scenario evidence, ACS value and clause.
What Ethics Is, and Why It Is Taught exam
Most of this subject is about getting software built on time, on budget and to the right quality. This Part asks a different question: should it be built that way, and what do you do when the fastest route hurts someone? Software now runs hospitals, aircraft, elections and bank accounts, so the people who build it make decisions that reach far beyond the project team. Ethics is the discipline of making those decisions well.
Ethics is the principles and values an individual uses to govern their actions and decisions.
Organisational ethics is the values an organisation expresses to its employees and other parties, irrespective of governmental or regulatory law.
The phrase to notice is "irrespective of law". Ethics is wider than legal compliance. Plenty of behaviour is perfectly legal and still unethical: telling a client that a half-built feature is finished breaks no statute, but it deceives someone who is relying on you. The figure shows the relationship. The law sets a floor, and a professional code such as the ACS Code (introduced in 9.3) asks for a good deal more above it.
Why it is in a software management subject
Two professional bodies accredit software engineering degrees in Australia: the Australian Computer Society (ACS), the professional association for ICT (information and communications technology) workers, and Engineers Australia. Both require ethics to be taught. This subject is the starting point, and later project subjects apply it with real clients. Engineers Australia has its own code, which asks members to demonstrate integrity, practise competently, exercise leadership and promote sustainability, but this course uses the ACS Code, so that is the one to quote in the exam.
The ethical challenges graduates face
The research cited in the W08 lecture explains why ethics has to be taught rather than assumed. Software engineering graduates often feel ill-prepared for the ethical issues they meet at work. Worse, they struggle even to recognise that they are facing a dilemma, let alone navigate it. Part of the difficulty is that different people may judge the same act differently, and culture has a large influence on how they judge it. A survey of over 2,300 ACS members (Al-Saggaf & Ceric 2017) found that many had faced ethical problems at work, such as bullying, and that many professionals do not realise when they are in an ethical situation at all.
Nobody on the Medic team (9.8) set out to harm patients. Each person made a small, convenient choice: build a mock-up, store the data "securely later", say nothing about a lost backup. The skill this Part trains is noticing, at the moment of each small choice, that it is an ethical choice.
Check yourselfA colleague says: "Our privacy policy is legally compliant, so there is no ethical issue in re-using customers' data for a new product." Which phrase in the W08 definitions shows the flaw in this reasoning?
Organisational ethics is the values an organisation expresses "irrespective of governmental or regulatory law". Legal compliance is only a floor; the ACS Code itself says it goes beyond legal requirements. Re-using data beyond the purpose it was collected for can be legal and still breach the Code (for instance 2.2(d), respecting the privacy of personal information), as the Cambridge Analytica case in 9.6 shows.
Ethics is the principles and values that govern an individual's actions; organisational ethics is the values an organisation expresses, irrespective of the law. The ACS and Engineers Australia require ethics in accredited degrees, this course uses the ACS Code, and graduates' main weakness is failing even to recognise a dilemma.
Micro-Ethics, Macro-Ethics and Where Issues Arise exam
If ethics only meant headline scandals, most developers would think it had nothing to do with them. The distinction between micro- and macro-ethics fixes that misconception: it shows that ethics happens at your desk, every day, and that the headline scandals are made out of exactly those everyday choices.
The "big issues" in the news that affect many people, such as Cambridge Analytica or the Boeing 737 MAX. They are about what a whole company, industry or technology does to society.
The day-to-day decisions and interactions at work: skipping a test to hit a deadline, keeping test data insecurely, overstating progress, or how you treat your colleagues.
The lesson the slides draw is that ethics is not only for big issues. Micro-ethics matters because it shapes the processes and data we use and the products we make. In fact you already practise it whenever you deal with risk management, product quality and safety, intellectual property, environmental impact and security, all topics from earlier Parts (Part IV on risk and Part VII on quality). The two scales are also connected: macro-ethical disasters usually grow from many unchallenged micro-ethical decisions.
Check yourself · select all that applyWhich of these are micro-ethical issues?
- A tester marks a failing regression test as "passed" so the sprint closes on time.
- A government debate over whether facial recognition should be legal in public spaces.
- A team lead regularly mocks a junior developer's questions in stand-ups.
- A developer copies production customer records onto a personal laptop to debug faster.
A, C and D. Each is a day-to-day decision or interaction at work: reporting a skipped test as passed (honesty), how you treat colleagues (a respectful workplace) and keeping data insecurely (privacy). B is a society-wide "big issue" of the kind that makes the news, so it is macro-ethics. Remember that ticking B as well would cancel one of your correct ticks on a multiple-response question.
Eight contexts where ethical issues arise
To help you recognise an ethical issue when you meet one, the W08 slides list eight contexts in which they commonly arise. Think of them as a checklist to run over any system you build or any scenario you are given: if a feature touches one of these, slow down and ask who could be harmed.
Check yourselfA university builds an exam-proctoring tool that flags "suspicious" eye movements, and students with certain disabilities are flagged far more often. Which two of the eight contexts are involved?
Algorithmic bias (the system discriminates unfairly against a group) and accessibility (it effectively excludes users with disabilities). You could add transparency and explainability if students cannot find out why they were flagged. In the ACS Code these lead to 2.3.1(c), not discriminating unfairly in system design, and 2.3.1(d), inclusivity.
Check yourself · Self-test Q1Define ethics and organisational ethics, and distinguish micro- from macro-ethics with examples.
Ethics is the principles and values an individual uses to govern their actions and decisions. Organisational ethics is the set of values an organisation communicates to its employees and others, irrespective of the law. Macro-ethics concerns big public issues, such as Cambridge Analytica, whereas micro-ethics concerns daily workplace choices, such as reporting a skipped test as passed. These small choices shape processes, data and products, and practitioners often don't recognise them as ethical choices.
Macro-ethics is the big public issues; micro-ethics is the everyday decisions at work, and the big disasters grow out of unchallenged small ones. Eight contexts flag likely trouble: privacy, algorithmic bias, accessibility, IP, transparency, security, employment and the environment.
The ACS Code: Preamble and Four Values exam
Knowing that something feels wrong is not enough in a professional setting; you need a shared standard you can point to when you push back. A code of professional ethics is that standard: a public statement, by a profession, of what its members owe to others. The subject uses the ACS Code of Professional Ethics, adopted into the ACS National Regulations (NR4) on 14 March 2023.
The preamble: the responsibilities of an IT professional
The preamble explains why the Code exists, and in doing so it sets out the responsibility that comes with being an IT professional. Read its ideas as a chain of reasoning:
- Purpose. The ACS "strives to protect the public interest" through an ethical, trustworthy ICT profession.
- The imbalance. Society depends on ICT but has limited understanding of it or control over it. Patients cannot inspect a hospital's database; pilots could not inspect MCAS.
- Therefore, responsibility. Because professionals have specialist knowledge that others lack, they carry a responsibility for those others.
- What makes a professional. It is how you apply your skill: professionals "promote good while working within ethical constraints".
- Beyond the law, and not exhaustive. The Code goes beyond legal requirements, and it does not list every situation, so members must use judgement guided by its values.
Point 5 matters in the exam. No clause says "do not build a fake app for inspectors", yet the Uber case in 9.6 clearly breaches the Code. You are expected to reason from the values to the situation, not to look for a rule with the situation's name on it.
Four core values under three headings
The Code names four core values: honesty, trustworthiness, respect for others and respect for the profession. They sit under three numbered headings, 2.1 Honesty, 2.2 Trustworthiness and 2.3 Respect, and Respect is split into 2.3.1 Respect for Others and 2.3.2 Respect for the Profession. That is why the T08 quiz speaks of "three primary values" (Honesty, Trustworthiness, Respect) while the Code lists four. Both counts describe the same structure. A mnemonic for the four is H-T-R-R.
Check yourself · MCQThe T08 quiz refers to the ACS Code's "three primary values", but this guide lists four core values. Which statement is correct?
- The 2023 Code has three values; "respect for the profession" was dropped from the pre-2023 Code.
- Both are right: there are four core values under three headings, because 2.3 Respect is split into 2.3.1 and 2.3.2.
- There are six values: the pre-2023 Code's six are still the official headings.
- There are four values, and "three primary values" refers to the three that have lettered clauses.
B. The headings are 2.1 Honesty, 2.2 Trustworthiness and 2.3 Respect; Respect contains Respect for Others (2.3.1) and Respect for the Profession (2.3.2). All four values have lettered clauses, so D is wrong, and the six-value list (C) belongs to the pre-2023 Code, which you should not use as your headings (9.5).
The ACS Code (2023) exists to protect the public interest: society depends on ICT it cannot understand or control, so professionals' specialist knowledge makes them responsible for others. It goes beyond the law, is not exhaustive, and rests on four values (H-T-R-R) under three headings, with 26 lettered clauses.
Every Clause, Letter by Letter exam
In an exam answer, "this is dishonest" earns little; "this breaches Honesty 2.1(b), not misrepresenting a capability by omission" earns marks, because it shows you know exactly which duty the facts break. So the clauses need to be at your fingertips, and you will want this page on your A4 notes sheet. The staff's practice-exam answers cite clauses as value + letter, for example "Honesty (b)" or "Trustworthiness (d)"; this site also uses the numbered form 2.1(b) and 2.2(d). Either is fine, as long as the value and the letter match the 2023 Code.
The full clauses
The table gives every clause as the guide words it, with the form to cite it in an answer. Read each value's one-line purpose first: it tells you what the clauses under it are protecting.
| Clause | Cite as | What it asks of you |
|---|---|---|
| 2.1 Honesty a founding principle for healthy interactions between people and ICT systems | ||
| 2.1(a) | Honesty (a) | Be honest, open and truthful with employers, employees, clients, stakeholders and the public. |
| 2.1(b) | Honesty (b) | Do not misrepresent any action, situation or capability, whether your own, your colleagues' or your employer's, directly, indirectly or by omission. |
| 2.1(c) | Honesty (c) | Do not remain silent when you detect unprofessional conduct. |
| 2.2 Trustworthiness upholds public welfare and human dignity | ||
| 2.2(a) | Trustworthiness (a) | Be accountable: own your failures as well as your successes, do what you say, and accept criticism. |
| 2.2(b) | Trustworthiness (b) | Practise integrity: be consistent, declare and manage conflicts of interest, and do not let others' undue influence or bias stop you complying with the Code. |
| 2.2(c) | Trustworthiness (c) | Commit to life-long learning, staying current with knowledge, skills and standards. |
| 2.2(d) | Trustworthiness (d) | Respect the privacy, confidentiality and integrity of personal or proprietary information. |
| 2.2(e) | Trustworthiness (e) | Communicate your capabilities clearly, including your learning gaps. |
| 2.2(f) | Trustworthiness (f) | Do not undertake work you lack the skills and knowledge for. |
| 2.2(g) | Trustworthiness (g) | Be competent, strive for quality, and highlight resource constraints that may affect outcomes. |
| 2.2(h) | Trustworthiness (h) | Develop systems that are robust, secure and user-friendly. |
| 2.3.1 Respect for Others minimise harm to any stakeholders, and in particular: | ||
| 2.3.1(a) | Respect for Others (a) | Where harm is unavoidable, develop mitigation strategies. |
| 2.3.1(b) | Respect for Others (b) | Respect others' views and take their points of view into account. |
| 2.3.1(c) | Respect for Others (c) | Be impartial and fair, and do not discriminate unfairly, whether in dealing with people or in system design. |
| 2.3.1(d) | Respect for Others (d) | Model and encourage inclusivity. |
| 2.3.1(e) | Respect for Others (e) | Support a healthy, respectful workplace. |
| 2.3.1(f) | Respect for Others (f) | Identify and mitigate risks to others from your work. |
| 2.3.1(g) | Respect for Others (g) | Respect others' intellectual property. |
| 2.3.2 Respect for the Profession eight clauses | ||
| 2.3.2(a) | Respect for the Profession (a) | Educate the public about the benefits and drawbacks of ICT. |
| 2.3.2(b) | Respect for the Profession (b) | Contribute to public discourse on ICT matters affecting dignity and wellbeing. |
| 2.3.2(c) | Respect for the Profession (c) | Enhance environmental sustainability and quality of life, and ensure the public interest is defended. |
| 2.3.2(d) | Respect for the Profession (d) | Support others' ICT knowledge and competence. |
| 2.3.2(e) | Respect for the Profession (e) | Advance ICT for the greater good. |
| 2.3.2(f) | Respect for the Profession (f) | Help address industry challenges. |
| 2.3.2(g) | Respect for the Profession (g) | Support an open, diverse, inclusive industry. |
| 2.3.2(h) | Respect for the Profession (h) | Advance the standing of the ICT profession and the ACS. |
A few terms in the clauses deserve a gloss. Misrepresentation by omission (2.1(b)) means creating a false impression by leaving something out: demoing a dashboard without mentioning that its numbers are faked is a lie even if every sentence you say is true. A conflict of interest (2.2(b)) is a situation where your personal interest could pull against your duty, such as recommending a vendor you hold shares in. Undue influence (2.2(b)) is pressure, typically from a boss or client, to act against the Code. Intellectual property (IP) (2.3.1(g)) is creations of the mind that the law protects, such as code, designs and trademarks.
Fast lookup: from a scenario feature to the clause
When you read a scenario, you will notice features such as "the PM told them to ship it" or "the data was medical". The guide's lookup table turns each feature into the clauses to cite. The matrix draws it so that you can see at a glance which value each feature belongs to.
The T08 quiz asked exactly this matching, choosing the clause breached most directly. Presenting a known-buggy feature as fully functional breaches 2.1(b) most directly, and insecurely stored health data that is then breached breaches 2.2(d) most directly. "Most directly" means: pick the clause whose words describe the act itself, not a consequence of it.
Check yourself · MCQ (T08)A team demos a feature to the client as "fully functional" while knowing it has serious bugs. Which clause does this breach most directly?
- 2.2(h): develop robust, secure, user-friendly systems
- 2.1(b): do not misrepresent any action, situation or capability
- 2.2(c): commit to life-long learning
- 2.3.2(h): advance the standing of the profession
B, 2.1(b). The act is a claim about the feature's capability that is false. The bugs themselves relate to 2.2(h) (A), and a resulting scandal might engage 2.3.2(h) (D), but those describe consequences or the product, not the misrepresentation, which is the act the question describes.
Check yourself · MCQ (T08)Patient health records used for testing are kept in an unencrypted database, and they are then breached. Which clause is breached most directly?
- 2.2(d): respect the privacy, confidentiality and integrity of personal information
- 2.1(a): be honest, open and truthful
- 2.3.1(g): respect others' intellectual property
- 2.2(e): communicate your capabilities clearly
A, 2.2(d). Storing personal health data insecurely fails to respect its privacy and confidentiality. 2.2(h) (secure systems) and 2.3.1(f) (risks to others) would be good supporting clauses in a written answer, but neither is offered here; B, C and D describe different acts.
Check yourself · Self-test Q2Name the ACS Code 2023 core values and give two expectations under each.
Under Honesty, 2.1(b) forbids misrepresentation, including by omission, and 2.1(c) says not to stay silent about unprofessional conduct. Under Trustworthiness, 2.2(d) requires respecting privacy, and 2.2(f) says not to take on work beyond your skills. Under Respect for Others, 2.3.1(c) forbids unfair discrimination, and 2.3.1(g) requires respecting IP. Under Respect for the Profession, 2.3.2(c) requires defending the public interest, and 2.3.2(h) requires advancing the profession's standing. (Any two correct clauses per value would do; these are the guide's.)
Check yourself · Self-test Q7Mid-contract you realise you lack the 3-D graphics skills your role needs. What does the Code require?
It requires you to communicate your capabilities and gaps (2.2(e)), not to undertake work beyond your skills (2.2(f)), to highlight the constraint (2.2(g)), and to learn (2.2(c)). In practice: tell the PM promptly and propose training, pairing with someone experienced, or bringing in an expert. Don't bluff, because a hidden gap turns a manageable risk into a failure, which is exactly what happened in the Medic case.
Check yourself · select all that applyA developer pastes large chunks of a licensed library into the product without honouring the licence, and the manager tells the team not to mention it to the client. Which clauses apply?
- 2.3.1(g)
- 2.2(c)
- 2.1(b)
- 2.3.2(a)
A and C. Copying code in breach of a licence is a failure to respect others' intellectual property (2.3.1(g), the "copying code, licence breaches" row of the lookup). Hiding it from the client is misrepresentation by omission (2.1(b)). Life-long learning (B) and educating the public (D) are not engaged. You could add 2.2(b) for the manager's undue influence, but it is not offered.
- Honesty (a)–(c): truthful; no misrepresentation, even by omission; don't stay silent.
- Trustworthiness (a)–(h): accountable; integrity against undue influence; learning; privacy; state your capabilities; don't overreach; competence and constraints; robust, secure, user-friendly systems.
- Respect for Others (a)–(g) and Respect for the Profession (a)–(h): minimise and mitigate harm, fairness, inclusivity, workplace, risks to others, IP; public interest, sustainability and the profession's standing.
Older Codes and Other Codes
You will meet other ethics codes in past papers, in T08 and in readings, and it is easy to mix their headings into a 2023 answer. This section shows how the older ACS Code and the IEEE-CS/ACM code line up with the 2023 Code, so you can translate rather than confuse them.
The pre-2023 ACS Code: six values
Before 2023 the ACS Code had six values: the primacy of the public interest, the enhancement of quality of life, honesty, competence, professional development and professionalism. None of them disappeared; each one maps onto parts of the 2023 Code, as the figure shows.
Using the old six values ("this breaches Competence") as your headings in a 2023 answer. The marks are for the 2023 values and clause letters, so write "Trustworthiness (f)" or 2.2(f) instead.
T08's comparison: the IEEE-CS/ACM Software Engineering Code
T08 compares the old ACS headings (Priorities, Competency, Honesty, Social Implications, Professional Development and IT Profession) with the IEEE-CS/ACM Software Engineering Code, written jointly by the two largest international computing societies. That code has eight principles:
Public
Act consistently with the public interest.Client and Employer
Serve them, acting consistently with the public interest.Product
Meet the highest professional standards.Judgment
Keep integrity and independence.Management
Managers promote an ethical approach.Profession
Advance the profession's integrity and reputation.Colleagues
Be fair to and supportive of colleagues.Self
Life-long learning.Despite the different headings, the codes share the same core. In all of them the public interest comes first, and all of them value honesty, competence and quality, confidentiality, learning, and supporting the profession. So if you know the ACS Code well, you already understand the others.
Check yourselfAn old marking guide says an answer should mention "Professional development". Where does that live in the 2023 Code, and which IEEE-CS/ACM principle matches it?
In the 2023 Code it maps to 2.2(c), commit to life-long learning, and 2.3.2(d), support others' ICT knowledge and competence. The IEEE-CS/ACM principle that matches is Self, which is about life-long learning.
The pre-2023 ACS Code's six values all survive inside the 2023 Code (public interest and quality of life in 2.3.2(c), competence in 2.2(e)–(h), and so on), but answers must cite 2023 clauses. The IEEE-CS/ACM code's eight principles (Public, Client and Employer, Product, Judgment, Management, Profession, Colleagues, Self) share the same core: public interest first.
Three Case Studies exam
The Code is abstract until you see it broken. The W08 slides work through three real cases, and each is set out below in the same four parts: the facts, what went wrong, the breaches the slides identify (one under every value), and what professionals should have done. That four-part shape is also a good shape for your own exam answers.
Facts. Uber operated without approval in cities such as Portland, Boston and Paris. Instead of complying with the regulators, it built secret software that used credit-card data, device patterns and geolocation to guess which users were government inspectors. Those users were shown a fake app, with no cars or with ghost cars circling, which made the illegal operation hard to prove.
What went wrong. Uber deceived public authorities, exposed the public to unregulated drivers, and put its business goals ahead of the law and public trust.
| Value | Breach (slides) |
|---|---|
| Honesty | The fake data misrepresented Uber's operations: 2.1(a)–(b). |
| Trustworthiness | There was no accountability: 2.2(a)–(b). |
| Respect for Others | The public was put at risk: 2.3.1(f). |
| Respect for the Profession | Software was used to evade lawful oversight: 2.3.2(h). |
What professionals should have done. Question the feature's purpose and refuse to build covert deception. Then record their objections and escalate them to legal or compliance, and, as a last resort, report it or withdraw. A junior developer cannot hide behind "management decided" (2.2(b), undue influence).
Facts. Facebook let third-party apps collect users' data and their friends' data without the friends' consent, and trusted developers to regulate themselves. A quiz app, "This Is Your Digital Life", harvested tens of millions of profiles: The Guardian reported 50 million, and Facebook later estimated up to 87 million. The app's developer sold the data to Cambridge Analytica, which built psychological profiles to micro-target political ads. Facebook asked for the data to be deleted but never verified that it was, and told users only years later. The US FTC later fined Facebook US$5 billion.
What went wrong. There was no informed consent, and the data was re-used for a different purpose. Nobody monitored how it was used after collection, disclosure came late, and political behaviour was manipulated covertly.
| Value | Breach (slides) |
|---|---|
| Honesty | Users were not told: 2.1(b). |
| Trustworthiness | Facebook failed to safeguard the data, verify its deletion or disclose what had happened: 2.2(a), 2.2(d). |
| Respect for Others | It ignored consent and failed to mitigate harm: 2.3.1(a), 2.3.1(f). |
| Respect for the Profession | It weakened confidence in ICT: 2.3.2(h). |
What professionals should have done. Apply privacy by design, meaning privacy is built into the system's defaults from the start rather than added later, so that friends' data was not exposed by default. Collect only the data needed and use it only for its stated purpose. Audit third-party apps, verify deletion and notify users promptly, and push back on re-using data beyond its original intent.
Facts. MCAS (Maneuvering Characteristics Augmentation System) automatically pushed the aircraft's nose down to adjust its handling. It relied on a single angle-of-attack (AoA) sensor with no redundancy; an AoA sensor measures the angle between the wing and the oncoming air. Pilots were not adequately informed that MCAS existed or how it worked. Then Lion Air 610 (2018) and Ethiopian Airlines 302 (2019) crashed, killing 346 people. The fleet was grounded worldwide for about 20 months, and MCAS was redesigned to use both sensors.
What went wrong. Critical information was withheld from pilots, and business goals (faster certification and competing with Airbus) were put ahead of safety. The design had a single point of failure, and its design, documentation and disclosure all lacked transparency.
| Value | Breach (slides) |
|---|---|
| Honesty | Boeing was not open about the system's behaviour and risks: 2.1(b). |
| Trustworthiness | No accountability for safety, and the system was not robust: 2.2(a), 2.2(h). |
| Respect for Others | The harm was severe: 2.3.1(f). |
| Respect for the Profession | Trust in aviation software was undermined: 2.3.2(h). |
What professionals should have done. Insist on redundancy and hazard analysis, and disclose MCAS to pilots and regulators. Refuse to sign off, and escalate to the regulator if overruled. Safety outranks the schedule.
All three cases share four ingredients: business pressure, information hidden by omission, harm to people outside the room (inspectors and the public, friends who never used the app, passengers and pilots), and engineers who complied. When you see the first two in an exam scenario, look for the third and ask what the fourth group should have done instead.
Check yourself · Self-test Q3For the Boeing 737 MAX, what went wrong, which values were breached, and what should engineers have done?
What went wrong: MCAS relied on a single sensor, pilots were not told about it, and certification and cost pressure outranked safety, with the result that 346 people died. Breaches: 2.1(b), 2.2(a)/(h), 2.3.1(f) and 2.3.2(h). Should have: required redundancy and hazard analysis, disclosed MCAS, refused sign-off, and escalated to the regulator.
Check yourself · Self-test Q4As a junior developer at a ride-share firm, you are asked to hide cars from users flagged as city inspectors. What do you do?
The issues are deceiving regulators and public safety, which engage 2.1(a)–(b), 2.2(b), 2.3.1(f) and 2.3.2(c). Ask what the feature is for, record your concern in writing, escalate to management or legal, and decline to build it. If you are overruled, use whistleblower channels or withdraw. "I was told to" is no defence: 2.2(b) binds juniors too.
Check yourself · Self-test Q5Your product owner wants to re-use fitness-app location data to sell targeted insurance ads. Analyse it.
Stakeholders: the users, the company, insurers and regulators. Issues: using the data beyond its original purpose without consent, insurance discrimination, and transparency, which engage 2.2(d), 2.1(a), 2.3.1(c) and 2.3.1(f). Options: refuse, or proceed only with explicit opt-in, de-identification and a privacy review. Recommendation: get consent or drop the feature. This is the lesson of Cambridge Analytica: data collected for one purpose must not be quietly re-used for another.
Check yourself · select all that applyWhich clauses did the slides cite as breached under Trustworthiness in the Cambridge Analytica case?
- 2.2(a)
- 2.2(f)
- 2.2(d)
- 2.2(h)
A and C. Facebook failed to be accountable (verify deletion, disclose: 2.2(a)) and to safeguard personal data (2.2(d)). 2.2(h), robustness, is the Boeing case's Trustworthiness clause; 2.2(f), work beyond your skills, is not cited in any of the three cases.
Uber Greyball deceived regulators with a fake app; Facebook let a quiz app harvest friends' data that ended up micro-targeting political ads; Boeing hid a single-sensor MCAS from pilots, and 346 people died. Each breaches all four values, and each shares the thread of business pressure, hidden information, harm to outsiders and engineers who complied.
Handling an Ethical Dilemma exam
An ethical dilemma is a situation where the options pull in different directions, typically your instructions or the deadline against your duty to others. Faced with one under exam time pressure, it is easy to write a vague paragraph about "being ethical". The guide's seven-step method stops that: it makes you establish the facts, find everyone affected, name each issue precisely, attach a clause, compare real options and then act. Scenario questions reward exactly this systematic approach.
- The method's seven steps run down the left. The panel on the right applies each step to the guide's Self-test Q6: a manager tells you to skip security testing and mark the story "Done".
- Facts. Set out the actions, who instructed whom, and what was disclosed or hidden. Keep facts separate from assumptions: you do not know the code is insecure, only that nobody will have checked.
- Stakeholders. Consider the client, users, data subjects, the public, the employer, colleagues, regulators and yourself, and flag anyone vulnerable or absent. Here the users are the absent party who carries the risk.
- Issues. Give each issue one line. Several precise issues score better than one vague one such as "it's unethical".
- Code. For each issue write value + clause + fact + why it matters, for example "2.2(d): health records unencrypted, so patients risk identity theft." Listing clauses without facts loses marks.
- Options. For each option say who is helped or harmed, in the short and the long term. Run four quick tests: harm, publicity (could you defend it on the front page?), code compliance, and reversibility (would you accept it if you were the one affected?).
- Decision. Choose the honest option that best protects the public and the stakeholders, justify it with clauses, and name the cost you accept. The guide's answer: reject complying silently; raise the risk, propose descoping or delay, and insist "Done" meets the Definition of Done.
- Act and prevent. Escalate proportionately (the ladder below), document what you did, and fix the process: the risk register, the Definition of Done, a security review. Here: escalate to the product owner or client if you are overruled.
An absent stakeholder is someone affected by a decision who has no voice in it, such as patients whose data is in a test database. The Definition of Done (DoD) is the team's shared checklist that every item must meet before it can be called finished (Part VI). A whistleblower channel is a protected route for reporting wrongdoing outside the normal chain of command.
Escalating in proportion: the ladder
Step 7 says "escalate proportionately". That means climbing an escalation ladder one rung at a time, starting with the mildest step that might fix the problem and going higher only if it fails. Each rung brings in someone with more power to stop the harm, at a higher cost to relationships.
- Start at the bottom. Each rung up involves someone with more power to stop the harm, and costs more in relationships, so you climb only when the rung below has failed.
- Rung 1: raise it with the person involved. Often they did not see the problem; a quiet word may fix it.
- Rung 2: put it in writing to the PM. Writing creates a record, which is part of being accountable (2.2(a)) and protects you later.
- Rung 3: escalate to senior management or compliance, for example when the PM is the one overriding the concern.
- Rung 4: inform the affected client. The client is entitled to the truth about what it is paying for (2.1(a)–(b)).
- Rung 5: report to a regulator or whistleblower channel, when the organisation itself will not act and the public is at risk.
- Rung 6: as a last resort, refuse or resign. You cannot be made to build covert deception, as in the Uber case.
- Both extremes are weak answers. Doing nothing breaches 2.1(c); going straight to the media skips every proportionate step. Examiners want the ladder climbed in order.
Common traps
- "I followed my manager's or client's instruction" is not a defence. Clause 2.2(b) covers undue influence and 2.1(c) covers staying silent, and juniors are bound by them too.
- "It's legal" or "it's in the contract" is not enough, because the Code goes beyond the law.
- "Only a small amount of data" or "nobody will notice" excuses nothing. Hiding it is misrepresentation by omission (2.1(b)).
- "We'll add security, testing or skills later" does not postpone the problem: it breaches 2.2(g)–(h) and 2.3.1(f) now.
- Listing values without facts loses marks: the marks come from linking each clause to a fact and the fact to its consequence.
- Using the old six values as the 2023 headings is a mistake; use the 2023 clause numbers.
- Considering only the client misses the people who matter most: the public and third parties come first.
Check yourself · MCQYou notice a teammate committing customer passwords to the shared repository in plain text. According to the escalation ladder, what should you do first?
- Report it to the privacy regulator.
- Raise it with the teammate.
- Email the client's CEO.
- Nothing, unless a breach actually happens.
B. The first rung is to raise it with the person involved; climb further (writing to the PM, then senior management) only if that fails. A and C skip rungs, and D breaches 2.1(c), not remaining silent when you detect unprofessional conduct.
Check yourself · Self-test Q8An HR screening model you built rejects far more women than men, and a colleague says to ship it anyway. What should you do?
The issues are algorithmic bias and transparency, under 2.3.1(c)–(d) (no unfair discrimination, inclusivity), 2.3.1(f) (risks to others), 2.1(a) (truthful with stakeholders) and 2.1(c) (not staying silent). You should pause deployment, investigate the data and features, mitigate the bias (by rebalancing, a fairness audit or human review), and inform stakeholders honestly. The colleague's advice is undue influence (2.2(b)), not a reason.
Check yourself · select all that applyWhich of these are among the "common traps" the guide warns against?
- Citing a clause together with the fact that breaches it
- Arguing that the action is fine because it is in the contract
- Analysing only the client's interests
- Naming the cost your recommended option accepts
B and C. "It's in the contract" ignores that the Code goes beyond the law, and considering only the client misses the public and third parties. A and D are what the method asks you to do (steps 4 and 6).
Seven steps: facts, stakeholders (including absent ones), issues, code clauses with facts, options tested for harm, publicity, compliance and reversibility, a justified decision that names its cost, then act and prevent. Escalate one rung at a time, from the person involved up to a regulator, and refuse or resign only as a last resort; doing nothing and going to the media are both weak.
The Medic Case: A Worked Ethical Analysis
The tutorials' running case is Medic: a virtual-reality surgical simulator built for the surgeons of RVEEH, a hospital facing a shortage of quality cadavers on which trainee surgeons can practise cochlear-implant and temporal-bone surgery. Earlier Parts used it for business cases, risk and planning. Tutorial T08 adds an ethics addendum in which the project goes badly wrong, and then applies the seven-step method of 9.7 to it. This section follows that analysis step by step; it is the best model you have of a full-length answer.
Step 1: the facts, as they unfolded
- Seven events, in order. Grey boxes are neutral facts, red boxes are decisions that broke the Code, and the gold box is the consequence. Step through and notice how many separate chances there were to stop.
- The set-up. RVEEH outsources Project Virtual Vision to VRCodeBytes in Bengaluru, with a milestone due in 3 months. Outsourcing is not unethical; it just means the client depends on the vendor's honesty about progress.
- A new feature. A real-time usage dashboard is added, to show the simulator's usefulness and to guide RVEEH's investment in future 3-D models. Its numbers will drive real spending decisions.
- First wrong turn. Short of skills, the PM orders a mock-up that appears functional but has untested bugs, and dismisses the team's objections. Hiding the skills gap breaches 2.2(e)–(g); overriding concerns breaches 2.3.1(b) and 2.3.1(e).
- Second wrong turn. Real patient health data, supplied by RVEEH for testing, sits in an insecure database on the basis of "security later". That is 2.2(d), 2.2(h) and 2.3.1(f) breached now, not later.
- The breach. An employee takes an unauthorised backup and loses the media. This is the direct cause of the data breach (2.2(d), 2.2(a)).
- The cover-up. The PM delivers the mock-up without telling the client and chooses not to report the loss, because it was "only a small dataset". That is misrepresentation by omission (2.1(a)–(c)), and RVEEH cannot now warn patients.
- The consequences. The client finds out. A lawsuit, compensation, a patch that delays other projects, headlines, and the PM is fired. Every earlier box was a cheaper place to stop.
Step 2: the stakeholders, and who is harmed
A stakeholder is anyone who affects or is affected by the project (Part V). The T08 analysis lists them all, and the map groups them by how they are harmed. The most important point is the first column: the people harmed most were never in any meeting.
Steps 3–4: eight issues, their clauses, and why they matter
T08 Activities 1–2 identify eight issues. Each row names one issue, the 2023 clauses it engages, and its significance, which is the "why it matters" half of step 4.
| # | Issue | Clauses | Why it matters |
|---|---|---|---|
| 1 | The mock-up was delivered as a working feature | 2.1(a), 2.1(b), 2.2(a) | The client relied on a false capability, and its investment decisions would rest on bogus statistics. |
| 2 | The skills gap was hidden, and work was accepted beyond capability | 2.2(e), 2.2(f), 2.2(g) | Disclosed, the gap could have led to renegotiated scope or time; hidden, it turned a risk into a failure. |
| 3 | The PM overrode concerns, and the team then stayed quiet | 2.1(c), 2.2(b), 2.3.1(b), 2.3.1(e) | The project's early-warning system was silenced, and the team members themselves also breached 2.1(c). |
| 4 | Real health data in an insecure database, "security later" | 2.2(d), 2.2(h), 2.3.1(f) | Health data is highly sensitive: patients are exposed to identity theft, discrimination and distress, and the loss is irreversible. |
| 5 | An unauthorised backup was taken and the media lost | 2.2(d), 2.2(a) | The direct cause of the breach; there were no data-handling controls to prevent it. |
| 6 | The breach was concealed from the client | 2.1(a)–(c), 2.2(a), 2.3.1(a) | RVEEH could not notify patients or regulators or mitigate the harm. It probably also breached the contract and legal breach-notification duties (the Privacy Act's Notifiable Data Breaches scheme). |
| 7 | Buggy, untested software used in medical training | 2.2(g), 2.2(h), 2.3.1(f), 2.3.2(c) | Hospital resources were wasted, and training quality could suffer. |
| 8 | A public scandal followed | 2.3.2(h) | It damaged trust in the profession. |
Notice issue 3: it is not only the PM who breached the Code. Team members who were overruled and then said nothing breached 2.1(c) themselves. The Code applies to every professional on the project, not just the one in charge. The Notifiable Data Breaches (NDB) scheme in issue 6 is the part of Australia's Privacy Act that requires organisations to notify affected people and the regulator of serious data breaches.
Steps 5–6: the options before delivery, and the decision
The decision is B, for four reasons, each tied to the Code:
- Honesty (2.1(a)–(b)) requires disclosing the dashboard's true status.
- Clauses 2.2(e) and 2.2(g) require raising the skills constraint so that scope can be renegotiated, which is ordinary agile descoping (Part VI).
- Containing and reporting the breach at once lets RVEEH meet its notification duties and lets patients protect themselves (2.2(a), 2.3.1(a)).
- Team members who are overruled should escalate in writing to senior management and refuse to misrepresent the feature (2.1(c), 2.2(b)).
Step 7: prevention (T08 Activity 3)
Fixing this project is not enough; step 7 asks what would stop it happening again. T08 proposes three measures.
Transparent reporting of capabilities and constraints
Disclose skills gaps, record "skills shortage" in the risk register (Part IV), and negotiate scope openly.Privacy and security by design
Use de-identified or synthetic test data, never real patient records. Encrypt and control access from day one, ban unauthorised copies, and have a breach-response plan.Accountability and a speak-up culture
Provide an escalation path that bypasses the PM, and include "tested and secure" in the Definition of Done (Part VII).Synthetic test data is realistic-looking data generated artificially, so a leak exposes nobody; de-identified data is real data with anything that identifies a person removed.
Check yourself · Self-test Q9Identify five violations of the ACS Code in the Medic ethics scenario and recommend two preventive measures.
Five violations: (1) the mock-up was delivered as functional, breaching 2.1(b); (2) the skills gap was hidden, breaching 2.2(e)–(g); (3) concerns were dismissed and the team then stayed silent, breaching 2.1(c) and 2.3.1(b); (4) health data was stored insecurely, breaching 2.2(d) and 2.2(h); (5) the breach was concealed, breaching 2.1(a)–(b) and 2.3.1(a).
Two preventive measures: disclose constraints and renegotiate scope; and apply privacy by design (synthetic test data, encryption) together with a speak-up path. For full marks tie each violation to its fact, as in the table above.
Check yourself · MCQWhy is option C (delay the whole milestone) only "acceptable if the client chooses it", rather than recommended?
- Because it is dishonest.
- Because it withholds features that already work, and that trade-off is the client's decision.
- Because the Code forbids missing deadlines.
- Because it does not report the data breach.
B. C is honest, so A is wrong, and nothing in the Code forbids a late delivery (C). D is not the reason the guide gives: the breach must be reported whichever delivery option is chosen. The objection to C is that it holds back working features, which only the client should decide to do.
In the Medic addendum the vendor shipped a mock-up as working, hid a skills gap, kept real patient data insecurely, lost it, and hid the loss; patients, absent from the project, were harmed most. T08 finds eight issues, recommends option B (deliver honestly without the dashboard and report the breach at once), and prevents a repeat with transparent reporting, privacy and security by design, and a speak-up culture.
The Exam Answer Pattern exam
Knowing the Code is half the job; the other half is writing it down in the shape the markers reward. The official Practice Exam Guide, posted by the subject staff on Canvas, includes an ethics scenario with the staff's own example answer. Its structure is the pattern to copy, so this section takes it apart.
The SecureTrack question
The scenario concerned SecureTrack, a company supplying facial-recognition technology. The staff's example answer (with variations accepted) sets out each issue in three parts:
- a name for the issue;
- a description tied to the scenario, using its facts; and
- the relevant ACS values, cited by value and clause letter, such as "Trustworthiness (d)", which is 2.2(d) in this site's numbering.
The stepper builds the staff's answer one issue at a time.
- The skeleton of every issue in the staff's answer: a name, a description tied to the scenario, and the ACS values with clause letters. Step through to fill it in.
- Issue 1: violation of privacy and public trust. Biometric data was collected, stored and analysed without people's knowledge or consent, and matches led to wrongful detentions. The staff cite Trustworthiness (d), privacy, and (a), accountability for the consequences of one's work.
- Issue 2: dishonesty in representing the company's capabilities. SecureTrack exaggerated its expertise and security when bidding, and a later breach exposed the gap. Honesty (a), truthful and transparent, and Honesty (b), not misrepresenting capabilities or omitting limitations or risks.
- Issue 3: harmful predictive profiling and discrimination. The system built "generalised suspect profiles". The staff cite Respect for Others, starting from its overarching duty to minimise harm and the mitigation that (a) requires, with (c) on unfair discrimination and (d) on inclusivity and fairness.
- Issue 4: failure to ensure accuracy and reliability. Frequent false identifications, released without adequate testing: Trustworthiness (g), competent and diligent, and (h), robust, secure and user-friendly systems. Four issues, each with a name, a fact and a clause: that is the whole pattern.
One issue written out in full
Each issue earns its marks the same way: it names a problem, proves it with a fact from the scenario, and attaches the clause that fact breaches, saying why. Written out in full, the first issue might read as follows; compare it with the weak version.
Violation of privacy and public trust. SecureTrack's system collected, stored and analysed people's facial biometrics without their knowledge or consent, and its matches led to wrongful detentions. This breaches ACS Trustworthiness 2.2(d), which requires professionals to respect the privacy, confidentiality and integrity of personal information: biometric data is about as sensitive as personal data gets, and the people affected never agreed to its use. It also breaches 2.2(a), accountability, because SecureTrack has to own the harm its system caused, including the detentions, rather than leave it to the people wrongly detained.
"Privacy: the ACS Code says to respect privacy."
No scenario evidence and no consequence. The staff say that definition-style answers like this score low, however accurate they are.
You could strengthen several points with clauses the staff did not cite: 2.3.1(f), identifying and mitigating risks to others, fits the release without adequate testing, and 2.2(e)–(f), communicating capability honestly and not taking on work beyond your skills, fits the inflated bid. If the question goes on to ask what a professional should do, continue with steps 5–7 of the method (options, a justified decision, escalation up the ladder). And the consent failure parallels Facebook and Cambridge Analytica (9.6), a useful comparison if a question invites one.
The Practice Exam Guide says definition-style answers attract low marks, and so does rote-learning the guide's answers: apply the concepts to the scenario in front of you, quote it where useful, and justify. Answers are examples with "variations accepted", so a different issue that you justify from the scenario scores just as well.
Practise the pattern
PractiseWrite SecureTrack's second issue (dishonesty in representing capabilities) in full, in the same style as the strong answer above.
One good version: Dishonesty in representing the company's capabilities. When bidding for the work, SecureTrack exaggerated both its expertise and the security of its system, and a later breach exposed the gap between the claim and the reality. This breaches Honesty 2.1(a), being honest, open and truthful with clients, and Honesty 2.1(b), not misrepresenting a capability, including by omitting limitations or risks: the client chose SecureTrack on the strength of claims that were false. It also engages Trustworthiness 2.2(e)–(f), because the company should have stated its real capabilities and not taken on work it could not do securely.
PractiseUse the three-part pattern on the HR scenario from 9.7: a screening model rejects far more women than men, and a colleague says to ship it. Write two issues.
Algorithmic bias and unfair discrimination. The screening model rejects far more women than men, so qualified applicants are being filtered out because of their sex. This breaches Respect for Others 2.3.1(c), not discriminating unfairly in system design, and 2.3.1(d), inclusivity; shipping it would also fail 2.3.1(f), because the risk to applicants has been identified but not mitigated.
Pressure to ship and stay silent. A colleague is urging release despite the known bias. Going along would breach Honesty 2.1(c), not remaining silent, and 2.1(a), being truthful with stakeholders who believe the tool is fair; the colleague's urging is undue influence under Trustworthiness 2.2(b), which does not excuse compliance.
Check yourself · MCQWhich line would earn the most marks as one issue in an ethics answer?
- "Honesty: the ACS Code requires professionals to be honest, open and truthful."
- "The PM was unethical and broke several ACS values."
- "Concealed breach: the PM did not tell RVEEH that patient data was lost, so RVEEH could not warn patients; this breaches Honesty 2.1(b) (misrepresentation by omission) and Respect for Others 2.3.1(a) (mitigating harm)."
- "Competence: the team was not competent, which breaches the Competence value."
C. It names the issue, ties it to a fact, gives the consequence and cites value and clause. A is a definition with no evidence; B names nothing specific; D uses an old pre-2023 value as its heading and offers no fact.
The staff's pattern for each issue is a name, a description tied to the scenario's facts, and the ACS value with its clause letter, plus why the fact breaches it. Definitions without evidence score low; extra well-justified clauses, the dilemma steps and a parallel case study can lift an answer further.
Legal and Contractual Aspects older exam topic
This material is not in the 2026 slides, but past exams of the predecessor subject (433-443) tested it, and several of their questions depend on it. It answers practical questions every developer eventually asks: who owns the code I write, can I reuse it at my next job, and what kind of contract am I on?
Copyright in software (Australia)
Copyright is the legal right to control the copying of a work. Under the Copyright Act 1968 (Cth), a computer program is a literary work, like a novel, and both its source code (what programmers write) and its object code (the compiled form) are protected.
Because copyright protects expression, not ideas, writing equivalent code independently is lawful, whereas copying a substantial part of someone's code is infringement. You may reimplement a sorting algorithm you learned at a previous job; you may not copy that job's source file. Australia also differs from the USA in two ways: it has no registration step (the US requires registration before a US author can sue), and it has the narrower "fair dealing" exceptions instead of the US's broader "fair use".
Who owns the code?
The default owner depends on the circumstances in which the code was written. The tree gives the four cases, with the sections of the Act the guide cites.
Moral rights (added as Part IX of the Act in 2000) are the individual author's personal rights: the right of attribution (to be named as author), the right against false attribution, and the right of integrity, meaning no derogatory treatment of the work. They cannot be transferred and survive even when the employer owns the copyright, although the author can give written consent to acts that would otherwise infringe them.
Contract types
When a client pays a developer to build software, the contract decides who carries the risk that the work costs more than expected. The two classic types put that risk on opposite sides.
| Time and materials ("cost-plus") | Fixed price | |
|---|---|---|
| Definition | Client pays actual effort at agreed rates plus expenses | Agreed price for defined deliverables |
| Cost-overrun risk | Client | Contractor |
| Cost to client | Uncertain, no risk premium | Known up front, includes a contingency premium |
| Contractor incentive | Weak incentive for efficiency; margin guaranteed | Strong efficiency incentive; temptation to cut quality or argue scope |
| Requirements | Suits vague or changing requirements, agile | Needs a stable specification; changes go through formal variations (Part X) |
| Relationship | Collaborative; needs trust and client monitoring | Clear obligations, but can become adversarial ("is that a change?") |
A contingency premium is the extra the contractor adds to a fixed price to cover the risk it is taking on; a variation is a formal, priced change to a fixed-price contract's scope.
A liquidated damages clause fixes in advance the sum the contractor pays for a specified breach, usually late delivery (for example $5,000 per week, capped at 10% of the contract value). The sum must be a genuine pre-estimate of the client's loss; if it is extravagant, it is unenforceable as a penalty. The clause gives both parties certainty, and the client need not prove its actual loss.
Check yourself · past exam 433-443 1999 Q15As an employee of Company A you wrote a general list, stack and queue class library. Now a contractor for Bank B, can you use it?
No, not without A's permission. Because you wrote it in the course of your employment, Company A owns it (Copyright Act s35(6)). Copying it would infringe and would probably breach confidentiality. Instead, get a licence from A, rewrite it from scratch using your general skills (copyright protects expression, not ideas), or use a standard library. Ethically, 2.3.1(g) (respect others' IP) applies, and you must not misrepresent who owns it (2.1(b)). Model answer from the guide; this is a predecessor subject's question.
Check yourself · past exam 433-443 1999 Q16Explain liquidated damages.
A pre-agreed sum in the contract that the contractor pays for a specified breach, usually late delivery ($X per week). It must be a genuine pre-estimate of loss, or it is void as a penalty. It gives certainty without anyone having to prove actual loss.
Check yourself · past exam 433-443 2000 Q7When does Australian copyright law apply to code?
Code is a literary work under the Copyright Act 1968. Protection is automatic, with no registration or notice, if the work is original and in material form, and the author is an Australian citizen or resident, or the work was first published in Australia, or it is treaty-protected (Berne, TRIPS). It lasts for life plus 70 years and covers expression, not ideas. Unlike the US, Australia has no registration step and has the narrower fair dealing.
Check yourself · past exam 433-443 2001 Q14Naivety Pharmaceuticals: an employee wrote a useful tool in her own time, and the company wants to exploit it commercially (with a software house's help, and overseas). Advise the Board on the legal and IP issues.
- Ownership: she wrote it in her own time, so she probably owns it, unless it fell within her employment duties (s35(6)) or her contract assigns IP. The Board should check the contract and any use of the company's resources.
- Acquire rights: Naivety needs a written assignment or an exclusive licence, in return for payment or royalties. Otherwise reimplementation may infringe, and she could sell it to competitors.
- Software house: its contract must assign the new code to Naivety, with an NDA (non-disclosure agreement).
- Moral rights: obtain her written consent.
- Third-party components: these may forbid resale.
- Overseas: Berne and TRIPS give recognition abroad, and trademarks should be registered.
- Privacy and liability: consider the patient data under the Privacy Act, and warranties for a non-robust tool.
- Ethics: deal fairly with her (2.3.1(g)).
Check yourself · past exam 433-443 2001 Q15 / 1998 Q8Define time-and-materials and fixed-price contracts and their implications for risk, cost and the relationship.
Under a T&M contract the client pays for actual hours at agreed rates plus expenses. The client therefore carries the overrun risk and the cost is uncertain, while the contractor has low risk and a weak incentive to be efficient. T&M suits changing requirements, and the relationship is collaborative but needs trust and monitoring.
Under a fixed-price contract there is an agreed price for defined deliverables. The contractor carries the risk and adds contingency, so the price is higher but certain. It needs a stable specification, and changes go through formal variations. The risk of quality-cutting and scope disputes makes the relationship more adversarial.
Check yourself · MCQA client hires an independent contractor to build an app. The contract says nothing about intellectual property. Who owns the copyright in the code?
- The client, because it paid for the work.
- The contractor; the client has only a licence to use it.
- Nobody, until the code is registered.
- The contractor's employer, under s35(6).
B. Code written by an independent contractor belongs to the contractor unless a written, signed assignment transfers it (s196(3)); without one the client has only a licence. Payment alone does not transfer ownership (A), Australia has no registration step (C), and s35(6) is about employees (D).
Code is a literary work, protected automatically if original, in material form and connected to Australia; copyright covers expression, not ideas. Employees' code belongs to the employer (s35(6)); contractors keep theirs unless a written, signed assignment transfers it (s196(3)); moral rights stay with the author. T&M puts overrun risk on the client, fixed price on the contractor, and liquidated damages must be a genuine pre-estimate of loss.