As a circuit board designer who works for a service bureau that does work for many major tech firms, we do process a certain number of projects that are defense related. I have sympathies for those who do not want to be part of certain programs, and would understand if they had conscientious objections to working on certain defense contracts. However, they would need to make that clear at the time of employment, or at least at the earliest they realized they felt that way. If I am low on resources and have a hot project and have to go to a designer to get it done only to have them surprise me with the news that they could not work on it for moral reasons, I would be quite upset.
We all have moral questions we have to personally choose where we come down on. As an employee, we have the responsibility to tell our employer of any conflicts before they come to a head. As an employer, we need to be compassionate and considerate of employees' morals, and should work within reason to avoid asking them to infringe upon them. This can usually be done if everyone is up front about the issues. If employees are not honest, and/or employers are arbitrary, then it will not work.
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