
Project management ethics is an essential ingredient while managing projects. Most importantly it helps project managers make wise decisions. The code of Ethics and Professional Conduct highlights ethical values such as trust, honesty, responsibility respect and fairness.
What is the Code of ethics for a project manager?
Looking at the last condition, we can still conclude that the code of ethics for a project manager is a valuable tool that defines a guideline in deciding what should and should not be done in every situation.
What is the importance of ethical conduct in project management?
Ethical choices diminish risk, advance positive results, increase trust, determine long term success and build reputations. Leadership is absolutely dependent on ethical choices. PMI members have determined that honesty, responsibility, respect and fairness are the values that drive ethical conduct for the project management profession.
What is the purpose of the Code of ethics and professional conduct?
Code of Ethics & Professional Conduct. Ethics is about making the best possible decisions concerning people, resources and the environment. Ethical choices diminish risk, advance positive results, increase trust, determine long term success and build reputations. Leadership is absolutely dependent on ethical choices.
Should project managers be the ethical compass of the company?
“A company is only as good as it's people and if they are ethical it will come back to the company over the long run” (Cabanis, 1996, p 20). In addition, project managers are in a unique position to be the ethical compass for a company, and even more so for an IT professional services firm, which may be organizationally immature.

What is the purpose of the code of ethics and Professional Conduct in project management?
The purpose of this Code is to instill confidence in the project management profession and to help an individual become a better practitioner. We do this by establishing a profession-wide understanding of appropriate behavior.
Why should a project manager be ethical?
According to the PMI (Project Management Institute), project management ethics is an essential ingredient while managing projects to come over any conclusion. Ethical choices reduce the risk, advance positive results, increase trust, determine long term success, and build reputations.
Why is it important to have a professional code of ethics in the workplace?
Why is a code of ethics important? A professional code of ethics is designed to ensure employees are behaving in a manner that is socially acceptable and respectful of one another. It establishes the rules for behavior and sends a message to every employee that universal compliance is expected.
What is the purpose of the code of ethical conduct?
The purpose of a code of ethics is to inform those acting on behalf of the organization how they should conduct themselves. A code of ethics reiterates the organization's values and morals so that employees and third parties understand the standards they are accountable to uphold.
What ethical decisions do project managers face?
Ethical project managementAbstract.The “Correct” Project Reports.Protect the Interests of “All” Stakeholders.Remaining “Objective”Get Leaders to “Act” for the Project's Benefit.Get the Right Level of Authority.Accepting and Assigning Responsibility.Use the “Right” Process.More items...
Why is fairness important in project management?
We should always strive for fairness which means that we don't allow our decisions to be made in a biased manner, but those decisions might still end up hurting some stakeholders. A simple example is if a project we are managing is now forecast to not deliver any useful business outcomes.
What is the code of conduct and why is it important?
A code of conduct is a company manual that states the rules, values, goals, ethics, and vision of a business. It provides staff with a clear outline of expected behaviour, and instructions on what is and isn't considered good practices by the company.
Why is it so important for leaders to demonstrate ethical conduct?
Ethical leaders provide the optimal setting for employees by inspiring, developing, and establishing a culture of trust and respect. This leads to significant benefits like lower turnover, higher productivity, and loyalty. Better morale.
Code of Ethics & Professional Conduct
As practitioners of project management, we are committed to doing what is right and honorable.
Ethical Decision-Making Framework
The framework is a practical resource to guide you toward ethical choices and accountability. It will be helpful if you are faced with an ethical dilemma. Use it to stimulate critical thinking…
How was the Code of Ethics developed?
The code of ethics was developed by reviewing the ethics codes and related materials of several other professional societies. From this material, 16 areas of ethical obligation and seven groups of individuals or agencies to whom these obligations are owed were identified.
What was included in the ESA project group proposal?
Included in those proposals was a method for the management of all matters pertaining to Ethics, Standards, and Accreditation.
What are the codes of ethics?
Codes of ethics for professional organizations are viewed as a means of accomplishing several objectives. These objectives include: 1 Providing guidelines for members in gray areas of professional conduct, 2 Reminding members of their moral and legal requirements, 3 Advertising the organization’s standards of conduct, 4 Advertising standards of conduct that the organization’s membership is expected to meet, 5 Promoting public confidence in the profession, and 6 Promoting self-regulation with the goal of reducing or heading off governmental regulation.
What is the purpose of code of ethics?
These objectives include: Providing guidelines for members in gray areas of professional conduct, Reminding members of their moral and legal requirements, Advertising the organization’s standards of conduct,
What are some examples of illegal activities?
The need for a code of ethics is emphasized by a variety of illegal activities that have occurred over the past ten years. Watergate, corporate kickbacks, and “payoffs” are a few examples of such activities receiving extensive news media coverage.
What is the definition of ethics?
Webster defines ethics as: (1) the study of standards of conduct and moral judgment; moral philosophy, (2) a treatise on this study, and (3) the system or code of morals of a particular person, religion, group or profession, etc. 1 For the purposes of PMI, ethics can be simply stated as a code of moral standards for professional conduct.
What would happen if a project manager spent considerable money and time on the bidding and prospecting as well as
Consider for example what would happen if a project manager had spent considerable money and time on the bidding and prospecting as well as on the initial scoping. He or she would be under pressure to recover some of these costs, and this would reflect and have its effect on the shoddy way in which the project is executed. This can result in the end product or the end project compromising on environmental norms thereby posing a danger to society. Indeed, being ethical also means that project managers have environmental and social responsibilities to shoulder. These can be deemed inseparable from the overall ambit of ethics and ethical norms that have to be followed.
Why is ethics important in project management?
The importance of ethics for project management can be seen from the way in which project managers have to bid for projects after full disclosure of their capabilities and capacities without resorting to hyperbole or exaggeration and during the bidding process, ensure that they do not employ underhand means to bag the project.
Why is ethics important?
While Ethics are important for all organizations and their employees and other stakeholders, they are more important for project managers who execute complex projects and interact with a wide variety of stakeholders.
Is bidding for projects unethical?
Indeed, bidding and prospecting for projects are the primary sources of unethical behaviour and unacceptable conduct. Take the example of global construction and infrastructure firms bidding for the recently concluded Brazil Olympics. There were several allegations of firms and their project managers employing unethical means to bag the projects and ensure that their bids are considered before those of their competitors. Indeed, even for the Football World Cup in Qatar in 2018, there have been multiple scandals that have come to light about the unethical practices employed by firms and their project managers.
Is it better for project managers to follow the rules and be ethical in all interactions?
Moreover, it is better for project managers to follow the rules and be ethical in all interactions as otherwise, longer term sustainability and reputation would take a beating and organizations take a considerable time before they recover from adverse situations.
Do project managers have a social responsibility?
Project Managers have a Wider Social Responsibility. The point that needs to be emphasized is that just like other professions such as Doctors and Lawyers, the field of project management has a wider obligation towards society and the wider stakeholders including consumers and other members of society. Therefore, the project managers cannot simply ...
Can a project manager hide information?
At no stage must the project manager hide information or fudge data regarding the compliance or otherwise with such norms. Doing so would mean that the project manager is failing not only the rules of conduct but also the broader responsibilities towards society.
What are values conflicts?
Ethical issues or dilemmas are most often interpreted as value conflicts. When non-ethical values conflict with ethical values, the issue is clear-cut and the ethical values should dictate the solution. This often translates into a standards of conduct or even legal issues (Right vs. Wrong). For example, this type of conflict occurs when a project manager uses his or her official position for personal gain. Here, the project manager lets the desire for wealth, a non-ethical value, negate the entire set of ethical values previously listed. Beyond the values conflict, this behavior is often illegal as well. But these clearly discernible issues are only the tip of the ethical iceberg. A more difficult values decision occurs in situations where ethical values conflict with each other. An example would be when a project manager’s concern (Caring) for a problem employee who is not meeting standards and may be terminated conflicts with obligations (Trustworthiness and Responsibility) to meet work-related deadlines. It can be quite difficult to make decisions in these situations, since any decision will negatively impact one or more core ethical values. The two types of value conflicts are illustrated in Exhibit 2. In reality, project management is full of such value conflicts. We face these issues on a weekly or even daily basis. The value conflicts are sometimes subtle and not fully apparent until we find ourselves in the midst of an ethical dilemma.
How does ethics affect project management?
And ethics programs cannot be forced on employees by those in authority; that works only as long as someone is looking over employees’ shoulders. An organization’s best approach to ethics relies on its leaders’ creating a positive culture that encourages ethical behavior at all levels. The success of this approach depends on the leader’s ability to influence the entire organization to adopt a common set of ethical values and behaviors— and leaders must model these values and behaviors in everything they do, or employees will quickly see through them. Effective leaders exhibit a strong sense of personal integrity and credibility, which acts as a beacon to the organization as it moves toward an uncertain future. In the words of one experienced project manager, “Credibility. It’s all really that we have as an attribute we can bring to our position. We need to go to great lengths, all of us in this business, to maintain our credibility, even when it hurts.” While it may hurt to admit a mistake or reveal a problem on your project, it’s worth remembering that losing your credibility hurts a lot more and endures much longer.
How does leadership affect ethics?
As stated earlier, ethics in any organization are determined by the common values shared by its members. While individuals come to an organization with a set of values developed over time, the most influential factor affecting their ethical behavior after they arrive is the way they are led. Leadership is what determines the organizational climate or culture, and it has a major impact on the way all the organization’s members do their work. One of the most important tasks of any leader is to create an environment where ethical behavior and decision making is standard operating procedure. This can be achieved through alignment of the personal ethical values of the individual employees with those of the project team and organization. The leader can develop this organizational climate using the actions listed in Exhibit 3.
What is the common approach to ethics taken by both corporations and government?
The common approach to ethics taken by both corporations and government is to institute a set of rules (“standards of conduct”) to prevent or control ethical lapses by employees. The objective of this paper to show that the current standards of conduct approach is not enough to counter the tremendous pressure in project organizations ...
What is ethical leadership?
Ethics is in reality a leadership issue that requires active involvement of the project’s senior leadership to “walk the talk” and influence the entire project team to adopt a common set of ethical values. In this way, the project leader can create a positive culture that encourages ethical behavior at all levels.
What is the most important task of a leader?
One of the most important tasks of any leader is to create an environment where ethical behavior and decision making is standard operating procedure . This can be achieved through alignment of the personal ethical values of the individual employees with those of the project team and organization.
What is the common approach to ethics?
The common approach to ethics taken by corporations and government organizations is to institute a set of rules (“standards of conduct”) to prevent or control ethical lapses by employees. These rules often become quite detailed in terms of specific actions and financial amounts—for example, government rules on accepting transportation, meals, ...
What should a project manager do when they sense something unfair?
Therefore, the project manager should take an impartial position in any decision-making process and treat all people with equal respect.
When you treat team members and other people with respect, ethical behavior becomes much easier?
When you treat team members and other people with respect, ethical behavior becomes much easier – almost automated. Difficulties arise when an action that respects one person or group will necessarily make another person feel less respected.
Is ethics important for project managers?
Ethics for a project manager is a very modern topic and highly relevant to their career, although talking about ethics may seem to be something much more relevant to an ancient branch of philosophy.
What is ethical principles?
Ethical principles can be looked at as a lighthouse in the tumultuous ocean, guiding the navigator towards success in their endeavor. Embedded in the project fabric that leads to fair and unbiased project decisions, Ethics is the DNA of project management.
What is a project leader?
A project leader is invited to be ready for the challenges of realizing a sustainable professional future. This can be achieved through meeting the standards set for at the individual level, and always benchmark decisions to be taken to those standards.
Why do projects require deep thought?
Some decisions are small and barely noticed while others are prominent. Some require deep thought because they involve people, resources and the environment. And sometimes these factors are in conflict, creating a dilemma and perhaps significant risks.
How does ethical issues affect the project manager?
Effect on the Individual and the Profession. Ethical issues within an organization can have a negative effect on any employee's morale and can contribute to general tension. The affect on a project manager will undoubtedly be more pronounced, as the project manager is charged with controlling budget and quality.
What is the code of ethics and professional conduct?
PMI has recently revised and combined the above mentioned codes into one code, The Code of Ethics and Professional Conduct, which applies to all PMI members, non-members who hold a PMI certification, non-members who apply for PMI certification and non-members who serve PMI in a volunteer capacity (PMI).
What does PMI believe?
PMI believes that people who practice project management should do so with a high level of moral character. PMI also believes that the words ethics and professional should be synonymous and that ethics should be aspirational and enforceable.
What is project management?
The Project Management Institute (PMI ®) is a professional organization dedicated to the development and promotion of project management. PMI believes it is vital that its members conduct their work in an ethical manner in order to earn and maintain the confidence of team members, colleagues, employees, employers, customers and clients, the public, and the global community. PMI believes that people who practice project management should do so with a high level of moral character. PMI also believes that the words ethics and professional should be synonymous and that ethics should be aspirational and enforceable. One of PMI's visions is to create a sense of accountability for the profession's future. (Bouley, 2007).
What is PMI certification?
PMI Credential Standards of Conduct. PMI requires that a Project Management Professional (PMP ®) and a Certified Associate of Project Management (CAPM ®) agree to a Code of Professional Conduct upon receiving their credential.
What are ethical issues in professional services?
When the word ethics is mentioned, one first tends to think of “traditional” forms of improprieties, such as bribery, falsifying costs, or blatant fraud. However, ethical concerns take other forms, and there are subtleties to many of them. In a climate of high-profile cases like the Enron or WorldCom scandals, ethics continues to be infused into business conversations. The topic of ethics as it relates to project management has been building momentum in this climate. Today, ethics and guidelines are discussed more at meetings and in project management classes.
What is professional services?
Professional services are very often driven by relationships – many team members working very hard to keep their clients happy . Normally, account directors, account managers, and account executives are tasked with maintaining the business relationship, focusing on strategic goals, and seeking out new business opportunities. Project managers can find themselves in a situation where they are working closely with, and pressured into strategically aligning with, co-workers with different objectives – like revenue generation. If you work in a matrix organization that has a power balance, account management and sales may have as much influence if not more than the project manager. In a weak matrix environment where the project manager has reduced power, this can present additional difficulties.

Introduction: The Ethical Imperative For Project Managers
Bidding and Prospecting
Project Managers Have A Wider Social Responsibility
Some Examples
- While Ethics are important for all organizations and their employees and other stakeholders, they are more important for project managers who execute complex projects and interact with a wide variety of stakeholders. Indeed, being ethical and following ethical norms can be said to be prerequisites for project managers who have to practice ethics an...
Real World Project Management and Ethics
- Indeed, bidding and prospecting for projects are the primary sources of unethical behaviour and unacceptable conduct. Take the example of global construction and infrastructure firms bidding for the recently concluded Brazil Olympics. There were several allegations of firms and their project managers employing unethical means to bag the projects and ensure that their bids are …
Conclusion
- The point that needs to be emphasized is that just like other professions such as Doctors and Lawyers, the field of project management has a wider obligation towards society and the wider stakeholders including consumers and other members of society. Therefore, the project managers cannot simply write off their responsibilities towards these stakeholders as yet anoth…