Chapter 42: Summary - PMI Code of Ethics and Professional Conduct

Lets summarize the core Ethics & Professional Responsibility related items:

• Ethical violations — Report possible violations of code to PMI and cooperate with investigations.
• Conflict of interest — Occurs when personal interests are placed before professional responsibility. Avoid this; if that’s not possible, identify and communicate all potential conflicts to all parties.

o Personal gain — Tied to conflict of interest, it’s when someone benefits inappropriately in exchange for influencing a project. Prohibited.
o Inappropriate compensation — Tied to conflict of interest, this can include payments and gifts for personal gain. Prohibited.

• Appearance of impropriety — When conflict of interest is not communicated to all parties, your work and actions might appear improper.
• Intellectual property — A product developed and owned by others with commercial value. Recognize and respect copyrighted material.
• Confidentiality — Maintain and respect sensitive information, including intellectual property, obtained through your work.


Prev: Chapter 41

Chapter 38: Honesty

Aim: To understand the term “Honesty” as per the PMI Code of Ethics

The final value in the four core values for project managers is honesty. In some perspectives, it is the most basic and elemental of the four. Without honesty, the other values have virtually no impact. In an environment lacking trust, no one believes they are being treated fairly or with respect. Honesty lays the foundation for all project activities and interaction.

Aspirational Standards for Honesty

The aspirational standards for honesty are pretty basic and straightforward. In short, you should understand the truth and always act in a truthful manner. The aspirational standards for honesty include
• Earnestly seeking to understand the truth
• Being truthful in all that you do and say
• Providing accurate and timely information
• Making all commitments in good faith
• Making every effort to create an environment where everyone feels safe to tell the truth

Mandatory Standards for Honesty

The mandatory standards for honesty include
• Never engaging in, nor condoning, any behavior that knowingly deceives others
• Not engaging in dishonest activity designed to benefit one person at the expense of another

Qualifications, Experience, and Performance of Professional Services

As a project manager, you are required to be accurate and truthful in your representations to PMI as well in your professional undertakings. You have a duty to properly represent your qualifications, experience, and performance of professional services when soliciting work and advertising. Estimates of costs, services, and expected results should be justly presented. You are accountable for providing accurate, trustworthy information to customers and the public.

Exam Watch:

You are responsible for accurate and truthful representations in the information you present to PMI and to the public. The concept appears throughout the PMI Code of Ethics and Professional Conduct. Expect questions on the exam regarding this concept.

To know more about the PMI code of Ethics Click Here

Prev: Chapter 37

Next: Chapter 39

Chapter 37: Fairness

Aim: To understand the term “Fairness” according to PMI Code of Ethics

As a project manager, you are responsible for managing the project and moving toward a successful outcome of the project. Because all projects are initiated to meet some need of the sponsoring organization, it is your responsibility to ensure that goal is fulfilled. The only way to ensure the needs of the sponsoring organization are being met is to manage the project fairly. An unfair decision is one that puts the project manager’s desire above the stated goals of the project. All your decisions should be made impartially and fairly. The tangible and intangible effects of transparent fairness strengthen your project team and increase your ability to meet your project’s goals.

Aspirational Standards for Fairness

The aspirational standards for fairness affect how project managers make decisions. Fair decisions are those made impartially and objectively. It is important that the project manager does not render decisions that involve competing self interests, prejudice, or favoritism. In short, your decisions as a project manager should benefit the project, not yourself. The aspirational standards for fairness include
• Demonstrating transparency in your decision-making process
• Reexamining your impartiality and objectivity on a continual basis
• Providing equal access to information for authorized personnel
• Making opportunities available to all qualified candidates without favoring one over another

Mandatory Standards for Fairness

The mandatory standards for fairness include
• Fully disclosing any real or potential conflicts of interest to the appropriate stakeholders
• Not participating in the decision-making process any time you identify a conflict of interest until the conflict of interest has been addressed by the stakeholders and you are authorized to re-engage
• Not allowing personal considerations to enter into any decisions related to personnel decisions
• Not discriminating against others for any reason
• Not allowing favoritism or prejudice to influence how you apply the rules of your organization

Conflict of Interest

Full disclosure of any conflicts of interest, either real or perceived, to all stakeholders is crucial in complying with the PMI Code of Ethics and Professional Conduct. You are responsible for informing clients, customers, owners, contractors, and/or vendors of even the appearance of impropriety.

Conflicts of interest can arise if you are related to a vendor performing services for your company or have previous unacknowledged relationships with contractors who are bidding on work you are responsible for managing. This applies to your entire project team. In an ideal situation, you would address any potential conflicts of interest prior to project initiation.
Identifying conflicts of interest is a best practice for all business transactions and assures all business associates are acting in good faith. If an actual conflict of interest is determined, all stakeholders can decide the best course of action for resolution of the conflict. By disclosing any perceived conflicts of interest, you avoid the appearance of impropriety.

As a project manager with decision-making responsibility that affects a project, you must take the high moral ground. Your judgments and decisions must be beyond reproach. If a conflict of interest arises that is not disclosed, this potential conflict can impair your ability to successfully lead the project. Your client, your fellow team members, and your professional colleagues might question your choices regarding any conflict of interest as well as all other decisions you are responsible for making.

Your truthfulness, reputation, and integrity are paramount as a project manager. PMI believes this is an obligation to the profession as well as to the stakeholders. The concept of a conflict of interest being tied to your responsibilities as a project management professional is addressed in all of the four core values in the PMI Code of Ethics and Professional Conduct, but is most strongly identified with fairness.

Exam Watch:

Conflict of interest is a key concept. Understanding this concept and its implications to a project is key to truly understanding fairness. Expect the exam to include one or two questions related to conflict of interest.

You have an obligation to acknowledge a conflict of interest but you must also ensure a conflict of interest does not compromise the legitimate business interests of your customer. You cannot allow a conflict of interest to influence nor interfere with your judgment or the fulfillment of your professional project management responsibilities.

This is particularly important when you are accountable for decision-making as the project manager. You have a responsibility to your client to be forthright. If you engage in behavior that is questionable, yet alone improper, you are compromising your credibility as a project management professional. Your decisions regarding the specific incident can be tainted, as well as your behavior and judgment regarding all facets of the project. Every decision becomes suspect.
Inappropriate payments, gifts, or other forms of compensation for personal gain must be declined. Examples of inappropriate compensation can vary from the seemingly innocuous, such as theatre tickets or lunch paid for by a vendor, to the more extreme, namely cash payments or vacation packages.

Similarly, you should refrain from offering inappropriate payments, gifts, or other forms of compensation to another party for personal gain. You might be familiar with the term kickback, which has been used to describe this activity in various industries. The PMI Code of Ethics and Professional Conduct is explicit in condemning this activity.

An exception is made by PMI in cases where offering or accepting payments, gifts, or other forms of compensation for personal gain conforms with applicable laws or customs of the country where project management services are being performed. In instances where you believe this exception might be valid, consult a legal professional. This practice is not acceptable for companies incorporated within the United States regardless of where they are doing business.

Your obligation to be trustworthy and exemplify a high standard of integrity is implicit within the PMI Code of Ethics and Professional Conduct. Inflating the number of project hours worked by team members to appear ahead of schedule or even on schedule is inappropriate. Overstating your hourly rates to make the project appear to be operating within budget when you are funneling those funds to other project costs, tinkering with progress/status reports, and manipulating project milestones to appear on-time and on-budget are simply wrong. It is an insult to the profession of project management and it’s not ethical.
More often than not, you know if your actions are creating a conflict of interest or if you are engaging in questionable behavior. If you cannot be completely honest with all parties regarding your actions, they are suspect. If you catch yourself thinking, “What the client doesn’t know want hurt them,” or not fully disclosing information to your own project team, your actions are improper. You might have the greater good of the project at heart when you claim Phase I of the project completed on schedule because you plan to use more resources in Phase II to make up the gap, but this is false reporting. You must be honest with your client regarding the true status of the project and then work with the affected parties to develop strategies for mitigating the problem.

You must also be honest with your project team. Your responsibility in this regard is two-fold: You have an obligation to communicate openly with your fellow team workers; furthermore, as the project manager, you are the team lead for the project and must lead by example.

Communicating honestly, openly, and effectively with your client and your project team can be difficult. It is hard to tell a paying client that a project is facing severe setbacks and obstacles, particularly when the client might (rightly or wrongly) hold you accountable for the problems. A client might continue to make change requests late into development or place unrealistic demands on you and your team in terms of the project budget, scope, and timeline.

In summary, avoid conflicts of interest. If this is not a viable option, identify and acknowledge conflicts of interest, both real and potential, as soon as possible. Avoid all situations where your honesty and integrity as a project manager can be questioned or condemned. If you question the ethical consequences of an action or feel a decision should be hidden from your project team, you should not engage in the behavior.

To know more about the PMI code of Ethics Click Here

Prev: Chapter 36

Next: Chapter 38

Chapter 36: Respect

Aim: To understand the term “Respect” according to the PMI Code of Ethics

The manner in which we treat people and things is based on the value we place on them. The standard of respect states that we should treat people and resources as though we value them. In the context of project management, these might include people, money, reputation, safety, and environmental resources. These resources are entrusted to the project manager and must be treated with the utmost respect.

Aspirational Standards for Respect

The aspirational standards for respect include developing an environment that promotes trust, confidence, and excellence for all who are engaged in the project. The aspirational standards for respect include
• Learning the norms and customs of others and avoiding behaviors that could be disrespectful
• Listening to and attempting to understand to others’ points of view
• Dealing with conflict and disagreement directly with the other person
• Conducting yourself in a professional manner, even when not everyone else does so

Mandatory Standards for Respect

The mandatory standards for respect include
• Negotiating in good faith
• Not using your authority to influence others to your personal benefit
• Never acting in an abusive manner towards others
• Respecting others’ property rights

ExamAlert:

Remember that respect includes showing a high regard to more than just other people. There might be questions on the exam that require you understand that respect also applies to money, reputation, the safety of others, and natural or environmental resources.

The Impact of Respect

An overwhelming number of conflicts among any group of people boil down to one simple issue: a lack of respect. Failing to show respect or actively showing disrespect will cause a conflict faster than nearly any other single action (or omission). Every person has a set of expectations on how to act. Trying to react to different behavioral standards can be tricky, but it is an important skill for the project manager.

There are many different issues when discussing respect, but the most important areas in which most people have well-developed respect expectations include
• Religious beliefs
• Political beliefs
• Allegiance to other people and/or organizations
• Perceived, or actual, rank or status
• Cultural practices

The preceding list is only a partial listing of areas in which certain levels of respect are expected. If a person, through intent or ignorance, shows disrespect to something or someone, conflict might result. Examples of a disrespectful act can be as simple as a comment about a revered sports team or as egregious as a religious slur. You should avoid all forms of disrespect and you must treat all people equally with respect in all cases.

To know more about the PMI code of Ethics Click Here

Prev: Chapter 35

Next: Chapter 37

Chapter 35: Responsibility

Aim: The understand the term “Responsibility” as per the PMI Code of Ethics

Taking responsibility simply means that the project manager takes ownership for the decisions and actions made, and the consequences of the results. This responsibility also addresses decisions and actions that should have been made but were not. The position of project manager carries a lot of responsibility and we, as project management practitioners, must treat that responsibility with care. In a nutshell, this section says that the project manager will honor the commitments of the project and take responsibility for the result of the project.

Aspirational Standards for Responsibility

The aspirational standards for responsibility include the decisions and approach to the decision-making process that lead to a transparent method of managing projects that instills confidence in the process. Remember that the aspirational standards are things we should do. The aspirational standards for responsibility include

• Upholding the best interests of society, public safety, and the environment in all decisions and actions
• Only accepting assignments for which you are prepared, based on your background, experience, skill, and qualifications
• Doing what you say you will do—fulfilling your commitments
• In making a mistake, owning up to it and correcting it promptly
• Protecting proprietary and confidential information
• Upholding this Code and holding others accountable to it

Mandatory Standards for Responsibility

In all categories of the Code of Ethics and Professional Conduct, the mandatory standards are the things we must do. Failure to comply with the mandatory standards will likely tarnish the overall perception of project managers. The mandatory standards for responsibility include

• Knowing and upholding all policies, rules, regulations, and laws that are applicable to work, professional, and volunteer activities
• Reporting any unethical or illegal activity
• Reporting Code violations for resolution
• Only filing ethics violations that are substantiated by facts
• Pursuing disciplinary action against any individual who retaliates against anyone who raises an ethics issue

Exam Watch:

It should go without saying that a project manager should obey all the rules. However, pay attention to the fact that obeying all the rules is clearly stated in the Code of Ethics and Professional Conduct. You very well might see a question on the exam based on this simple premise.

Ethics Complaints

As a project management professional, you have a professional responsibility to report possible violations of professional conduct within the project management professional community. This is a self-policing provision. However, before you bring any accusations to the appropriate authorities, you must ensure you have the facts. If you cannot substantiate your claims, do more research or drop the complaint.

In accordance with your charge to report professional conduct violations, you are also required to cooperate with PMI in its investigation of ethics violations and the collection of pertinent information. An investigation requiring your cooperation might arise independently of you actually reporting a possible ethics violation. Further, you are required to pursue disciplinary action against any individual who retaliates against a person raising ethics concerns.

Responsible Conduct

In performing professional project management services for customers, it is imperative you meet your customer’s expectations and complete all work in accordance with the agreed-upon scope and objectives. Your customer should approve any deviations or changes to the work plan.

Confidentiality should be maintained at all times. This applies in the case of intellectual property, but also in the context of all professional activities performed.

To know more about the PMI code of Ethics Click Here

Prev: Chapter 36

Next: Chapter 36

Chapter 34: The PMI Code of Ethics and Professional Conduct

Aim: To understand the PMI Code of Ethics and Professional Conduct

The PMI Code of Ethics and Professional Conduct focuses on conflicts of interest, truthful representation, and your responsibility to the profession, the customers, and the public. Most of the information contained in the PMI Code of Ethics and Professional Conduct will seem obvious and intuitive upon your initial read, but it ensures that all project manager practitioners have an equal understanding of the responsibilities for honesty and integrity in the profession.

The PMI Code of Ethics and Professional Conduct is not a component of the PMBOK; rather it is a six-page stand-alone document available on the PMI website. You should read it carefully and thoroughly.

Exam Trivia:

No PMP Prep book will cover the entire details of the PMI code of Ethics & Professional Conduct. They will cover only the salient points. It is a nice idea to go through the whole document to get a better idea of the same. The PMI Code of Ethics can be found in the link below:
http://www.pmi.org/en/About-Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

Core Values

The PMI Code of Professional Conduct is comprised of five chapters:

• Vision and Applicability
• Responsibility
• Respect
• Fairness
• Honesty

Each section challenges all practitioners of project management to apply ethical standards to work efforts, acting in an accurate, trustworthy, honest manner while acknowledging and minimizing conflicts of interest.

The first chapter sets the overall tone of the call for high standards in professional and social behavior. This initial chapter also increases the scope from previous Codes of Conduct to include all project management practitioners. Prior to the release of the current version of the Code, several Codes of Professional Conduct existed. Membership status in PMI and the particular certification held dictated the specific Code(s) that applied to you. The current unified Code of Ethics and Professional Conduct applies to all project management practitioners, regardless of credentials held.

Taken together, these core values provide the basis of the project manager standards of conduct. These standards exist to both promote confidence in the field of project management and to challenge each project manager to strive for excellence. Don’t take the code lightly! PMI views the code as an integral part of the continued development of the project management profession.

Exam Trivia:

To answer scenario based questions in the exam, ask yourself this question “If someone in your company (that you own) engage in such an activity, will I be ok with it?” If the answer to this question is NO, then you must not engage in such behavior yourself and select the answer that does this. Remember that as the Project Manager you must be a role model and behave in a way that people look up to you.

Aspirational and Mandatory Conduct

Each chapter in the PMI Code of Ethics and Professional Conduct contains two sets of standards. First are the aspirational standards. These are the behaviors to which we aspire. In other words, these are the behaviors all project managers would exhibit in the best of situations. Some of these take work to achieve, but they give us good goals that strengthen each project manager and the profession as a whole. There are no specific consequences for violating the aspirational standards.
Second, the PMI Code of Ethics and Professional Conduct presents the mandatory standards. These standards provide the minimum acceptable behavior for project managers. Violation of any of the mandatory standards carries consequences. Such consequences can result in loss of credentials, or worse.

Exam Trivia:

Exam questions from this topic are almost exclusively application questions. PMI doesn’t care that you have memorized the Code of Ethics and Professional Conduct. They want to see that you can apply the Code to specific situations. As you study, consider how you will apply the Code to your projects.

To know more about the PMI code of Ethics Click Here

Prev: Chapter 33

Next: Chapter 35

Ethics And Professional Responsibility

The following are the important themes you must remember from the PMI Perspective regarding Ethics & Professional Responsibility.

1. Conduct yourself professionally in your work with clients. This includes the following:

o Doing the “right” thing
o Being respectful and cooperative and treating everyone fairly
o Following the correct procedures
o Being assertive and taking responsibility of any issue or problem
o Being cognizant and avoiding any conflict-of-interest issues

2. Ways to increase the professionalism of project management include the following:

o Maintaining high standards of personal integrity
o Continually striving to improve and become more knowledgeable
o Continually looking for ways to improve the project management practice and the project management knowledgebase.

Exam Trivia:

A Project manager must be the supporter or the Shield for his team and never throw his team under the bus. Though in real life you may see managers who blame their team for poor quality work or slipped delivery dates, as per PMI “It is the Project Managers Fault” if the project fails in any aspect

Other PMI Themes:

General PMI Themes
Project Framework
Project Initiation
Project Planning
Project Execution
Project Monitoring & Controlling
Project Closure