Chapter 3

Reviewing the PMI Code of Ethics and Professional Conduct

IN THIS CHAPTER

Bullet Starting with the basics of the Code

Bullet Focusing on responsibility, respect, fairness, and honesty

Bullet Noting a few important terms

The Project Management Institute (PMI) has developed and published a Code of Ethics and Professional Conduct (“the Code”) that describes the expectations of project management practitioners. The Code articulates the ideals that project managers should aspire to, and those behaviors that are considered mandatory. The purpose of the Code of Ethics and Professional Conduct is to instill confidence in the project management profession and to help an individual become a better practitioner.

This chapter presents the standards in one place to give you further understanding of how they might be integrated into exam questions. There are no exam objectives associated with the information in this chapter. Rather, you’ll see questions that incorporate situations that would require you to apply standards from the Code along with the technical information from the process groups and knowledge areas.

The Code focuses on four areas: responsibility, respect, fairness, and honesty. This chapter looks at each of these four elements and how they apply to projects and the Project Management Professional (PMP) exam.

Beginning with the Basics of the Code

The Code describes the ideals for project management and the appropriate behaviors in the roles of project managers. It can also be used as a reference to guide project managers’ behavior when they are faced with difficult situations. The Code applies to the following groups of people:

  • All PMI members
  • Anyone who holds a PMI certification (including the PMP)
  • Anyone applying for a certification
  • Anyone who volunteers with PMI

The Code was developed when PMI asked practitioners from around the globe to identify those values that were most important in decision making and guiding their project management actions. Based on the feedback from the global community, the four values that the Code is based on were identified as

  • Responsibility
  • Respect
  • Fairness
  • Honesty

There are two aspects to each value: aspirational standards and mandatory standards. And the standards are not mutually exclusive. An act or omission can be both aspirational and mandatory:

  • Aspirational standards: Those standards that describe the conduct people should strive to uphold as project management practitioners.
  • Mandatory standards: Those standards that are firm requirements. They may limit or prohibit behavior.

Warning Practitioners whose conduct is not in accordance with the mandatory standards are subject to disciplinary procedures before the PMI Ethics Review Committee.

Tip You can find the Code at the PMI website: https://www.pmi.org/about/ethics/code. A copy is also integrated into the PMP Certification Handbook, also found on the PMI website at https://www.pmi.org/-/media/pmi/documents/public/pdf/certifications/project-management-professional-handbook.pdf.

The Code is not copyrighted. This chapter quotes the description of the value and the aspirational and mandatory standards verbatim.

Responsibility

The responsibility standards are about taking ownership for actions, decisions, and the consequences that result from them. Here is the definition of responsibility from the Code.

Remember Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result.

Responsibility aspirational standards

Remember The following are the six aspirational standards under responsibility. Keep in mind that aspirational standards are standards that project managers strive to uphold. The following is from the Code of Ethics and Professional Conduct:

  1. We make decisions and take actions based on the best interests of society, public safety, and the environment.
  2. We accept only those assignments that are consistent with our background, experience, skills, and qualifications.
  3. We fulfill the commitments that we undertake — we do what we say we will do.
  4. When we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences.
  5. We protect proprietary or confidential information that has been entrusted to us.
  6. We uphold this Code and hold each other accountable to it.

As you look at the standards here, see whether you can think of the type of questions you would see on the exam. For example, you might see questions that ask what you should do if what is in the best interest of the project schedule is to move forward without another round of testing even though the safety director has recommended it. In this situation, you’re looking at the good of the project schedule and probably some stakeholder satisfaction issues and weighing them against the need for public safety.

Regardless of what you would do in real life, for these questions, you want to stick with the Code and select the answer that indicates that if safety issues were at stake, you would run the extra round of testing.

Another area you need to watch in this section is not taking on projects that you’re not qualified to manage. If there is a project with a type of technology, or regulations that you’re not familiar with, you’re probably not qualified to manage that project. At the very least, you’re obligated to disclose your concerns over your lack of experience.

Remember The standard about not disclosing proprietary and confidential information is a pretty black-and-white issue. You shouldn’t have any problem with those questions. A more difficult question is what to do if you see someone else not behaving in concert with the Code. It can be very hard to “make waves” if you see someone behaving inconsistently with this Code. However, if that person is a PMP and not in alignment with the values, you are required to hold him accountable to the Code.

Responsibility mandatory standards

The two types of mandatory standards for responsibility are regulations and legal requirements, and ethics complaints.

Remember There are two mandatory standards for regulations and legal requirements. Keep this in mind: Mandatory requirements are not negotiable! The following is from the Code of Ethics and Professional Conduct:

  1. We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.
  2. We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.

Remember The ethics complaint standards have to do with violating the Code and reporting violations by others. The following is from the Code of Ethics and Professional Conduct:

  1. We bring violations of this Code to the attention of the appropriate body for resolution.
  2. We only file ethics complaints when they are substantiated by facts.
  3. We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns.

For regulations and legal requirements, make sure that you understand the policies, regulations, and rules associated with the work you’re doing. In addition, if you see someone behaving unethically or illegally, you are required to report her.

Remember The section on ethics complaints will govern your relationship with PMI after you apply to take the exam. If you see a violation of this Code, you must report it to the Ethics Review Committee. However, make sure that you can substantiate the facts of the case. Bringing an ethics violation to the committee is a serious undertaking. People can have their memberships and their certifications revoked if their behavior is egregious enough. In the event of an investigation, you have the responsibility to cooperate with PMI in obtaining the facts about the case.

Respect

Remember Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. An environment of respect engenders trust, confidence, and performance excellence by fostering mutual cooperation — an environment where diverse perspectives and views are encouraged and valued.

Respect aspirational standards

Remember The respect aspirational standards are about appreciating diversity in culture, opinion, and points of view. They also address the professionalism with which we conduct ourselves. The following is from the Code of Ethics and Professional Conduct:

  1. We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful.
  2. We listen to others’ points of view, seeking to understand them.
  3. We approach directly those persons with whom we have a conflict or disagreement.
  4. We conduct ourselves in a professional manner, even when it is not reciprocated.

When the exam asks questions about culture, many times we think about different cultures as representing people from different countries — but that isn’t the only scenario in which we experience diverse cultures. Here are some other examples:

  • Differences in ages or generations can mean different means of communication and different work ethics.
  • If you change jobs and go to a different company, or even just a new department, the work rules and norms may be different.
  • Different geographical areas, even if they are in the same country, have different work styles.

Tip You might see the term ethnocentrism on the exam. This term means the tendency to see the world from one’s own ethnic perspective and not understand that there are alternative world views. The majority of the questions having to do with different cultures can be correctly answered by embracing diversity and having an open mind and tolerance for different points of view.

You might see questions on the exam that provide a scenario wherein a team member complains about your management style. The proper response is to approach that person directly and seek to understand what is causing the conflict. However, sometimes, people shy away from direct contact, or they are inclined to complain about the team member to others. For this section of the exam, you have to aspire to be more communicative and direct than you are accustomed to.

Regarding professionalism, perhaps when someone is treating you disrespectfully or unprofessionally, you have a hard time responding professionally. This is something you need to keep aspiring to! This includes gossip! Not only do you have an ethical obligation to not participate in gossip, but you should also actively discourage others from this behavior.

Respect mandatory standards

Remember The following mandatory respect standards have to do with power, influence, and behavior. The following is from the Code of Ethics and Professional Conduct:

  1. We negotiate in good faith.
  2. We do not exercise the power of our expertise or position to influence the decisions or actions of others in order to benefit personally at their expense.
  3. We do not act in an abusive manner toward others.
  4. We respect the property rights of others.

You might see some questions about contracts and procurements that talk about negotiating in good faith. Some of these questions might even state that the person with whom you’re negotiating has adopted a win-lose attitude to the negotiation. Regardless, you’re required to negotiate in good faith and mutual cooperation.

Contracts aren’t the only place where you need to negotiate on your project. Sometimes you need to negotiate the competing constraints, or negotiate with functional managers for resources. In these situations, you have to assume that the person you are negotiating with is doing his best, and approach the situation from a win-win perspective.

Other standards in this area require that you influence with integrity, and not with power or to the detriment of others. It’s pretty obvious treating others unfairly, disrespectfully, or abusively is not okay. Nor is it okay to disrespect the personal, intellectual, or real property of others. By the way, this includes copyrighted material. It is against the Code to copy and use others’ work without their express permission.

Tip Many of the questions about respect will be situational. You will have to assume you are in the position of the project manager and select the appropriate response.

Fairness

Remember Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self-interest, prejudice, and favoritism.

Fairness aspirational standards

Remember The aspirational fairness standards are concerned with making sure that all relevant parties have equal opportunities. This will be especially prevalent in procurement questions. The aspirational standards also address impartiality and transparency in decision making. The following is from the Code of Ethics and Professional Conduct:

  1. We demonstrate transparency in our decision-making process.
  2. We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate.
  3. We provide equal access to information to those who are authorized to have that information.
  4. We make opportunities equally available to qualified candidates.

One way to demonstrate transparency in decision making is to develop a decision-making process and establish decision-making criteria. You can see this as developing and applying source selection criteria. This can apply to other types of decisions as well.

The other standards in this section can be easily applied to procurements and hiring or promoting team members.

Fairness mandatory standards

Remember The mandatory fairness standards address objectivity, conflicts of interest, favoritism, and discrimination. The following is from the Code of Ethics and Professional Conduct:

  1. We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.
  2. When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision-making process or otherwise attempting to influence outcomes, unless or until
    • We have made full disclosure to the affected stakeholders.
    • We have an approved mitigation plan.
    • We have obtained the consent of the stakeholders to proceed.
  3. We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery.
  4. We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation.
  5. We apply the rules of the organization (employer, Project Management Institute, or other group) without favoritism or prejudice.

Remember The Code has two key definitions in the first mandatory standard.

  • Conflict of Interest. A situation that arises when a practitioner of project management is faced with making a decision or doing some act that will benefit the practitioner or another person or organization to which the practitioner owes a duty of loyalty, and at the same time will harm another person or organization to which the practitioner owes a similar duty of loyalty. The only way practitioners can resolve conflicting duties is to disclose the conflict to those affected and allow them to make the decision about how the practitioner should proceed.
  • Duty of Loyalty. A person’s responsibility, legal or moral, to promote the best interest of an organization or other person with whom she is affiliated.

The rules about conflicts of interest apply to actual and perceived conflicts. Here’s an example: Say that you’re an officer in a PMI chapter, you happen to provide training, and the board is looking at offering a training course. You should excuse yourself from the discussion because you could be perceived as having a conflict of interest even if you didn’t promote yourself at the expense of others.

Remember For conflict of interest situations, be as conservative as possible by disclosing information even if you think it not relevant to the situation. Better to over-disclose than be accused of conflict of interest.

Tip The remaining standards are about not showing favoritism and not discriminating in any way, shape, or form. Exam questions that address these standards are fairly easy to spot — and as long as you choose the answer that shows the high moral ground, you will do fine on these questions.

Honesty

Remember Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct.

Honesty aspirational standards

Remember The aspirational honest standards are about keeping our word and fully disclosing all relevant information. The following is from the Code of Ethics and Professional Conduct:

  1. We earnestly seek to understand the truth.
  2. We are truthful in our communications and in our conduct.
  3. We provide accurate information in a timely manner.
  4. We make commitments and promises, implied or explicit, in good faith.
  5. We strive to create an environment in which others feel safe to tell the truth.

Think about your performance reports or your status reports. You want to put the best information forward. You want to talk about the good things that have happened on the project. After all, not many people want to discuss risks and challenges, especially if you think you can correct them before someone finds out, or if you have a plan to make things right again. However, this behavior goes against the honesty standards.

In addition, if a team member gives you information you believe might not be wholly true, you have a duty to find out the truth. You also need to make sure to not penalize team members for coming to you with risks or challenges. You need to create an environment where people can tell you the truth without fear of abusive responses. These standards are probably some of the same rules you had growing up: Tell the truth, be on time, and keep your promises.

Honesty mandatory standards

Remember The mandatory honesty standards take the aspirational standards one step further by stating that we must not engage in deceptive or dishonest behavior. The following is from the Code of Ethics and Professional Conduct:

  1. We do not engage in or condone behavior that is designed to deceive others, including but not limited to, making misleading or false statements, stating half-truths, providing information out of context or withholding information that, if known, would render our statements as misleading or incomplete.
  2. We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.

These mandatory standards carry over from the aspirational standards in the preceding section. In addition to telling the truth, you can’t commit the sin of omission or misleading someone, or not speaking up if someone misinterprets what you told her. It can be difficult to confess that your projects are in trouble, especially if you expect a punitive response. However, you have a duty and an obligation to disclose the whole truth.

This concept applies to estimating and planning as well. If you’re given an unrealistic deadline from your sponsor, you have an obligation to inform her that the deadline is unrealistic — and tell her why it is unrealistic. If your team members are giving you optimistic estimates and you know about it, you have an obligation to discuss the situation with them and get more realistic estimates.

Tip Some of these standards might be easier than others to apply, but they all represent the high moral ground. Keep that in mind when you come across these questions on the exam.

Keeping Key Terms in Mind

Tip Although you may not see the majority of these terms on the exam, you may see ethnocentrism, conflict of interest, and duty of loyalty on the exam. However, you need to be familiar with all the terminology in the context of behaving ethically and in accordance with the Code:

  • Code of Ethics and Professional Conduct
  • Responsibility
  • Respect
  • Fairness
  • Honesty
  • Aspirational standards
  • Mandatory standards
  • Ethnocentrism
  • Conflict of interest
  • Duty of loyalty