Chapter 8
Professional and Social Responsibility

In March 2002, the PMP certification examination changed to include an additional performance requirement specific to professional and social responsibility in the practice of project management. With the news media routinely reporting ethical lapses and abuses of professional judgment in various industries and companies, PMI chose to clearly establish what is and is not appropriate in the performance of professional project management services.

Of the six knowledge areas tested, professional and social responsibility accounts for 9% of the PMP certification examination. This means 18 of the 200 multiple-choice questions concentrate on professional and social responsibility. The inclusion of this topic in the PMP certification examination is a testament to the value placed on ethical standards and integrity in the profession.

The PMI Code of Ethics and Professional Conduct

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.

Where Do I Find the PMI Code of Ethics and Professional Conduct?

The PMI Code of Ethics and Professional Conduct is available on the PMI website, www.pmi.org/PDF/ap_pmicodeofethics.pdf.

If this URL is inactive or no longer works, visit the PMI website, and search for “Code of Ethics and Professional Conduct.” The first link in the results list will be a link to PMI’s Code of Ethics and Professional Conduct.

Select “PMI’s Code of Ethics and Professional Conduct.” You will see a new page that contains an overview of the Code of Ethics and Professional Conduct, along with a link to the actual contents of the document. Select “Click here for PMI’s Code of Ethics and Professional Conduct” to see the actual document.

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.

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.

Cram Quiz

Answer these questions. The answers follow the last question. If you cannot answer these questions correctly, consider reading this section again until you can.

1. To whom does the PMI Code of Ethics and Professional Conduct apply?

A. PMPs and PMP candidates

B. All project managers

C. All persons who are PMI members or hold a PMI certification

D. All PMI members

2. What is the most important goal of the PMI Code of Ethics and Professional Conduct?

A. To advance the profession of project management

B. To weed out unethical project managers

C. To address known ethical weaknesses of inexperienced project managers

D. To help project managers increase their skill levels

Cram Quiz Answers

1. Answer C is the best answer. The PMI Code of Ethics and Professional Conduct applies to all PMI members, all persons who are not PMI members but hold a PMI certification, and anyone who serves in a volunteer capacity for PMI.

2. Answer A is correct. The main goal of the PMI Code of Ethics and Professional Conduct is to advance the profession as a whole. While the other goals are part of the Code, they are only parts of the overall goal of advancing the profession.

Responsibility

Responsibility

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

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.

Cram Quiz

Answer these questions. The answers follow the last question. If you cannot answer these questions correctly, consider reading this section again until you can.

1. You have access to proprietary information a vendor included as part of a bid proposal. The information was marked confidential and was included to show the vendor would be issued a patent by the end of the month, which makes this company’s bid the best candidate for your company and significantly improves the market share of the vendor. What do you do with this information?

A. Invest in the company immediately

B. Tell your friends to invest in this company

C. Wait until the information becomes public knowledge, and then decide if you want to invest in the company

D. Provide the proprietary information to a competing vendor

2. You are a project manager working on a project that has had numerous change requests from the customer that have resulted in scope creep. The project is over schedule and over budget. The remaining scope entails preferred user requirements that do not affect the operation of the application. You can complete the project this month if you reduce the scope and remove these preferred user requirements. What do you do?

A. Continue with the project and complete the remaining scope

B. Explain to the customer the benefits of reducing scope and make the customer sign off on this final change request

C. Reduce the scope, do not document this change, and tell the customer the project has been completed

D. Explain to the customer the preferred user requirements are not possible and get the customer to sign off on this final change request reducing the project scope

Cram Quiz Answers

1. Answer C is the best response. You have a responsibility to maintain and respect the confidentiality of sensitive information obtained in the course of professional activities. This responsibility makes Answers A and B incorrect. You have a responsibility to recognize and respect intellectual property developed and owned by others, which makes Answer D an incorrect choice.

2. Answer A is the best response. You have a responsibility to maintain and satisfy the scope and objectives of professional services, unless otherwise directed by your customer. Answers B, C, and D require manipulation of your customer and/or falsification of information, which is not in compliance with professional conduct.

Respect

Respect

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

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.

Cram Quiz

Answer these questions. The answers follow the last question. If you cannot answer these questions correctly, consider reading this section again until you can.

1. You are a project manager who has noticed that one of your team members is visibly agitated. The team member is upset because of pictures displayed in another team member’s cubicle. The pictures are clearly visible and do not appear objectionable to you. What should you do?

A. Encourage the upset team member to stop making a big deal over nothing.

B. Meet with the team member who has displayed the pictures, make a few jokes to keep it light, then suggest the pictures be displayed in a less obvious place.

C. Meet with the team member who is upset to try and understand the basis for the concern. Work with the team member to find an acceptable solution.

D. Notify human resources that there is a personnel problem that needs attention.

2. While leading a project status meeting, a functional manager disagrees with a decision you have made and makes it a point to be very vocal about it. He uses the meeting to express his doubts of your skills and even goes so far as to suggest that your race plays a part in the way you make decisions. How should you react?

A. Do nothing. File a complaint with the manager’s boss after the meeting.

B. Use your authority as the meeting leader to take control of the discussion and present your rebuttal.

C. Suggest an immediate meeting between the two of you to discuss your differences.

D. Bring the manager’s boss into the meeting and ask for assistance in addressing his comments.

Cram Quiz Answers

1. Answer C is the best choice. One aspect of respect is listening to others and trying to understand them. Your best option is to start with the team member who is agitated and try to understand the cause of the agitation. You might find that the objection is valid after you have heard the other person’s point of view. Answers A and B do not show respect to your team member and Answer D just attempts to pass the responsibility to someone else.

2. Answer C is the correct answer. The PMI Code of Ethics and Professional Conduct requires that you act in a professional manner even when others do not. Answer A is incorrect because doing nothing solves nothing. Going to the manager’s boss is likely to make the situation worse, not better. Answer B is incorrect because it is an emotional response, not a professional one. Answer D is incorrect because you should always first attempt to solve differences one-on-one.

Fairness

Fairness

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.

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.

Similarly, it can be tough to deal with a project team during a stressful implementation. You might have team members you do not personally like and whom you did not select for your team. There might be interpersonal conflicts. All of these situations can lead to a breakdown in communication and are normal scenarios you might face during a project. These problems are compounded when a conflict of interest, real or perceived, is present.

You do not want to compound your workload as the project manager by ignoring or discounting potential conflicts of interest regardless of when they arise during the project. Address as many issues as possible at the beginning of the project during the planning process. You set the tone for the entire project by how you broach issues up front. If your client and project team see you minimizing or negating issues, the die is cast for other team members to do the same. Furthermore, your integrity is compromised.

You must also be vigilant throughout the project, actively identifying and mitigating issues regarding conflict of interest. Sometimes a potential conflict of interest does not make itself known until midway through the project. Always recognize conflicts of interest at their earliest point of origin. This assures your client and project team that you are above board. If situations arise that were unknown and through circumstances were not immediately addressed and rectified, make the conflict of interest transparent to all parties as soon as possible. This is essential to maintaining credibility with your client, your team, and the public as a project management professional.

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.

Cram Quiz

Answer these questions. The answers follow the last question. If you cannot answer these questions correctly, consider reading this section again until you can.

1. Your spouse works for a vendor who is bidding on a project at your company. You are not affiliated with the specific project team that is evaluating bids, but you are part of the executive project management team. What do you do?

A. Inform your company of the relationship

B. Inform the vendor of the relationship

C. Both A and B

D. Disqualify the vendor

2. You work for a U.S.–based company hired to perform project management services in a foreign country. Other companies who have done business in this country inform you that gifts must be made to the government to obtain the necessary project approvals. What do you do?

A. Offer the recommended gifts to obtain project approvals

B. Do not offer gifts to obtain project approvals

C. Ignore the need for project approvals

D. Both B and C

Cram Quiz Answers

1. Answer C is the best response. You have a responsibility to disclose to both the vendor and your company significant circumstances that could be construed as a conflict of interest or an appearance of impropriety. Answers A and B are both correct but are not the best responses. Answer D is not correct. You have an obligation to disclose the information. Your company and the vendor can decide the best course of action given the information.

2. Answer B is the best response. Answer A is not correct because you have a responsibility to refrain from offering inappropriate gifts for personal gain. The exemption regarding conformity with applicable laws or customs of the country where project management services are being performed does not apply because you are working for a U.S.–based company and are subject to U.S. law. Answers C and D are incorrect because you have a responsibility to comply with laws and regulations in the country where providing project management services requires project approvals.

Honesty

Honesty

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.

Cram Quiz

Answer these questions. The answers follow the last question. If you cannot answer these questions correctly, consider reading this section again until you can.

1. Falsification of information at any point during the PMI certification program can result in

A. Revocation of your PMI membership

B. Revocation of your PMP certification

C. Notification of your employer

D. Both A and B

2. You are responsible for developing a cost estimate to bid on a government contract. The scope was set by the government. Your supervisor says the cost estimate is too expensive and should be reduced by one-third to assure your company wins the contract. Your analysis shows that any reduction to the proposed cost estimate makes the project unable to meet the specified scope. What do you do?

A. Reduce the cost estimate and submit the proposal

B. Submit your initial cost estimate without reducing the cost

C. Explain to your supervisor in writing that your analysis shows a reduction in the cost estimate makes the project unable to meet the specified scope

D. Both A and C

Cram Quiz Answers

1. Answer D is the best response. Falsification of any information directly or indirectly related to all aspects of the PMI certification program can result in both revocation of your PMI membership and your PMP certification. Although Answers A and B are both correct, they are not the best responses. Answer C is not correct. PMI will not notify your employer if you falsify information at any point during the PMI certification program.

2. Answer C is the best response. You have a responsibility to provide accurate and truthful representations in the preparation of estimates concerning costs, services, and expected results. This responsibility makes Answers A and D inappropriate. You have accountability to your management and Answer B is not appropriate because you are usurping your manager’s authority and undermining your own professional conduct by doing so.

What Next?

If you want more practice on this chapter’s exam topics before you move on, remember that you can access all of the Cram Quiz questions on the CD. You can also create a custom exam by topic with the practice exam software. Note any topic you struggle with and go to that topic’s material in this chapter.