© Sean Whitaker 2016
Sean WhitakerPass the PMP® Exam10.1007/978-1-4842-2074-0_12

12. Ethics and Professional Conduct

Sean Whitaker
(1)
ChristChurch, Canterbury, New Zealand
 
This chapter focuses on the topic of ethics and professional conduct, which describes the way a professional project manager is expected to act in many different situations.
Exam Tip
The expected and accepted behaviors described in this chapter may differ from your own experience. It is important to remember that, for the exam, the behaviors described here are considered the correct way to act in any situation.
No explicit domain tasks are reflected in this section. Several years ago, there were distinct questions about ethics and professional situations in the PMP® exam. However, these questions have now been incorporated into the main body of questions and may lie hidden in a question that appears to be about estimating, risk, quality, customer relations, or any other topic. Thus it is very important that you read the question carefully to determine whether it is presenting a situation that requires you to specify how you would act ethically and professionally.
Although there are no domain tasks for this topic, there is the Code of Ethics and Professional Conduct from the Project Management Institute (PMI) . Both mandatory and aspirational standards are captured in the Code of Ethics and Professional Conduct. The Code of Ethics and Professional Conduct and the behavior of professional project management practitioners reflect the vales of responsibility, respect, fairness, and honesty.
The PMI Code of Ethics and Professional Conduct applies to all members of the Project Management Institute. Additionally, it applies to nonmembers who hold a PMI certification, those who apply to commence a PMI certification process, and nonmembers who serve PMI in a volunteer capacity. Beyond these people, whom it directly applies to, it also serves as a guideline for all professional project management practitioners.
A breach of this code can result in an ethics complaint to the PMI, which has the ability to consider the complaint and take action against anyone found to have breached the code.
Real World
I have always found that the Code of Ethics and Professional Conduct serves as a very valuable reference to guide my decisions and behaviors in real-world situations where perhaps I might be tempted to act differently. It has also served as a guide to the behaviors I expect of other professional project managers. Keep in mind that sometimes the right course of action isn’t the easiest course of action. When considering what is best to do in an ethical situation, one approach is to look at the impact a bad decision would have on your professional and personal reputation and credibility. Always select an answer that will enhance your credibility and reputation.

Responsibility, Respect, Fairness, and Honesty

The four key foundational values for any project manager are responsibility, respect, fairness, and honesty. Although these may all seem to be fairly straightforward concepts that you think you both understand and apply consistently, you may not fully understand the implications and expected behaviors. Individually, they describe specific behaviors; collectively, they present a unified code by which any professional project manager can guide and assess their actions and the actions of others. Therefore, it is worth taking the time to investigate each one and review the specific actions and behaviors it demands of a professional project manager.
Exam Tip
Take time when reading each question on the exam to determine whether it is presenting you with a technical situation or an ethical situation. If it is an ethical situation, then answer according to the Code of Ethics and Professional Conduct.

Responsibility

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Responsibility
You can read more about responsibility in the Project Management Institute Code of Ethics and Professional Conduct.
Responsibility means being personally and professionally accountable for your own actions, being accountable for acting ethically and professionally at all times, and ensuring that others do the same. Responsibility also means you as the project manager are responsible for the actions of those on your team.
The mandatory standard of responsibility requires you to first make sure you know and uphold all the relevant policies, rules, regulations, and laws that govern your work, professional, and volunteer activities. If you disagree with any of these rules, you can seek to change them, but until they are changed you must abide by them.
Furthermore, you must always report unethical or illegal conduct to the appropriate people or body. This means whenever you discover or observe unethical or illegal behavior, you must report it to the appropriate authorities. If you discover someone on your project not dealing fairly or honestly with a stakeholder, you must report this to your project team or sponsor. Although your natural inclination may be to ignore the behavior if you regard it as minor, you must report it no matter how small it is. If the behavior is an ethical breach, you must report it to the PMI in accordance with the process on its web site. Make sure any complaints you file are substantiated by fact and documented appropriately.
You must also encourage people to do the same and neither retaliate yourself nor let others retaliate against any person who brings a breach of rules to the attention of the right person or body, or who files an ethical complaint. This is to encourage and support the role of the whistleblower.
Real World
There will always be a temptation to avoid responsibility, but I have found that in addition to enhancing your professional reputation and credibility, the simple act of taking responsibility also contributes to your ongoing leadership development. Great leadership enhances the chances of project success, and being a great leader requires you to take responsibility and lead by example.
The aspirational standards of responsibility require you to make decisions and take subsequent actions based on the best interests of society, public safety, and the environment, not in your own best interests. The greater good of society, public safety, and the environment must always take precedence over self-interest. This means if a project you are working on conflicts with or adversely affects society, public safety, or the environment, you should reconsider whether the project is worth doing.
Taking responsibility also means accepting only project work that is consistent with your background, experience, technical and interpersonal skills, and qualifications. Don’t be tempted to exaggerate you own ability; only take on work that you know you are competent to do. After the work is taken on, you must make sure you fulfill the commitments and see them through to completion.
If you make mistakes, errors, or omissions, you must take responsibility, take ownership, and make corrections as soon as possible. If you discover errors or omissions made by others, you must communicate them to the appropriate body as soon they are discovered. Knowingly acting in error or with information you know is false is considered a breach of this standard.
Finally, taking responsibility means protecting the intellectual property rights, copyright, and confidential information of any person or body. This means if you are in a situation where you have the opportunity to use intellectual property of a previous client, you should always seek their approval first. Additionally, you should not allow anyone to break any copyright rules, laws, or regulations.
Exam Tip
If you discover anyone breaching these standards, you must report them to the relevant authority. So if you find someone breaking a company standard, you must report them within your organization. If you find someone breaking a PMI standard, you must report them to PMI; and if you find someone breaking the law, you must report them to the appropriate legal authorities.
Quick Check
1.
What role do you as project manager have in upholding the value of responsibility?
 
2.
What must you do if you disagree with a particular policy that your organization has?
 
3.
What must you do if you discover that a member of your team has made an error?
 
Quick Check Answers
1.
The project manager must lead by example and take personal and professional responsibility themselves and demand it from others.
 
2.
If you disagree with a policy that your organization has, you must still follow it. You can seek to change it, but until it is changed, you must follow it.
 
3.
Any errors, either by yourself or by another, must be recognized, reported, and acted on immediately.
 

Respect

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Respect
You can read more about respect in the Project Management Institute Code of Ethics and Professional Conduct.
The value of respect means having appropriate regard for yourself and for others, personally and professionally. It requires you to negotiate agreements and contracts in good faith and not exercise the power of your expertise or position to influence the decisions or actions of others in order to benefit personally at their expense. This doesn’t mean you can’t influence people, because that is a key skill in stakeholder management and communications activities. It means you can’t seek to benefit personally by taking advantage of others using your position of power.
Respect also means not acting in an abusive manner toward any other person. Keep in mind that abuse can take many forms, from outright verbal and physical abuse to the more insidious forms of gossip, slander, libel, and passive-aggressive behavior. Complying with this standard means observing the golden rule of treating others as you would like to be treated.
In addition, respect means you respect the property rights of others, which ties in nicely with the value of responsibility and protecting the intellectual property rights, copyright, and confidential information of any person or body. This means you must acknowledge the ownership and copyright that others hold on their work.
Demonstrating respect also means being aware of the norms and customs of others and avoiding engaging in behaviors they might consider disrespectful. This is increasingly important in an ever-more globalized economy, where projects are often done internationally. Many stakeholders may have different customs from your own, and effective communication and management of stakeholders requires you to understand their customs and treat them with respect. A key element in effective communications with and managing the expectations of stakeholders is the ability to listen to others’ points of view and seek to understand them.
When it comes to resolving conflicts or disagreements, respect means dealing directly and in an open manner with those people with whom you have a conflict or disagreement. Seek to deal with the issue and not let personalities get in the way.
Whatever happens around you, and whatever the actions of others, respect also means you always conduct yourself in a professional manner, even when it is not reciprocated.
Real World
I have always found that having respect for myself and for others is a significant personal asset. It improves my ability to build genuine relationships with others and understand their point of view. Keep in mind that people will know, either consciously or subconsciously, if you are faking respect, so make sure it is always genuine.
Quick Check
1.
If you are given the opportunity to negotiate a contract that would place an undue burden on the other party, what should you do?
 
2.
If you are working in another country and it is a commonly accepted practice to pay bribes to get project work done, what should you do?
 
Quick Check Answers
1.
In any negotiations, you should seek to get an agreement that both parties can live with. You should not negotiate contracts if you have no intention of honoring them.
 
2.
This is a tricky question. You know that you should always respect the culture and customs of others, but taking precedence over this is the requirement that you should always obey the laws of the country in which you are working. If bribery is illegal, it doesn’t matter what the custom is—you simply do not participate in it.
 

Fairness

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Fairness
You can read more about fairness in the Project Management Institute Code of Ethics and Professional Conduct.
The value of fairness deals with conflict of interest, favoritism, and discrimination.
A conflict of interest situation arises when your own personal interest may conflict with the interest of your employer, or you may derive personal benefit from an action undertaken on behalf of another person. Conflict of interest can be both real and perceived. Whether it is real or perceived, it should always be fully and openly disclosed as early as possible so that it can be dealt with in an appropriate manner. You should not participate in any process or project until the disclosure has been made and a decision has been made about the best way to move forward.
Conflict of interest situations can also arise as a result of the business dealings of family members or friends, when they have professional or business connections to your project. In this case, your relationship should always be fully disclosed.
Real World
Many organizations keep a documented conflict-of-interest register where all employees must disclose and record any real or potential conflicts of interest. Often the level of conflict of interest is so small that it can be managed via simple disclosure; at other times, it may require those affected to be removed from a particular process or project. Always disclose any real or perceived conflict of interest quickly.
The value of fairness also extends to favoritism and discrimination. To display fairness, you must avoid both favoritism and discrimination, which means you neither hire nor fire, neither reward nor punish, and neither award nor deny contracts based on your own personal considerations, bias, or benefit. This means you should treat everyone equally and fairly, regardless of any preconceived notions you may have. It also means you must not discriminate against anyone based on gender, race, age, religion, disability, nationality, or sexual orientation.
In order to show and prove fairness, you must be able to demonstrate transparency and impartiality in your decision-making process and provide equal access to information to those who are authorized to have that information. This is particularly important in legal or contractual matters, because a lack of fairness could be grounds for a legal challenge to your decisions.
Quick Check
1.
What should you do if a family member works for a firm submitting a bid for contract work on your project?
 
2.
What should you do if you are given the opportunity to provide extra information to a contractor to which you really want to award a contract?
 
Quick Check Answers
1.
If you, a friend, or a family member could benefit, or is perceived to benefit, from a commercial transaction in which you are involved, there is a real or potential conflict of interest. It must first be fully disclosed, and you should not take part in any process until it is resolved.
 
2.
You should treat everyone involved in procurement negotiations fairly and equally. Everyone should receive exactly the same information at the same time.
 

Honesty

More Info
Honesty
You can read more about honesty in the Project Management Institute Code of Ethics and Professional Conduct.
Honesty seems like a self-evident term. We all know when we are being honest, and if we aren’t being honest, then surely we are being dishonest. Or is there some grey area between honesty and dishonesty?
If you want to act in accordance with the value of honesty, there is no grey area; you are being either honest or dishonest. Telling half-truths or omitting key information is dishonest. In order to meet the standards required by this value, you must be 100% honest at all times. This means you, as a professional project manager, will not engage in or condone in others behavior that is designed to deceive anyone. This includes making misleading or false statements, telling half-truths, providing information out of context, or omitting information that, if known, would make your statements misleading or incomplete.
The value of honesty also ties in with the values of responsibility, respect, and fairness, and demands of you that you do not engage, condone, or participate in dishonest behavior with the intention of personal gain or at the expense of another.
Exam Tip
If you are ever presented with a question that asks you what is best to do in a situation where you suspect dishonesty, the answer is always to disclose this and then investigate and rectify the situation with honesty.
Displaying honesty means being prepared to ensure that the information you are basing decisions on or providing to others is accurate, reliable, and timely. Being honest also means being prepared to share bad news even when it may be poorly received.
Real World
Being honest will sometimes have repercussions that test your skill as a relationship builder and influencer. You may even lose some credibility in the short term. But over the long term, you will develop a reputation based on honesty, and this will serve you better than a reputation of being someone who isn’t always honest.
Displaying the value of honesty also means you only make promises you can keep, and you keep the promises you make. By leading the way and acting honestly at all times, you will create a culture that encourages and expects honesty at all times. Ultimately, your reputation and credibility will be enhanced by sticking to this value at all times.
Quick Check
1.
If giving the truth about the status of your project to your project sponsor and client would result in the project being terminated when you are sure that the problem is short-lived and can be fixed, what should you do?
 
2.
If you are halfway through a complex set of contractual negotiations with a potential vendor and your sponsor tells you that the project is likely to be cancelled, what should you do in relation to the contractual negotiations?
 
Quick Check Answers
1.
In order to be honest, you must openly share all information that you have. Communicating half-truths and omissions about the status of your project to buy time to fix the problems is dishonest.
 
2.
This question relates not only to the value of honesty, but also to responsibility, fairness, and respect. You have a duty to not continue the negotiations until the future of the project is decided, and to inform the vendor of the reasons.
 

Chapter Summary

  • This chapter outlines the expected and accepted behaviors of a professional project manager. It outlines the four key values of responsibility, respect, fairness, and honesty, which define the behavior of a project manager and their behavior toward others.
  • The key value of responsibility requires a project manager to take personal and professional responsibility for their own actions, acting ethically and professionally at all times, and ensuring that others do the same.
  • The key value of respect requires professional project managers to display respect for themselves and others. It requires that they refrain from abusive behaviors and understand different customs and cultures.
  • The key value of fairness seeks to avoid either real or potential conflict-of-interest situations and avoid favoritism and discrimination by treating everyone equally and openly.
  • The key value of honesty requires a project manager to be completely truthful at all times and not engage in half-truths or omission of information.

Exercise

The answers for this exercise are located in the “Answers” section at the end of this chapter.
1.
Categorize each statement from the PMI Code of Ethics and Professional Conduct in the following list as a value associated with responsibility, respect, fairness, or honesty.
i.
We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.
 
ii.
We negotiate in good faith.
 
iii.
We provide accurate information in a timely manner.
 
iv.
We do not act in an abusive manner toward others.
 
v.
We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.
 
vi.
We protect proprietary or confidential information that has been entrusted to us.
 
vii.
We provide equal access to information to those who are authorized to have that information.
 
viii.
We make opportunities equally available to qualified candidates.
 
ix.
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.
 
x.
We do not engage in or condone behavior that is designed to deceive others.
 
xi.
We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.
 
xii.
We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.
 
 

Review Questions

Test your knowledge of the information in Chapter 12 by answering these questions. The answers to these questions and the explanation of why each answer choice is correct or incorrect are located in the “Answers” section at the end of this chapter.
1.
What are the four foundational values on which the PMI Code of Ethics and Professional Conduct is built?
A.
Trust, honesty, respect, fairness
 
B.
Honesty, respect, responsibility, fairness
 
C.
Integrity, trust, respect, honesty
 
D.
Respect, truthfulness, responsibility, transparency
 
 
2.
You are the project manager on a project that is behind schedule and over budget. You have gathered your team together to think of ways you can make up time and save money. A team member who has recently joined your organization says that he has access to design drawings from his previous employer that are very similar to your current project, and using them would save both time and cost. What should you do?
A.
Use the drawings and acknowledge where they came from in your project reports.
 
B.
Refuse to use the drawings.
 
C.
Use the drawings without acknowledging where they came from.
 
D.
Refuse to use the drawings during the team meeting, then during a one-on-one conversation with your team member, encourage him to use them.
 
 
3.
Your spouse is working for a company that is submitting a bid for a contract you are managing on your project. Your spouse’s role in the company has nothing to do with the bid process. What should you do?
A.
You don’t need to do anything because your spouse can have no impact, nor can they derive any benefit from the process.
 
B.
Refuse to allow your spouse’s organization to participate in the bid process.
 
C.
Resign from the project.
 
D.
Disclose the potential conflict of interest to your project sponsor.
 
 
4.
You are working on a project in a country where bribery is the norm, and the only way to get a permit you need processed is to pay a bribe to a local official. Your project cannot continue without this permit, and the amount of the bribe is relatively small. What should you do?
A.
Pay the bribe, but lodge a complaint with local officials.
 
B.
Pay the bribe.
 
C.
Do not pay the bribe.
 
D.
Do not pay the bribe, and continue your project without obtaining the permit.
 
 
5.
You are about to walk into a meeting with your project sponsor and client to report progress on your project, and you notice that the financial figures you are about to present to them do not look correct and present an overly optimistic view of your project. What should you do?
A.
Go ahead with the meeting, and point out the mistakes.
 
B.
Tell your project sponsor and client that you can’t proceed with the meeting until you are sure you have the correct information.
 
C.
Go ahead with the meeting, and hope they don’t notice the error.
 
D.
Cancel the meeting without explanation.
 
 
6.
You and several of your colleagues are studying to sit the Project Management Professional (PMP) examination when one of your colleagues admits that she has downloaded a copy of a copyrighted study book without paying for it, by using a peer-to-peer file sharing network. She offers a copy to you and recommends the text as a great way to help you pass the exam. What should you do?
A.
Gratefully accept the study aid.
 
B.
Offer to pay her for it.
 
C.
Refuse the offer, and report her to the author of the work.
 
D.
Use the book for your study, and delete it once you are finished.
 
 
7.
Your project sponsor has asked you to lead a project and has given you a deadline of six months to deliver the product. After completing the time-estimating processes with your team, you discover that the fastest you can deliver the project is nine months. Your project sponsor asks you to start the project anyway and still try to deliver the project within six months. What should you do?
A.
Start working on the project, looking for ways to save three months.
 
B.
Start working on the project, knowing that it will take nine months regardless of what you do.
 
C.
Refuse to work on the project.
 
D.
Explain to your project sponsor that you cannot make a promise you can’t keep, and that the project should not start without accurate and agreed timeframes.
 
 
8.
You discover that a colleague of yours whom you have worked alongside for 12 years lied on his CV to get the job and does not have the engineering degree he claims to have. However, he has proven himself as more than competent to design and manage engineering projects over the 12 years you have worked with him. What should you do?
A.
Talk with your colleague, and encourage him to disclose this information to management.
 
B.
Report this information immediately to your employer.
 
C.
Do nothing, because he has proven himself competent.
 
D.
Refuse to work on projects with this person.
 
 
9.
You are managing a project to build a new motorway next to land that your parents have owned for 50 years. As a result of the new motorway, the value of your parents’ land will increase significantly. What should you do?
A.
Go ahead with the project because the land was there before the planned motorway.
 
B.
Keep your parents informed on project progress so they know the best time to sell.
 
C.
Disclose this to your project sponsor, and ask them what the best course of action is.
 
D.
Do nothing, because you will not personally benefit from this.
 
 
10.
You are acting as a volunteer for the Project Management Institute. During a meeting in your capacity as a volunteer, the people you are meeting with discover that you are a skilled project management trainer and ask you to provide training services to them. What should you do?
A.
After you have spoken to them about PMI business, start discussing ways you can help them as a trainer.
 
B.
Explain to them that you are there on PMI business and it is not appropriate to discuss commercial possibilities at this time.
 
C.
Explain to them that you are there on PMI business, and then explain the situation to PMI and seek guidance on the best way forward.
 
D.
Try to get a contract for your training services signed before you leave.
 
 
11.
You are the project manager on a project, and, during the business feasibility phase, you discover that your project will have large and irreversible effects on a natural wetlands area. Your project sponsor asks you to keep quiet about this because it will mean the project will not proceed. What should you do?
A.
Report the effects of the project to the local government agency responsible for the environment.
 
B.
Resign from the project.
 
C.
Keep managing the project because that is what you promised you would do.
 
D.
Manage the project, and try to minimize the impact on the environment.
 
 
12.
You are preparing to give a talk to your team about how to improve your risk management planning and identification processes, and you plan to use an article you have downloaded for free from the Project Management Institute web site. The article is freely available to members for download and for their professional development. During the presentation, what should you do?
A.
Deliver a great presentation without making reference to the article.
 
B.
Acknowledge the article and attribute the authors’ ideas during your presentation.
 
C.
Hand out a copy of the original article to all team members.
 
D.
Decide not to use the article because it would be a breach of copyright.
 
 
13.
You have successfully managed a large, complex project for a client, and they are very happy with the results and your leadership. As a thank-you gift, they send you a brand new car with a note expressing their gratitude. What should you do?
A.
Make sure the ownership papers have been transferred into your name correctly.
 
B.
Refuse the gift because it does not align with your company’s policy on receiving gifts.
 
C.
Sell the car and split the proceeds among all project team members.
 
D.
Have the car delivered to your home without telling anyone.
 
 
14.
You are managing a large team whose members come from many different countries. Among your team members are several who observe a particular religious holiday at a time when your team is scheduled to be delivering part of the final deliverable. The team members have asked for time off to observe the holiday. What should you do?
A.
Allow the team members the time off, and use factors such as this as constraints in the resource calendar.
 
B.
Give all team members the time off so that everyone is treated equally.
 
C.
Do not approve the time off, because it will adversely affect your project.
 
D.
Do not approve the time off, because you are working in a country that does not recognize that particular holiday as a public holiday.
 
 

Answers

This section contains the answers for the Exercise and Review Questions in this chapter.

Exercise

1.
Categorize each statement from the PMI Code of Ethics and Professional Conduct in the following list as a value associated with either responsibility, respect, fairness, or honesty.
A.
We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.
RESPONSIBILITY
 
B.
We negotiate in good faith.
RESPECT
 
C.
We provide accurate information in a timely manner.
HONESTY
 
D.
We do not act in an abusive manner toward others.
RESPECT
 
E.
We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.
FAIRNESS
 
F.
We protect proprietary or confidential information that has been entrusted to us.
RESPONSIBILITY
 
G.
We provide equal access to information to those who are authorized to have that information.
FAIRNESS
 
H.
We make opportunities equally available to qualified candidates.
FAIRNESS
 
I.
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.
RESPECT
 
J.
We do not engage in or condone behavior that is designed to deceive others.
HONESTY
 
K.
We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities.
RESPONSIBILITY
 
L.
We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.
HONESTY
 
 

Review Questions

1.
Correct Answer: B
A.
Incorrect: Trust is not one of the four foundational values of the Code of Ethics and Professional Conduct.
 
B.
Correct: Honesty, respect, responsibility, and fairness are the four foundational values of the Code of Ethics and Professional Conduct.
 
C.
Incorrect: Integrity is not one of the four foundational values of the Code of Ethics and Professional Conduct. Having integrity is an important value, though, because it means having a set of values and sticking to them.
 
D.
Incorrect: Transparency and truthfulness are not part of the four foundational values of the Code of Ethics and Professional Conduct.
 
 
2.
Correct Answer: B
A.
Incorrect: It would be unethical to use drawings that belong to someone else, even if you acknowledge where they came from. You should always seek permission and negotiate terms of use of someone else’s intellectual property.
 
B.
Correct: The best option in this instance is to refuse to use the drawings. You may also want to educate your new employee about expected ethical standards.
 
C.
Incorrect: It would be unethical to use drawings that belong to someone else.
 
D.
Incorrect: This answer displays a level of dishonesty and is not correct.
 
 
3.
Correct Answer: D
A.
Incorrect: It doesn’t matter whether there is an impact or not. What matters is whether there is a perceived or potential impact. So, in this case, you need to disclose your relationship.
 
B.
Incorrect: This answer does not address the issue of potential conflict and puts your spouse’s organization at a disadvantage.
 
C.
Incorrect: Resigning from the project will not address the issue.
 
D.
Correct: The first step is to disclose the potential conflict of interest and seek advice on how best to manage it.
 
 
4.
Correct Answer: C
A.
Incorrect: You cannot pay the bribe because it is illegal, and lodging a complaint with officials will not make it okay to pay the bribe.
 
B.
Incorrect: Paying the bribe is illegal, and thus you cannot do it.
 
C.
Correct: Your only choice here is to not pay the bribe, because it is an illegal payment.
 
D.
Incorrect: Not paying the bribe is correct, but proceeding without a legally required permit would be illegal and, as such, is not an option.
 
 
5.
Correct Answer: B
A.
Incorrect: You have an obligation to be honest at all times, and if you know or suspect that information is incorrect, you must address this; so, you cannot go ahead with the meeting.
 
B.
Correct: This answer presents the most honest approach to dealing with the situation.
 
C.
Incorrect: This would be dishonest.
 
D.
Incorrect: Cancelling the meeting without explanation is not the best option because you should be honest about the reason for the cancellation.
 
 
6.
Correct Answer: C
A.
Incorrect: She has downloaded a copy of a book without paying for it, and this is both illegal and dishonest, so this is not the correct answer.
 
B.
Incorrect: Paying her for it does not change the fact that it is an illegal copy.
 
C.
Correct: Your only option here is to refuse her offer and then report her illegal activity.
 
D.
Incorrect: You cannot use the book because it is an illegal copy.
 
 
7.
Correct Answer: D
A.
Incorrect: Starting to work on a project that you know can’t be delivered is unethical.
 
B.
Incorrect: This option begins the project with dishonesty.
 
C.
Incorrect: Refusing to work on the project may be a last option, but it is not the best answer in resolving this dilemma.
 
D.
Correct: Being very honest about the situation is the best option.
 
 
8.
Correct Answer: B
A.
Incorrect: When you are aware of an unethical or illegal act, you must report it. You should not wait for him to disclose this.
 
B.
Correct: When you are aware of an unethical or illegal act, you must report it.
 
C.
Incorrect: When you are aware of an unethical or illegal act, you must report it. Doing nothing is no longer an option.
 
D.
Incorrect: Refusing to work with this person does not address the issue of fake credentials.
 
 
9.
Correct Answer: C
A.
Incorrect: This situation is an example of a real or potential conflict of interest; as such, it must first be disclosed before the project can proceed.
 
B.
Incorrect: When the conflict of interest has been disclosed, you would not be able to give your parents any special information.
 
C.
Correct: Because this is either a real or potential conflict of interest, you must disclose it first.
 
D.
Incorrect: It doesn’t matter whether you benefit from it directly; your actions could benefit a member of your family, and thus there is a conflict of interest.
 
 
10.
Correct Answer: C
A.
Incorrect: This situation requires you to be clear about the role you have. You would have to clearly separate your PMI activities from your commercial interests and explain that you are there on PMI business, not your own business.
 
B.
Incorrect: This may be a good answer in the absence of answer C.
 
C.
Correct: This is the best answer because it directs you to seek guidance on how to deal with this situation.
 
D.
Incorrect: Mixing PMI interests and your commercial interest is not permissible because it is a clear conflict of interest.
 
 
11.
Correct Answer: A
A.
Correct: You have a responsibility to protect the natural environment, and thus this is the best answer.
 
B.
Incorrect: Resigning from the project does not address the damage to the environment that the project will do. It may be a last-resort option, though.
 
C.
Incorrect: You cannot be silent about this after you know about it.
 
D.
Incorrect: This option requires you to be dishonest and, as such, is not a good choice.
 
 
12.
Correct Answer: B
A.
Incorrect: You must acknowledge the authorship and ownership of the article during your presentation.
 
B.
Correct: You must acknowledge the authorship and ownership of the article, and you should also check with PMI as to whether it is OK to use it this way.
 
C.
Incorrect: Handing out a copy to your team members does not address the issues of ownership and authorship.
 
D.
Incorrect: You can use the article as long as you follow the standard use of copyright articles such as acknowledging authorship and ownership.
 
 
13.
Correct Answer: B
A.
Incorrect: You should first check your company’s policy on receiving gifts. Many organizations have clear guidelines forbidding the acceptance of gifts, to ensure a lack of conflict of interest and promote fairness.
 
B.
Correct: If the gift does not align with your organization’s policy, then you must refuse it.
 
C.
Incorrect: This does not address issues of honesty and fairness.
 
D.
Incorrect: This does not address issues of honesty and fairness.
 
 
14.
Correct Answer: A
A.
Correct: This is a common situation, and you should be prepared to allow for different customs among your team members.
 
B.
Incorrect: This is not about treating everyone equally but about respecting the customs of everyone. Other team members may observe different holidays.
 
C.
Incorrect: Not approving the time off shows disrespect for other people’s customs.
 
D.
Incorrect: Not approving the time off shows disrespect for other people’s customs.
 
 
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