1 © Copyright 2013 Project Masters Inc. All rights reserved. Code of Ethics and Professional Conduct Presented by Project Masters Inc. *Throughout this presentation, we reference and recognize the following trademarks, service marks, and copyrights of the Project Management Institute (PMI): PMP ®, PgMP ®, PMI ®, PMBOK ®, CAPM ®

2 © Copyright 2013 Project Masters Inc. All rights reserved. Code of Ethics and Professional Conduct Chapter Objectives/Topics Define Ethics Who is obligated to adhere to the code Discuss the structure of the Project Management Institute Code of Ethics and Professional Conduct (the Code) List the values of the Project Management Institute Code of Ethics and Professional Conduct

3 © Copyright 2013 Project Masters Inc. All rights reserved. Code of Ethics and Professional Conduct Chapter Objectives/Topics Define the following – Conflict of interest – Practitioner as it relates to the Code – Duty of loyalty – Aspirational and mandatory conduct Define and discuss the values elaborated in the Project Management Institute Code of Ethics and Professional Conduct

4 © Copyright 2013 Project Masters Inc. All rights reserved. Ethics Defined According to Webster’s New Collegiate Dictionary, ethics is defined as: – The discipline dealing with what is good and bad and moral duty and obligation – A set of moral principles or values – A theory or system of moral values – The principles of conduct governing an individual, group, or profession

5 © Copyright 2013 Project Masters Inc. All rights reserved. PMI® Ethics History The process began in 1981 with the formation of the first ethics committee within PMI®. A report from the committee was published in The next iteration was published in 1999 and provided a process for submission of an ethics complaint and applied to PMI® members only. It also provided for different codes for a certified PMP® versus a non-certified member.

6 © Copyright 2013 Project Masters Inc. All rights reserved. PMI® Ethics History In 2006 the current code was approved and published; it applied to all practitioners. Unlike previous iterations of the code, the 2006 version of the code applied to all PMP® members and non-members. The reasoning was that there needed to be a common set of values for all practitioners.

7 © Copyright 2013 Project Masters Inc. All rights reserved. Who is Covered By the Code of Ethics and Professional Conduct? All PMI® members, certified or not Non-Members in the following groups – PMI® certificate holders – Individuals applying for a certification – Any who serve PMI® in a volunteer capacity

8 © Copyright 2013 Project Masters Inc. All rights reserved. Values of the Code The Code includes the following values 1.Responsibility A 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. (The Project Management Institute Code of Ethics and Professional Conduct) 2.Respect The duty to show a high regard for ourselves, others, and the resources entrusted to us. (The Project Management Institute Code of Ethics and Professional Conduct) Resources Include people, money, reputation, and safety as well as natural and environmental.

9 © Copyright 2013 Project Masters Inc. All rights reserved. Values of the Code The Code includes the following values: 3.Fairness A duty to make decisions and act impartially and objectively. Conduct must be free from competing self interest, prejudice, and favoritism. (The Project Management Institute Code of Ethics and Professional Conduct) 4.Honesty The duty to understand the truth and act in a truthful manner both in our communications and in our conduct. (The Project Management Institute Code of Ethics and Professional Conduct)

10 © Copyright 2013 Project Masters Inc. All rights reserved. Code Structure The Code is divided into four conduct areas that are aligned with the four values. These four values were identified as most important to the project management community. The four values identified and elaborated in this code were identified by the global project management community as those used to guide their decisions and actions

11 © Copyright 2013 Project Masters Inc. All rights reserved. Practitioner Defined A person engaged in an activity that contributes to the management of a project, portfolio, or program, as part of the project management profession. (The Project Management Institute Code of Ethics and Professional Conduct)

12 © Copyright 2013 Project Masters Inc. All rights reserved. Duty of Loyalty Defined A person’s responsibility, legal or moral, to promote the best interest of an organization or other person with whom they are affiliated. (The Project Management Institute Code of Ethics and Professional Conduct)

13 © Copyright 2013 Project Masters Inc. All rights reserved. Conflict of Interest Defined 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 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 duty of loyalty. – Note: The only way a practitioner 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. ( The Project Management Institute Code of Ethics and Professional Conduct)

14 © Copyright 2013 Project Masters Inc. All rights reserved. Aspirational Conduct Defined Aspirational The conduct that we strive to uphold as practitioners. (The Project Management Institute Code of Ethics and Professional Conduct) – Although difficult to measure adherence to aspirational standards, conducting ourselves in accordance with these standards is an expectation we have of ourselves and is not optional.

15 © Copyright 2013 Project Masters Inc. All rights reserved. Mandatory Conduct Defined Mandatory Firm requirements that, in some cases, limit or prohibit practitioner behavior. (The Project Management Institute Code of Ethics and Professional Conduct) – Disciplinary procedures can be taken against those who do not conduct themselves in accordance with these standards. – These disciplinary procedures are formally undertaken before the PMI Ethics Review Committee.

16 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility The following is reprinted from the PMI® Code of Ethics and Professional Conduct

17 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility Aspirational Standards We make decisions and take actions based on the best interests of society, public safety, and the environment. We accept only those assignments that are consistent with our background, experience, skills, and qualifications. We fulfill the commitments that we undertake. – We do what we say we will do.

18 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility Aspirational Standards When we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions committed by others, we communicate them to the appropriate body as soon as they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences.

19 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility Aspirational Standards We protect proprietary or confidential information that has been entrusted to us. We hold each other accountable to it.

20 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility Mandatory Standards We inform ourselves and uphold the policies, rules, regulations, and laws that govern our work, professional, and volunteer activities. We report unethical and illegal conduct to appropriate management and, if necessary, to those affected by the conduct.

21 © Copyright 2013 Project Masters Inc. All rights reserved. Responsibility Mandatory Standards Ethics Complaints – We bring violations of this Code to the appropriate body for resolution. – We only file ethics complaints when they are substantiated by facts. – We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns.

22 © Copyright 2013 Project Masters Inc. All rights reserved. Respect The following is reprinted from the PMI® Code of Ethics and Professional Conduct

23 © Copyright 2013 Project Masters Inc. All rights reserved. Respect Aspirational Standards We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful. We listen to others’ points of view, seeking to understand them. We approach directly those persons with whom we have a conflict or disagreement. We conduct ourselves in a professional manner, even when it is not reciprocated.

24 © Copyright 2013 Project Masters Inc. All rights reserved. Respect Mandatory Standards We negotiate in good faith. 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. We do not act in an abusive manner toward others. We respect the property rights of others.

25 © Copyright 2013 Project Masters Inc. All rights reserved. Fairness The following is reprinted from the PMI® Code of Ethics and Professional Conduct

26 © Copyright 2013 Project Masters Inc. All rights reserved. Fairness Aspirational Standards We demonstrate transparency in our decision- making process. We constantly reexamine our impartiality and objectivity, taking corrective action as necessary. We provide equal access to information to those who are authorized to have that information. We make opportunities available to qualified candidates.

27 © Copyright 2013 Project Masters Inc. All rights reserved. Fairness Mandatory Standards Conflict of Interest Situations – We proactively and fully disclose any real or potential conflict of interest to the appropriate party. – 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 a mitigation plan. We have obtained the consent of the stakeholders to proceed..

28 © Copyright 2013 Project Masters Inc. All rights reserved. Fairness Mandatory Standards Favoritism and Discrimination – 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. – We do not discriminate against others based on, but not limited to, gender race, age, religion, disability, nationality, or sexual orientation. – We apply the rules of the organization (employer, Project Management Institute, or other group) without favoritism or prejudice.

29 © Copyright 2013 Project Masters Inc. All rights reserved. Honesty The following is reprinted from the PMI® Code of Ethics and Professional Conduct

30 © Copyright 2013 Project Masters Inc. All rights reserved. Honesty Aspirational Standards We earnestly seek to understand the truth. We are truthful in our communications and in our conduct. We provide accurate information in a timely manner. We make commitments and promises, implied or explicit, in good faith. We strive to create an environment in which others feel safe to tell the truth.

31 © Copyright 2013 Project Masters Inc. All rights reserved. Honesty Mandatory Standards 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. We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.

32 © Copyright 2013 Project Masters Inc. All rights reserved. Code of Ethics and Professional Conduct Review Chapter Objectives/Topics Define Ethics Who is obligated to adhere to the code Discuss the structure of the Project Management Institute Code of Ethics and Professional Conduct (the Code) List the values of the Project Management Institute Code of Ethics and Professional Conduct

33 © Copyright 2013 Project Masters Inc. All rights reserved. Code of Ethics and Professional Conduct Review Chapter Objectives/Topics Define the following – Conflict of interest – Practitioner as it relates to the Code – Duty of loyalty – Aspirational and mandatory conduct Define and discuss the values elaborated in the Project Management Institute Code of Ethics and Professional Conduct

34 © Copyright 2013 Project Masters Inc. All rights reserved. Chapter 14 – Professional Responsibility Practice Exam Turn to Page 541 in the “All in One” Text Book Take the 20 Question Exam

35 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 1)D. Complete an accurate estimate of the project. In addition, create a risk assessment on why the budget would be inadequate. 2)C. determine if the county’s traditions include hiring form the immediate family before hiring from outside the family. 3)C. Company policies and procedures 4)B. Report the team member to his manager. 5)B. Complete the activities as requested.

36 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 6) A. The Code of Ethics and Professional Conduct to cooperate on ethics violations investigations. 7) B. Communicate with the vendor in regard to the rumor. 8) D. Ask the vendor that supplied the high estimate for information on how the estimate was prepared. 9) A. Report the project is one week behind schedule, but will finish on schedule based on cited corrective actions. 10) C. Report to the customer the project status and completion date.

37 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 11) C. Refuse to help the installer, since the project scope has been completed. 12) C. Do nothing. The project scope is completed. 13) D. Allow team members to volunteer for the overtime work. 14) B. Failure to satisfy the scope of professional services. 15) B. Refuse to accept the car, since it would result in a conflict with your organizations policy on gifts.

38 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 16) C. Present the problem to management with a solution to remove the team member from the project. 17) A. Cultural issues 18) A. Completing the project requirements 19) D. Culture shock 20) C. Work with the project team to develop alternative solutions to the technical problem.