The nature of ethics

In today’s business climate, acting and behaving ethically is more important than ever. 

Project professionals face unique challenges as they navigate political and social dynamics both inside and outside their organizations.

Yet deciding what is ethical can be challenging, and the answers may differ depending on your organization and culture.

When it comes to ethics, people tend to think about situations where large-scale incidents take place, such as mortgage fraud cases, security exchange violations, and outright scammers like Sam Bankman-Fried.

Yet even minor ethical breaches can influence how people perceive you, your project, and your organization.

So, what does it mean to be an ethical person and project manager?

A principled project manager has well-defined values, principles, and purpose.

They have consciously articulated what is important to them and the behavioral boundaries they will not cross.

An honest project manager is capable of self-reflection, admitting error,s and learning from their mistakes.

They are as honest with themselves as they are with others.

A reliable project manager tracks and keeps their promises, whether they are made in person or implied in the project plan.

They are also honest enough to recognize when promises cannot be kept and up-front enough to disclose this to others.

A courageous project manager does not hide bad news

They are willing to acknowledge both complexity and uncertainty, tackling problems head-on as they arise.

Importantly, they do not turn a blind eye to the questionable ethical conduct of others.

As Lt General David Morrison once famously said, “The standard you walk past is the standard you accept.”

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Ethical decision making

There is no ready-made way to deal with ethical challenges.

They require us to respond to specific circumstances and relationships as well as the various ethical considerations – purpose, values, and principles – at play.

Still, you can ask a few questions that can help crystalize the ethical issues for you.

Q1: Would I be happy for this decision to be on CNN?

This is known as the Sunlight Test.

Imagine if your decision – and the reasons you made it – were public knowledge. 

• What if the people you most admire knew what you’d done and why? 
• Do you think you’d be able to defend yourself? 
• Would other people agree, or at least understand, why you did what you did?

Note: it’s the ‘don’t be ashamed’ test, not the ‘don’t get caught’ test! 

Q2: Is there an ethical non-negotiable at play?

Is there a rule that any reasonable person should apply to this situation regardless of the consequences?

Some rules are unbreakable, even when the stakes are high.

For instance, we should never act in ways that undermine the equality and dignity of all people – ourselves included.

The rules are often associated with duties – some of which we create ourselves, like when we make a promise. 

Q3: Will my actions make the world a better place?

We often think about ethics in terms of consequences. 

‘The greatest good for the greatest number’ is a maxim many people recognize and accept. 

Consequences are an important part of ethical decisions, but are they everything?

We should be aware of what we’re sacrificing to bring about good consequences. 

• Are we violating an important principle? 
• Are we compromising our own values? 
• If so, have we considered these facts when balancing harms and benefits?

Q4: What would happen if everybody did this?

Would you be happy if your reason for action was used by everyone in the same circumstance?

If not, then what makes you so special?

Most ethical frameworks suggest the right decision for one person should be right for everybody in the same position.

A lot of unethical behavior arises from people making special exceptions for themselves. 

This test helps us be sure we’re willing to hold ourselves to the same standards we hold others to.

Q5: What will this do to my character or the character of my organization?

Many people believe that our decisions shape our character and vice versa.

That is, we can’t lie and cheat without becoming a fraudulent liar.

For instance, if we’re a liar, we’ll tend to lie more often.

Think about whether your action is establishing a habit either for you or your organization.

Is it a good habit (virtue) or a bad one (vice)?

If I cut corners on a work job today, am I developing a habit of laziness that may affect my future work?

Q6: Is this consistent with my values and principles?

Plenty of people and organizations are happy to tell you what they stand for – but do they walk the talk?

Are my actions reflecting my ethical beliefs? 

Most ethical systems have no time for hypocrisy.

Answering these questions doesn’t guarantee everyone will accept our decision – moral disagreement is extremely common. 

But even if the answer to our question doesn’t achieve universal approval, how we reach those answers matters. 

Ethics allows us to explore these questions in a way that is sincere, rational, competent, and honest.

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Ethical project management

So, what ethical dilemmas are you likely to face as a project manager?

Some unethical practices that a project manager might be tempted to engage in include:

• Padding estimates
• Secretly sacrificing agreed quality standards to cut costs
• Going along with a customer’s request when you know it’s not best for the project
• Not standing up for what you believe is the right decision
• Going along with groupthink to avoid making waves
• Contracting to a seller that is not the most qualified because you have an ulterior motive
• Looking the other way and not speaking up when you see wrongdoing because a higher-up is the one behaving unethically, and you think you need to go along to keep your job
• Asking staff to do extra free work
• Showing favoritism towards certain team members based on personal friendships or other non-merit-based reasons
• Lying by omission and dealing in bad faith
• Submitting false project status and progress reports, or
• Overcharging project work hours.

Yet not every ethical scenario is foreseeable, so how can you instill ethical behavior in your project teams?

• Set and maintain ethical goals across your organization
• Demonstrate top management commitment to integrity
• Monitor and audit conduct (formal and informal)
• Tie performance rewards system to ethical conduct
• Distribute and reinforce written rules, policies, and procedures
• Train employees to recognize and make ethical decisions
• Lead by example, modeling and being accountable for your own ethical behavior
• Maintain ‘whistle-blower’ channels and policies
• Reward acts of integrity and ethical decisions, and
• Immediately respond to misconduct, following procedures consistently and fairly.

As you can see, ethical project leadership depends on more than just drawing up an organizational chart and writing a neat project plan. 

Leadership is a nuanced activity with a fluid set of requirements, constantly evolving as the project does. 

It cannot be ‘taught’ in the way that the earned value formulas can; ethical leadership practices must be learned on the job through observation and application.

To that end, it is hoped that the principles discussed in this Unit can inform your behavior as a project manager and leader, enabling you to get the best out of both your project and your team.

The Center for Project Innovation has developed a Code of Ethics for Project Professionals that might be a starting point for you to build your own ethical framework.