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Ethics Bistro

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We all tackle ethical dilemmas. Wrong decisions can break careers. Which are the key challenges faced? What are some likely solutions? Where can we find effective tools? Who can apply these and why? Dry, theoretical discussions don't help. Join us for lively, light conversations to learn, share and grow!

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Tara Leparulo
Shenila Shahabuddin
Juan Posada Toro
Albert Agbemenu
Ming Yeung
Kannan Ganesan
Yannick Arekion
Witold Hendrysiak
Stelian ROMAN
Laszlo J. Kremmer MBA, CSPO®, CSM®, PMP®

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When the schedule slipped, so did accountability: Ethical reflections from an early ERP project - Part 2

When the schedule slipped, so did accountability: Ethical reflections from an early ERP project - Part 1

Do You Like to Pick and Choose Your Projects?

Behind closed doors: When decisions feel already made

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Values and Ethics in Fintech: A 2026 Reflection on Integrity, Accountability, and Ethical Vigilance

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The call for principled conduct in the fast‑moving world of digital finance has only grown more urgent with notable financial failures on the newspaper headlines. For the past few years, the fintech landscape has expanded at an extraordinary pace, but so have the ethical vulnerabilities that accompany it. Recent high‑profile cases of data breaches, internal theft, and employee‑driven embezzlement make it clear that ethical failures are no longer hypothetical risks; they are real, costly, and profoundly damaging.

Recent Ethical Failures in Fintech and Corporate Technology

1. The 2022 FTX Bankruptcy & Collapse in November 2022, it was revealed that customer funds, amounting to billions of dollars, had been improperly diverted to Alameda Research, a trading firm closely tied to FTX’s leadership. This diversion was part of a broader pattern of commingling assets, weak or nonexistent internal controls, and misleading representations about the company’s financial health to the detriments of the respective investors, clients, and users. (TokenTax, 2026). The employee’s actions breached PMI’s principles of Honesty, Fairness, and Respect, while also highlighting the organization’s insufficient internal controls.

2. The 2024 PayPal Credential‑Stuffing Incident in December 2024, PayPal experienced a credential stuffing attack that compromised 35,000 user accounts. Hackers accessed sensitive information such as names, birthdates, and social security numbers by exploiting reused passwords across multiple accounts. The incident highlights the critical need for businesses to adopt advanced security measures like password less authentication (Security Boulevard, 2025). This failure to act proactively reflects a lapse in Responsibility and Respect for stakeholders whose financial well‑being depends on robust security.

Ethical Implications and the Need for Stronger Decision Frameworks

Across these incidents, the common thread is not merely technical vulnerability—it is ethical vulnerability. Whether through negligence, insufficient oversight, or deliberate misconduct, these failures demonstrate the consequences of ignoring foundational ethical principles.

The PMI Code of Ethics and Professional Conduct (v8) provide a clear compass for navigating such challenges. Its four core values—Responsibility, Respect, Fairness, and Honesty—are directly applicable to fintech environments where decisions can have immediate and far‑reaching impacts on customers, markets, and society.

To operationalize these values, organizations should adopt the PMI Ethical Decision‑Making Framework (EDMF v8). The EDMF offers a structured approach to evaluating dilemmas, identifying stakeholders, assessing risks, and selecting actions that align with ethical principles rather than short‑term convenience or pressure.

A Call to Action

Fintech professionals, project managers, and corporate leaders must recommit to ethical vigilance. This includes:
  • Embedding ethics training into all levels of the organization
  • Applying the PMI EDMF v8 when facing ambiguous or high‑impact decisions
  • Strengthening internal controls and access governance
  • Encouraging employees to speak up when they perceive unethical conduct.
  • Creating a culture where integrity is rewarded, not assumed.
Ethics is not a compliance checkbox; it is a continuous practice. As the fintech sector accelerates into an increasingly complex future, the lessons of recent breaches and misconduct must serve as a catalyst for renewed commitment to ethical excellence.

What keeps you, a project practitioner, up at night? Let us deliberate on the finer points of project management.

References

Project Management Institute. (2025 November). PMI Code of Ethics and Professional Conduct. pmi.org. https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/pmi-code-of-ethics.pdf.
Project Management Institute. (2025 November). PMI Ethical Decision Making Framework. pmi.org. https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/ethical-decision-making-framework.pdf.
Security Boulevard. (2025, April). Understanding Credential Stuffing: A Growing Cybersecurity Threat. Securityboulevard.com. https://securityboulevard.com/2025/04/understanding-credential-stuffing-a-growing-cybersecurity-threat/.
TokenTax. (February 2026). The FTX Collapse: A Complete Guide. tokentax.co. https://tokentax.co/blog/ftx-collapse.
Posted by Ming Yeung on: February 12, 2026 05:23 AM | Permalink | Comments (4)

What is new in PMBOK 8 – An ethics perspective

Categories: Ethics as a competence, Values, Behavior, values, code of ethics, Ethical Leadership, Decision-making, Ethics Insight Team, Ethics Bistro, Business Ethics, code of conduct, PMI Talent Triangle, Ways of Working, Decision-making, Values, Business Ethics, AI, Project, PMI Program Management, Do the right thing, Culture, Ethical Dilemma, respect, Professional Responsibility, Professional Conduct, Honesty, Respect, Responsibility, Project Management, Code of Ethics and Professional Conduct, honesty, responsibility, professonal conduct, volunteers, professional conduct, Digital Transformation, Ethics in Communication, Agile, Leadership, Decision Making, Ethics, Diversity, Organizational Project Management, Information Technology, Organizational Culture, Governance, Artificial Intelligence

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Imagine a team of explorers crossing a desert. No matter how skilled its members are or how modern their vehicles are, they may not succeed in reaching their destination without a compass. In project management, ethics serve as that compass, guiding decision-making, fostering trust, and ensuring accountability.
 For PMI Members, the compass is the Code of Ethics and Professional Conduct. Developed even before the first edition of the Project Management Book of Knowledge, the Code was and remains the holder of the guardrails of the project management profession.
PMBOK 7 replaced knowledge areas with performance domains. The 8th is more aligned with the Agile delivery approach, whilst retaining the importance of good governance. Like the previous version, the PMBOK highlights alignment with both internal and external environments. It is important to note the focus on artificial intelligence and sustainability.
Principles of project management
PMBOK 8 simplified the 12 principles from the 7th edition to create a more focused and actionable foundation for modern project management. The principles of project management are aligned with the values of PMI’s Code of Ethics and Professional Conduct. They do not follow the same format, and they are not duplicative; rather, the principles and the Code of Ethics are complementary.
·Adopt a holistic view: Consider the project within its larger organizational and ecosystem context.
·Focus on value: Prioritize delivering tangible value and aligning project outcomes with strategic goals.
·Embed quality into processes and deliverables: Integrate quality throughout the project lifecycle, not just as a final check.
·Be an accountable leader: Take ownership and responsibility for the project's success and outcomes.
·Integrate sustainability within all project areas: Include environmental and social considerations in project work.
·Build an empowered culture: Foster a project environment that empowers team members. 
Enterprise environmental factors: Internal and external to the Organization
·The standard emphasises the impact of organizational culture, structure, and governance. Aspects like vision, mission, values, beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style, ethics, and code of conduct remain critical success factors, as well as a framework for ethical decision making. Social and cultural influences and issues. External factors include political climate, regional customs and traditions, public holidays and events, codes of conduct, ethics, and perceptions.

Artificial Intelligence (AI)
AI ethical issues, especially the responsible use of AI tools and the negative impact on project team members, are an especially important aspect. Topics like data privacy and security can be addressed using technical controls. Issues like bias and fairness require special attention from project managers. Lack of clarity on who is responsible when AI-driven decisions go wrong can create confusion and an unending blame game. AI agents cannot be (yet) included in a Responsible, Accountable, Consulted, or Informed (RACI) matrix. Although their use is unavoidable, the responsibility and accountability remain with the human user.
The use of AI is dependent on context, and it should be assessed for each project through a decision-making process to determine when AI can assist with tasks or provide more time for other valuable activities. The evaluation should be focused on the use of AI to produce project artifacts. Initiative-taking measures should be considered to identify and assess the risk of incorporating AI and determine if it is acceptable or it should be controlled.
Below is a list of some ethical concerns related to the use of AI in projects
  • Accountability and responsibility: When AI systems are used for decision-making, it is challenging to assign accountability if something goes wrong. AI agents are not members of the project team; they are a tool that should augment human capabilities. Project managers need to establish clear lines of responsibility for the outcomes of AI-driven projects.
  • Bias and fairness: AI is still in its infancy, and finding large volumes of good-quality data that can be used to train AI models is difficult. AI models can inherit biases from the data they are trained on, leading to unfair or discriminatory outcomes in areas like task assignment or performance evaluation. These biases can reinforce existing societal prejudices related to factors like gender, race, or socioeconomic status, potentially leading to workplace discrimination and legal penalties.
  • Transparency and explainability: The "black box" nature of some AI algorithms makes it difficult to understand how they reach a decision. This lack of transparency can erode trust and make it hard for project managers to oversee, troubleshoot, or validate AI-driven recommendations.
  • Over-reliance on AI agents and lack of human oversight: At any point in the project, the control should remain with humans and avoid over-reliance on AI. Lack of knowledge and practice can lead to a decline in critical thinking and human judgment among team members.
Chapter X3.3 (Responsible Use and Ethical Concerns) provides guidance for project managers to mitigate the risks associated with AI, putting the emphasis on project managers to assess the challenges and benefits and make appropriate decisions regarding AI’s use in projects. For example, to avoid bias the standard recommends the following controls:
·Diversification of the data sets on which the AI system is trained;
·Periodic tests conducted on the AI system, with particular focus on bias; and
·Involvement of different teams in the development of the AI system.


Procurement is another ethics area of focus that PMBOK 8 provides guidance on. In chapter X4.9.2, Sensitivity of Legal Actions and Upholding Ethics Codes, the standard provides considerations to avoid impact on project outcomes and stakeholder relationships:
·Nuanced communication.
·Escalation protocols.
·Confidentiality.
·Impartiality.
PMBOK 7 explicitly references the PMI Code of Ethics as a complementary and essential guide for project professionals. This code provides the specific rules for ethical conduct, based on core values of honesty, responsibility, respect, and fairness.
  • Contextual application: The principles and the code are designed to be applied within the context of project work. Ethical dilemmas are often encountered when balancing conflicting needs, and the framework provides guidance for decision-making.
  • Performance domains: Ethical dilemmas can arise in any of the performance domains (e.g., Stakeholders, Delivery, Performance). The principles and the code provide the tools for navigating these situations and making responsible choices.
  • Focus on value: Ethical considerations are a crucial part of focusing on long-term value, rather than just short-term outputs, ensuring that projects are conducted in a responsible and sustainable way. 
Connection to PMI's Code of Ethics
  • The principles in the PMBOK 8th Edition align with and reinforce the values in the PMI Code of Ethics and Professional Conduct, which are honesty, responsibility, respect, and fairness.
  • Project managers are expected to apply these principles in their daily work to make ethical choices that lead to positive results and maintain trust. 
  • The PMI Code of Ethics and Professional Conduct remains the primary source for detailed ethical guidelines.
  • ProjectManagement.com offers webinars that discuss the connection between PMBOK 7 principles and the Code of Ethics. 
Posted by Stelian ROMAN on: December 11, 2025 06:47 PM | Permalink | Comments (4)

Trust the Data - but Not Blindly: An Ethics Bistro on AI

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It was a rainy Tuesday when the red flag popped up. The AI tool, designed to optimize resource allocation across our project portfolio, had flagged three critical projects for delay. The model’s recommendation? Shift half the team from Project Titan to Project Eclipse to balance out workloads.

At first glance, it seemed logical. The resource allocation maps, and velocity graphs supported the reallocation. But something did not sit right.

I had collaborated closely with Titan’s team leads for months. They were on the verge of a breakthrough with a critical client deliverable. Moving people now, even with Eclipse falling behind, could cause a domino effect across our most valuable account.

I called a huddle.

“Why did the model deprioritize Titan?” I asked the AI SME.

“It is based on risk scoring from delivery variance, budget utilization, and resource burn. Titan looked stable, so it pulled from there.”

“But it does not know the client conversation we had last week. Titan’s ‘stability’ is built on momentum we cannot afford to interrupt.”

That was it. The AI had the data but not the context.

We chose not to follow the recommendation. Instead, we manually adjusted scope and brought in temporary support for Eclipse. It was a tough call, but three months later, Titan delivered on time and exceeded client expectations. Eclipse caught up too—without derailing the portfolio.

That experience taught me something: AI is brilliant at pattern recognition, but it does not see what you know. It does not read nuance. And it does not carry responsibility.

So, when should project managers trust AI—and when should we intervene?

Trust AI when:

  • You need unbiased, data-driven insights fast.
  • The decision space is clearly defined and repeatable.
  • You are analyzing trends across massive datasets where human bias or oversight might creep in.

But intervene when:

  • The stakes involve human relationships, trust, or reputational risk.
  • The model’s logic lacks access to critical context.
  • The recommendation “feels wrong” and your intuition is backed by experience not fear.

AI is like a junior analyst with infinite memory and no emotional baggage. But it lacks judgment, and judgment is where leadership lives.

As project managers, we are not just responsible for outcomes; we are stewards of values. According to the PMI Code of Ethics, we are bound to act with responsibility, respect, fairness, and honesty. Blindly following AI no matter how accurate without human oversight may compromise all four.

Use AI like a compass not a map. Let it guide your thinking, but do not let it override your wisdom.

Because when things go south, the algorithm will not be in the room explaining the outcome you will.

So next time your AI flags a decision, pause. Ask: Does this align with what I know, what I have seen, and what matters most?

If the answer is no, trust yourself and intervene.

Reference:

PMI Code of Ethics

Webinar: Ethical Project Leadership in the digital age

Webinar: When to Trust AI and When to Intervene

 

Posted by Shenila Shahabuddin on: July 01, 2025 12:00 AM | Permalink | Comments (4)

Upholding Ethics in Personal Conduct: Lessons from “Wrongful Referrals”

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The January 9, 2025, Bloomberg article titled "The New $30,000 Side Hustle: Making Jobs Referrals for Strangers" by Jo Constantz highlights a disturbing ethical issue and discusses the emerging trend of technology workers earning significant sums by referring job candidates they have never met. This underground marketplace for employment referrals has gained traction at major U.S. companies like Microsoft and Nvidia. Platforms like Refer Me and Refermarket allow job seekers to anonymously request referrals from verified employees, with some tech workers earning up to $30,000 in referral bonuses over 18 months. While this practice can improve hiring odds, it raises ethical concerns as it often violates company policies that require personal knowledge of candidates.

Examining the ethical issue using PMI’s Code of Ethics and Professional Conduct as Ethical Decision-Making Framework, I, as an astute member of the Ethics Insight Team, draw these lessons learned and propose remedies for considerations.

Comments and Lessons Learned:

  1. Responsibility: Employees must recognize their responsibility to uphold company policies and ensure that referrals are based on genuine knowledge of the candidate's qualifications. This practice not only maintains the integrity of the hiring process but also ensures that the referred candidates are truly fit for the roles.
  2. Respect: Respect for the hiring process and the candidates is crucial. Referring strangers without proper vetting can lead to mismatches and wasted resources for both the company and the candidates. Respecting the process ensures that all parties involved are treated fairly and professionally.
  3. Fairness: The practice of selling referrals can create an unfair advantage for those who can afford to pay for them, undermining the principle of equal opportunity. Companies should strive to create a level playing field where all candidates are evaluated based on their merits and qualifications.
  4. Honesty: Honesty is paramount in the referral process. Employees should provide truthful and accurate information about the candidates they refer. Misrepresenting a candidate's qualifications can damage the company's reputation and lead to poor hiring decisions.

Remedy: To address these ethical concerns, companies should reinforce their referral policies and provide clear guidelines on acceptable practices. Regular training on the corporate/internal on similar Code of Ethics and Professional Conduct Policy and or Procedures can help employees understand the importance of responsibility, respect, fairness, and honesty in the hiring process. Additionally, implementing stricter monitoring and enforcement mechanisms can deter unethical referral practices and ensure a more transparent and equitable hiring process.

How would you, as an ethical project practitioner, act when a stranger offers monetary incentives and seeks your referrals? Does the situation happen to you? Are there any other lessons learnt and remedies to which you can relate? The PMI Ethics Insight Team likes to bring this timely topic for a healthy deliberation.

References:

Constantz, J. (2025, January 9). How to Get a Job Referral from a Stranger. Bloomberg.com. https://www.bloomberg.com/news/articles/2025-01-09/how-employee-referrals-for-tech-jobs-became-a-side-hustle

Project Management Institute. (n.d.). Code of Ethics and Professional Conduct. pmi.org. https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/code-values-card.pdf

Project Management Institute. (2011). PMI Ethical Decision-Making Framework (EDMF). pmi.org. https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/ethical-decision-making-framework.pdf

 

 

 

Posted by Ming Yeung on: February 14, 2025 02:46 AM | Permalink | Comments (2)

Navigating Ethical Challenges in Project Management: Fairness, Favoritism, and Prejudice

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Fairness is not an attitude. It's a professional skill that must be developed and exercised – Brit Hume”

In the dynamic world of project management, maintaining fairness and avoiding favoritism and prejudice are crucial for fostering a productive and harmonious work environment. These ethical challenges can significantly impact team morale, project outcomes, and the overall success of an organization. Let’s delve into how fairness, favoritism, and prejudice play out in project management and explore strategies to address these issues effectively.

 

1. The Importance of Fairness

  • Impartial Decision-Making: Fairness in project management involves making decisions impartially and objectively. This means evaluating team members based on their skills, performance, and contributions rather than personal biases or relationships.
  • Equal Opportunities: Providing equal opportunities for all team members to participate, contribute, and grow is essential. This includes fair distribution of tasks, recognition, and rewards.

 

2. The Detrimental Effects of Favoritism

  • Resentment and Demotivation: Favoritism can lead to resentment among team members who feel overlooked or undervalued. This can result in decreased motivation and productivity.
  • Unbalanced Workload: When certain individuals are favored, it can lead to an unbalanced workload, where some team members are overburdened while others have less to do. This imbalance can affect the overall efficiency of the project.

 

3. Addressing Prejudice in the Workplace

  • Awareness and Training: Raising awareness about unconscious biases and providing training on diversity and inclusion can help mitigate prejudice. This ensures that all team members are treated with respect and fairness.
  • Inclusive Culture: Promoting an inclusive culture where diverse perspectives are valued and encouraged can help reduce prejudice. This involves actively listening to and considering the viewpoints of all team members.

 

4. Strategies for Promoting Fairness

  • Transparent Processes: Implementing transparent processes for decision-making, task allocation, and performance evaluation can help ensure fairness. Clear criteria and open communication are key to maintaining transparency.
  • Regular Feedback: Providing regular and constructive feedback helps team members understand their strengths and areas for improvement. This fosters a culture of continuous learning and development.

 

5. Creating a Positive Work Environment

  • Recognition and Appreciation: Recognizing and appreciating the efforts and achievements of all team members fosters a positive work environment. This helps build trust and encourages everyone to contribute their best.
  • Conflict Resolution: Addressing conflicts promptly and fairly is crucial. Ensuring that all parties are heard and that resolutions are based on facts rather than biases helps maintain a harmonious team dynamic.

 

Conclusion

Fairness, favoritism, and prejudice are critical issues in project management that can significantly impact team dynamics and project success. By promoting fairness, addressing favoritism, and mitigating prejudice, project managers can create a more inclusive, productive, and positive work environment. This not only enhances team morale but also drives better project outcomes.

Question:

What are your experiences with fairness, favoritism, and prejudice in project management? How have you addressed these challenges in your projects? Share your thoughts and insights!

Posted by Kannan Ganesan on: July 31, 2024 12:00 PM | Permalink | Comments (8)
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