Ethics Bistro

The decision seemed straightforward, at least on the surface. A leadership role opened after the successful delivery of a project, and several team members demonstrated strong performance, commitment, and clear growth potential. However, when the announcement was made the outcome surprised many. Not because the selected individual lacked capability, mainly because the process lacked clarity.

There were no transparent criteria, no visible evaluation process, and no opportunity for others to express interest. What was visible, however, was a prior relationship between the decision-maker and the selected individual. Intentionally or not, the perception of favoritism emerged immediately.

This is how favoritism and nepotism tend to show up in project environments, not as obvious violations, but as subtle departures from fairness. Favoritism occurs when personal preferences influence professional decisions. Nepotism goes a step further, granting advantage to family members or close connections. In both cases, the issue is not always about competence, but about whether decisions are made impartially, objectively, and free from competing self-interest.

From the perspective of PMI Code of Ethics and Professional Conduct, these situations directly challenge the core values: Responsibility, Respect, Fairness, and Honesty. Here is how each value comes into play:

- Responsibility is about ownership, not just of decisions, but of their consequences. Leaders are accountable for how decisions are made and for ensuring they align with the best interests of stakeholders. Avoiding structure or relying solely on personal judgment can unintentionally create ethical gaps.

- Respect goes beyond courtesy. It requires creating an environment where individuals feel valued, included, and able to contribute fully. When opportunities are not openly communicated, it limits participation and can undermine a sense of belonging within the team.

- Fairness is where the tension becomes most visible. The Code is explicit: decisions must be made impartially, and opportunities should be equally available to qualified individuals. It also clearly states that we must not reward or deny opportunities based on personal considerations such as favoritism or nepotism. Even the appearance of a conflict of interest must be treated with care and transparency.

- Honesty is about creating an environment where truth can be spoken and heard. This includes being transparent about how decisions are made and ensuring that information is complete, accurate, and not misleading.

The consequences of overlooking these values are not always immediate, but they are real. For example: the high performer who disengages, the colleague who stops applying, the meeting where fewer voices are heard. Trust does not disappear overnight, and it gets slowly replaced by doubt.

To be fair, leadership decisions are rarely black and white. Trust, experience, and working relationships matter. But ethical leadership requires more than good intent, it requires intentional processes. This means defining and documenting clear evaluation criteria before decisions are made, ensuring transparency in decision-making, involving multiple perspectives, and openly disclosing potential conflicts of interest when impartiality could reasonably be questioned. Even when decisions are ultimately sound, the absence of visible structure and transparency can weaken trust, create perceptions of bias, and discourage future engagement from team members who feel the process was not equitable.

Because ultimately, the question is not just whether the right person was selected. It is whether the process reflects the values we claim to uphold. As the Code reminds us, every choice matters, and collectively, those choices shape the credibility of our profession.

Have you ever experienced a situation where a decision felt influenced by favoritism, and how did it change the way you trust leadership?

Share your thoughts in the comments and let’s continue the conversation

References

Link to PMI’s Code of Ethics and Professional Conduct: https://www.pmi.org/about/ethics/guidelines

Link to PMI’s Ethical Decision-Making Framework (EDMF): https://www.pmi.org/ethics/ethical-decision-making-framework.pdf

Link to PMI’s Blog on Ethics “Ethics Bistro”: https://www.projectmanagement.com/blogs/365304/ethics-bistro

• 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.

1. Leadership buy-in is non-negotiable. 
2. Pilot projects are the safest way to prove value. 
3. Clear benefits must be communicated and demonstrated. 
4. Meaningful information is more important than flashy dashboards. 
5. Strategy alignment ensures AI adoption delivers stakeholder value. 
6. Simple wins build trust and momentum. 

• Bias and fairness: AI models can perpetuate discrimination if not carefully designed. 
• Transparency: Stakeholders must understand how AI reaches conclusions. 
• Accountability: Who is responsible when AI makes a wrong call? 
• Privacy: AI often relies on sensitive data—how is it protected? 
• Workforce impact: Automation may displace roles. How do we retrain and redeploy talent responsibly? 

• Embed ethics in project charters: Make fairness, transparency, and accountability explicit objectives. 
• Educate stakeholders: Provide training in AI’s capabilities and limitations. 
• Audit algorithms: Regularly check for bias and unintended consequences. 
• Prioritize human oversight: Ensure critical decisions involve human judgment. 
• Champion inclusivity: Use AI to augment, not replace, human talent. 
• Communicate openly: Share both successes and challenges of AI adoption. 

• How do we secure buy-in when AI alters workflows and job roles? 
• What pilot projects best demonstrate AI’s tangible benefits without overwhelming staff? 
• How do we balance efficiency gains with ethical responsibility? 
• How do we ensure transparency in AI-driven decisions? 
• What frameworks can help us retrain staff displaced by automation? 
• How do we measure cultural readiness for AI adoption? 

In the bustling offices of YKF Technical Solutions, a mid-sized IT firm, Lai-mui, its project manager, was leading a high-stakes software deployment for a government client. With tight deadlines and mounting pressure, Lai-mui delegated expense reporting to her trusted team lead, Deejay. Weeks later, during a routine audit, discrepancies surfaced as receipts for meals, travel, and equipment were inflated or entirely fabricated. Deejay admitted to falsifying receipts to “compensate for overtime and stress.” Lai-mui was stunned. What seemed like a minor infraction was, in fact, a serious ethical breach.

This scenario is not uncommon, yet it strikes at the heart of the PMI Code of Ethics and Professional Conduct, which is built on four core values: Responsibility, Respect, Fairness, and Honesty.

Violations of PMI’s Core Values

• Responsibility: Deejay failed to take ownership of his actions and misused organizational resources. Ethical responsibility demands accountability, especially in financial stewardship. Falsifying receipts undermines trust and exposes the organization to legal and reputational risks.
• Respect: By manipulating expense reports, Deejay disrespected the trust placed in him by Lai-mui, the client, and the company. Respect includes honoring the dignity of others and the resources entrusted to us—including budgets and public funds.
• Fairness: Inflated claims create an uneven playing field. Honest employees, unlike Deejay, who follow protocol are disadvantaged, and project funds are misallocated. Fairness requires transparency and equal treatment, not personal gain at the expense of others.
• Honesty: The act of falsifying receipts is a direct violation of truthfulness. PMI’s Code of Ethics and Professional Conduct emphasizes that honesty is the cornerstone of ethical project management. Deejay’s deception eroded stakeholder confidence and jeopardized the integrity of the project.

Applying the PMI Ethical Decision-Making Framework (EDMF)

Lai-mui, now faced with an ethical dilemma, turned to the PMI Ethical Decision-Making Framework. The EDMF guided her through:

1. Assessment: Identifying the facts and stakeholders affected.
2. Alternatives: Considering disciplinary action, restitution, and process improvements.
3. Analysis: Evaluating options against PMI’s values.
4. Application: Choosing a course of action aligned with ethical standards.
5. Action: Reporting the incident, initiating corrective measures, and reinforcing ethical training.

Call to Action

The project management community must treat ethics as a living practice, not a checkbox. We must:

• Educate teams on PMI’s Code of Ethics and Professional Conduct.
• Embed ethical discussions into retrospectives and planning.
• Encourage transparent reporting and protect whistleblowers.
• Use the EDMF to navigate gray zones with clarity.

Conclusion

Ethical leadership is not just about doing things right; it’s about doing the right things. Falsifying receipts may seem minor, but its ripple effects can compromise entire projects. Let’s recommit to the values that define our profession and lead with integrity, every step of the way.

Questions for Reflection

1. How can organizations prevent expense fraud without creating a culture of fear?
2. What systems should be in place to detect and deter falsified claims?
3. How do we empower team members to report unethical behavior safely?
4. What role should project managers play in modeling ethical financial practices?

References:

Project Management Institute, Inc. (2025). Ethics. pmi.org. https://www.pmi.org/about/ethics

Project Management Institute, Inc. (n.d.). Ethics Guidelines. pmi.org. https://www.pmi.org/about/ethics/guidelines

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

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