2. • Ethical dilemmas in project management often arise when there's a
conflict between professional duties, stakeholder interests, and moral
principles. Here are some common ethical dilemmas that project
managers might face:
• Truth vs. Loyalty
• Individual vs. Community
• Short-Term vs. Long-Term Gains
• Resource Allocation and Fairness
• Intellectual Property and Confidentiality
Ethical Delimas in Project Management
3. Truth vs. Loyalty
• Example: A project manager discovers that the project is behind
schedule or over budget.
• Reporting the truth could lead to stakeholder disappointment,
• But hiding it could be considered unethical.
4. Individual vs. Community
• A decision benefits one stakeholder (like a client)
• Harms the broader team or community
• (e.g., by causing burnout or overwork).
5. Short-Term vs. Long-Term Gains
• Rushing to meet a deadline might
• Satisfy clients .
• But could lead to quality issues and
• Reputational harm later.
6. • Resource Allocation and Fairness
• Example: Allocating more resources to a high-profile project while
neglecting smaller ones, even though both are important.
• Intellectual Property and Confidentiality
• Example: Using proprietary information from a previous employer or
partner.
• Conflict of Interest
• Example: Awarding a contract to a friend’s company, even if it may
not be the best option.
7. How to Handle Ethical Dilemmas:
• Refer to PMI’s Code of Ethics and Professional Conduct (if PMP
certified).
• Consult mentors or ethical boards when in doubt.
• Document decisions to ensure transparency.
• Apply ethical decision-making models, such as:
• Recognize the dilemma
• Evaluate options
• Consider stakeholders
• Make a principled choice
8. Principles of Arbitration
• Arbitration is a formal ADR method where a neutral third party (the
arbitrator) makes a binding decision to resolve a dispute. The key
principles include:
• Consent
• Arbitration is typically based on an agreement between the parties.
• Both parties must agree to submit disputes to arbitration rather than
litigation.
9. • Neutrality and Impartiality
• Arbitrators must be impartial and have no personal interest in the
outcome.
• They should treat all parties equally and without bias.
• Party Autonomy
• Parties have the freedom to decide:
• Who the arbitrator(s) will be
• Which rules/procedures will apply
• The location and language of arbitration
10. • Confidentiality
• Proceedings are private, and outcomes are not typically public.
• This protects sensitive business information.
• Finality and Binding Nature
• Arbitration awards are legally binding and enforceable.
• Limited grounds exist for appealing an arbitration award.
• Flexibility
• Less formal than court proceedings.
• Procedures can be tailored to suit the nature of the dispute.