Project Management 3

Project Managent 3 1Future Managers

Module 3: Application of ethics in project management

Project Managent 3 Future Managers 2

Module 3: Application of ethics in project management

• After completing this module, you will be able to:– Explain the concept of ethics in relation to

property and personal rights

– Apply ethical principles in a specific context

Project Managent 3 Future Managers 3

1.1.1 What are ethics?

• What is ethics?– The code of moral principles and values that

directs the behaviour of an individual or group in terms of what is right and wrong

Management Practice - Level 3 4Future Managers

Ethics

Management Practice - Level 3 5Future Managers

1.2 What are business ethics

• What are business ethics?– Your own ethics applied in your business,

namely what you believe in, as well as your morale code

Management Practice - Level 3 6Future Managers

1.2 What are business ethics

• Are the following situations ethical or unethical?– In your capacity as export manager of Global Exports,

you’ve decided to a bribe to an official in a third world country to speed up the process of acquiring a permit - it’s an accepted procedure in that specific country, and if you don’t do it you will lose business

– Salary increase not possible, because it’s not been budget for, but management will say nothing and allow you to load your expenses account – paid from the budget

– The organisation desperately needs a job – you complete the tender and will pay each one of the tender committee a certain amount of money to ‘fix’ the price to secure the job for your organisation

Management Practice - Level 3 Future Managers 7

Levels of ethical decision-making

Management Practice - Level 3 8Future Managers

Different approaches to ethical decision-making

• Utilitarian approach– The greatest good to the greatest number of

people

• Moral rights approach– The rights of an individual can’t be taken away

by another person’s decision

• Social justice approach– Ethical decisions must be based on decisions of

equity, fairness and impartiality

Management Practice - Level 3 9Future Managers

1.2 The role of the South African Constitution in defining a source of ethics for South Africa’s society

• Do you know what the fundamental rights of South African’s are?– Equality– Human dignity– Life– Freedom and security of the person– Freedom from slavery and forced labour– Privacy– Freedom of religion, belief and opinion– Freedom of association– Labour relations– Environment

Management Practice - Level 3 10Future Managers

1.3 Leadership by example

• Top management should set an example of ethical behaviour both through talk and actions

• The company should have a code of ethics. Why?

• Ethics committee• Ethical ombudsman• Ethical training• Whistle-blowing

Management Practice - Level 3 11Future Managers

1.4 Code of conduct to be considered when doing project planning

• The purpose of the code of conduct– The code should act and serve as a guideline to

project team members and other individuals involved in the project, as to what is expected of them from an ethical point of view, both in their individual conduct and in their relationship with others, while taking part in the project

Project Managent 3 Future Managers 12

1.4 Code of conduct to be considered when doing project planning

• Points to remember– The project is built around individuals (human beings)

and their rights have to be respected at all times– Co-operation, mutual trust is of the utmost importance

in ensuring that the project will be a success– The project planners should deal fairly, professionally

and equitably with other role-players, project team members, contractors, sub-contractors, or whoever is involved in the project, irrespective of race, gender, religion, ethnic or social origin, culture differences or language

– The project planner should refrain from party political activities in the workplace (project site)

Project Managent 3 Future Managers 13

1.4 Code of conduct to be considered when doing project planning

– Each team member and any other role-player should strive to achieve the objectives of the project cost-effectively and in the project’s interest

– Each team member should be creative in their thoughts and in the execution of their respective duties, tasks or activities, therefore enhancing effectiveness and efficiency in project execution

– Each team member should be punctual in the execution of their duties, tasks or activities allocated to them

– Each team member should execute their duties, tasks or activities in a professional and competent manner

– Team members should not engage in any transaction or action that is in conflict with or infringes on the execution of their duties and therefore negatively influence the outcome of the project

Project Managent 3 Future Managers 14

1.4 Code of conduct to be considered when doing project planning

– Team members should avoid any action or decision which may result in improper personal gain from participating in the project

– Team members should always be honest and accountable when dealing with project funds (budget) and other resources

– In the course of official duties while working on the project any form of fraud, corruption, or any other activity against the spirit of the project or its outcome should be reported to the appropriate authorities

– Confidentiality concerning the project should be honoured

Project Managent 3 Future Managers 15

2. Apply ethical principles in a specific context

• After completing this outcome you will be able to:– Illustrate the application of ethical practices in

the formulation and management of the project plan

– Explain the processes to be followed when the code of conduct is breached according to standard operating practices

Project Managent 3 Future Managers 16

2.1 Illustrate the application of ethical practices in the formulation and management of the

project plan

• Project charter– The project charter has to exist for the project

to be ethical

• Feasibility study– Without a feasibility study, the project cannot

ethically start

– Influence on stakeholders has to be spelled out

– Concerns must be clarified

Project Managent 3 Future Managers 17

2.1 Illustrate the application of ethical practices in the formulation and management of the

project plan

• Scope management– Must clearly defined what the project includes

and what the project doesn’t include

– Hidden agendas mustn’t exist

• Work breakdown structure– Work must be fairly distributed

– Clarity must be given about the responsibilities of each team member

Project Managent 3 Future Managers 18

2.1 Illustrate the application of ethical practices in the formulation and management of the

project plan

• Critical path method– There must be definite clarity as to what will be

done and for how long

• Communication plan– Each member of the project should know exactly

what is going to happen

• Project quality plan– The quality audit must be done by an independent

quality firm– Assumptions must be documented

Project Managent 3 Future Managers 19

Activity – Ethics in project management

Project Managent 3 Future Managers 20

• In your groups, discuss the meaning and differences (if any) between ethics and a code of conduct

• Spell out ethical elements that should form part of the project plan

• Bring a copy of a code of conduct to the classroom