Conflict of Interest
A conflict of interest occurs when a practitioner’s personal interests, relationships, or outside activities could improperly influence their professional judgment or decision-making on a project.
Explanation
Conflicts of interest are one of the most frequently tested ethics topics on the PMP and CAPM exams. They arise when a project manager or team member has a personal stake that could bias project decisions. Common examples include having a financial interest in a vendor bidding on the project, hiring a family member for a project role, or accepting gifts from a supplier during a procurement process.
The PMI Code of Ethics addresses conflicts of interest primarily under the fairness value. The mandatory standard requires practitioners to proactively disclose any real or potential conflicts of interest to the appropriate stakeholders. In many cases, disclosure alone is sufficient; in others, the project manager may need to recuse themselves from the decision entirely.
The key principle to remember for the exam is that the ethical obligation is to disclose first, then let the appropriate authority decide how to handle the conflict. Attempting to manage a conflict of interest secretly, even with good intentions, is a violation of the Code.
Key Points
- •Occurs when personal interests could bias professional decisions
- •Must be proactively disclosed to appropriate stakeholders
- •Disclosure is always the first required step
- •May require recusal from the decision-making process
Exam Tip
The correct answer to any conflict-of-interest scenario is always to disclose it first. Never try to manage the conflict silently, and never assume it does not matter because you believe you can remain objective.
Frequently Asked Questions
Related Topics
Fairness (Ethical Principle)
Fairness is the PMI ethical principle requiring practitioners to make decisions and act impartially and objectively, free from self-interest, prejudice, and favoritism.
Honesty (Ethical Principle)
Honesty is the PMI ethical principle requiring practitioners to understand the truth and act in a truthful manner, both in communications and in conduct.
Ethical Decision-Making Framework
An ethical decision-making framework is a structured approach for evaluating and resolving ethical dilemmas by applying the core values of the PMI Code of Ethics: responsibility, respect, fairness, and honesty.
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Part of
Ethics & Professional Responsibility
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