Project Management Ethics Practice Questions PDF

A project manager is leading a high-profile initiative and is pressured by senior executives to present the project as "on track", even though significant budget overruns and delays exist. They believe that reporting truthfully may jeopardize stakeholder confidence. What should the project manager d...

A project manager is leading a high-profile initiative and is pressured by senior executives to present the project as "on track", even though significant budget overruns and delays exist. They believe that reporting truthfully may jeopardize stakeholder confidence. What should the project manager do? A. Report the actual project status transparently, detailing corrective actions to manage concerns. B. Present the project as "on track", since disclosing issues could cause unnecessary panic. C. Provide only partial information, emphasizing successes while minimizing challenges. D. Adjust status reports to reflect executive expectations, ensuring continued project support. Correct Answer: A A project sponsor asks a project manager to delay reporting a data breach to avoid bad press. While no immediate harm has occurred, withholding this information may impact client trust and legal compliance. What should the project manager do? A. Report the breach immediately, ensuring legal and ethical compliance. B. Delay disclosure until an internal damage assessment is completed. C. Follow the sponsor's directive, since no direct harm has been identified. D. Consult with legal counsel but avoid acting without executive approval. Correct Answer: A During vendor selection, a project manager discovers that one supplier is a close friend. Though their company meets requirements, there are other equally qualified candidates. What should the project manager do? A. Declare the relationship and remove themselves from the selection process. B. Award the contract to their friend’s company, since they meet the qualifications. C. Proceed with the selection but ensure a strict evaluation process is followed. D. Avoid discussing the relationship unless formally questioned. Correct Answer: A A client requests that a project manager falsify project completion percentages to align with their own reporting cycle, even though actual progress is lower. The client argues that this will "buy time" to resolve delays internally. What should the project manager do? A. Refuse the request and uphold accurate reporting standards. B. Adjust the percentages slightly to meet the client’s expectations. C. Agree, since it’s the client’s responsibility to manage their reporting. D. Delay reporting project progress until work is closer to the desired numbers. Correct Answer: A A junior team member accidentally accesses confidential data beyond their clearance level. The information is not directly related to the project, but keeping it could offer a competitive advantage. What should the project manager do? A. Report the incident and ensure the data is not used improperly. B. Allow the team member to use the data, as long as they remain discreet. C. Ignore the situation since no immediate harm has occurred. D. Restrict access but do not escalate the issue, avoiding unnecessary attention. Correct Answer: A A project manager notices biased hiring practices within the company, where certain candidates are favored based on personal relationships rather than merit. While they are not directly responsible for hiring, they are expected to onboard new team members. What should the project manager do? A. Escalate concerns to HR, advocating for transparent and fair hiring practices. B. Accept the hires, since recruitment decisions are beyond their authority. C. Onboard the selected candidates but ensure diversity in future hiring rounds. D. Focus on project execution rather than internal company policies. Correct Answer: A A senior stakeholder requests that the project manager hire their relative as a consultant, despite the candidate lacking relevant qualifications. Refusing could damage the relationship, but hiring them may set a bad precedent. What should the project manager do? A. Decline the request, emphasizing the need for a fair selection process. B. Approve the hire to maintain a strong stakeholder relationship. C. Accept but place the candidate in a non-critical role. D. Pass the decision to HR, avoiding direct involvement. Correct Answer: A A project faces budget cuts, and a project manager must decide which costs to reduce. An external consultant suggests inflating certain expense reports to maintain funding. What should the project manager do? A. Reject the suggestion, ensuring financial transparency. B. Consider minor cost adjustments, as long as they do not violate policies. C. Accept the proposal to protect project funding. D. Reduce reporting frequency to avoid detection of financial discrepancies. Correct Answer: A A project manager uncovers bribery during vendor negotiations. The supplier has offered personal incentives in exchange for an exclusive contract. What should the project manager do? A. Report the supplier immediately and disqualify them from consideration. B. Reject the offer but do not escalate the issue to avoid complications. C. Accept the deal if it benefits the project financially. D. Seek internal guidance before making a final decision. Correct Answer: A A project manager is working internationally and discovers that local business culture accepts "facilitation payments" to speed up approvals. This is technically legal but violates company ethics policies. What should the project manager do? A. Adhere to company policies, refusing to make unethical payments. B. Pay, since it’s considered a local business norm. C. Request approval from senior management before making a decision. D. Avoid raising concerns, as it could jeopardize the project’s success. Correct Answer: A A project manager accidentally receives an internal report outlining a competitor’s financial projections. The document was sent in error but could provide a competitive advantage if used for decision-making. What should the project manager do? A. Return the document immediately and notify the sender of the mistake. B. Share the report internally, since it was received legally. C. Use the information to adjust project strategies but keep it confidential. D. Avoid discussing the report but retain it for potential future reference. Correct Answer: A A senior executive asks the project manager to fast-track approval of a deliverable without conducting the required quality assurance checks. The executive claims that meeting the deadline is more important than minor quality issues. What should the project manager do? A. Refuse to bypass quality checks, ensuring compliance with project standards. B. Approve the deliverable as requested to meet the deadline. C. Conduct only partial quality checks to save time. D. Seek a waiver from the executive to absolve responsibility. Correct Answer: A A project manager learns that a subcontractor is using unethical labor practices. While the contract is legally binding, continuing with them could damage the company’s reputation. What should the project manager do?  A. Investigate further and escalate concerns to company leadership. B. Ignore the issue, as it does not directly affect project outcomes. C. Continue the contract while privately distancing the company from the supplier. D. Wait for external scrutiny before taking action. Correct Answer: A A project manager realizes that the team's performance metrics are being manipulated to make the project appear more successful than it actually is. Stakeholders are making critical decisions based on false data. What should the project manager do? A. Correct the manipulated data and report accurate metrics immediately. B. Ignore the issue, assuming that small adjustments won’t impact overall outcomes. C. Modify future reports gradually to transition to more accurate reporting. D. Confirm with stakeholders before disclosing the full extent of the discrepancies. Correct Answer: A A project manager notices that a team member has been accessing unauthorized project files containing sensitive client information. The employee claims they did so out of curiosity and did not use the datWhat should the project manager do? A. Report the incident according to company policy and reinforce data security protocols. B. Allow the employee to continue working but issue a verbal warning. C. Delete the files from their access history and move forward without action. D. Inform the client that a minor breach occurred but downplay its significance. Correct Answer: A A project manager is offered an all-expenses-paid trip by a vendor bidding for a new contract. The vendor insists that the trip is not tied to any decision-making and is a general networking opportunity. What should the project manager do? A. Decline the offer, ensuring procurement decisions remain unbiased. B. Accept the offer but ensure it does not influence decision-making. C. Accept the trip but disclose it to stakeholders for transparency. D. Refer the offer to a colleague who is not involved in vendor selection. Correct Answer: A A project team is instructed to use a new software tool that violates data privacy regulations in certain regions. The vendor claims that compliance is not strictly enforced, and most companies ignore it. What should the project manager do? A. Refuse to implement the tool until it meets compliance standards. B. Proceed with using the tool, assuming legal consequences are unlikely.  C. Allow the team to use the tool only in non-regulated regions. D. Implement the tool and track potential risks in case of legal action. Correct Answer: A A project sponsor suggests delaying payments to suppliers as a tactic to improve the company’s quarterly financial statements. While this does not break any contract terms, it could strain supplier relationships. What should the project manager do? A. Reject the suggestion, prioritizing ethical financial practices. B. Agree, since delaying payments does not legally violate contracts. C. Negotiate new contract terms with suppliers without informing them of the real reason. D. Allow minor delays but ensure suppliers are eventually compensated. Correct Answer: A A project manager discovers that their direct report has been inflating work hours on their timesheets. The employee insists that everyone does it and that it is a company-wide practice. What should the project manager do? A. Report the falsified timesheets and reinforce integrity expectations. B. Ignore the issue to avoid creating tension within the team. C. Adjust the timesheets quietly but avoid disciplinary action. D. Give the employee a warning but allow them to correct their own records. Correct Answer: A A project requires approval from a government agency, and a local intermediary offers to "expedite" the process for a small cash payment. The intermediary claims this is standard practice in that region. What should the project manager do? A. Decline the offer, ensuring compliance with anti-bribery laws. B. Accept the offer, as long as it is documented as a business expense. C. Proceed with the payment, assuming it is considered legal in that country. D. Have a third-party representative handle the transaction for deniability. Correct Answer: A A project manager is under pressure to approve an incomplete deliverable to meet a contractual milestone. The client has already made partial payments and is expecting the product on time, but the quality assurance tests have not been completed. What should the project manager do? A. Refuse to approve the deliverable until all quality assurance checks are complete. B. Approve the deliverable but inform the client of the missing tests. C. Submit the deliverable with minor modifications, assuming issues can be fixed later. D. Delay reporting the quality issues to the client until after payment is secured. Correct Answer: A A senior executive pressures the project manager to select a specific vendor, despite concerns over their inflated pricing and past ethical violations. The executive argues that this vendor has been a long-term business partner. What should the project manager do? A. Insist on a competitive bidding process, ensuring ethical procurement. B. Select the vendor to maintain good relations with the executive. C. Justify the decision by redefining evaluation criteria to favor the vendor. D. Proceed with the vendor but ensure additional oversight is in place. Correct Answer: A A project manager is asked to modify an employee’s performance review to make it more favorable. The request comes from a senior manager who wants to help the employee secure an internal promotion. What should the project manager do? A. Refuse to modify the review, ensuring performance assessments remain accurate. B. Make minor adjustments to help the employee while keeping the review mostly intact. C. Approve the changes, assuming it will benefit the company in the long term. D. Delay submitting the review until external pressures subside. Correct Answer: A A project sponsor offers the project manager a personal financial incentive in exchange for expediting approval of certain project expenses that are outside of budget guidelines. What should the project manager do? A. Report the bribery attempt to the appropriate compliance authorities. B. Accept the incentive but ensure it does not influence decision-making. C. Approve the expenses as requested to maintain a good relationship with the sponsor. D. Ignore the request but do not escalate to avoid workplace conflict. Correct Answer: A A project team member is publicly criticizing the company’s ethical standards on social media. Their comments do not violate company policy but could damage the organization’s reputation. What should the project manager do? A. Have a private discussion with the employee, reinforcing ethical communication expectations. B. Escalate the issue to HR for formal disciplinary action. C. Ignore the situation, as it is outside the scope of the project. D. Issue a public statement refuting the employee’s claims. Correct Answer: A A key supplier is struggling with delivery deadlines and offers the project manager a personal incentive to approve an extension without informing the client. What should the project manager do? A. Reject the offer and report the ethical violation to company leadership. B. Accept the incentive but disclose the extension to the client later. C. Approve the extension, assuming it will benefit the project in the long run. D. Allow the supplier to adjust their schedule but avoid documenting it. Correct Answer: A A project manager is assigned to lead an initiative in a country where gender discrimination is prevalent. The local business culture expects men to make final project decisions, even though the project manager is a woman. What should the project manager do? A. Uphold company diversity and inclusion policies, ensuring decisions are made equitably. B. Allow local cultural norms to dictate leadership roles within the project. C. Request a male counterpart to handle external negotiations. D. Avoid addressing cultural biases to prevent conflicts with local stakeholders. Correct Answer: A An external consultant requests access to sensitive project data, claiming it will help them provide better recommendations. However, the consultant does not have the proper security clearance. What should the project manager do? A. Deny access and follow proper security protocols to protect sensitive data. B. Grant access, assuming the consultant will handle the data responsibly. C. Share only non-critical portions of the data. D. Ask team members to share the data informally to bypass security controls. Correct Answer: A A project manager notices that one of their team members is being treated unfairly due to their ethnic background. The affected employee has not filed a complaint but appears demotivated. What should the project manager do? A. Address the situation proactively, reinforcing a culture of inclusivity and fairness. B. Wait for the employee to file a complaint before taking action. C. Reassign the employee to a different team to avoid conflict. D. Ignore the situation to maintain workplace harmony. Correct Answer: A A client insists that the project team "repurpose" existing project funds to cover unapproved expenses. The request is minor but violates budget policies. What should the project manager do? A. Reject the request, ensuring financial integrity is maintained. B. Approve the request, assuming the changes will not be detected. C. Find a loophole in the budget to accommodate the request. D. Delay action until an alternative funding solution is identified. Correct Answer: A A project manager overseeing a large-scale IT infrastructure upgrade discovers that the selected vendor has a history of underpaying subcontractors and has faced lawsuits regarding poor labor conditions. While the vendor meets all technical and contractual requirements, continuing the partnership could lead to reputational damage for the company. What should the project manager do? A. Escalate the concern to senior leadership, recommending a review of the vendor’s ethical track record before continuing. B. Proceed with the vendor, since the contract is already signed, ensuring that project objectives are met. C. Privately investigate the issue but avoid involving leadership unless further ethical breaches are uncovered. D. Ask the vendor to confirm compliance with labor laws but continue the contract without deeper investigation. Correct Answer: A During a project audit, the project manager notices several minor accounting discrepancies in how vendor payments have been logged. The discrepancies are small enough that they do not impact overall financial accuracy, but failing to report them could set a precedent for overlooking financial mismanagement. What should the project manager do? A. Report the discrepancies to the finance department, ensuring full transparency and financial accountability. B. Ignore the minor discrepancies, as they do not materially affect the overall project budget. C. Adjust future records to compensate for the errors and prevent issues in later audits. D. Discuss the issue only with the vendor to correct the records informally. Correct Answer: A A project team member privately confides in the project manager that their supervisor has been pressuring them to manipulate project reports to make key performance indicators (KPIs) appear more favorable. The employee fears retaliation if they report the issue. What should the project manager do? A. Document the concern and escalate it confidentially to HR and compliance teams, ensuring the employee is protected. B. Advise the team member to comply with their supervisor’s request to avoid conflict. C. Speak to the supervisor informally, asking them to reconsider the request without escalating the issue. D. Tell the team member to gather more evidence before taking any action. Correct Answer: A A government-funded project is required to follow strict diversity hiring policies, but a senior stakeholder insists on hiring an unqualified candidate due to their long-standing relationship with the company. Approving the hire could risk regulatory penalties, but refusing may strain relations with leadership. What should the project manager do? A. Uphold hiring policies and reject the request, ensuring compliance with diversity and fairness regulations. B. Approve the hire, justifying it as an internal business decision. C. Offer the candidate a lower role to balance stakeholder demands with hiring policies. D. Delay the hiring decision while attempting to resolve the issue quietly. Correct Answer: A A project manager is informed that a team member has been using company resources for personal projects during work hours. The employee is a high performer, and disciplinary action could negatively impact project progress. What should the project manager do?  A. Address the issue formally, ensuring company policies are followed while recognizing the employee’s contributions. B. Overlook the misuse of resources, as long as the employee maintains strong performance. C. Give the employee an informal warning and monitor their behavior going forward. D. Report the issue but advocate for leniency due to their past performance. Correct Answer: A A key stakeholder offers the project manager insider information about an upcoming corporate restructuring that could affect project funding. The information is not yet public, but using it could allow the project team to make strategic adjustments in advance. What should the project manager do? A. Refuse to use or share the insider information, ensuring compliance with corporate ethics policies. B. Use the information for internal project planning, as long as it remains confidential. C. Seek legal advice before making a decision on how to proceed. D. Inform team members discreetly so they can prepare for potential impacts. Correct Answer: A A project manager is overseeing an international construction project and discovers that local environmental laws are significantly weaker than their home country’s standards. The project can legally proceed without additional environmental protections, but doing so could cause significant ecological harm. What should the project manager do? A. Implement higher environmental standards voluntarily, aligning with ethical corporate practices even if not required by law. B. Follow the local regulations only, ensuring compliance but avoiding additional costs. C. Let company leadership decide whether additional protections should be implemented. D. Proceed with the project as planned, assuming that competitors would take the same approach. Correct Answer: A A project manager’s direct report takes credit for another team member’s work during a stakeholder meeting. The misrepresentation could increase their chances for promotion, but the actual contributor is too junior to challenge the claim. What should the project manager do? A. Clarify the contributions in a professional manner, ensuring credit is given fairly. B. Privately inform the actual contributor that they should speak up in future meetings. C. Allow the misrepresentation to stand, as long as it benefits the project. D. Wait for performance reviews to address the issue rather than correcting it immediately. Correct Answer: A A project manager is working with a consultant who is also employed by a competitor. There is no clear conflict of interest, but they have access to sensitive project strategies. What should the project manager do? A. Implement stricter confidentiality agreements and monitor access to proprietary information. B. Remove the consultant from the project to eliminate potential risks. C. Proceed with the consultant but restrict their access to non-sensitive data. D. Assume the consultant will act ethically unless evidence of misconduct arises. Correct Answer: A A project manager is asked to reduce workplace safety measures to lower project costs. While the legal requirements will still be met, the reduced measures increase risk to workers. What should the project manager do? A. Reject the request and advocate for maintaining safety standards, even if it increases costs. B. Accept the request, as long as minimum legal safety requirements are met.  C. Reduce safety measures temporarily, with a plan to restore them later. D. Approve the reduction and shift liability to subcontractors. Correct Answer: A A project manager is leading a research initiative where a subcontractor has discovered a potentially dangerous flaw in an early-stage prototype. However, the client has heavily invested in the project and insists on proceeding with development without disclosure, citing that the risk is still hypothetical. The project manager is torn between honoring the client’s directive and ensuring the flaw is properly evaluated. What should the project manager do? A. Pause development and escalate the issue to both internal ethics committees and regulatory bodies if necessary, ensuring that the potential risk is addressed transparently. B. Proceed with the client’s directive while documenting internal concerns, ensuring there is a paper trail for liability. C. Reduce internal discussion of the flaw to maintain project momentum and avoid political fallout with the client. D. Request the subcontractor to document the flaw but proceed unless external parties identify a clear danger. Correct Answer: A A senior manager instructs the project manager to hire a specific individual for a leadership position within the project, despite the candidate lacking key skills. The hiring decision could create internal friction but rejecting it might jeopardize the project manager’s working relationship with leadership. What should the project manager do? A. Insist on a fair hiring process, ensuring that all candidates are evaluated based on merit and competency. B. Accept the request but provide additional training to the selected individual to mitigate risks. C. Approve the hire but limit their decision-making power to reduce impact.  D. Reject the request but propose a compromise candidate who is close to the senior manager’s preference. Correct Answer: A During contract negotiations, the client suggests that the project team "speed up approvals" by bypassing certain internal review processes that they consider unnecessary. The change would reduce paperwork but may increase risk exposure for the company. What should the project manager do? A. Reject the request and uphold the integrity of the internal review process, even if it slows progress. B. Accept the change as long as senior management is informed. C. Implement the change but keep a personal record of the approvals in case issues arise later. D. Allow the client’s request if they formally assume liability for any associated risks. Correct Answer: A A junior employee confesses to the project manager that they have been asked to falsify safety compliance data by their direct supervisor. They are concerned about retaliation if they refuse but also worry about the legal and ethical implications of compliance violations. What should the project manager do? A. Report the compliance violation immediately, ensuring that the issue is investigated and the employee is protected. B. Advise the employee to comply but document their concerns privately. C. Delay action while gathering additional proof before escalation. D. Informally warn the supervisor but avoid formal reporting. Correct Answer: A The project manager learns that a key supplier is using substandard materials that technically meet contractual obligations but may reduce product longevity. Reporting the issue could delay the project and increase costs, but ignoring it may lead to higher failure rates post-deployment. What should the project manager do? A. Inform stakeholders and assess alternative suppliers, prioritizing long-term project integrity over short-term gains. B. Accept the materials, as they meet the technical requirements, and monitor any potential failures. C. Reduce testing requirements to ensure the project remains on schedule. D. Request the supplier to improve materials only for high-risk components but not across the entire project. Correct Answer: A A project sponsor privately requests that the project manager redirect some project resources to support an unrelated initiative that is politically important to leadership but outside the original project scope. The request is unofficial, and there is no formal documentation backing it. What should the project manager do? A. Reject the request unless it is formally approved, ensuring that all resource allocations align with project governance standards. B. Approve the reallocation but ensure that the original project deliverables remain unaffected. C. Proceed as requested but document the decision privately in case of future disputes. D. Delay action while discussing potential alternatives with the sponsor. Correct Answer: A A global project involves collecting customer data from multiple regions, but some locations have stricter privacy laws than others. The client suggests applying the least restrictive standards globally to simplify data handling. What should the project manager do? A. Adopt the strictest regional standards across all locations, ensuring compliance with all applicable laws.  B. Accept the client’s approach, assuming that weaker regulations in some regions will not cause legal issues. C. Create two sets of compliance processes, one for strict regions and another for more flexible ones. D. Proceed with the lower standards but encrypt sensitive data as an extra precaution. Correct Answer: A A project team member discovers a competitor’s confidential internal document on a public website that was likely uploaded by mistake. The document contains information that could give the team a strategic advantage. What should the project manager do? A. Report the issue to the competitor or the platform hosting the document, ensuring ethical integrity is maintained. B. Download and use the document, since it was made publicly available. C. Share the document internally but avoid external discussions to reduce risks. D. Save the document but avoid using it directly in strategic planning. Correct Answer: A A new regulatory change requires adjustments to an ongoing project’s scope and budget, but the project sponsor insists on delivering the original scope without additional resources. Complying may lead to noncompliance or quality issues. What should the project manager do? A. Inform stakeholders that the regulatory change requires a revised scope and budget, ensuring compliance. B. Attempt to deliver the original scope while managing risks quietly. C. Request an internal waiver for regulatory adjustments to proceed as planned. D. Delay implementation of compliance changes to buy time. Correct Answer: A A high-ranking executive pressures the project manager to give preferential treatment to a particular supplier during contract negotiations, citing long-term company relationships rather than objective qualifications. What should the project manager do?  A. Refuse to engage in favoritism and enforce a fair, competitive selection process, aligning with company policies. B. Accept the executive’s request but ensure the supplier meets minimum qualifications. C. Proceed with the preferred supplier but document concerns privately. D. Comply with the request if it ensures executive support for future projects. Correct Answer: A