Professional Responsibilities Questions 1. PMI's ethical standards document describes the professional obligations to which a member must adhere. These fall into which of the following categories? a) Responsibilities to the profession, to customers, and to the public b) Professional practices c) Advancement of the profession d) Truthful advertising 2. You and your friend Jim are both PMPs. Jim is advertising himself locally as an expert in human resources. He is listing projects you know he never worked on. What should you do? a) Nothing. Unless Jim actually gets a job in the field, no violation has occurred. b) Confront Jim and tell him you feel he is engaging in false advertising. Ask him to pull the ad, or you will have to report him to PMI. c) Gather the data you need, including copies of the ad, and report Jim to PMI. d) The doctrine of caveat emptor applies here. Let the buyer beware. You do not have any obligation to do anything. 3. As a PMP, you need approximately 20 hours of professional development units (PDUs) per year to maintain your certification on a three-year cycle. You are now in your third year, and realize you are desperately short of PDUs. A friend recommends submitting early for classes you are scheduled to take. What do you do? a) Go ahead and submit the forms for credit. You are planning to take the classes. b) Do not submit for credit in advance. You might be suspended for not meeting your PDU requirements, but may be able to make them up. c) If you have already paid for the classes, you can submit for the credit. d) Do not submit for credit in advance. You will be permanently barred from PMI for false reporting. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 1/8
4. The PMI Member Code of Ethics pledges all but which of the following? a) Professional conduct b) Taking responsibility for your actions c) Enhancing professional capabilities d) Accepting reasonable and customary profits 5. Renee orders printer ink cartridges for her project from a new supplier who appears to have the lowest cost. After delivery of the cartridges, the sales rep calls Renee to thank her for the order, and tells her he will be sending her a portable grill as a thank-you gift for her order. What should Renee do? a) Accept the gift. It did not influence her decision to purchase the cartridges. b) Refuse the gift to avoid the appearance of impropriety. c) Report the cartridge company to the Better Business Bureau. d) Ensure the gift becomes a company asset and not a personal asset. 6. Bob works at a manufacturing firm as a contract project manager. He is responsible for choosing a circuit component supplier for his project. Bob is also a silent investor in CIRQ, a circuit component startup that is on the vendor selection list for his project. What should Bob do? a) Select CIRQ. His project benefits and he reaps side benefits for his investment. b) Immediately disclose to the manufacturing company that he is a silent investor in one of the vendors on the list. c) Recuse himself from the vendor selection process. d) Disqualify CIRQ from the vendor selection list. 7. Ralph is a PMP creating an in-house Project Management website. He has used a number of PMBOK and RUP diagrams and materials, but you notice he has not attributed them to the source. What should you do? a) Report Ralph to the in-house legal group. b) Document the website and send it to PMI so that Ralph is properly sanctioned. c) No action by you is necessary. Because it is an in-house website, there is no issue with intellectual property. d) Approach Ralph and indicate that he might be violating copyright laws. Suggest that he obtain permission for use and provide proper attribution on the website. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 2/8
8. Your co-worker has written a report, which is really your job. You want to take it and re-form it slightly, and then submit it to your boss yourself. Your coworker is fine with this approach. Should you? a) No. It is a failure to disclose conflicts. b) Yes. It is simply an example of a co-worker helping you out. c) No. It is an example of failure to recognize and respect intellectual property. d) No. This is an example of improper research. 9. Rob is an old hippie turned project manager and is very successful in the warehousing industry. At work, Rob is impeccable, truthful, and well qualified. At home, he likes to indulge in some of his old habits, including smoking marijuana occasionally on weekends. How does this affect his status with PMI? a) It doesn't. What is done in the privacy of your own home is not of concern to PMI. b) PMI is only concerned with professional behavior. Rob is clearly an exemplary PMP. c) Rob is actually violating one of the PMI responsibilities of membership, which is to abide by the laws of the community and not knowingly engage in criminal conduct. d) Rob is violating responsibilities to customers and to the public. 10. Ray is a project manager working on strategic projects for a coat manufacturer. He has developed a business case for a new warehouse, but the return on investment (ROI) is negative. I need to have a 10% positive ROI for this project, his boss tells him. Change the forecast so we can get the project approved. What should Ray do? a) Change the forecast to get the positive ROI, because his boss asked him to. b) Refuse to modify the data, and risk losing his job. c) Explain that ROI might not be the only consideration for the approval of a project, and ask his boss to focus on the strategic nature of the project, rather than changing the ROI. d) Modify the data, as his boss requested, and add a disclaimer to the report that he disagrees. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 3/8
11. Liz is a PMP, and values the process discipline of Project Management. In a conversation with her, she complains about the professional responsibility requirements of PMI. How would you describe the purpose of maintaining an ethical standard as a PMI member? a) That it maintains the integrity of PMI as an organization b) That it is good for profits c) To ensure all PMI members behave in a professional manner d) To earn and maintain the confidence of team members, colleagues, employees, employers, customers and clients, the public, and the global community 12. As a contract project manager, you have just finished a major product development project for a bicycle manufacturer, Racebikes. Bike-Tech, a competitor to Racebikes, has approached you to develop a similar product for it. What should you do? a) Take the job. Leverage the knowledge of Racebikes to create an even better product for Bike-Tech. b) Decline the engagement due to confidentiality issues. c) Determine whether the new engagement will cause you to breach any confidentiality issues with Racebikes. d) This situation represents your ability to leverage your industry knowledge. Take the engagement. 13. You are a PMP working as a project manager on a new fiber-optic circuit that you know will revolutionize the computer industry. You decide to buy stock in your company one week before the product announcement and have told several friends to do so also, without disclosing why. Would PMI sanction this behavior? a) Yes. You did not disclose why your friends should buy the stock. b) No. You are engaging in insider trading. c) Yes. It is only your opinion that the product will revolutionize the computer industry. d) Yes. PMI would invoke sanctions against you as a PMI member. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 4/8
14. Richard owns 10% of a company that competes with the one he is currently doing a project for. He decides he will bring up his stock ownership only if it becomes necessary in the course of his project. Has Richard made the right decision? a) No. Richard is violating the timeliness of the disclosure clause in the PMI Member Standards of Conduct. b) Yes. Richard, as an individual, cannot affect the stock value of either company, so therefore he does not need to disclose anything. c) Yes. Unless Richard is an employee of the competing company, it does not matter. d) Yes. Unless Richard is working on a strategic project, his stock ownership does not matter. 15. Iman is working in a Middle Eastern country and knows that bribes are a legitimate custom in doing business. Iman works for a U.S. company and knows that U.S. law prohibits bribery. He is attempting to win a contract to construct a water treatment facility and is expected to pay a $5,000 finder's fee to the local utility official. What should Iman do? a) Provide the fee. PMI approves of obeying local customs. b) Provide the finder's fee. Because it is a fee, there is no issue. c) Do not provide the fee and risk losing the business. It is illegal in the U.S., and Iman works for a U.S. firm. d) Provide the fee outside of his business capacity. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 5/8
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Anwers: 1. Answer A is correct. Answers B, C, and D are subcategories of the professional obligations category. 2. Answer B is correct. Although it is tempting to believe Answers A and D, as a PMI member or candidate, you have a responsibility to report possible violations of the code of professional conduct. Answer C is incorrect because you need to first discuss the situation with Jim, exercising the reasonable and clear factual basis rule. 3. Answer B is correct. Answer A is tempting, but would be submitting a false report. Answer C is incorrect; you must attend and attain the learning objectives to count PDUs. Answer D is tempting but incorrect because a false report is a violation of the Code of Ethics, but it might not necessarily result in permanent barring from PMI. 4. Answer D is correct. Answers A, B, and C are all parts of the Code of Ethics. There is no provision for the evaluation of profits. 5. Answer B is correct. Although Answers A and D might be tempting, the appearance of impropriety (A4) is important, and should be disclosed or avoided. Answer C is not necessary unless the cartridge company has done something illegal. 6. Answer B is the best answer. Answer A is incorrect because Bob definitely has a conflict of interest. Answers C and D are tempting, and could be options, if the manufacturer feels the conflict is too big. Bob's first step, however, should be to disclose the conflict, and then decisions on actions can be made. 7. Answer D is correct. Approaching Ralph is the first step. Answers A and B might be necessary if Ralph refuses to correct the error. Answer C is incorrect because intellectual property needs to be protected in-house as well as in public realms. 8. Answer C is correct. Answer A is incorrect because this situation is not a conflict of interest. Answer B might be true, but you are taking credit for someone else's work. Answer D is incorrect because you don't know whether the research was done properly. 9. Answer C is correct. Although Answers A and B might seem to be true, they are not. Answer D is incorrect because applicable laws are not part of the section on responsibilities to the public or customers. 10. Answer C is correct. This type of problem occurs often in business and is tricky because it can end with a confrontation and possible job loss. No job, however, is more important than your integrity. Answer A is incorrect unless his boss has new data that would change the ROI significantly. Answer B is incorrect because it is not the best approach to a situation. Answer D is also incorrect because it is unlikely that any disclaimer will be allowed into a project proposal. 11. Answer D is correct. This is in the preamble to the Member Code of Ethics. Answers A, B, and C are byproducts of ethical behavior. 12. Answer B is correct. Although opportunities arise often in which we have industry information without causing confidentiality problems, this is a case in 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 7/8
which a competitor wants a similar product. The likelihood that confidentiality will be breached is very high. Answers A and D are tempting because we are often asked as PMs to do projects within the same industry. Answer C is possible, but not likely. 13. Answer B is correct. Answers A and C are incorrect because you are taking financial advantage of confidential information, which is considered an ethics violation. Answer D is incorrect and tricky because it is an alternative use of the word sanction. The question asks whether PMI would sanction the behavior, using the verb, meaning approve. Answer D talks about sanctions, (nouns) or punishments. 14. Answer A is correct. Under professional behavior, A1 timely and full disclosure is a requirement of members. Answer B is incorrect because a 10% ownership is significant and can affect stock values. This is also a conflict of interest for Richard to be working for a competing company. Answers C and D are not correct in any way. Neither employment nor the strategic nature of a project are factors in disclosure decisions. 15. Answer C is correct. Answer A is incorrect because, although PMI approves of obeying local customs, it does not approve of breaking the law. Because Iman works for a U.S. company, he is subject to U.S. laws. Answers B and D are incorrect because they are trying to use other ways to justify the bribe. 2013, PMI-Montreal PMP /CAPM Preparation Seminars Prof. Responsibilities 8/8