During discussions about resource allocations, Sandra, one of your team members in the Cool Widgets scenario, suggests a resource in New York who could deliver the training to the employees in that office. Sandra has worked with the resource before and enthusiastically recommends the firm. This is a welcomed idea because the location of the Cool Widgets office is in a small town, a two-hour drive north of New York City. After the meeting, you discover by accident that the resource is Sandra’s brother, who owns and operates the training company she has recommended. After reviewing the PMI Code of Ethics and Professional Conduct, identify which potential ethical violations exist. Explain why Sandra’s recommendation could have ethical problems, then explain how you will address the resource recommendation by your team member. Your initial response should be at least 250 words.
The ethical violation that exists in this scenario is related to the conflict of interest according to PMI Code of ethics and professional conduct. Every employee has the duty of loyalty towards the organization which defines the responsibility to promote the best interest of the organization without showing personal interest. Conflict of interest occurs in situation when the employee tries to influence the decisions of the organization using the employee’s position and the employee personal interests appear to be in conflict with the organization’s interest. If there is a conflict of interest in the situation and employee is aware of the conflict, the employee should disclose the same to the affected stakeholders and proceed only after getting the consent of the stakeholders. If the employee is unable to disclose the details, the employee should refrain from doing such things or should not take part in decision making process. In the given case, Sandra is trying to make the opportunity for external training in the organization to the advantage of her brother using her position. She does not disclose the fact that the person running the training company she has suggested is her brother and her brother is going to get benefit out of the deal. While recommending her brother, she should have informed the stakeholders involved in the situation including me that her brother is the concerned resource she suggested. Hence this is an ethical situation involving favoritism which leads to conflict of interest and Sandra need to promote the best interest of the organization without showing personal interests.