Is it ethical for project managers to manipulate budgets? The bigger the project, the more opportunities arise for people or companies to compromise their ethics in an effort to bring the project in on time and on budget. Compensation often is determined in part by meeting certain earnings targets, frequently rooted in the budget. Managers, in turn, have incentives to manipulate the budget to maximize their pecuniary benefits (such as salary, commissions, or bonus) while avoiding actions that might make it more difficult to meet next years performance standards. Given the widespread nature and acceptance (in some cases) of using the budget to influence pay, it is not always clear whether these behaviors are ethical or unethical. Do some online research to help you address the question. Consider the pros/cons associated with budget manipulation. Does the Project Management Institute (PMI) address this issue and if so what is its position? If budget manipulation is common in an industry, can it really be considered unethical? Including personal experiences and general thoughts on the topic are encourage as well.

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