Unit 4: Ethics in consulting
IT Consulting notes · PTU syllabus (MBA 945-18)
On this page
Unit summary
Consultants hold privileged access and influence, so ethics is central to their work. This unit covers principles of ethical consulting, approaches to ethics, codes of ethics, unethical consultant behaviours, business and international business ethics, and responsibility and accountability.
After this unit you can
- Explain principles and approaches to ethical consulting
- Explain codes of ethics for consultants
- Identify unethical consultant behaviours
- Explain business and international business ethics and accountability
PTU syllabus topics
- Principles for ethical consulting
- approaches to ethics
- codes of ethics
- unethical consultant behaviours
- business and international business ethics
- responsibility and accountability
Confidentiality
Protect client information
Objectivity
Honest advice even if unwelcome
Competence
Accept only work you can do
Conflict of interest
Disclose it
Fair fees
No padding hours
Topic 1
Principles for ethical consulting
- Integrity, objectivity and independence, confidentiality, competence, fairness in fees and billing, avoiding conflicts of interest, respect for client autonomy, honesty in reporting, responsibility to society.
Topic 2
Approaches to ethics
Teleological (consequentialist)
Utilitarianism — greatest good for the greatest number (Bentham, Mill); ethical egoism
Deontological (duty-based)
Kant's categorical imperative — act only on maxims you could will as universal; treat people as ends
Virtue ethics
Aristotle — character traits like honesty, courage, justice
Justice theory
Rawls — fairness, veil of ignorance, difference principle
Rights theory
Respect fundamental rights (life, privacy, free speech)
Indian ethos
Gita's nishkama karma, trusteeship (Gandhi)
Topic 3
Codes of ethics
- Professional bodies: ICMCI (International Council of Management Consulting Institutes), IMC USA, Institute of Management Consultants of India; ACM and IEEE codes for computing professionals; ISACA code for IT audit and governance.
- Common provisions: serve the client's interests, disclose conflicts, protect confidential information, accept only competent work, agree fees in advance, avoid misleading claims, comply with law.
Topic 4
Unethical consultant behaviours
Overselling
Promising what cannot be delivered
Padding hours and inflating bills
Conflict of interest
Advising on vendors in which the consultant has a stake
Misuse of confidential information
Using client data for other clients
Creating dependency
Withholding knowledge to extend the engagement
Bait and switch
Senior staff in the pitch, juniors on delivery
Plagiarism and IP misuse
Telling clients only what they want to hear
Topic 5
Business and international business ethics
- Business ethics in IT: data privacy, cybersecurity, AI fairness and transparency, software licensing, honest representation of capabilities.
- International issues: bribery and corruption (US FCPA, UK Bribery Act, India's Prevention of Corruption Act), cultural relativism vs universal standards, data transfer and localisation laws, labour standards in global delivery, sanctions compliance.
Topic 6
Responsibility and accountability
- Responsibility: consultants are responsible for the quality, accuracy and honesty of their advice; clients for their decisions.
- Accountability mechanisms: contracts and SLAs, professional indemnity insurance, audits, peer review, client feedback, regulatory oversight, disciplinary action by professional bodies.
Example
Consultancy failures in large audits and public projects worldwide have led to fines, bans and stricter independence rules for advisers.
Key terms
- Conflict of interest
- Personal interest that could bias professional judgement
- Bait and switch
- Pitching senior experts but delivering with juniors
- FCPA
- US law against bribery of foreign officials
- Professional indemnity
- Insurance against claims of negligent advice
- Accountability
- Being answerable for one's actions and advice
Quick revision
- Ethical principles for consultants.
- Utilitarian, deontological, virtue, justice, rights approaches.
- Codes: ICMCI, IMC, ACM, IEEE, ISACA.
- Unethical behaviours.
- IT business ethics; international anti-bribery laws; responsibility and accountability mechanisms.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.State four principles of ethical consulting.
- Q2.Distinguish utilitarian and deontological ethics.
- Q3.Name two professional codes for IT consultants.
- Q4.What is bait and switch?
- Q5.Name two international anti-bribery laws.
- Q6.State two accountability mechanisms for consultants.
Long-answer questions
- Q1.Explain the principles and approaches to ethical consulting.
- Q2.Discuss codes of ethics for consultants.
- Q3.Explain common unethical consultant behaviours and how to prevent them.
- Q4.Discuss business and international business ethics, responsibility and accountability in consulting.
Stuck on this unit?
Message SBS on WhatsApp for help with IT Consulting, or to ask about studying MBA at Synetic.