Tensions between compliance, internal controls and ethics in the domain of project governance

Abstract

Purpose

This study aims to investigate how the dynamics of compliance, internal controls and ethics can generate tensions in the domain of project governance. Moreover, it investigates the tensions between these constructs and the search for project success from a practice-based perspective.

Design/methodology/approach

A methodological approach is taken, with a case-based research carried out in a large European multinational company. Data were gathered through 21 interviews, between project managers and other key stakeholders, and documentary data from 64 projects for triangulation and critical analysis.

Findings

As a result, four patterns of tensions were identified: Tension A between compliance and project success, Tension B between internal controls and project success, Tension C between compliance and internal controls and Tension D between compliance and ethics.

Research limitations/implications

Some limitations should be acknowledged. The first, ontological, is inherent in the post-positivist perspective, accepting human subjectivity and the complexity of social reality intrinsic to research applied to the social sciences, respectively implying interpretive bias and incompleteness in the comprehension of the facts. The second limitation comes from the use of a single case study, in which singular contextual characteristics make it difficult to generalise the results.

Practical implications

This study has implications for practice, as it highlights weaknesses that may occur in organisations owing to tensions between the elements of compliance, internal controls and ethics. This, therefore, implies ways of strengthening the consistency of project governance. The project governance domain and its tensions affect the project-success holistic view in both efficiency and effectiveness, since the elements of internal control and compliance can create tensions that favour one project success perspective to detriment of the others. Understanding the nature of tensions, their implications and the long-term holistic perspective can lead to better decisions by managers.

Originality/value

The results suggest that a formal code of ethics, a project management methodology, internal controls and a well-established training programme are not sufficient, because, in the practical context, the interaction between these elements creates tensions that impact their logical consistency lost when interacting with each other.

Citation

Scoleze Ferrer, P.S., Galvão, G.D.A. and de Carvalho, M.M. (2020), "Tensions between compliance, internal controls and ethics in the domain of project governance", International Journal of Managing Projects in Business, Vol. 13 No. 4, pp. 845-865. https://doi.org/10.1108/IJMPB-07-2019-0171