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Prabhat was working as Vice President (Marketing) at Sterling Electric Ltd., a reputed multinational company. But presently the company was passing through the difficult times as the sales were continuously showing downward trend in the last two quarters. His division, which hitherto had been a major revenue contributor to the company's financial health, was now desperately trying to procure some big government order for them. But their best efforts did not yield any positive success or breakthrough. His was a professional company and his local bosses were under pressure from their London-based HO to show some positive results. In the last performance review meeting taken by the Executive Director (India Head), he was reprimanded for his poor performance. He assured them that his division is working on a special contract from the Ministry of Defence for a secret installation near Gwalior and tender is being submitted shortly. He was under extreme pressure and he was deeply perturbed. What aggravated the situation further was a warning from the top that if the deal is not clinched in favour of the company, his division might have to be closed and he may have to quit his lucrative job. There was another dimension which was causing him deep mental torture a and agony. This pertained to his personal precarious financial health. He was a single earner in the family with two school-college going children and his old ailing mother. The heavy expenditure on education and medical was causing a big strain to his monthly pay packet. Regular EMI for housing loan taken from bank was unavoidable and any default would render him liable for severe legal action. In the above backdrop, he was hoping for some miracle to happen. There was sudden turn of events. His secretary informed that a gentleman-SubhashVerma wanted to see him as he was interested in the position of Manager which was to be filled in by him in the company. He further brought to his notice that his CV has been received through the office of the Minister of Defence. During interview of the candidate-Subhash Verma, he found him technically sound, resourceful and experienced marketeer. He seemed to be well-conversant with tendering procedures and having knack of follow-up and liaising in this regard. Prabhat felt that he was better choice than the rest of the candidates who were recently interviewed by him in the last few days. Subhash Verma also indicated that he was in possession of the copies of the bid documents that the Unique Electronics Ltd. would be submitting the next day to the Defence Ministry for their tender. He offered to hand over those documents subject to his employment in the company on suitable terms and conditions. He made it clear that in the process, the Sterling Electric Ltd. could outbid their rival company and get the bid and hefty Defence Ministry order. He indicated that it will be win-win situation for both-him and the company. Prabhat was absolutely stunned. It was a mixed feeling of shock and thrill. He was uncomfortable and perspiring. If accepted, all his problems would vanish instantly and he may be rewarded for securing the much awaited tender and thereby boosting company's sales and financial health. He was in a fix as to the future course of action. He was wonder-struck at the guts of Subhash Verma in having surreptitiously removing his own company papers and offering to the rival company for a job. Being an experienced person,he was examining the pros and cons of the proposal/situation and he asked him to come the next day. (a) Discuss the ethical issues involved in the case. (b) Critically examine the options available to Prabhat in the above situation. (c) Which of the above would be the most appropriate for Prabhat and why?. UPSC IAS Mains 2022 General Studies (Paper – 4)

Being the Vice- President (Marketing) of the company, it is the responsibility of Prabhat to promote both the financial as well as ethical well-being of the company for its sustainable long-term growth.

Ethical issues involved-

  • Cut-throat pressure in corporate world to increase profits for the company at any cost.
  • Conflict of interest being faced by Prabhat between professional and personal integrity vs Profit.
  • Mental agony faced by Prabhat due to familial responsibilities.
  • Subhash’s lack of integrity (leaking of files of earlier company).
  • Work ethics at stake.
  • Valuing merit of the candidate even with compromised integrity and value system.

Options available to Prabhat

  1. To appoint Subhash
  • Merits
    • Profit for company by defeating rival company
    • Talented person, asset for company
    • Personal benefit as it can secure his job by helping to get contract
  • Demerits
    • Actions guided by vice of greed
    • Crisis of conscience for Prabhat
    • Compromised work ethics
    • Lack of self-confidence to clinch deal on merits
  1. Not to appoint Subhash
  • Merits
    • Prabhat as man of integrity
    • Self-confidence to get deal on merits
    • Set a good precedent
  • Demerits
    • company might lose the deal
    • Prabhat might lose the job
  1. Not to appoint Subhash but taking papers from him
  • Merits
    • Might help in securing the deal for company
    • Securing his job
  • Demerits
    • Poor integrity and leadership qualities
    • Compromised work ethics
    • Reputation of company might tarnish if in future these facts come into light

The most appropriate option for Prabhat is option 2 i.e., rejecting the candidature of Subhash and his offer to supply bid papers of rival company. Being the Vice-President, it is duty of Prabhat to think of long-term gains and sustainable and ethical growth of the company rather than getting swayed by short term gains and short cuts to success which might bring more harm to the company in the future. Firstly, Prabhat needs to have confidence in his abilities to secure the deal on merits for his company. Secondly, there is no guarantee that Subhash, if appointed, in future will not harm Prabhat’s company for his personal benefit as he is a man of poor integrity.  Thus, ethical route to profits for the company is the right choice and will surely bear fruits in long run.







POSTED ON 07-07-2023 BY ADMIN
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