You have done MBA from a reputed institution three years back but could not get campus placement due to COVID-19 generated recession. However, after a lot of persuasion and series of competitive tests including written and interview, you managed to get a job in a leading shoe company. You have aged parents who are dependent and staying with you. You also recently got married after getting this decent job. You were allotted the Inspection Section which is responsible for clearing the final product. In first one year, you learnt your job well and was appreciated for your performance by the management. The company is doing good business for last five years in domestic market and this year it is decided even to export to Europe and Gulf countries. However, one large consignment to Europe was rejected by their Inspecting Team due to certain poor quality and was sent back. The top management ordered that ibid consignment to be cleared for the domestic market. As a part of Inspecting Team, you observed the glaring poor quality and brought to the knowledge of the Team Commander. However, the top management advised all the members of the team to overlook these defects as the management cannot bear such a huge loss. Rest of the team members except you promptly signed and cleared the consignment for domestic market, overlooking glaring defects. You again brought to the knowledge of the Team Commander that such consignment, if cleared even for domestic market, will tarnish the image and reputation of the company and will be counter-productive in the long run. However, you were further advised by the top management that if you do not clear the consignment, the company will not hesitate to terminate your services citing certain innocuous reasons. (a) Under the given conditions, what are the options available to you as a member of the Inspecting Team? (b) Critically evaluate each of the options listed by you. (c) What option would you adopt and why? (d) What are the ethical dilemmas being faced by you? (e) What can be the consequences of overlooking the observations raised by the inspecting Team?. UPSC IAS Mains 2022 General Studies (Paper – 4)

The case study deals with the issues of impact of covid on youth, responsibilities of youth towards ailing parents and family, quality of service delivery, corporate culture where profit is preferred over social goals disparity between standards of service in domestic vs international markets.

Stakeholders involved

1. Me as Inspection head in a shoe company.
2. Family members
3. Company management.
4. Brand image.
5. Society at large.

Ethical dilemmas involved

Integrity vs flexibility of working.

1. Transparency and accountability of corporation.
2. Balancing the personal life and the job.
3. Corporate ethics against profiteering.
4. Ends vs means relationship.
5. Relationship with company vs relationship with larger society

(a) Options available as a member of the Inspecting Team. 

1. Reluctantly sign the document.
2. Persuade the management to reconsider their decision.
3. Persuade the management to sell the product in clearance sale with a caveat of defective product.
4. Refuse to sign the document.

(b)  

• Reluctantly sign the document.

Merit

1. 1. Saves the hard-earned job after covid led recession.
   2. Personal responsibilities like family and marriage are taken care of.

Demerit

1. 1. Against my core values of impartiality and fairness.
   2. Against the core values of corporation which has good image.
   3. Against business ethics.

• Persuade the management to reconsider their decision.

Merit

1. 1. Saves the company from legal proceedings if news comes out.
   2. In the era of digital communication and tough competition, such practices do not take time to come out.
   3. Equality of treatment with respect to European clients as well as Indian clients.

 Demerit

1. 1. Difficult to persuade the higher management as they are prioritizing profit over procedural fairness.
   2. If management does not agree, there will be anger against me and I might be isolated.

• Persuade the management to sell the product in clearance sale with a caveat of inferior product.

Merit

1. 1. This can work as a middle path.
   2. Only those buyers who are ready to compromise the quality for price will buy the product.
   3. Company will be able to recover partial losses.

Demerit

1. 1. Higher management may not agree with this.
   2. If management is determined to recover full amount, they may reject the idea.

• Refuse to sign the document altogether.

Merit

1. 1. Will satisfy my values as an individual, a manager and core value of rejecting poor standard product as head of inspection team.
   2. Domestic market will be spared from the consumption of rejected consignment.
   3. Doing the company, a favor as the product is of glaringly poor quality.

Demerit

1. 1. The job is important for me because of familial responsibilities.
   2. May be difficult to find another job in post covid economic recession.

(c) Option taken by me will be

1. First, I will try to persuade the company to reconsider their decision as they are a good brand with high trust of customers.
2. Such consignment, if cleared even for domestic market will tarnish the image and reputation of the company and will be counterproductive in the long run.
3. As a matter of last resort, I would suggest option 3, to recover the input cost partially.
4. In no condition, I will sign the consignment for sale in India.

(d) In this case following are the ethical dilemma: - 

1. Personal interest against public interest: - As I can either save my job or perform my duty toward society by recognizing the truth or reveal the truth and lose my job
2. Corporate ethics against profiteering by unethical means as the company wants from me to Clear a wrong consignment and earn profit while neglecting the laws of the land.
3. Choosing hard life by subscribing to the principles of integrity and truthfulness as it can cause me to lose the job or choose an easy life by subscribing to the dictates of the company.
4. End versus means relationship is totally ignored by the company. They foul the rules of corporate ethics and practices in terms of duality of standards for sales of the product in various markets.
5. Relationship with co-worker’s and relationship with larger society as revealing truth may Impact my job while not revealing it may cause the loss of larger society and set of standards.

(e) Consequences of overlooking the observations raised by the inspecting Team.

1. Loss of trust in company
2. Tarnishes the social image of the company.
3. Compromised product quality.
4. Loss of revenue for the company
5. Social image tarnished.
6. Financial losses can be recovered, but the image loss cannot be recovered so easily.