UnderStand UPSC DAY 4 CASE STUDY

1. Prabhat was working as Vice President (Marketing) at Sterling Electric Ltd., a reputed
multinational company. But presently the company was passing through difficult times as the
sales were continuously showing a 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 favor 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 and
agony. This pertained to his precarious personal financial health. He was a single earner in a
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-Subhash Verma 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 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 the 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?
A) Ethical Issues Involved in the Case
1. Conflict of Interest: Accepting Subhash Verma's proposal could help him secure his job and
financial stability but at the cost of ethical standards, thus he needs to Balance personal gain
against integrity and fairness in the tendering process.
2. Breach of Confidentiality: Utilizing confidential information obtained unethically for
personal and company benefit undermines the principles of confidentiality and trust.
3. Unfair Competition: Accepting the proposal would give Sterling Electric Ltd. an unfair
advantage in the tender process, compromising fair competition.
4. Professionalism: Choosing between securing a crucial tender through unethical means
versus maintaining professional integrity and adhering to ethical norms.
5. Loyalty and Trustworthiness: Hiring someone who has demonstrated unethical behavior
could have future repercussions for Sterling Electric Ltd. and its ethical culture.
6. Legal and Reputational Risks: Accepting and using confidential bid documents could lead to
legal consequences, including charges of corporate espionage and breach of contract.
7. Corporate Governance: The ethical standards and governance practices of Sterling Electric
Ltd. are called into question by the potential decision to engage in unethical practices to win
a tender.
B) Options Available to Prabhat
1. Accept Subhash Verma's proposal: Hire Subhash Verma and accept the bid documents
from Unique Electronics Ltd. to outbid the competitor.
Pros:
 Immediate solution to secure the tender and potentially save the division and
Prabhat's job.
 Could boost the company’s sales and financial health in the short term.
Cons:
 Ethical breach of confidentiality and trust.
 Legal repercussions for corporate espionage.
 Long-term damage to personal and company reputation.
 Potential loss of job and legal action if discovered.
2. Reject Subhash Verma's proposal: Refuse to accept the bid documents and inform
Subhash Verma that his actions are unethical.
Pros:
 Maintains personal and professional integrity.
 Avoids legal and reputational risks for both Prabhat and Sterling Electric.
 Sets a positive example of ethical leadership.
Cons:
 Missed opportunity to secure the tender easily.
  Continued financial and job insecurity for Prabhat.
 Risk of the division being closed and Prabhat losing his job.
3. Report Subhash Verma’s proposal: Inform higher authorities within Sterling Electric Ltd.
about Subhash Verma’s proposal and the unethical offer.
Pros:
 Demonstrates adherence to ethical standards and corporate governance.
 Protects the company from engaging in illegal activities.
 Encourages a culture of transparency and integrity.
Cons:
 Risk of not securing the tender and facing continued pressure from the
company.
 Potential backlash or retaliation from Subhash Verma or other parties
involved.
4. Seek legal and ethical advice: Consult with legal and ethical advisors within the company
or externally to determine the best course of action.

Pros:
 Informed decision-making based on legal and ethical considerations.
 Potentially identifies alternative strategies to secure the tender ethically.
Cons:
 Time-consuming and may delay the decision-making process.
 Continued financial and job insecurity during the consultation period.
5. Negotiate a different offer with Subhash Verma: Offer Subhash Verma a position based
on his qualifications without accepting the unethical proposal and explore if there are any legal
ways to gain competitive intelligence.
Pros:
 Utilizes Subhash Verma’s skills and experience ethically.
 Maintains integrity while potentially enhancing the company's competitive edge.
Cons:
 May not provide the immediate advantage needed to secure the tender.
 Subhash Verma may withdraw his interest if the unethical proposal is rejected.
6. Improve Transparency in the process: Focus on strengthening the bid and tendering
process through legitimate means
Pros:
 Maintains ethical standards and corporate integrity.
  Build a sustainable and reputable competitive position.
Cons:
 It requires significant effort and may not guarantee immediate success.
 Continued financial pressure and job insecurity in the short term.

C) Most appropriate option for Prabhat:

Reject and Report Subhash Verma’s Proposal: Inform higher authorities within Sterling
Electric Ltd. about Subhash Verma’s proposal and the unethical offer.

Justification:

1. Integrity: Reporting the proposal aligns with ethical principles of integrity and honesty. It
shows that Prabhat values ethical conduct over short-term gains.
2. Transparency: It promotes a culture of transparency within the organization, which is
essential trust.
3. Avoiding Legal Risks: Accepting the proposal would involve illegal activities such as
corporate espionage, which could result in severe legal consequences for Prabhat and the
company.
4. Maintaining Reputation: By rejecting the unethical proposal, Sterling Electric Ltd.
maintains its reputation as a company that adheres to ethical practices and legal standards.
5. Setting an Example: As a senior executive, Prabhat’s actions set a precedent for ethical
behavior within the company.
6. Personal Integrity: Prabhat can maintain his personal integrity and professional reputation,
which are invaluable for his career growth and personal satisfaction.
7. Sustainable Success: Shortcuts and unethical practices might provide temporary relief but
can lead to long-term damage.
8. Trust and Loyalty: Building a culture of integrity fosters trust and loyalty among employees.
9. Alternative Strategies: Reporting the issue allows the company to explore ethical
alternatives to improve their competitive position.
10. Support from Higher Management: By reporting the unethical offer, Prabhat can seek
support from higher management to address the division’s challenges through legitimate
means.
2.The Supreme Court has banned mining in the Aravalli Hills to stop degradation of the forest
cover and to maintain ecological balance. However, stone mining was still prevalent in the
border district of the affected State with connivance of certain corrupt forest officials and
politicians. Young and
dynamic SP who was recently posted in the affected district promised to himself to stop this
menace. In one of his surprise checks with his team, he found a truck loaded with stone trying
to escape the mining area. He tried to stop the truck but the truck driver overrun the police
officer, killing him on the spot and thereafter managed to flee. Police filed FIR but no
breakthrough was achieved in the case for almost three months. Ashok who was the
Investigative Journalist working with leading TV channel, suo moto started investigating the
case. Within one month, Ashok got a breakthrough by interacting with local people, stone
mining mafia and government officials. He prepared his investigative story and presented it
to the CMD of the TV channel. He exposed in his investigative report the complete nexus of
stone mafia working with blessing of corrupt police and civil officials and politicians. The
politician who was involved in the mafia was no one else but local MLA who was considered
to be very close to the Chief Minister. After going through the investigative report, the CMD
advised Ashok to drop the idea of making the story public through electronic media. He
informed that the local MLA was not only the relative of the TV channel's owner but also
had an informal 20 percent share in it. The CMD further informed Ashok that his further
promotion and hike in pay will be taken care of in addition the soft loan of `10 lakhs which
he has taken from the TV channel for his son's chronic disease will be suitably adjusted if he
hands over the investigative report to him.
(a) What are the options available with Ashok to cope up with the situation?
(b) Critically evaluate/examine each of the options identified by Ashok.
(c) What are the ethical dilemmas being faced by Ashok?
(d) Which of the options, do you think, would be the most appropriate for Ashok to
adopt and why?
(e) In the above scenario, what type of training would you suggest for police officers posted
to such districts where stone mining illegal activities are rampant?
(A&B) Options Available to Ashok:
1. Publish the story independently: Ashok can choose to publish the investigative report
through independent channels such as social media, independent news websites, or
collaborating with another news organization that values journalistic integrity.
Pros:
 Upholds journalistic integrity and the duty to inform the public.
 Exposes corruption and illegal activities, leading to justice and reform.
Cons:
 Risk of losing his job and facing professional ostracization.
 Potential legal and personal threats from the powerful individuals exposed in the
report.
 Financial difficulties due to the loss of job and lack of support for his son’s medical
treatment.
2. Submit the Report to Authorities: Ashok can submit the investigative report to higher
authorities such as the Central Bureau of Investigation (CBI), Anti- Corruption Bureau (ACB),
or a judicial body.
Pros:
 Ensures that the information reaches the appropriate channels for legal action.
 Protects Ashok’s identity to some extent if the submission is done
confidentially.
Cons:
 Bureaucratic delays and potential cover-ups if the corruption is widespread.
 May not lead to immediate action or public awareness.
 Risk of professional and personal backlash.
3. Comply with the CMD’s Request: Ashok can hand over the investigative report to the CMD
and drop the idea of making the story public.
Pros:
 Maintains his current job and secures financial stability for his family.
 Receives the promised promotion and pay hike, and the soft loan is adjusted.
Cons:
 Compromises his journalistic ethics and integrity.
 Allows corruption and illegal activities to continue unchecked.
 Personal guilt and loss of professional credibility.
4. Negotiate a Compromise: Ashok can negotiate with the CMD to publish a less incriminating
version of the story or use his findings to pressure the involved parties to stop the illegal
activities without going public.
Pros:
 May reduce the immediate threat to his career and family.
 This could lead to some positive change without direct confrontation.
Cons:
 Compromises the full extent of journalistic integrity.
 May not effectively address the root issues or stop the illegal activities
completely.
 Risk of backlash if the involved parties feel threatened.
5. Whistleblower Protection: Ashok can seek protection under whistleblower laws and
approach organizations that support whistleblowers, such as NGOs or legal aid groups.
Pros:
 Provides some degree of legal protection and support.
 Ensures the information reaches the public domain through supported
channels.
Cons:
 Lengthy legal processes and potential bureaucratic hurdles.
 Ongoing risk of personal and professional retaliation.
 Financial insecurity and continued threat to his family’s well-being.

D) Ethical Dilemmas Faced by Ashok

Professional Integrity vs. Personal Gain: Exposing the truth aligns with journalistic ethics but
may result in personal and professional risks, while accepting the offer compromises his
integrity but provides financial security.
Public Interest vs. Personal Safety: Choosing public interest promotes justice and
accountability but endangers Ashok’s safety, while prioritizing personal safety may leave the
corruption unchallenged.
Loyalty to Profession vs. Loyalty to Employer: Upholding professional loyalty fosters public
trust in journalism but may lead to conflict with his employer and potential job loss, while
complying with the employer's request undermines journalistic values.
Truth vs. Family Welfare: Prioritizing truth supports ethical journalism and public welfare but
jeopardizes his family’s financial stability, while focusing on family welfare compromises his
ethical standards.
Legal Obligation vs. Ethical Responsibility: Fulfilling ethical responsibility promotes
transparency and accountability, while ignoring it may prevent legal or social consequences
but fails ethical standards.
Social Justice vs. Personal Consequences: Advocating for social justice benefits society but
involves personal sacrifice, while avoiding it may protect him but allow injustice to continue.

E) Recommended Option for Ashok:

Option: Submit the Report to Authorities
Upholding Integrity: Submitting the report to higher authorities like the CBI or ACB allows
Ashok to maintain his journalistic integrity and ethical standards. Duty to Public: Ensures the
information reaches the right channels that can act against the illegal activities and corrupt
individuals involved.
Balancing Risks and Responsibilities: By submitting the report to authorities, Ashok can
protect himself and his family from the immediate risks of retaliation from the powerful
individuals exposed in the report.
Job Security: While there may be professional risks, this option does not directly confront the
media ownership, thus reducing the immediate risk of job loss.
Formal Investigation: Submitting the report to legal authorities can initiate a formal
investigation, which is necessary to address systemic corruption and illegal activities. Long-Term
Impact: This approach has the potential to bring about long-term systemic changes and reform.
Compliance with Laws: Ensures that the actions taken are within the legal framework.
Professional Reputation: By taking this approach, Ashok can preserve his credibility and
reputation as a responsible and ethical journalist
F) Recommended Training for Police in the Given Scenario:
To effectively handle the challenges posed by illegal mining and corruption, and to improve
overall efficiency and integrity, the police force in the affected district should undergo
comprehensive training programs.
1. Anti-Corruption Training: Equip police officers with the knowledge and skills to identify,
resist, and combat corruption within the force.
 Understanding the forms and impact of corruption.
 Legal frameworks and anti-corruption laws.
 Techniques for detecting and investigating corruption.
 Whistleblower protection and support mechanisms.
2. Ethics and Integrity Training: Foster a culture of integrity and ethical behavior among
police officers.
 Ethical decision-making frameworks.
 Handling ethical dilemmas and conflicts of interest.
 Importance of transparency and accountability.

3. Advanced Investigation Techniques: Enhance the investigative skills of police officers to

effectively tackle illegal activities such as illegal mining.
 Techniques for conducting thorough and unbiased investigations.
 Use of technology and digital tools in investigations.
4. Community Policing and Engagement: Strengthen the relationship between the police
force and the local community to gather intelligence and gain public support.
 Principles and practices of community policing.
 Effective communication and relationship-building with community members.
 Engaging local leaders and stakeholders in policing efforts.
5. Legal and Regulatory Frameworks: Ensure police officers are well-versed in the legal and
regulatory aspects related to illegal mining and environmental protection.
 Relevant laws and regulations on mining, environmental protection, and land use.
 Understanding the legal rights of suspects and ensuring due process.
6. Personal Safety and Risk Management: Train officers to protect themselves while
conducting high-risk operations, such as raids on illegal mining sites.
 Self-defense and tactical training during the crisis.
 Situational awareness and risk assessment.
 Safety protocols during high-risk operations.
7. Leadership and Management Training: Develop leadership skills among senior police
officers to effectively lead their teams and manage operations.
 Leadership styles and best practices.
 Team management and motivation.
 Conflict resolution and mediation.
8. Use of Technology and Intelligence Gathering: Enhance the use of technology and
intelligence in policing efforts.
 Utilizing surveillance technology and data analytics.
 Cyber forensics and digital evidence handling.
3.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 the first year, you learnt your
job well and were appreciated for your performance by the management. The company has
been doing good business for the last five years in the domestic market and this year it has
decided even to export to Europe and the Gulf countries. However, one large consignment to
Europe was rejected by their Inspecting Team due to a 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 the 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. The 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 a consignment, if cleared even for the 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?
A & B) Options Available to You as a Member of the Inspecting Team:
1. Sign and clear the consignment for the domestic market: Follow the rest of the team's lead
and clear the consignment despite the known defects.
Pros:
 Retains my job and avoid immediate personal and professional consequences.

 Align with the team and management's decision, maintaining a harmonious working
relationship.
 Immediate financial stability and security for dependent parents
and newlywed spouse.
Cons:
 Compromises my integrity and professional ethics.
 Damages the company’s reputation in the long run, leading to potential loss of
customer trust and business.
 Personal guilt and loss of self-respect for not adhering to my professional
standards.
2. Refuse to sign and report the issue internally: Refuse to clear the consignment and escalate
the issue to higher authorities within the company or the board of directors.
Pros:
 Upholding of my professional integrity and ethical standards.
 Protect the company’s long-term reputation and customer trust.
 Set a positive example for colleagues and establish myself as a principled
professional.
Cons:
 Risk of losing job, leading to financial instability and potential hardship for my family.
 Possible professional isolation and backlash from colleagues and management.
 Immediate personal and professional stress due to confrontation and
escalation.
3. Refuse to sign and report the issue externally: Refuse to clear the consignment and report
the issue to external regulatory bodies or consumer protection agencies. Pros:
 Ensure that the defective products do not reach the market, protecting
consumers and the company’s long-term reputation.
 Fulfill my ethical responsibility to uphold quality and safety standards.
 Potentially initiate broader scrutiny and improvements within the industry.
Cons:
  High risk of losing my job and facing legal or professional consequences from the
company.

 Possible legal battles and prolonged personal and professional stress.

 Immediate financial instability and potential hardship for my family.
4. Seek Legal and Ethical Advice: Consult with legal and ethical advisors to understand
my rights and the implications of my actions.
Pros:
 Gain a clearer understanding of my options and potential protections.
 Make an informed decision based on legal and ethical frameworks.
 Potentially find a compromise or protective measures to safeguard my job and
integrity.
Cons:
 Time-consuming process that may delay immediate action.
 Continued stress and uncertainty during the consultation period.
 Potential costs associated with seeking professional advice.
5. Negotiate a Compromise with Management: Attempt to negotiate a compromise with
the top management, such as reworking the defective products or finding an alternative
solution.
Pros:
 Potentially avoid immediate confrontation and job loss.
 Demonstrate problem-solving skills and a proactive approach to quality issues.
 Protect the company’s reputation while maintaining professional integrity.
Cons:
 Management may not be willing to compromise, leading to continued pressure to
conform.
 Potential professional backlash if the negotiation fails.
 Continued personal and professional stress during the negotiation process.

C) Recommended Option: Seek Legal and Ethical Advice and Attempt to Negotiate a
Compromise with Management
Integrity: Clearing a defective consignment compromises ethical values and
professional standards.
Long-Term Consequences: Selling defective products can tarnish the company's reputation
and result in loss of customer trust and future business.
Job Security: Job is important for financial stability, especially given the
responsibilities towards aged parents and newlywed spouse.
Compromise: By attempting to negotiate a compromise, I can address the issue of defective
products without immediately risking my job.
Legal and Ethical Advice: Consulting with legal and ethical advisors can provide clarity on your
rights and potential protections. This ensures that you make an informed decision based on
legal and ethical frameworks.
Informed Decision: Understanding the implications of my actions will help me navigate the
situation more effectively and explore potential protective measures.
Negotiation: Attempting to negotiate with the management to rework the defective products
or find an alternative solution can show a proactive approach to quality issues.
Win-Win Solution: Finding a compromise can protect the company’s reputation while
maintaining my professional integrity and job security.

D) Ethical Dilemmas Faced:

1. Professional Integrity vs. Job Security: Upholding ethical standards could lead to
immediate job loss, affecting financial stability and family responsibilities, whereas complying
with the directive compromises professional ethics.
2. Short-Term Gain vs. Long-Term Reputation: The immediate benefit of clearing the
consignment for the domestic market could save the company from financial loss, but it risks
damaging the company's reputation in the long term.
3. Duty to Employer vs. Duty to Customers: Duty to follow the employer's directive conflicts
with my responsibility to ensure that customers receive high- quality products.
4. Loyalty to Team vs. Personal Ethics: Going along with the team compromises my personal
ethics, while refusing to conform might isolate me professionally.
5. Financial Stability vs. Ethical Responsibility: The need to maintain financial stability for my
dependent parents and newlywed spouse conflicts with the ethical responsibility of ensuring
product quality.
6. Risk of Retaliation vs. Whistleblowing: Reporting the issue to external authorities or
refusing to comply with the directive might lead to retaliation from the company, including job
termination.
7. Personal Values vs. Professional Compliance: My personal values of honesty and integrity
conflict with professional compliance to management's orders.
8. Quality Assurance vs. Business Survival: Ensuring quality assurance for the products
conflicts with the company's immediate need to avoid financial loss and ensure business
survival.
E) Consequences of Overlooking the Observations Raised by the Inspecting Team:
Effects Customer Trust: Selling defective products can lead to a loss of trust among customers,
who may feel betrayed by the quality of products they receive from the company.
Brand Image: The company's brand image can be severely tarnished if it becomes known for
selling substandard products.
Return of Products: Customers may return the defective products, leading to financial losses
for the company due to refunds and replacements.
Decline in Sales: Long-term sales may decline as customers lose faith in the product quality and
switch to competitors.
Legal Penalties: The company could face legal actions, fines, or penalties from consumer
protection agencies for failing to adhere to quality standards.
Legal and Regulatory Consequences: The company may face regulatory scrutiny and sanctions
for failing to meet the required quality standards.
Export Market: The rejection of the consignment by European inspectors and subsequent
awareness of poor quality could lead to a loss of opportunities in international markets.
Morale and Integrity: Employees might feel demoralized and disillusioned if they see that the
company prioritizes short-term financial gains over ethical practices and quality standards.
Job Security: In the long run, a decline in sales and reputation might lead to job cuts and financial
instability within the company, affecting all employees.
Internal Culture: Overlooking quality issues sets a dangerous precedent, encouraging a culture
where ethical compromises are acceptable for financial gain. Competitiveness: Continued
compromise on quality can affect the company's long- term competitiveness, making it difficult
to retain and attract customers in a competitive market.