Ethics Case Studies

Model Answer

Introduction

The case study involves ABC Ltd., a large transnational company planning to establish a new plant in Vikaspuri, an underdeveloped area. While the company’s expansion aligns with government policies aimed at regional development, it raises significant concerns about potential social and economic disruptions for local residents.

Stakeholders

Key stakeholders include ABC Ltd., the residents of Vikaspuri, the local government, and non-governmental organizations (NGOs). Each group has distinct interests that must be considered.

Body

(a) Issues Involved in the Case

1. Economic Development vs. Social Impact:
   • The establishment of the new plant presents a dilemma between fostering economic growth and the potential adverse social effects on the residents (World Bank, 2020).
2. Environmental Impact:
   • The new plant may lead to pollution and resource depletion, adversely affecting the health and quality of life for the local population (Environmental Protection Agency, 2021).
3. Corporate Social Responsibility (CSR):
   • Although the company emphasizes its CSR policy to address local concerns, there is skepticism regarding the sufficiency and effectiveness of these initiatives (Harvard Business Review, 2019).
4. Protests and Legal Action:
   • The residents’ protests and their decision to approach the judiciary highlight their dissatisfaction and fear of losing their tranquil lifestyle due to the company’s operations.

(b) Suggestions to Address Concerns

1. Open Dialogue and Engagement:
   • ABC Ltd. should foster transparent communication with local residents, actively addressing their concerns and incorporating their feedback into operational plans.
2. Mitigation Measures:
   • Implement strategies to minimize negative impacts, such as investing in green technologies, providing local job opportunities, and addressing inflation through community infrastructure projects.
3. Collaboration with Government and NGOs:
   • Partnering with local government and NGOs can help ensure balanced development. Joint initiatives can focus on healthcare, education, and environmental preservation.
4. Compliance with Regulatory Requirements:
   • Adhering strictly to environmental and regulatory standards will help mitigate risks and demonstrate the company’s commitment to community welfare.
5. Long-term Engagement:
   • Establish ongoing CSR initiatives that extend beyond the plant’s launch, focusing on sustainable community development, education, and healthcare support.

Conclusion

By implementing these strategies, ABC Ltd. can effectively balance its expansion goals with the needs and concerns of the Vikaspuri community, fostering a mutually beneficial relationship that promotes sustainable growth and community well-being.

Model Answer

Introduction

The introduction of the Right to Information (RTI) Act, along with media and judicial activism, has significantly enhanced transparency and accountability in the Indian government. However, these mechanisms have also encountered misuse, leading to unintended negative consequences. A notable issue is the growing fear among officials to make prompt decisions due to potential backlash and scrutiny.

Analysis of the Situation

Negative Impacts

Misuse of Mechanisms

The RTI Act, while a powerful tool, has been misused in some instances. For example, there have been cases where officials were inundated with numerous frivolous and repetitive RTI requests, wasting valuable time and resources (Srinivas, 2019). This misuse undermines the original intent of the Act, making it crucial to establish safeguards.

Fear of Repercussions

Media and judicial activism can create an environment where officials hesitate to make timely decisions. For instance, officers may fear negative media coverage or legal repercussions, which could hinder effective governance (Sharma, 2020). While accountability is vital, excessive fear can stifle prompt action.

Suggested Resolutions

Strengthening Mechanisms

To address these issues, clear guidelines for RTI requests should be established. This includes filtering out irrelevant or repetitive queries to reduce the burden on officials.

Training and Capacity Building

Training programs should be introduced to help officials navigate media and judicial activism. These workshops can clarify their roles and responsibilities, equipping them to handle scrutiny more effectively.

Promoting a Culture of Accountability

Encouraging proactive disclosure and clear communication can foster a culture where accountability and timely decision-making coexist. This approach helps build public trust while enabling officials to act decisively.

Balanced Media Coverage

Responsible journalism should be promoted, focusing on both positive and negative aspects of governance. This can lead to more constructive public discourse, reducing the fear of backlash for officials.

Strengthening Administrative Support

Providing adequate administrative assistance can help officials manage increased workloads due to transparency initiatives, allowing them to focus on effective governance.

Conclusion

While transparency and accountability mechanisms are essential for good governance, it is crucial to ensure they do not impede prompt decision-making. By striking a balance and promoting responsible usage of these mechanisms, we can achieve greater transparency while encouraging efficient governance.

Model Answer

Introduction

In this case, a private company faces a violent mob demanding jobs, threatening employee morale and safety. As CEO, immediate actions must prioritize employee safety, engage in constructive dialogue, and consider legal intervention if necessary.

Body

(a) Immediate Actions

1. Prioritize Employee Safety:
   • Evacuate employees from the vicinity of the mob.
   • Coordinate with security personnel and local law enforcement to ensure protection.
2. Engage in Dialogue:
   • Approach the mob leaders to understand their grievances.
   • Maintain a calm and respectful demeanor, showing willingness to listen.
3. Offer Mediation:
   • Propose a peaceful resolution that aligns with company policies.
   • Emphasize the importance of a peaceful work environment.
4. Seek Legal Intervention:
   • If the threat escalates, contact local authorities and file a formal complaint against the mob.

(b) Long-term Solutions

1. Strengthen Security Measures:
   • Improve surveillance and access control systems to prevent unauthorized entry.
2. Employee Training:
   • Conduct training sessions on crisis management and conflict resolution to empower employees.
3. Public Awareness Campaign:
   • Educate the community about the company’s values and contributions, fostering goodwill.
4. Strengthen Relationships with Local Authorities:
   • Build stronger connections with law enforcement to ensure timely support during crises.

(c) Consequences of Suggested Actions

1. Prioritizing Employee Safety:
   • Positive Impact: Ensures employee well-being, increasing loyalty.
   • Negative Impact: May provoke backlash from the mob and supporters.
2. Engaging in Dialogue:
   • Positive Impact: Shows willingness to listen, potentially leading to resolution.
   • Negative Impact: Risks negotiation breakdown, leading to unmet demands.
3. Offering Mediation:
   • Positive Impact: Promotes fairness and preserves company reputation.
   • Negative Impact: Potentially compromises company principles, perceived as capitulation.
4. Seeking Legal Intervention:
   • Positive Impact: Reinforces adherence to law and order.
   • Negative Impact: May escalate tensions and lead to legal complications.

Conclusion

Each action taken by the CEO carries its own risks and benefits. Balancing employee safety with company values while maintaining a positive work environment is crucial for effective governance in challenging situations.

Model Answer

Introduction

A scientist in a pharmaceutical company discovers that a bestselling veterinary drug has the potential to cure a currently incurable liver disease prevalent in tribal areas. As CEO, the dilemma lies in deciding whether to invest ₹50 crores in developing a human variant of the drug, given the limited market potential in poverty-stricken regions.

Body

(a) Actions to Consider

1. Research Grants:
   • Seek funding from governmental or non-profit organizations focused on healthcare.
2. Collaboration or Partnership:
   • Explore partnerships with universities or research institutions with expertise in liver diseases.
3. Government Support:
   • Engage with policymakers to advocate for financial support or subsidies for the R&D effort.
4. Philanthropic Initiatives:
   • Tap into corporate social responsibility initiatives by partnering with philanthropic foundations focused on healthcare disparities.

(b) Evaluation of Pros and Cons

1. Research Grants:
   • Pros: Reduces financial burden, brings in external expertise, and provides collaborative opportunities.
   • Cons: Competitive and time-consuming process; may impose restrictions affecting control over research and commercialization.
2. Collaboration or Partnership:
   • Pros: Allows for cost-sharing, knowledge exchange, and access to additional resources.
   • Cons: Requires careful negotiation; potential conflicts in priorities or intellectual property rights may arise.
3. Government Support:
   • Pros: Financial assistance can offset R&D costs; enhances company reputation by addressing public health challenges.
   • Cons: Bureaucratic processes can be slow and uncertain; limited funding may be available for specific research areas.
4. Philanthropic Initiatives:
   • Pros: Demonstrates commitment to social impact; provides access to resources through partnerships.
   • Cons: Initiatives may have differing agendas; competition for funding could limit availability.

Conclusion

As CEO, it is essential to evaluate these actions based on financial feasibility, impact on the company’s reputation, and alignment with core values. A strategic approach that combines these options may offer the best pathway to develop the drug while addressing critical health needs in underserved populations.

Model Answer

Introduction

The case involves discovering irregularities in the acquisition of a plot for a school located within Thakurgarh Fort, raising concerns about the suitability of the site and the vested interests of involved parties.

Body

A. Likely Vested Interests of Concerned Parties

1. Local Panchayat Members:
   • Potential personal or financial gain from the sale or development of the land.
2. Predecessor:
   • Possible favoritism towards relatives, resulting in conflicts of interest during land acquisition.
3. Developers:
   • Interest in high development charges resulting from construction on a heritage site, which may benefit financially.
4. Politicians:
   • Gaining favor with local constituents through development projects, potentially at the expense of community needs.

B. Options for Action

1. Await the Visit of the Superior Officer:
   • Pros: Allows for firsthand knowledge and relieves personal responsibility.
   • Cons: Risks overlooking critical issues related to the fort and children’s convenience.
2. Seek Advice from the Superior Officer:
   • Pros: Clarifies the situation and aligns actions with directives.
   • Cons: May not fully address the fort’s concerns or children’s inconvenience.
3. Consult Your Predecessor/Colleagues:
   • Pros: Gains insights into the transaction’s history and potential vested interests.
   • Cons: Opinions may be biased, failing to address fundamental issues adequately.
4. Find an Alternate Plot and Send a Comprehensive Report:
   • Pros: Considers community needs, fort preservation, and high development charges.
   • Cons: Finding suitable land may be complex and time-consuming.
5. Conduct an Independent Investigation:
   • Pros: Provides an unbiased assessment, uncovers hidden agendas, and promotes transparency.
   • Cons: Requires resources and may introduce new complexities or resistance.

Conclusion

Conducting an independent investigation is the most effective option, ensuring a thorough examination of the issues while promoting transparency and integrity. This approach addresses concerns regarding the heritage site, community needs, and potential vested interests, leading to a fair and informed decision-making process.