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 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-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 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? (250 words) [UPSC 2022]
Ethical Issues Involved
The scenario presents several ethical issues:
Options Available to Prabhat
Prabhat has several options to consider:
Most Appropriate Option
Rejecting the Proposal and seeking alternative solutions is the most appropriate course of action for Prabhat.
Reasons:
Recent examples include the Volkswagen emissions scandal, where corporate dishonesty led to significant legal and reputational fallout. Companies that engage in unethical practices often face severe consequences, underscoring the importance of integrity in business decisions.
In conclusion, Prabhat should prioritize ethical standards and explore legitimate avenues for improving the company’s situation while safeguarding his professional and personal reputation.
Model Answer
Introduction
The case of Prabhat, Vice President of Marketing at Sterling Electric Ltd., presents a significant ethical dilemma. Faced with the offer from Subhash Verma to provide stolen bid documents, Prabhat must navigate complex ethical issues that could impact both his career and the integrity of his company.
Body
(a) Ethical Issues Involved in the Case
(b) Options Available to Prabhat
(c) Most Appropriate Course of Action
The most appropriate course of action for Prabhat is to reject the offer and report the incident. This decision reinforces his commitment to ethical principles, maintains the integrity of the bidding process, and protects his company from legal and reputational risks. Accepting the offer would not only implicate him in unethical practices but could also lead to severe consequences for both his career and the organization as a whole.
Conclusion
By choosing to uphold ethical standards and report the incident, Prabhat can foster a culture of integrity within his organization and protect its long-term interests.