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? (250 words) [UPSC 2022]

Roadmap for Answer Writing:

Introduction:

• Briefly explain the context: Post-COVID recovery, employment challenges, ethical responsibilities in professional roles.
• Mention the conflict between business interests and personal/professional ethics.

a. Options Available:
List potential actions you could take in this situation:

• Clear the consignment as per the top management’s directive.
• Refuse to clear the consignment and accept the consequences.
• Report the issue to higher authorities or external regulatory bodies.
• Request a meeting with top management to further explain the risks.
• Resign from the job citing ethical concerns.

Relevant Fact: Poor-quality products have been linked to brand reputation damage. A 2020 study by Deloitte states that 87% of customers avoid businesses after a product failure. [Source: Deloitte Consumer Review]

b. Critical Evaluation of Each Option:

• Option 1: Clear the consignment
• Pros: Safeguard your job, follow management directives, avoid conflicts.
• Cons: Violate professional ethics, tarnish the company’s reputation, long-term harm to business and potential legal consequences.
• Fact: Volkswagen faced heavy fines after their 2015 emissions scandal, losing around €30 billion in penalties and legal fees. [Source: Reuters]
• Option 2: Refuse to clear the consignment
• Pros: Uphold professional ethics, protect the company’s long-term interest, personal integrity.
• Cons: Job termination, risk to family security.
• Fact: Whistleblowers like Dr. Li Wenliang, who raised early alarms about COVID-19, faced job-related consequences but were recognized later for their integrity. [Source: BBC]
• Option 3: Report to external authorities
• Pros: Escalate the issue and potentially prevent unethical practices.
• Cons: May create hostile working conditions or lead to legal battles.
• Fact: In the US, whistleblowers who reported on workplace malpractices under the False Claims Act have been instrumental in recovering $2.2 billion in 2021. [Source: U.S. Department of Justice]
• Option 4: Request a meeting with top management
• Pros: An attempt to reason with management while maintaining the job.
• Cons: Might not change their decision, and could label you as confrontational.
• Option 5: Resign from the job
• Pros: Protects personal integrity, avoids participation in unethical practices.
• Cons: Financial instability, risk to family well-being, difficult job market post-COVID.
• Fact: 4.4 million US workers resigned in September 2021 in part due to work culture dissatisfaction post-pandemic. [Source: U.S. Bureau of Labor Statistics]

c. Your Chosen Option:

• Choose the option that balances ethical responsibility, personal and family security, and long-term business interests.
• Example: “I would refuse to clear the consignment and request a meeting with the top management to explain the long-term consequences.”

Fact: Studies show that businesses with strong ethical values outperform competitors in the long run, with 2-3x higher employee satisfaction and customer loyalty. [Source: Harvard Business Review]
d. Ethical Dilemmas:

• Job security vs. Ethical responsibility: Should you compromise your integrity to keep your job?
• Short-term losses vs. Long-term reputation: Is it worth risking the company’s future for immediate financial benefits?
• Personal safety vs. Corporate accountability: The risk of facing retaliation for raising concerns.

Fact: Over 30% of employees who raise ethical issues at work face retaliation, which includes job loss or demotion. [Source: Ethics & Compliance Initiative (ECI), 2021]

e. Consequences of Overlooking Observations:

• Damage to the company’s reputation: Domestic consumers may lose trust.
• Legal issues: Selling defective products could result in lawsuits or regulatory penalties.
• Employee morale: Allowing unethical practices may demoralize employees who value integrity.
• Financial Loss: Once discovered, poor quality could lead to decreased sales and loss of market share.

Fact: Johnson & Johnson’s Tylenol scandal in the 1980s was resolved ethically, restoring public trust and long-term success. Companies that prioritize ethical resolution often recover stronger. [Source: Forbes]