Suppose you are the CEO of a company that manufactures specialized electronic equipment used by a government department. You have submitted your bid for the supply of this equipment to the department. Both the quality and cost of your offer are better than those of the competitors. Yet the concerned officer is demanding a hefty bribe for approving the tender. Getting the order is important both for you and for your company. Not getting the order would mean closing a production line. It may also affect your own career. However, as a value-conscious person, you do not want to give bribe. Valid arguments can be advanced both for giving the bribe and getting the order, and for refusing to pay the bribe and risking the loss of the order.
What those arguments could be? Could there be any better way to get out of this dilemma? If so, outline the main elements of this third way, pointing out its merits. (250 words)[UPSC 2014] 20
Roadmap for Answer Writing
Introduction
- Context: Introduce the scenario where a CEO faces a demand for a bribe to secure a government contract despite having a competitive bid.
- Thesis Statement: Emphasize the need to balance financial necessity against ethical integrity in decision-making.
Body
1. Arguments for Giving the Bribe
- Financial Gain:
- Securing the order can ensure the company’s financial stability, protecting jobs and livelihoods (Smith, 2018).
- Competitive Edge:
- Winning the contract can enhance market reputation, leading to future business opportunities and growth.
2. Arguments for Refusing to Pay the Bribe
- Ethical Integrity:
- Upholding ethical standards fosters trust with stakeholders and preserves the company’s reputation (Brown & Treviño, 2006).
- Long-term Sustainability:
- Committing to ethical practices attracts like-minded partners and customers, ensuring sustainable business growth.
3. A Better Way to Navigate the Dilemma
- Legal and Ethical Alternatives:
- Transparency & Documentation: Communicate the company’s commitment to ethical practices and provide evidence of the bid’s quality and cost-effectiveness.
- Engagement with Higher Authorities: Seek intervention from higher officials to address the bribery demand.
- Whistleblower Reporting: Report the bribe solicitation to anti-corruption agencies.
4. Merits of This Third Way
- Upholding Principles: Maintains the company’s ethical values and integrity.
- Promoting Systemic Change: Contributes to a culture of accountability and transparency in government contracts (Sachs, 2015).
- Long-term Benefits: Attracts ethical partners and customers, fostering sustainable growth based on integrity.
Conclusion
- Recommendation: Emphasize that exploring ethical alternatives can lead to both business success and societal benefit. Prioritizing integrity is essential for long-term sustainability and positive organizational culture.
As the CEO of a company facing a bribe demand for securing a tender, you are confronted with a challenging ethical dilemma. Here’s a breakdown of the arguments for and against paying the bribe, along with a third approach that could help resolve the issue while maintaining ethical standards.
Arguments for Paying the Bribe
Arguments Against Paying the Bribe
Third Way: Addressing the Issue Through Legal and Transparent Channels
1. Document the Incident:
2. Report to Relevant Authorities:
3. Seek Legal Advice:
4. Publicize the Issue:
Merits of This Approach
Conclusion
While paying the bribe may offer short-term benefits, it poses significant long-term risks. The third approach of addressing the issue through legal and transparent means upholds ethical standards and protects both the company and its stakeholders in the long run.
Model Answer
Introduction
As the CEO of a company that manufactures specialized electronic equipment, you face a critical decision: whether to give a bribe to secure a government order or to refuse and risk losing the contract. Balancing financial gain against ethical integrity is paramount in this situation.
Body
Arguments for Giving the Bribe
Arguments for Refusing to Pay the Bribe
A Better Way to Resolve the Dilemma
Merits of This Third Way
Conclusion
Exploring ethical alternatives prioritizes integrity and promotes transparency in procurement processes, ultimately benefiting both the company and society. It is essential to consider solutions that uphold ethical standards while striving for business success.