2015 · GS Paper 4 · Q11 · 20 marks
One of the scientists working in the R & D laboratory of a major pharmaceutical company discovers that one of the company's best selling veterinary drugs, B has the potential to cure a currently incurable liver disease that is prevalent in tribal areas. However, developing a variant of the drug suitable for human beings entailed a lot of research and development having a huge expenditure to the extent of ₹ 50 crores. It was unlikely that the company would recover the costs as the disease was rampant only in poverty-stricken area having very little market otherwise. If you were the CEO, then— (a) identify the various actions that you could take; (b) evaluate the pros and cons of each of your actions.
In short
As CEO, the best course is to develop the human variant of drug B through a cost-sharing partnership with ICMR and global health partners, then supply it at tiered prices. Merck's Mectizan Donation Program shows how a veterinary drug, ivermectin, became a free cure for river blindness.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 272 words
Introduction
The dilemma is between Profitability, recovering ₹50 crore for investors, and Public Health Welfare, a cure for poor tribal patients.
(a) Actions Available to the CEO
Profitability vs Public Health Welfare. Venn diagram: Profitability, Public Health Welfare; overlap: Partnership-funded, affordable cure
The issues are a neglected disease the market ignores and the risk of Moral Myopia. I could shelve the finding, develop it alone and give it free, price it for profit, hand the data to ICMR, or develop it through a partnership.
(b) Pros and Cons of Each Action
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(i) EVADE [Procedural-Evasive]
Shelving protects margins but is Bystander Apathy towards curable suffering.
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(ii) CONFRONT [Empathetic-Humanitarian]
Free development is compassionate but strains fiduciary duty.
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(iii) CAPITULATE [Strict-Legal]
Patent pricing is lawful and recovers costs, but excludes the very patients who need the cure.
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(iv) COMPROMISE [Compromised-Hybrid]
Handing data to ICMR is cheap, but the cure may never reach patients.
•
(v) RECONCILE ✓ [Balanced]
Co-develop with ICMR and a partner like DNDi [current event], then supply at tiered prices (recommended).
Justification:
Gandhi's Talisman: recalling the poorest tribal patient makes the partnership route right, as it cures without ruining the firm.
Conclusion
Profit and welfare are a false binary; as CEO I would develop the cure through partnership, acting as a trustee of both investors and society, so the cure reaches the tribal patients who need it most.
This model answer is indicative and the model can make mistakes; please verify key facts independently.
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Corporate Conduct8 questions
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2026
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- 2024Sneha is a Senior Manager working for a big reputed hospital chain in a mid-sized city. She has been made in-charge of the new super speciality center that the hospital is building with state-of-the art equipment and world class medical facilities. The building has been reconstructed and she is starting the process of procurement for various equipment and machines. As the head of the committee responsible for procurement, she has invited bids from all the interested reputed vendors dealing in medical equipment. She notices that her brother, who is a well-known supplier in this domain, has also sent his expression of interest. Since the hospital is privately owned, it is not mandatory for her to select only the lower bidder. Also, she is aware that her brother's company has been facing some financial difficulties and a big supply order will help him recover. At the same time, allocating the contract to her brother might bring charges of favouritism against her and tarnish her image. The hospital management trusts her fully and would support any decision of hers. (a) What should be Sneha's course of action? (b) How would she justify what she chooses to do? (c) In this case, how is medical ethics compromised with vested personal interest?
- 2022Prabhat 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 marketer. 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?
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Question from the official UPSC Civil Services (Main) Examination 2015 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.