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 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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Q1.

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 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?20

Introduction

Prabhat faces a deadline, a family's needs and a stolen file at once; the case tests whether integrity holds when wrongdoing promises to solve everything.

(a) Ethical Issues Involved in the Case

The core dilemma is between Family Security and Professional Integrity.

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Means vs ends

A stolen rival bid would win the tender by corrupting the process meant to get the Ministry the best value.

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Theft and breach of trust

Rewarding Verma makes Sterling a partner in his breach of his employer's confidence.

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Procurement integrity

India cancelled the AgustaWestland deal in 2014 citing breach of its Integrity Pact, so a tainted win risks blacklisting.

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Patronage and bias

A CV routed through the Minister's office and Verma's Halo Effect blur judgment.

(b) Critically Examining the Options Available to Prabhat

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(i) CAPITULATE [Compromised-Hybrid]

Taking the papers may save his job but is Moral Myopia with criminal risk.

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(ii) CONFRONT [Strict-Legal]

Going straight to police and press bypasses company counsel.

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(iii) EVADE [Procedural-Evasive]

Silent refusal is Bystander Apathy; the leak may travel.

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(iv) COMPROMISE [Empathetic-Humanitarian]

Hiring Verma without the papers rewards a breach of trust.

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(v) RECONCILE ✓ [Balanced]

Refuse papers and candidacy, report through compliance, alert the tender authority and bid on merit (recommended).

(c) The Most Appropriate Option and Why

Family Security vs Professional Integrity. Venn diagram: Family Security, Professional Integrity; overlap: Clean bid, honest financial planning

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Option (v)

Only refusing, reporting and bidding on merit keeps Sterling's tender clean, while loan restructuring meets his family's needs.

Justification:

Kant's Categorical Imperative: if every bidder used stolen papers, fair tendering would collapse.

Conclusion

Refusing, reporting and competing honestly protects Prabhat's integrity, his company and the Defence Ministry's process, while his family's needs are met through open financial planning, not a stolen file.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Question from the official UPSC Civil Services (Main) Examination 2022 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.