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Suppose one of your close friends, who is also aspiring for civil services, comes to you for discussing some of the issues related to ethical conduct in public service. He raises the following points:- (i)In the present times, when unethical environment is quite prevalent, individual attempts to stick to ethical principles may cause a lot of problems in one’s career. It may cause hardship to the family members as well as risk to one’s life. Why should we not be pragmatic and follow the path of least resistance, and be happy with doing whatever good we can? (ii) When so many people are adopting wrong means and are grossly harming the system, what difference would it make if only a small minority tries to be ethical? They are going t be rather ineffective and are bound to get frustrated. (iii) If we become fussy about ethical considerations, will it not hamper the economic progress of our country? After all in the present age of high competition we cannot afford to be left behind in the race of development (iv) It is understandable that we should not get involved in grossly unethical practices, but giving and accepting small gratifications and doing small favours increases everybody’s motivation. It also makes the system more efficient. What is wrong in adopting such practices? Critically analyze the above viewpoints. On the basis of this analysis, what will be your advice to your friend?

Ethics
Ethics: Case Study
2014
20 Marks

The case presents a corruption dilemma where a CEO faces demands for bribes despite having the best technical and financial proposal, highlighting the conflict between business survival and ethical integrity in public procurement processes.

Stakeholders

  • Primary Stakeholders: CEO, company employees, government officer, government department, competitors
  • Secondary Stakeholders: Company shareholders, industry peers, general public, regulatory authorities

Arguments for Giving Bribe and Getting Order

  • Business Survival: Prevents production line closure and potential job losses for employees
  • Competitive Disadvantage: Competitors may be willing to pay bribes, creating unfair market conditions
  • Career Protection: Avoiding personal professional setbacks and maintaining leadership credibility
  • Stakeholder Obligations: Fulfilling duties toward shareholders and employees dependent on company success
  • Pragmatic Approach: Working within existing corrupt system to achieve legitimate business objectives

Arguments for Refusing Bribe and Risking Order Loss

  • Legal Compliance: Avoiding violations under Prevention of Corruption Act and maintaining clean business practices
  • Ethical Integrity: Upholding personal values and corporate governance standards as per Companies Act 2013
  • Long-term Reputation: Preserving company brand value and stakeholder trust for sustainable growth
  • Systemic Change: Contributing to corruption-free business environment and fair competition
  • Constitutional Values: Supporting Article 14 principles of equality and transparent governance

Third Way - Alternative Approach

  • Formal Documentation: Submit detailed written proposal highlighting superior quality and cost-effectiveness with copies to higher authorities
  • Transparency Mechanisms: Utilize RTI Act 2005 provisions to seek information about tender evaluation criteria and timelines
  • Escalation Strategy: Approach senior officials or minister's office through proper channels, emphasizing public interest in cost-effective procurement
  • Industry Coalition: Collaborate with other ethical companies to collectively approach Central Vigilance Commission about systemic corruption
  • Media and Civil Society: Engage with investigative journalists and anti-corruption organizations while maintaining confidentiality
  • Legal Recourse: File complaint with CBI or state vigilance department with evidence of bribe demands
  • Alternative Markets: Simultaneously explore other government departments or private sector opportunities to reduce dependency

Merits of Third Way

  • Systemic Impact: Addresses root cause of corruption rather than perpetuating it
  • Legal Protection: Provides whistleblower protection under Whistleblowers Protection Act 2014
  • Competitive Advantage: Establishes reputation for integrity, attracting ethical clients and partners
  • Risk Mitigation: Avoids legal consequences while creating multiple business opportunities

This approach transforms individual ethical dilemma into collective action for systemic change, demonstrating that "integrity is not just about doing right when convenient, but standing firm when tested."

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