A private company is known for its efficiency, transparency, and employee welfare. The company though owned by a private individual has a cooperative character where employees feel a sense of ownership. The company employs nearly 700 personnel and they have voluntarily decided not to form a union. One day suddenly in the morning, about 40 men belonging to the political party gate crashed into the factory demanding jobs in the factory. They threatened the management and employees and also used foul language. The employees feel demoralized. It was clear that those people who gate-crashed wanted to be on the payroll of the company as well as continue as volunteers/members of the party. The company maintains high standards of integrity and does not extend favors to civil administration which also includes law enforcement agencies. Such incidents occur in the public sector also.

(a) Assume you are the CEO of the company. What would you do to diffuse the volatile situation on the date of gate-crashing with the violent mob sitting inside the company premises?

(b) What can be the long-term solution to the issue discussed in the case?

(c) Every solution/action that you suggest will have a negative and a positive impact on you as (CEO), the employees, and the performance of the employees. Analyze the consequences of each of your suggested actions.

Ethics
Ethics: Case Study
2015
20 Marks

Introduction This case highlights the ethical dilemma of balancing the safety and rights of employees with external pressures, echoing similar incidents like the Maruti Suzuki violence in 2012. The central ethical dilemma lies in upholding the rule of law and ensuring employee safety (deontological approach) versus succumbing to coercion, exemplified by recent instances of political interference in private businesses, with the justice approach being most relevant.

Stakeholder Identification CEO, Employees, Gate-crashers (political party members), Local community, Law enforcement agencies, Shareholders.

(a) Diffusing the Volatile Situation:

  1. Prioritize safety and de-escalation: Immediately contact law enforcement while simultaneously engaging in peaceful dialogue with the intruders, emphasizing the company's commitment to legal processes and fair employment practices. This upholds the rule of law and prioritizes employee safety.
  2. Document the incident: Record the events, including photographic and video evidence, to ensure transparency and accountability. This promotes professionalism and serves as evidence for legal proceedings.
  3. Communicate transparently: Keep employees informed about the situation and the steps being taken to resolve it, addressing their concerns and anxieties. This fosters trust and demonstrates respect for their rights.
  4. Negotiate a peaceful exit: Offer basic refreshments and reiterate the company’s hiring procedures, emphasizing that employment is based on merit and not coercion. This promotes a common good approach while upholding company integrity.

(b) Long-Term Solutions:

  1. Strengthen security: Enhance physical security measures, including surveillance systems and access control, to deter future incidents. This prioritizes employee safety and company assets.
  2. Engage with local authorities: Establish a constructive relationship with law enforcement and local government officials to ensure prompt action in such situations. This reinforces the rule of law and promotes cooperation.
  3. Community outreach: Build positive relationships with the local community through social initiatives and transparent communication. This fosters goodwill and reduces the likelihood of such incidents.
  4. Employee training: Conduct workshops on conflict resolution and de-escalation techniques to equip employees with skills to handle such situations. This empowers employees and promotes professionalism.
  5. Policy implementation: Implement a clear policy against political interference and coercion, reinforcing the company's commitment to ethical conduct. This upholds the rule of law and promotes transparency.

(c) Consequences of Actions:

  1. Calling law enforcement:

    • Positive: Upholds the rule of law, ensures employee safety, deters future incidents.
    • Negative: Potential for escalation of violence, negative publicity, strained relationship with local political groups.
  2. Negotiation and dialogue:

    • Positive: Potential for peaceful resolution, demonstrates respect for all stakeholders, minimizes disruption.
    • Negative: May be perceived as weakness, could embolden future intrusions, might not be effective with determined aggressors.
  3. Strengthening security:

    • Positive: Enhances safety, deters future incidents, increases employee confidence.
    • Negative: Financial cost, potential for creating a fortress mentality, may not be foolproof.
  4. Community outreach:

    • Positive: Improves company image, fosters goodwill, strengthens community ties.
    • Negative: Time and resource intensive, may not directly address the issue of political coercion.
  5. Employee training:

    • Positive: Empowers employees, improves their ability to handle difficult situations, promotes professionalism.
    • Negative: Time and resource intensive, may not be effective in all situations.

Conclusion This case study highlights the challenges of maintaining ethical conduct in the face of external pressures. The Tata Group's consistent adherence to ethical principles, even in challenging circumstances, serves as a positive example. Moving forward, fostering a culture of respect for the rule of law, coupled with proactive engagement with stakeholders, is crucial to preventing such ethical dilemmas. This includes empowering employees, strengthening security, and building strong relationships with law enforcement and the local community. A multi-faceted approach that addresses both immediate concerns and long-term prevention is essential for ensuring a safe, ethical, and productive work environment.

Answer Length

Model answers may exceed the word limit for better clarity and depth. Use them as a guide, but always frame your final answer within the exam’s prescribed limit.

In just 60 sec

Evaluate your handwritten answer

  • Get detailed feedback
  • Model Answer after evaluation
Evaluate Now

Crack UPSC with your
Personal AI Mentor

An AI-powered ecosystem to learn, practice, and evaluate with discipline

Start Now
SuperKalam is your personal mentor for UPSC preparation, guiding you at every step of the exam journey.
Follow us

ⓒ Snapstack Technologies Private Limited