One of the scientists working in the R&D laboratory of a major pharmaceutical company discovers that one of the company’s bestselling veterinary drugs has the potential to cure a currently incurable liver disease which 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 Rs. 50 crores. It was unlikely that the company would recover the cost as the disease was rampant only in poverty-stricken areas 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
One of the scientists working in the R&D laboratory of a major pharmaceutical company discovers that one of the company’s bestselling veterinary drugs has the potential to cure a currently incurable liver disease which 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 Rs. 50 crores. It was unlikely that the company would recover the cost as the disease was rampant only in poverty-stricken areas 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
The case presents a pharmaceutical CEO facing a critical decision between profit maximization and social responsibility when a veterinary drug shows potential to cure an incurable liver disease affecting tribal populations, requiring substantial investment with minimal financial returns.
Stakeholders
- Primary Stakeholders: Tribal communities, company shareholders, scientist, CEO, employees
- Secondary Stakeholders: Government, healthcare system, pharmaceutical industry, NGOs, media
(a) Various Actions Available
- Complete rejection of human drug development
- Full-scale independent development with Rs. 50 crore investment
- Public-private partnership with government agencies
- Licensing the formula to generic manufacturers
- Phased development with external funding sources
- Corporate social responsibility initiative with partial investment
(b) Evaluation of Pros and Cons
Option 1: Complete Rejection of Development
| Pros | Cons |
|---|---|
| Protects shareholder interests and company profits | Violates ethical duty to save lives when solution exists |
| Maintains focus on profitable ventures | Damages company reputation and social license |
| Avoids financial risk and uncertain returns | Perpetuates health inequity in tribal areas |
| Preserves resources for other R&D projects | Contradicts Article 21 right to life principles |
Option 2: Full Independent Development (Rs. 50 Crores)
| Pros | Cons |
|---|---|
| Fulfills dharmic obligation to serve humanity | Massive financial burden threatening company viability |
| Establishes company as socially responsible leader | Shareholders may face reduced dividends and returns |
| Potential long-term goodwill and brand value | Uncertain recovery timeline in poverty-stricken markets |
| Aligns with utilitarian principle of greatest good | May compromise other profitable research projects |
Option 3: Public-Private Partnership with Government
| Pros | Cons |
|---|---|
| Shared financial burden reducing company risk | Complex bureaucratic processes and delays |
| Government support ensures wider distribution | Potential intellectual property sharing concerns |
| Aligns with National Health Mission objectives | Limited control over pricing and marketing decisions |
| Creates sustainable model for future developments | Dependency on government policy changes |
Option 4: Licensing to Generic Manufacturers
| Pros | Cons |
|---|---|
| Immediate revenue through licensing fees | Loss of direct control over quality standards |
| Faster market penetration through multiple players | Reduced profit margins compared to direct sales |
| Minimal additional investment required | Potential reputation risk from generic quality issues |
| Enables affordable pricing for tribal populations | Limited ongoing revenue stream |
The public-private partnership approach emerges as most viable, balancing deontological duty to preserve life with practical sustainability. As Mahatma Gandhi said, "The best way to find yourself is to lose yourself in the service of others," reflecting the transformative potential of ethical business leadership.
Answer Length
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Ethics: Case Study PYQs from 2015
- 25 MarksView Answer
You are recently posted as district development officer of a district. Shortly thereafter you found that there is considerable tension in the rural areas of your district on the issue of sending girls to schools. The elders of the village feel that many problems have come up because girls are being educated and they are stepping out of the safe environment of the household. They are the view that girls should be quickly married off with minimum education. The girls are also competing for jobs after education, which have traditionally remained in boys’ exclusive domain, adding to unemployment amongst the male population. The younger generation feels that in the present era, girls should have equal opportunities for education employment, and other means of livelihood. The entire locality is divided between sexes in both generations. You come to know that in Panchayat or in other local bodies or even in busy crosswords, the issue is being acrimoniously debated. One day you are informed that an unpleasant incident has taken place. Some girls were molested when they were en route to school. The incident led to clashes between several groups and a law and order problem has arisen. The elder after heated discussion has taken a joint decision not to allow girls to go to school and to socially boycott all such families, which do not follow their dictate.
(a) What steps would you take to ensure girls’ safety without disrupting their education?
(b) How would you manage and mold the patriarchic attitude of the village elders to ensure harmony in inter-generational relations? - 25 MarksView Answer
You are heading a district administration in a particular department. Your senior officer calls you from the State Headquarters and tells you that a plot in Rampur village is to have a building constructed on it for a school. A visit is scheduled during which he will visit the site along with the chief engineer and the senior architect. He wants you to check out all the papers relating to it and ensure that the visit is properly arranged. You examine the file which relates to the period before you joined the department. The land was acquired for the local panchayat at a nominal cost and the papers showed that clearance certificates are available for the two of the three authorities who have to certify the site’s suitability. There is no certification by the architect available on file. You decide to visit Rampur to ensure that all is in the order as stated on file. When you visit Rampur, you find that the plot under reference is a part of Thakurgarh fort and that the walls, ramparts, etc., are running across it. The fort is well away from the main village, therefore a school here will be a serious inconvenience for the children. However, the area near the village has potential to expand into a larger residential area. The development charges on the existing plot, at the fort, will be very high and question of heritage site has not been addressed. Moreover, the Sarpanch, at the time of acquisition of the land, was a relative of your predecessor. The whole transaction appears to have been done with some vested interest.
(a) List the likely vested interests of the concerned parties.
(b) Some of the options for action available to you are listed below. Discuss the merits and demerits of each of the options:
(i) You can await the visit of the superior officer and let him make a decision.
(ii) You can seek his advice in writing or on the phone.
(iii) You can consult your predecessor/ colleagues, etc, and then decide what to do.
(iv) You can find out if any alternate plot can be got in exchange and then send a comprehensive written report.
Can you suggest any other option with proper justifications? - 20 MarksView Answer
There is a disaster-prone state having frequent landslides, forest fires, cloudbursts, flash floods and earthquakes, etc. Some of these are seasonal and often unpredictable. The magnitude of the disaster is always unanticipated. During one of the seasons a cloudburst caused devastating floods and landslides leading to high casualties. There was major damage to infrastructure like roads, bridges and power generating units. This led to more than 100000 pilgrims, tourist and other locals trapped across different routes and locations. The people trapped in your area of responsibility includes senior citizens, patients in hospitals, women and children, hiker, tourist, ruling parties, regional presidents along with his family, additional chief secretary of the neighboring state, and prisoners in jail.
As a civil services officer of the state, what would be the order in which you would rescue these people and why? Give Justifications - 20 MarksView Answer
You are the Sarpanch of a Panchayat. There is a primary school run by the government in your area. Midday meals are provided to children attending the school. The headmaster has now appointed a new cook in the school to prepare the meals. However, when it is found that cook is from Dalit community, almost half of the children belonging to higher castes are not allowed to take meals by their parents. Consequentl,y the attendance in the schools falls sharply. This could result in the possibility of discontinuation of midday meal scheme, thereafter of teaching staff and subsequent closing down the school. (20 Marks) (250 Words)
(a) Discuss some feasible strategies to overcome the conflict and to createthe right ambiance.
(b) What should be the responsibilities of different social segments and agencies to create positive social ambiance for accepting such changes? - 20 MarksView Answer
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.
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