You are working as an executive in a nationalised bank for several years. One day one of your close colleagues tells you that her father is suffering from heart disease and needs surgery immediately to survive. She also tells you that she has no insurance and the operation will cost about Rs. 10 lakh. You are also aware of the fact that her husband is no more and that she is from a lower middle class family. You are empathetic about her situation. However, apart from expressing your sympathy, you do not have the resources to fund her. A few weeks later, you ask her about the well-being of her father and she informs you about his successful surgery and that he is recovering. She then confides in you that the bank manager was kind enough to facilitate the release of Rs. 10 lakh from a dormant account of someone to pay for the operation with a promise that it should be confidential and be repaid at the earliest. She has already started paying it back and will continue to do so until it is all returned.
(a) What are the ethical issues involved?
(b) Evaluate the behaviour of the bank manager from an ethical point of view.
(c) How would you react to the situation?
You are working as an executive in a nationalised bank for several years. One day one of your close colleagues tells you that her father is suffering from heart disease and needs surgery immediately to survive. She also tells you that she has no insurance and the operation will cost about Rs. 10 lakh. You are also aware of the fact that her husband is no more and that she is from a lower middle class family. You are empathetic about her situation. However, apart from expressing your sympathy, you do not have the resources to fund her. A few weeks later, you ask her about the well-being of her father and she informs you about his successful surgery and that he is recovering. She then confides in you that the bank manager was kind enough to facilitate the release of Rs. 10 lakh from a dormant account of someone to pay for the operation with a promise that it should be confidential and be repaid at the earliest. She has already started paying it back and will continue to do so until it is all returned.
(a) What are the ethical issues involved?
(b) Evaluate the behaviour of the bank manager from an ethical point of view.
(c) How would you react to the situation?
This case highlights the conflict between empathy and fiduciary duty within a financial institution.
The central ethical dilemma revolves around the bank manager's decision to use funds from a dormant account for a colleague's personal emergency, resembling instances of unauthorized access to customer funds reported in recent banking scandals.
Stakeholder Identification
(a) Ethical Issues Involved:
-
Violation of Fiduciary Duty: The bank manager's action constitutes a severe breach of fiduciary duty towards the bank and its customers, specifically the dormant account holder. This act undermines the fundamental trust placed in banks to safeguard assets.
-
Conflict between Compassion and Professional Ethics: While the manager acted out of compassion, he violated institutional trust and set a dangerous precedent that can be misused.
-
Misappropriation of Funds: Using funds from a dormant account without authorization, regardless of intent, is misappropriation and potentially illegal, violating the rule of law. This action disregards established procedures for accessing and utilizing customer funds.
-
Lack of Transparency and Accountability: The secretive nature of the transaction raises concerns about transparency and accountability within the bank. This secrecy fosters a culture of mistrust and undermines the integrity of the institution.
-
Conflict of Interest: The bank manager's personal relationship with the colleague influenced their decision-making, creating a conflict of interest that compromised their professional judgment. This conflict prioritizes personal relationships over professional obligations.
-
Potential for Systemic Risk: Such unauthorized transactions, if normalized, could create systemic risks for the bank, jeopardizing its financial stability and reputation. This sets a wrong precedent for other employees.
(b) Evaluation of Bank Manager's Behaviour:
-
Deontological Perspective (Immanuel Kant): From a deontological perspective, the bank manager's actions are unethical. The act of misappropriating funds is inherently wrong, regardless of the motivation or outcome. The manager's duty is to uphold the rules and regulations governing banking operations.
-
Utilitarian Perspective (John Stuart Mill): A utilitarian perspective might argue that the manager's actions resulted in a positive outcome (saving a life) and thus maximized overall happiness. However, this perspective fails to account for the potential negative consequences and the violation of rights of customers.
-
Virtue Ethics (Aristotle): The manager's actions demonstrate lack of key virtues such as integrity, honesty, and justice. Their decision was driven by empathy, but it was misapplied and ultimately compromised their character.
-
Justice Approach (John Rawls): The manager's actions violate the principles of fairness and equality. The dormant account holder's rights were disregarded without their knowledge or consent, failing to uphold the veil of ignorance.
-
Intent-Based Evaluation: The manager acted to save a life, showing a high degree of empathy and humaneness. He ensured a repayment mechanism, indicating an attempt at restitution.
(c) Your Reaction to the Situation:
-
Initial Reaction: Acknowledge the emotional gravity of the situation and express empathy for your colleague’s distress and your admiration for her sense of responsibility to repay.
-
Ethical Standpoint:
- As a responsible officer, you cannot ignore the ethical and legal breach.
- The action, if discovered externally (e.g. audit), can harm your colleague, the manager, and the bank.
-
Suggested Course of Action:
-
Encourage your colleague to bring the matter to the attention of senior bank officials or the internal ethics committee voluntarily, explaining the context and intent behind the action.
-
Offer your support as a witness to her honesty, repayment effort, and the circumstances.
-
If she refuses, you may consider reporting the matter confidentially through the appropriate internal channels (like the Vigilance or Ethics Committee).
-
-
Preventive Approach:
-
Propose to the management the creation of an employee emergency fund or corporate social responsibility (CSR) fund to help genuine medical emergencies.
-
This would institutionalize support without ethical compromise.
-
Promoting Ethical Awareness: This situation highlights the need for ongoing ethics training and awareness programs within the bank to reinforce the importance of fiduciary duty, transparency, and accountability.
-
Strengthening Internal Controls: The bank should review and strengthen its internal controls to prevent similar incidents from occurring in the future. This includes stricter access controls for dormant accounts and clear procedures for handling exceptional circumstances.
-
While saving a life is noble, institutional integrity and rule of law cannot be bypassed, especially in the banking sector where trust is paramount. The best course of action is to rectify the breach through official channels while advocating for systemic reforms to support employees in distress ethically.
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.
Ethics: Case Study PYQs from 2023
- 20 MarksView Answer
You hold a responsible position in a ministry in the government One day in the morning you received a call from the school of your 11-year-old son that you are required to come and meet the Principal. You proceed to the school and find your son in the Principal’s office. The Principal informs you that your son had been found wandering aimlessly in the grounds during the time classes were in progress. The class teacher further informs you that your son has lately become a loner and did not respond to questions in the class, he had also been unable to perform well in the football trials held recently. You bring your son back from the school and in the evening, you along with your wife try to find out the reasons for your son’s changed behaviour. After repeated cajoling, your son shares that some children had been making fun of him in the class as well as in the WhatsApp group of the students by calling him stunted, duh and a frog. He tells you the names of a few children who are the main culprits but pleads with you to let the matter rest. After a few days, during a sporting event, where you and your wife have gone to watch your son play, one of your colleague’s sons shows you a video in which students have caricatured your son. Further, he also points out to the perpetrators who were sitting in the stands. You purposefully walk past them with your son and go home. Next day, you find on social media, a video denigrating you, your son and even your wife, stating that you engaged in physical bullying of children on the sports field. The video became viral on social media. Your friends and colleagues began calling you to find out the details. One of your juniors advised you to make a counter video giving the background and explaining that nothing had happened on the field. You, in turn posted a video which you have captured during the sporting event, identifying the likely perpetrators who were responsible for your son’s predicament. You have also narrated what has actually happened in the field and made attempts to bring out the adverse effects of the misuse of social media.
(a) Based on the above case study, discuss the ethical issues involved in the use of social media.
(b) Discuss the pros and cons of using social media by you to put across the facts to counter the fake propaganda against your family - 20 MarksView Answer
You have just been appointed as Additional Director General of Central Public Works Department. The Chief Architect of your division, who is to retire in six months, is passionately working on a very important project, the successful completion of which would earn him a lasting reputation for the rest of his life. A new lady architect. Seema, trained at Manchester School of Architecture, UK joined as Senior Architect in your division. During the briefing about the project, Seema made some suggestions which would not only add value to the project, but would also reduce completion time. This has made the Chief Architect insecure and he is constantly worried that all the credit will go to her. Subsequently, he adopted a passive and aggressive behaviour towards her and has become disrespectful to her. Seema felt it embarrassing as the Chief Architect left no chance of humiliating her. He would very often correct her in front of other colleagues and raise his voice while speaking to her. This continuous harassment has resulted in her losing confidence and selfesteem. She felt perpetually tense, anxious and stressed. She appeared to be in awe of him since he has had a long tenure in the office and has vast experience in the area of her work. You are aware of her outstanding academic credentials and career record in her previous organisations. However, you fear that this harassment may result in compromising her much needed contribution in this important project and may adversely impact her emotional well-being. You have also come to know from her peers that she is contemplating tendering her resignation.
(a) What are the ethical issues involved in the above case?
(b) What are the options available to you in order to complete the project as well as to retain Seema in the organization?
(c) What would be your response to Seema’s predicament? What measures would you institute to prevent such occurrences from happening in your organization? - 20 MarksView Answer
Vinod is an honest and sincere IAS officer. Recently, he has taken over as Managing Director of the State Road Transport Corporation, his sixth transfer in the past three years. His peers acknowledge his vast knowledge, affability and uprightness. The Chairman of the State Road Transport Corporation is a powerful politician and is very close to the Chief Minister. Vinod comes to know about many alleged irregularities of the Corporation and the high-handedness of the Chairman in financial matters. A Board Member of the Corporation belonging to the Opposition Party meets Vinod and hands over a few documents along with a video recording in which the Chairman appears to be demanding bribe for placing a huge order for the supply of QMR tyres. Vinod recollects the Chairman expediting clearing of pending bills of QMR tyres. Vinod confronts the Board Member as to why he is shying away from exposing the Chairman with the so-called solid proof he has with him. The member informs him that the Chairman refuses to yield to his threats. He adds that Vinod may earn recognition and public support if he himself exposes he Chairman. Further, he tells Vinod that once his party comes to power, Vinod’s professional growth would be assured. Vinod is aware that he may be penalised if he exposes the Chairman and may further be transferred to a distant place. He knows that the Opposition Party stands a better chance of coming to power in the forthcoming elections. However, he also realises that the Board Member is trying to use him for his own political gains.
(a) As a conscientious civil servant, evaluate the options available to Vinod.
(b) In the light of the above case, comment upon the ethical issues that may arise due to the politicization of bureaucracy. - 20 MarksView Answer
At 9 pm on Saturday evening, Rashika, a Joint Secretary, was still engrossed in her work in her office. Her husband, Vikram, is an executive in an MNC and frequently out of town in connection with his work. Their two children aged 5 and 3 are looked after by their domestic helper. At 9:30 pm her superior, Mr. Suresh calls her and asks her to prepare a detailed note on an important matter to be discussed in a meeting in the Ministry. She realises that she will have to work on Sunday to finish the additional task given by her Superior. She reflects on how she had looked forward to this posting and had worked long hours for months to achieve it. She had kept the welfare of people uppermost in discharging her duties. She feels that she has not done enough justice to her family and she has not fulfilled her duties in discharging essential social obligations. Even as recently as last month she had to leave her sick child in the nanny’s care as she had to work in the office. Now, she feels that she must draw a line, beyond which her personal life should take precedence over her professional responsibilities. She thinks that there should be reasonable limits to the work ethics such as punctuality, hard work, dedication to duty and selfless service.
(a) Discuss the ethical issues involved in the case.
(b) Briefly describe at least four laws that have been enacted by the government with respect to providing a healthy, safe and equitable working environment for women.
(c) Imagine you are in a similar situation. What suggestions would you make to mitigate such working conditions? - 20 MarksView Answer
A landslide occurred in the middle of the night on 20th July. 2023 in a remote mountain hamlet, approximately 60 kilometres from Uttarkashi. The landslide was caused by torrential rains and has resulted in large-scale destruction of property and life. You, as District Magistrate of that area, have rushed to the spot with a team of doctors, NGOs, media and police along with numerous support staff to oversee the rescue operations. A man came running to you with a request for urgent medical help for his pregnant wife who is in labour and is losing blood. You directed your medical team to examine his wife. They return and convey to you that this Woman needs blood transfusion immediately. Upon enquiry, you come to know that a few blood collection bags and blood group test kits are available in the ambulance accompanying your team. Few people of your team have already volunteered to donate blood. Being a physician who has graduated from AIIMS, you know that blood for transfusion needs to be procured only through a recognized blood bank. Your team members are divided on this issue; some favour transfusion, while some others oppose it. The doctors in the team are ready to facilitate the delivery provided they are not penalized for transfusion. Now you are in a dilemma. Your professional training emphasizes on prioritising service to humanity and saving lives of individuals.
(a) What are the ethical issues involved in this çase?
(b) Evaluate the options available to you, being District Magistrate of the area.
In just 60 sec
Evaluate your handwritten answer
- Get detailed feedback
- Model Answer after evaluation
Model Answers by Subject
Crack UPSC with your
Personal AI Mentor
An AI-powered ecosystem to learn, practice, and evaluate with discipline


