← All questionsGS4 · 2014 · Ethics Case Study ·CEO Facing a Bribe Demand
QUESTION 12
GS4
20 marks

Suppose you are the CEO of a company that manufactures specialized electronic equipment used by a government department. You have submitted your bid for the supply of this equipment to the department. Both the quality and cost of your offer are better than those of the competitors. Yet the concerned officer is demanding a hefty bribe for approving the tender. Getting the order is important both for you and for your company. Not getting the order would mean closing a production line. It may also affect your own career. However, as a value-conscious person, you do not want to give bribe. Valid arguments can be advanced both for giving the bribe and getting the order, and for refusing to pay the bribe and risking the loss of the order. What those arguments could be? Could there be any better way to get out of this dilemma? If so outline the main elements of this third way, pointing out its merits.

WRITE IN
14 min
250 words

What the examiner wants

Weigh the case for and against paying the bribe and outline a better third way and its merits.

Case studyName the stakeholders and the issues, weigh the options, and say what you would do and why.

Demand-wise check

  1. 1Stakeholders: company and its workers, shareholders, government department, taxpayers, honest competitors, the corrupt officer≈40 words
  2. 2Arguments for paying: saves the production line and jobs, bid is genuinely best so public loses nothing, 'everyone does it'≈40 words
  3. 3Arguments against: illegal for bribe-giver too, sets precedent for future demands, reputational and legal risk, distorts fair competition, wrong means even for good ends≈40 words
  4. 4Third way: document the demand, raise it with higher authority of the department and its CVO, invoke Integrity Pact and Independent External Monitor, approach ACB/CBI for a trap if needed; meanwhile diversify customers to protect jobs≈40 words
  5. 5Merits: keeps company clean, may still win the order on merit, helps clean the system≈40 words

Open in about 30 words and close in about 30.

Answer plan

StakeholdersArguments forArguments againstThird way with stepsMeritsConclusion

Where marks usually go

  • Justifying the bribe on job grounds without legal consequences
  • Proposing a third way that is only 'refuse and accept loss'

Draw this

  • Decision matrix: pay / refuse / third way scored on legality, jobs, reputation, long-term business

Value addition

  • LawPrevention of Corruption (Amendment) Act 2018 made bribe-giving a specific offence (Section 8) and makes commercial organisations liable unless they have adequate anti-bribery procedures (Section 9).Parliament, 2018
  • PolicyCVC recommends Integrity Pacts with Independent External Monitors for major public procurement.Central Vigilance Commission

Mapped topper copies

Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.

Links open original public sources. MainsBuddy does not host these answer sheets.