Prabhat was working as Vice President (Marketing) at Sterling Electric Ltd., a reputed multinational company. But presently the company was passing through the difficult times as the sales were continuously showing downward trend in the last two quarters. His division, which hitherto had been a major revenue contributor to the company’s financial health, was now desperately trying to procure some big government order for them. But their best efforts did not yield any positive success or breakthrough. His was a professional company and his local bosses were under pressure from their London-based HO to show some positive results. In the last performance review meeting taken by the Executive Director (India Head), he was reprimanded for his poor performance. He assured them that his division is working on a special contract from the Ministry of Defence for a secret installation near Gwalior and tender is being submitted shortly. He was under extreme pressure and he was deeply perturbed. What aggravated the situation further was a warning from the top that if the deal is not clinched in favour of the company, his division might have to be closed and he may have to quit his lucrative job. There was another dimension which was causing him deep mental torture and agony. This pertained to his personal precarious financial health. He was a single earner in the family with two school-college going children and his old ailing mother. The heavy expenditure on education and medical was causing a big strain to his monthly pay packet. Regular EMI for housing loans taken from banks was unavoidable and any default would render him liable for severe legal action. In the above backdrop, he was hoping for some miracle to happen. There was a sudden turn of events. His secretary informed that a gentleman-Subhash Verma wanted to see him as he was interested in the position of Manager which was to be filled by him in the company. He further brought to his notice that his CV has been received through the office of the Minister of Defence. During the interview of the candidate-Subhash Verma, he found him technically sound, resourceful and an experienced marketeer. He seemed to be well-conversant with tendering procedures and having a knack of follow-up and liaising in this regard. Prabhat felt that he was a better choice than the rest of the candidates who were recently interviewed by him in the last few days. Subhash Verma also indicated that he was in possession of the copies of the bid documents that the Unique Electronics Ltd. would be submitting the next day to the Defence Ministry for their tender. He offered to hand over those documents subject to his employment in the company on suitable terms and conditions. Being an experienced person, he was examining the pros and cons of the proposal/situation and he asked him to come the next day.(a) Discuss the ethical issues involved in the case.(b) Critically examine the options available to Prabhat in the above situation.(c) Which of the above would be the most appropriate for Prabhat and why?
What the examiner wants
Prabhat, under pressure to win a defence tender and in personal financial stress, is offered a rival company's confidential bid documents by a job applicant. Identify the ethical issues, examine options, and choose the right one.
Demand-wise check
- 1Ethical issues: integrity vs survival, corporate espionage, fairness in public procurement, national security (defence tender), conflict of interest (CV via minister's office)≈65 words
- 2Options: accept documents and hire; hire without documents; reject candidate; reject and report to company and Defence Ministry≈65 words
- 3Best option: refuse the documents, not hire on that basis, inform top management and report the leak; compete on merit≈65 words
Open in about 30 words and close in about 30.
Answer plan
Where marks usually go
- Picking an option without evaluating each
- Ignoring the national security angle of a defence tender
Draw this
- Option table: option → pros → cons → verdict
Value addition
- LawLeaking or using confidential defence procurement documents can attract the Official Secrets Act, 1923 and the Defence Procurement Procedure integrity pact.Official Secrets Act 1923; DAP integrity pact
- ThinkerGandhi's 'commerce without morality' as a social sin.M.K. Gandhi
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Shakti Dubey · AIR 1 · Page 37 ↗Same syllabus reference
- Aakash Garg · AIR 5 · Page 29 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 35 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 39 ↗Same syllabus reference
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