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 loan taken from bank 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 sudden turn of events. His Secretary informed
that a gentleman Subhas 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 interview of the candidate-Subhash
Verma, he found him technically sound, resourceful and experienced marketeer.
He seemed to be well-conversant with tendering procedures and having knack of
follow-up and liaising in this regard Prabhat felt that he was 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. He made it clear that in the process,
the Sterling Electric Ltd. could outbid their rival company and get the bid and
hefty Defence Ministry order. He indicated that it will be win-win situation
for both-him and the company.
Prabhat was absolutely stunned. It was a
mixed feeling of shock and thrill. He was uncomfortable and perspiring. If
accepted, all his problems would vanish instantly and he may be rewarded for
securing the much awaited tender and thereby boosting company’s sales and
financial health. He was in a fix as to the future course of action. He was
wonder-struck at the guts of Subhash Verma in having surreptitiously removing
his own company papers and offering to the rival company for a job. Being an
experienced person, he was examining the pros and cons of the
proposal/situation and he asked him to come the next day.
Questions
1.
Discuss the ethical issues
involved in the case.
2.
Discuss the ethical dilemmas
involved in the case
3.
What are the options
available?
4.
Critically evaluate each of
the options.
5.
What option should be adopted
and why?
Answer
In this scenario, Prabhat, the Vice President of
Marketing at Sterling Electric Ltd., is faced with critical ethical decisions
that require a strong moral compass and a commitment to upholding ethical
standards.
Ethical
issues involved:
·
Subhash Verma has obtained and offered
stolen bid documents from a rival company, involving theft of intellectual
property and breaching ethical norms.
·
Prabhat faces a conflict between his
personal financial struggles and the company's desperate need for a government
contract, potentially clouding his judgment and compromising ethical
decision-making.
·
The high-pressure environment, fear of
job loss, and desire for immediate solutions may tempt Prabhat to consider
unethical actions.
Ethical
dilemmas involved:
·
Prabhat faces the dilemma of accepting
stolen bid documents to gain an advantage, potentially resolving immediate
challenges but compromising integrity and risking legal and reputational
consequences.
·
Prabhat must navigate the conflict
between addressing personal financial strain and making ethical choices that
align with the company's values and long-term sustainability.
Options
available to Prabhat:
·
Accept the stolen bid documents and use
them to secure the tender, potentially benefiting the company and resolving
personal financial difficulties.
·
Reject the offer from Subhash Verma and
uphold ethical standards, even if it means potentially facing personal and
professional challenges.
Critical
evaluation of each option:
a) Accept the stolen bid documents:
·
Pros: Immediate resolution of personal
financial challenges and potential short-term benefits for the company.
·
Cons: Violation of ethical norms,
compromise of integrity, risks legal consequences, damages the company's
reputation if discovered, and sets a negative precedent for future
decision-making.
b) Reject the offer:
·
Pros: Upholds integrity, ethical values,
and the company's long-term reputation.
·
Cons: Potential personal financial
struggles and risk of adverse consequences for the company's sales and
financial health.
Recommended
option and justification:
The recommended option is for Prabhat to reject the offer and uphold ethical
standards. This choice is based on the following justifications:
·
Long-term sustainability: Upholding
ethical values is crucial for building trust, maintaining the company's
reputation, and ensuring long-term success.
·
Legal and reputational risks: Accepting
stolen bid documents poses legal consequences and reputational damage if
discovered, outweighing any immediate benefits.
·
Personal growth and character:
Overcoming personal challenges through ethical means fosters personal growth,
strengthens character, and sets an example for others.
In the face of intense pressure and personal
struggles, Prabhat must prioritize ethical values over short-term gains. By
rejecting the unethical offer and maintaining integrity, Prabhat upholds
professional standards, ensures the long-term sustainability and reputation of
the company, and demonstrates personal growth and strong moral character.
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