Navigating Ethical Challenges in a High-Pressure Business Environment

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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