pyq/2022/gs4/7

Prabhat was working as Vice President (Marketing) at Sterling Electric Ltd., a reputed multinational company. But presently, the company was passing through difficult times as sales were continuously showing a downward trend in the last two quarters. His division, which had been a major revenue contributor to the company’s financial health, was now desperately trying to procure some big government order. However, their best efforts did not yield any positive success or breakthrough. His professional company was under pressure from their London-based headquarters to show some positive results. In the last performance review meeting taken by the Executive Director (India Head), Prabhat was reprimanded for his poor performance. He assured them that his division was working on a special contract from the Ministry of Defence for a secret installation near Gwalior, and a tender was being submitted shortly. He was under extreme pressure and deeply perturbed. What aggravated the situation further was a warning from the top that if the deal was not clinched in favour of the company, his division might have to be closed, and he may have to quit his lucrative job. Adding to his stress was his precarious financial health. He was the sole earner in the family with two school- and college-going children and an ailing mother. His heavy expenditures on education and medical care, along with EMIs for his housing loan, were causing a financial strain. Any default would render him liable for severe legal action. Amid this, his secretary informed him that a gentleman, Subhas Verma, wanted to see him as he was interested in the position of Manager, which Prabhat was to fill. The CV of Subhas Verma had been received through the office of the Minister of Defence. During the interview, Prabhat found him technically sound, resourceful, and an experienced marketer. He seemed to be well-conversant with tendering procedures and had a knack for follow-up and liaising. Prabhat felt that he was a better choice than the rest of the candidates. Subhas Verma then indicated that he was in possession of the copies of the bid documents that Unique Electronics Ltd. would be submitting the next day to the Defence Ministry for their tender. He offered to hand over those documents if he was given the job on suitable terms and conditions. By accepting, Sterling Electric Ltd. could outbid their rival company and secure the much-awaited defence order. Subhas Verma made it clear that it would be a win-win situation for both him and the company. Prabhat was absolutely stunned. It was a mixed feeling of shock and thrill. If he accepted the offer, all his problems would vanish instantly, and he might be rewarded for securing the much-awaited tender and thereby boosting the company’s sales and financial health. However, he was also wonderstruck at the guts of Subhas Verma in surreptitiously removing his own company papers and offering them to a rival company for personal gain. Being an experienced professional, he was examining the pros and cons of the situation and asked Subhas Verma to come the next day.

Questions

(a) Discuss the ethical issues involved in the case.

(b) Critically examine the options available to Prabhat in the above situation.

(Answer in 250 words)