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 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 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 in 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.
(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?
Approach · directive: “discuss / critically examine / which”
What it asks · (a) Identify the ethical issues in Subhash Verma's offer; (b) examine Prabhat's options with their merits and demerits; (c) choose the most appropriate course and justify it.
The question has 3 parts — answer each
- (a) Discuss the ethical issues involved in the case
- (b) Critically examine the options available to Prabhat, with the merits and demerits of each
- (c) Identify the most appropriate option for Prabhat and justify it
Open with · Prabhat is offered a shortcut to rescue his career and his company, at the price of theft, unfair competition and his own integrity.
Cover
- Stakeholders: Prabhat and his family, Sterling Electric and its employees, Unique Electronics, Subhash Verma, the Defence Ministry and the public interest in fair and secure defence procurement.
- (a) Issues: use of a rival's confidential bid (theft, unfair competition); a job offered for documents; financial stress against duty; integrity of defence procurement; possible influence through the Minister's office.
- (b) Accept and use the documents: wins the order and ends the pressure, but is illegal, exposes the company and Prabhat to prosecution and blacklisting, and rewards betrayal.
- (b) Reject quietly: clean, but targets stay unsolved and Verma may approach others. Reject and report to management, legal and compliance: protects integrity and evidence, at some career risk.
- (b) Stay silent or delay: leaves him complicit and exposed. Compete on merit: sharpen the bid on price and quality and seek other orders, honest but uncertain.
- (c) Best course: refuse firmly, take no documents, record the meeting, inform the ethics or legal head and top management, decline Verma's candidacy on integrity grounds and pursue a genuine bid.
Close with · A contract won with stolen papers is a liability; an honest loss can be recovered, a lost reputation cannot.
Add value (verified)
- Gandhi printed a list of Seven Social Sins in Young India (22 October 1925), among them 'Commerce without Morality'. Seven Social Sins, Young India, 22-10-1925 — mkgandhi.org (Bombay Sarvodaya Mandal & Gandhi Research Foundation) ↗“Seven Social Sins Politics without Principle Wealth Without Work Pleasure Without Conscience Knowledge without Character Commerce without Morality Science without Humanity Worship without Sacrifice - Young India, 22-10-1925”
- The Tata Code of Conduct: competitive information may be collected only in the normal course of business and only through legally permitted sources and means. Tata Code of Conduct (PDF hosted by Tata Steel Nederland) ↗“Any collection of competitive information shall be made only in the normal course of business and shall be obtained only through legally permitted sources and means.”
- Kant's first formulation of the categorical imperative: act only on a maxim that one could will to become a universal law. Kant's Moral Philosophy — Stanford Encyclopedia of Philosophy ↗“This brings Kant to a preliminary formulation of the CI: “I ought never to act except in such a way that I could also will that my maxim should become a universal law” (G 4:402).”
Question: UPSC's CS (Main) 2022, GS Paper IV — paper ↗. Approach: Minimalist IAS, checked 1 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 373 words (UPSC limit 250) · Minimalist IAS
Prabhat is offered a rival's stolen bid for a job: a shortcut that would save his division, his EMIs and his mother's care, at the cost of integrity. Stakeholders: his family, both companies, Verma, the Defence Ministry and the public interest in clean procurement.
(a) Ethical issues involved in the case
- Theft and unfair competition: using a rival's confidential bid is corporate espionage; it rigs a defence tender and denies the Ministry a genuine price.
- Quid pro quo: a job for stolen papers is a bribe in kind and wrongs candidates who applied on merit.
- Need against duty: debt, an ailing mother and the threat of closure pull Prabhat away from law and duty.
- Security and influence: a man who leaks his employer's papers is a risk near a secret installation; a CV routed via the Minister's office hints at undue influence.
- Results at any cost: headquarters' pressure breeds ends-justify-means thinking, what Gandhi's list of Seven Social Sins calls "Commerce without Morality".
(b) Options available to Prabhat, critically examined
| Option | Merit | Demerit |
|---|---|---|
| Take papers, hire Verma | Wins order, saves job | Illegal; prosecution, blacklisting, blackmail |
| Hire Verma, refuse papers | Gains a skilled marketeer | Rewards betrayal; looks like a deal |
| Refuse, report, compete on merit | Lawful; protects company | May lose order; needs courage |
- Refuse but stay silent: clean hands, but the stolen bid stays in circulation.
(c) The most appropriate course, and why
- Refuse and report: decline the papers, drop Verma on integrity grounds, record the meeting and inform the Executive Director and compliance head, so the company alerts the Ministry and Unique Electronics through proper channels.
- Compete honestly: sharpen price, quality and delivery, and talk to his bank about the EMIs rather than barter his conscience.
- Why: Kant asks whether the act could "become a universal law"; if every bidder stole rivals' bids, tendering would collapse. The Tata Code of Conduct allows competitive information only "through legally permitted sources and means". The harm to company, Ministry and security dwarfs the gain.
- Systemic fix: a protected ethics hotline, targets that do not reward results at any cost, and integrity commitments from every bidder.
A contract won with stolen papers is a liability waiting to explode; an honest loss can be recovered, a lost reputation cannot.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.