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.
It asks 3 things — 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 · The value conflict, survival versus integrity: a rival's stolen bid offered for a job, at the price of a rigged defence tender and Prabhat's conscience; then the stakeholders and their stakes.
Cover
- Stakeholders: Prabhat and dependants, Verma, Sterling and its staff, Unique Electronics, the Defence Ministry and the public, each with its stake.
- (a) Issues as value against value: integrity v. survival, fair competition v. results at any cost, merit v. quid pro quo, security v. expediency.
- (b) Merits–demerits table: take the papers and hire Verma, hire him without them, or refuse, report and compete; refusing silently is weighed too.
- (c) Refuse at once, record the meeting, inform the Executive Director and compliance, alert the Ministry through proper channels; then compete honestly.
- Justification: integrity under pressure, Kant's universal-law test, and the Tata Code's 'legally permitted sources and means'; Gandhi's 'Commerce without Morality' frames the issue.
- Long-term fix: an ethics hotline, targets that do not reward results at any cost, and integrity commitments from every bidder.
Close with · A contract won with stolen papers is a liability waiting to explode; 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· 378words · Minimalist IAS
Survival versus integrity: a rival's stolen bid, offered for a job, could rescue Prabhat's division and family finances, at the price of a rigged defence tender and his conscience.
Stakeholders: Prabhat and dependants (livelihood); Verma (a job); Sterling and staff (orders, reputation); Unique Electronics (a fair contest); the Defence Ministry (honest price, security); the public (clean procurement).
(a) Ethical issues involved in the case
- Integrity v. survival: debt, an ailing mother and the threat of closure pull Prabhat towards a wrong he recognises.
- Fair competition v. results at any cost: using a rival's stolen bid rigs a defence tender and denies the Ministry a genuine price; the Seven Social Sins Gandhi printed in Young India call this "Commerce without Morality".
- Merit v. quid pro quo: a job for stolen papers is a bribe in kind that wrongs honest candidates.
- Security v. expediency: 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.
(b) Options available to Prabhat, critically examined
| Option | Merits | Demerits |
|---|---|---|
| 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 keeps circulating and the tender stays compromised.
(c) The most appropriate option for Prabhat, and why
- At once: decline the papers and Verma's candidature, record the meeting, and inform the Executive Director and compliance head, so the company alerts the Ministry and Unique Electronics through proper channels.
- Then: compete honestly on price, quality and delivery, and talk to his bank about the EMIs rather than barter his conscience.
- Why: integrity is tested only under pressure. Kant asks whether the maxim could "become a universal law"; if every bidder stole rivals' bids, tendering would collapse. The Tata Code of Conduct permits competitive information only "through legally permitted sources and means".
- Long-term 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.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 1 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
