UPSC MainsGENERAL-STUDIES-PAPER-IV201720 Marks250 Words
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Q17.

Witnessing an Accident & Business Deal

You are the manager of a spare parts company A and you have to negotiate a deal with the manager of a large manufacturing company B. The deal is highly competitive and sealing the deal is critical for your company. The deal is being worked out over a dinner. After dinner the manager of manufacturing company B offered to drop you to the hotel in his car. On the way to the hotel he happens to hit a motorcycle injuring the motorcyclist badly. You know the manager was driving fast and thus lost control. The law enforcement officer comes to investigate the issue and you are the sole eyewitness to it. Knowing the strict laws pertaining to road accidents you are aware that your honest account of the incident would lead to the prosecution of the manager and as a consequence the deal is likely to be jeopardized, which is of immense importance to your company. What are the dilemmas you face? What will be your response to the situation?

How to Approach

This question tests ethical reasoning, specifically dealing with a conflict between professional obligations and personal integrity, compounded by legal implications. The answer should demonstrate an understanding of ethical dilemmas, stakeholder analysis, and the importance of upholding the law. A structured approach involving identifying the dilemmas, applying ethical principles (like honesty, integrity, and responsibility), and outlining a reasoned course of action is crucial. The answer should avoid simply choosing between the deal and honesty; it needs to demonstrate nuanced thinking.

Model Answer

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Introduction

Ethical dilemmas are inherent in professional life, often requiring individuals to navigate conflicting values and responsibilities. The principle of ‘caveat emptor’ (buyer beware) has gradually given way to a more regulated and ethically conscious business environment, demanding transparency and accountability. This case presents a complex situation where a manager witnesses a hit-and-run accident involving a key business partner, creating a conflict between loyalty to the company, potential legal repercussions, and personal moral obligations. The core issue revolves around whether to prioritize corporate interests over truthfulness and the rule of law.

Understanding the Dilemmas

The situation presents multiple, interconnected dilemmas:

  • Truth vs. Loyalty: The primary dilemma is whether to provide an honest account of the accident to law enforcement, potentially jeopardizing a crucial business deal, or to remain silent or offer a misleading statement to protect the company’s interests.
  • Legal Obligation vs. Corporate Interest: There is a legal obligation to cooperate with law enforcement and provide truthful testimony. However, fulfilling this obligation could have significant negative consequences for the company.
  • Personal Integrity vs. Professional Pressure: The manager faces a conflict between their personal ethical principles and the pressure to secure a deal vital for the company’s success.
  • Stakeholder Conflict: The stakeholders involved – the company, the manufacturing company’s manager, the motorcyclist, and the manager himself – all have competing interests.

Applying Ethical Principles

Several ethical principles are relevant to this scenario:

  • Integrity: Maintaining honesty and strong moral principles is paramount. Compromising integrity for short-term gain can erode trust and damage long-term reputation.
  • Responsibility: As a witness, the manager has a civic and moral responsibility to provide accurate information to law enforcement.
  • Justice: Ensuring fairness and upholding the law are essential for a just society. Protecting someone who has caused harm undermines the principles of justice.
  • Transparency: Openness and honesty in dealings build trust and accountability.

Proposed Response

My response would be guided by the principles of integrity, responsibility, and justice. I would:

  1. Immediately ensure the motorcyclist receives medical attention. This is the most pressing concern.
  2. Inform the manufacturing company’s manager that I witnessed the accident and intend to cooperate fully with the police. This provides transparency and avoids any later accusations of collusion.
  3. Provide a truthful and accurate account of the events to the law enforcement officer. This includes detailing the speed of the vehicle and the circumstances leading to the accident. I would avoid speculation or embellishment, sticking to observable facts.
  4. Inform my company’s leadership about the situation. Transparency within the organization is crucial. I would explain my decision to cooperate with the police and the potential consequences for the deal.
  5. Prepare for the potential loss of the deal. While the deal is important, it cannot justify compromising ethical principles or obstructing justice. The company should explore alternative strategies and opportunities.

Addressing Potential Consequences

I understand that my actions may jeopardize the deal. However, I believe that the long-term consequences of dishonesty and obstruction of justice – including legal penalties, reputational damage, and erosion of trust – would be far more severe. I would emphasize to my company’s leadership that upholding ethical standards is essential for sustainable success. Furthermore, attempting to cover up the incident could lead to more serious legal repercussions for both companies and individuals involved.

It’s important to note that while the deal is critical, a company’s reputation for ethical conduct is an invaluable asset. Sacrificing that asset for a single deal is a short-sighted and ultimately damaging strategy.

Conclusion

This scenario highlights the challenging ethical dilemmas that professionals often face. While the pressure to achieve business objectives is significant, it must never come at the expense of integrity, responsibility, and the rule of law. A commitment to ethical conduct, even in difficult circumstances, is essential for building trust, maintaining a positive reputation, and fostering a sustainable business environment. Ultimately, prioritizing ethical principles will lead to greater long-term success and societal benefit.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Ethical Dilemma
A situation in which a difficult choice has to be made between two or more options, none of which is entirely satisfactory, often involving conflicting moral principles.
Stakeholder Analysis
The process of identifying the individuals or groups who may affect or be affected by a decision or activity, and understanding their interests and influence.

Key Statistics

According to a 2023 report by the Ethics and Compliance Initiative (ECI), 24% of employees observed misconduct at work, and 22% reported it.

Source: Ethics and Compliance Initiative (ECI) - 2023 Global Business Ethics Survey

A 2022 study by Deloitte found that 82% of consumers are more likely to do business with companies that have a strong reputation for ethical behavior.

Source: Deloitte - 2022 Global Marketing Trends Report

Examples

Volkswagen Emissions Scandal

Volkswagen deliberately programmed diesel engines to cheat on emissions tests. This example demonstrates the severe consequences of prioritizing profit over ethical conduct, resulting in billions of dollars in fines and significant reputational damage.

Frequently Asked Questions

What if the manufacturing company’s manager threatens legal action against me if I cooperate with the police?

I would immediately inform my company’s legal counsel and document the threat. Threatening someone for providing truthful testimony is itself a crime. I would remain steadfast in my commitment to cooperate with law enforcement.

Topics Covered

EthicsBusiness EthicsLawEthical DilemmasConflict of InterestLegal Responsibility