UPSC MainsGENERAL-STUDIES-PAPER-IV202320 Marks250 Words
Q16.

Your Reaction: Dormant Account Scenario

You are working as an executive in a nationalised bank for several years. One day one of your close colleagues tells you that her father is suffering from heart disease and needs surgery immediately to survive. She also tells you that she has no insurance and the operation will cost about ₹ 10 lakh. You are also aware of the fact that her husband is no more and that she is from a lower middle class family. You are empathetic about her situation. However, apart from expressing your sympathy, you do not have the resources to fund her. A few weeks later, you ask her about the well-being of her father and she informs you about his successful surgery and that he is recovering. She then confides in you that the bank manager was kind enough to facilitate the release of ₹ 10 lakh from a dormant account of someone to pay for the operation with a promise that it should be confidential and be repaid at the earliest. She has already started paying it back and will continue to do so until it is all returned. How would you react to the situation ?

How to Approach

This question tests ethical reasoning, specifically dealing with conflicts between loyalty to a colleague, upholding professional integrity, and adherence to legal/organizational norms. The answer should demonstrate a nuanced understanding of these competing values. A structured approach is recommended: acknowledge the dilemma, analyze the ethical issues involved, outline the course of action, and justify it based on ethical principles. Focus on principles like transparency, accountability, and the rule of law. Avoid simply condemning or condoning the actions; instead, present a balanced and reasoned response.

Model Answer

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Introduction

Public service ethics demands a high standard of integrity and accountability from individuals holding positions of trust. The core of ethical governance lies in upholding the rule of law and ensuring transparency in all actions. This case presents a complex ethical dilemma where empathy for a colleague clashes with the principles of financial integrity and adherence to banking regulations. The situation highlights the challenges faced by public servants when confronted with personal hardship and potential misconduct within the workplace. A robust ethical framework is crucial to navigate such situations effectively, balancing compassion with professional responsibility.

Understanding the Ethical Dilemma

The situation presents a multi-layered ethical dilemma. On one hand, there is a genuine human concern for a colleague facing a desperate situation – her father’s life-threatening illness and lack of financial resources. Empathy and compassion are important ethical considerations. However, this is juxtaposed against the unethical and potentially illegal act of utilizing funds from a dormant account without proper authorization. The bank manager’s actions, and the colleague’s acceptance of this assistance, constitute a breach of trust and a violation of banking norms.

Analyzing the Ethical Issues

  • Conflict of Interest: The colleague’s acceptance of funds creates a conflict of interest, potentially compromising her objectivity and loyalty to the bank.
  • Breach of Confidentiality: The entire transaction was conducted under a veil of secrecy, violating principles of transparency and accountability.
  • Misuse of Funds: Utilizing funds from a dormant account without due process is a form of misappropriation, even if intended for a noble cause.
  • Compromised Integrity: The actions of both the manager and the colleague erode the integrity of the banking system and public trust.
  • Professional Duty vs. Personal Loyalty: I am faced with a conflict between my loyalty to my colleague and my duty to uphold the ethical standards of the bank.

My Reaction and Course of Action

My reaction would be one of serious concern and a commitment to address the situation ethically. I would proceed in the following manner:

  1. Private Counsel to the Colleague: I would first speak to my colleague privately, expressing my continued empathy for her situation but firmly explaining that the method used to obtain funds was unethical and potentially illegal. I would emphasize the long-term consequences of such actions, both for her and the bank.
  2. Reporting to Higher Authority: I would then report the incident to a higher authority within the bank – either the Chief Vigilance Officer (CVO) or a designated ethics officer. This is crucial, despite the potential for discomfort or repercussions. Delaying or concealing the information would make me complicit in the wrongdoing.
  3. Documentation: I would meticulously document all conversations and actions taken, including the initial disclosure by my colleague and my subsequent reporting to the authorities.
  4. Cooperation with Investigation: I would fully cooperate with any internal investigation conducted by the bank, providing all relevant information truthfully and transparently.
  5. Advocating for Support Systems: I would also advocate within the bank for the establishment of robust employee welfare programs, including financial assistance schemes and insurance options, to prevent similar situations from arising in the future.

Justification Based on Ethical Principles

This course of action is grounded in several key ethical principles:

  • Integrity: Upholding the highest standards of honesty and ethical conduct is paramount.
  • Accountability: Individuals must be held accountable for their actions, and wrongdoing must be addressed.
  • Transparency: Openness and transparency are essential for building trust and preventing corruption.
  • Rule of Law: Adhering to established laws and regulations is fundamental to a just and equitable society.
  • Impartiality: Decisions should be made based on objective criteria, not personal feelings or biases.

While empathy for my colleague is genuine, it cannot justify overlooking unethical behavior. Allowing the situation to continue unchecked would set a dangerous precedent and undermine the integrity of the banking system.

Conclusion

This case underscores the importance of a strong ethical compass in navigating complex professional challenges. While compassion is a valuable human trait, it must be balanced with a commitment to integrity, accountability, and the rule of law. Reporting the incident, though difficult, is the ethically correct course of action, safeguarding the interests of the bank, its customers, and the wider public. Furthermore, proactive measures to establish employee welfare programs can help mitigate similar crises in the future, fostering a more ethical and supportive work environment.

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

Conflict of Interest
A situation in which a person's personal interests (financial, familial, etc.) could compromise their objectivity or loyalty in fulfilling their professional duties.
Integrity
The quality of being honest and having strong moral principles; moral uprightness.

Key Statistics

According to the National Crime Records Bureau (NCRB), cases related to banking fraud have increased by 15.8% in 2022 compared to 2021.

Source: NCRB Report, 2022 (as of knowledge cutoff)

A 2023 Transparency International report indicates that India ranks 85 out of 180 countries in the Corruption Perception Index (CPI).

Source: Transparency International, 2023 (as of knowledge cutoff)

Examples

Satyam Scandal (2009)

The Satyam Computer Services scandal involved widespread financial fraud and manipulation of accounts by the company's chairman, Ramalinga Raju. This case highlighted the devastating consequences of a lack of ethical governance and transparency in corporate India.

Frequently Asked Questions

What if reporting the incident could jeopardize my career?

While there is a risk of repercussions, ethical principles should take precedence. Whistleblower protection mechanisms exist in many organizations and under laws like the Whistleblowers Protection Act, 2014, though their effectiveness can vary. Prioritizing integrity is crucial, even in the face of potential personal cost.

Topics Covered

EthicsGovernancePersonal IntegrityWhistleblowingMoral CourageAccountability