Q. 10. Sneha is a Senior Manager working for a big reputed hospital chain in a mid-sized city. She has been made in-charge of the new super speciality centre that the hospital is building with state-of-the art equipment and world class medical facilities. The building has been reconstructed and she is starting the process of procurement for various equipment and machines. As the head of the committee responsible for procurement, she has invited bids from all the interested reputed vendors dealing in medical equipment. She notices that her brother, who is a well-known supplier in this domain, has also sent his expression of interest. Since the hospital is privately owned, it is not mandatory for her to select only the lower bidder Also, she is aware that her brother’s company has been facing some financial difficulties and a big supply order will help him recover. At the same time, allocating the contract to her brother might bring charges of favouritism against her and tarnish her image. The hospital management trusts her fully and would support any decision of hers. (a) What should be Sneha’s course of action? (b) How would she justify what she chooses to do? (c) In this case, how is medical ethics compromised with vested personal interest?

Core Demand of Question 

  • Discuss options available with Rohit to cope with the situation
  • Discuss ethical dilemmas being faced by Rohit
  •  Suggest more appropriate options for Rohit to adopt and why
  • Explore extra precautionary measures to be taken by the police in dealing with women protesters

Answer:

Sneha, the Senior Manager of a super-specialty centre within a reputable hospital chain, faces a critical ethical dilemma involving nepotism, favouritism, and conflict of interest in the procurement process. This scenario tests her commitment to integrity, transparency, and accountability, core principles of medical and corporate ethics. Her decision will influence not only her credibility but also the hospital’s reputation and operational effectiveness.

Key Stakeholders Involved and Their Interests

Key Stakeholders Interests
Patients and Their Families Expecting beneficence and non-maleficence from the hospital, prioritising high-quality care and patient safety without conflicts of interest.
Hospital Management and Board Members Concerned with organisational integrity, fiduciary responsibility, and corporate governance to maintain the hospital’s reputation, operational efficiency, and long-term sustainability.
Suppliers and Vendors Demanding distributive justice and procedural fairness in procurement, ensuring an unbiased and transparent bidding process for competitive opportunities.
Hospital Employees and Medical Staff Interested in organisational justice, ethical decision-making, and maintaining the hospital’s image as a fair and trustworthy employer.
Legal Authorities Focused on enforcing compliance with business ethics and regulatory standards to ensure legal and procedural adherence.
Local Community and Society Expecting social justice and the hospital’s role as an ethical healthcare provider, prioritising public health and community well-being.
Media Interested in reputational ethics and transparency, potentially exposing ethical breaches or conflict of interest, affecting public perception.
  1. Sneha’s Course of Action
  • Recusing Herself from the Decision-Making Process: By applying the Doctrine of Conflict of interest, Sneha must recuse herself to prevent any cognitive bias from influencing the procurement decision. This aligns with the deontological ethics, ensuring impartiality.
    For instance: Sneha’s recusal will follow CVC guidelines to uphold procurement integrity, requiring all stakeholders to disclose any conflicts of interest as stipulated in the Code of Integrity for public procurement.
  • Forming an Independent Review Panel: Procedural justice theory supports the creation of an independent review panel, ensuring that the process is fair and transparent. This minimises the risk of implicit bias influencing the decision-making process.
    For instance: Forming an independent committee would prevent any perceived favouritism, ensuring the best bid is selected based on merit.
  • Transparent Disclosure: Utilising ethical transparency, Sneha should disclose her personal conflict of interest, which is critical for maintaining trust and organisational accountability as per ethical leadership
    For instance: By disclosing her relationship with one of the bidders, Sneha adheres to corporate governance principles, ensuring transparency in the decision.
  • Ensuring Compliance with Hospital Policies: Normative ethics suggests that adherence to established institutional policies, such as procurement guidelines, ensures that the moral obligation to act fairly is fulfilled.
    For instance: Following the hospital’s policies guarantees that no ethical violations occur, even in a privately-owned institution.
  • Seeking Legal Counsel: Following duty-based ethics (deontology), Sneha should consult the legal team to ensure that all actions align with regulatory compliance and legal obligations, preventing any inadvertent violations of procurement law.
    For instance: Legal counsel ensures that Sneha’s recusal and actions align with applicable laws and ethical standards.
  • Maintaining Vendor Neutrality: Utilitarian ethics can guide Sneha’s encouragement of a competitive, neutral procurement process that maximises overall benefits to the hospital, rather than allowing personal bias to interfere.
    For example: A fair bidding process ensures that the hospital receives the best value, benefitting both the institution and its patients.
  • Ethical Training and Development: According to virtue ethics, encouraging regular ethics training helps reinforce the importance of integrity and moral character in decision-making, preventing future ethical dilemmas.
    For example: By promoting ethics training, Sneha fosters a culture where ethical behaviour becomes a habitual virtue for all employees.

Ways to Justify What She Chooses to Do

  • Adherence to Ethical Principles: Kantian deontology supports Sneha’s recusal by emphasising adherence to universal ethical duties, such as fairness and impartiality, irrespective of personal relationships.
    For instance: Stepping aside upholds her moral duty to ensure the procurement decision is made based on the hospital’s best interest.
  • Protecting the Hospital’s Reputation: From the perspective of reputational ethics, Sneha protects both her personal and the hospital’s reputation by avoiding any actions that could appear nepotistic. Stakeholder theory supports this approach by considering the hospital’s wider social and reputational responsibilities.
    For instance: By removing herself from the decision-making process, Sneha helps maintain public trust in the hospital.
  • Compliance with Legal and Ethical Standards: Teleological ethics suggests that outcomes are paramount; complying with both legal and ethical standards prevents potential negative outcomes such as legal challenges or reputational damage.
    For instance: Ensuring that her actions comply with procurement standards avoids ethical risks and legal repercussions.
  • Prioritising Patient Care: Using the principle of beneficence, Sneha can justify her actions as being driven by the need to ensure the best outcome for patients. The focus remains on selecting the best equipment, not the supplier’s personal relationship.
    For instance: Sneha’s decision prioritises patient welfare by ensuring that the best medical equipment is selected, enhancing care quality.
  • Transparency and Accountability: The principle of accountability in corporate governance ensures that by openly disclosing her conflict of interest, Sneha promotes trust and transparency, reducing any perception of impropriety.
    For instance: Disclosing her personal connection ensures that the decision-making process remains transparent and accountable.
  • Role Model Behaviour: By demonstrating integrity, Sneha sets a high standard for others to follow.
    For instance: By recusing herself, Sneha exhibits ethical leadership, encouraging others to act with fairness and integrity.
  • Long-term Sustainability: Virtue ethics advocates for long-term ethical behaviour, ensuring the institution’s credibility and sustainability by encouraging trust among internal and external stakeholders.

Ways in which Medical Ethics Compromised with Vested Personal Interest

  • Conflict of Interest: Sneha’s personal connection to her brother’s firm introduces a conflict of interest, which, according to ethical egoism, could prioritise her personal benefit over the hospital’s needs. This compromises her moral objectivity.
    For instance: Sneha’s personal ties could lead to biassed decision-making, undermining her professional responsibilities and the hospital’s integrity.
  • Compromise on Quality: By choosing her brother’s firm, Sneha risks compromising the quality of equipment, violating the principle of non-maleficence, which prioritises avoiding harm to patients.
    For instance: If the equipment is substandard, patients may suffer, violating the hospital’s obligation to provide high-quality care.
  • Loss of Trust: Trust theory highlights how perceived conflict of interest can erode stakeholder confidence. Stakeholders may question whether hospital decisions are being made in their best interests or based on nepotism.
    For instance: The hospital’s stakeholders could lose trust if they perceive that decisions are being influenced by Sneha’s personal interests.
  • Unfair Business Practices: Distributive justice requires that all vendors receive fair and equal consideration. Favouring her brother’s firm creates an imbalance, denying other vendors the chance to compete on merit.
    For instance: Other vendors could see the procurement process as biassed, leading to fewer competitive bids and less favourable outcomes for the hospital.
  • Risk of Legal Repercussions: According to contractualism theory, breaching ethical procurement standards could expose the hospital to legal risks, especially if other vendors challenge the fairness of the decision.
    For instance: If a competing vendor files a legal complaint citing procurement irregularities, the hospital could face legal consequences.
  • Impact on Staff Morale: Organisational justice theory indicates that employees witnessing unethical practices such as nepotism may feel demotivated, leading to a decline in morale and productivity.
    For instance: Employees could lose confidence in the fairness of the organisation, leading to lower job satisfaction and disengagement.

In navigating this ethical dilemma, Sneha’s commitment to integrity, transparency, and ethical leadership will reinforce the hospital’s reputation and inspire future decisions. As Albert Einstein said, “Whoever is careless with the truth in small matters cannot be trusted with important matters.”

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