Que. You have done MBA from a reputed institution three years back but could not get campus placement due to COVID-19 generated recession. However, after a lot of persuasion and a series of competitive tests including written and interview, you managed to get a job in a leading shoe company. You have aged parents who are dependent and staying with you. You also recently got married after getting this decent job. You were allotted the Inspection Section which is responsible for clearing the final product. In the first one year, you learnt your job well and was appreciated for your performance by the management. The company has been doing good business for the last five years in the domestic market and this year it is even decided to export to Europe and Gulf countries. However, one large consignment to Europe was rejected by their Inspecting Team due to certain poor quality and was sent back. The top management ordered that ibid consignment to be cleared for the domestic market. As a part of the Inspecting Team, you observed the glaring poor quality and brought to the knowledge of the Team Commander. However, the top management advised all the members of the team to overlook these defects as the management cannot bear such a huge loss. Rest of the team members except you promptly signed and cleared the consignment for the domestic market, overlooking glaring defects. You again brought to the knowledge of the Team Commander that such consignment, if cleared even for the domestic market, will tarnish the image and reputation of the company and will be counter-productive in the long run. However, you were further advised by the top management that if you do not clear the consignment, the company will not hesitate to terminate your services citing certain innocuous reasons. (a) Under the given conditions, what are the options available to you as a member of the Inspecting Team? (b) Critically evaluate each of the options listed by you. (c) What option would you adopt and why? (d) What are the ethical dilemmas being faced by you? (e) What can be the consequences of overlooking the observations raised by the inspecting Team?

UPSC CSE : 2022

Answer:

Approach:

Introduction

  • Shortly analyse the case study

Body

  • options available to you as a member of the Inspecting Team
  • Evaluation of each option
  • Option to adopt
  • ethical dilemmas being faced include
  •  Consequences of overlooking the observations raised by the inspecting team

Conclusion

  • Conclude suitably

Introduction:

The case presents a dilemma for the protagonist, who must decide whether to comply with the top management’s order to clear a poor-quality consignment or to raise concerns about the potential damage to the company’s reputation. The available options include compliance, refusal to sign off, seeking guidance, or reporting anonymously.

stakeholders

Body:

(a)   Under the given conditions, the options available to you as a member of the Inspecting Team are:

  • Comply with the top management’s directive and clear the consignment for the domestic market, overlooking the poor quality.
  • Refuse to sign off on the consignment and insist on maintaining quality standards, even if it means potential consequences such as termination.
  • Seek guidance or advice from a higher authority within the company or an external regulatory body to address the ethical dilemma.
  • Report the situation anonymously to relevant authorities or regulatory bodies to ensure that the company’s actions are brought to light.

(b) Evaluation of each option:

  • Complying with the top management’s directive: This option prioritizes job security but compromises ethical standards and risks long-term consequences for the company’s reputation and customer satisfaction.
  • Refusing to sign off on the consignment: This option upholds ethical principles but may result in job loss and financial implications for you and your dependents. It demonstrates integrity and a commitment to maintaining quality standards.
  • Seeking guidance from a higher authority or external regulatory body: This option involves reaching out for support and guidance to address the ethical dilemma and ensure proper actions are taken. It can provide a pathway to resolve the situation while minimizing personal risks.
  • Reporting anonymously to relevant authorities: This option aims to expose the company’s unethical practices and ensure accountability. It may have consequences for job security and personal well-being but can contribute to long-term industry improvements and protect consumer interests.

(c)  Option to adopt:-

  • The most appropriate option to adopt would depend on individual values, personal circumstances, and risk tolerance. However, upholding ethical standards and maintaining integrity should be a priority.
  • Refusing to sign off on the consignment, despite potential consequences, demonstrates a commitment to quality and professional ethics.

(d) The ethical dilemmas being faced include:

  • Balancing personal and financial responsibilities with professional integrity.
  • Navigating the pressure to compromise on quality for short-term gains.
  • Considering the potential impact on the company’s reputation and customer trust.
  • Evaluating the implications of job security and potential termination.

(e) Consequences of overlooking the observations raised by the inspecting team can include:

  • Damage to reputation: Allowing poor-quality products to enter the market can tarnish the company’s reputation, leading to customer dissatisfaction, negative reviews, and a decline in sales.
  • Legal and regulatory issues: If the poor quality of the consignment causes harm or safety concerns, the company may face legal liabilities, lawsuits, and penalties from regulatory bodies.
  • Loss of customer trust: Consumers may lose confidence in the brand, resulting in a loss of market share and decreased customer loyalty.
  • Negative impact on future business opportunities: Overseas markets may reject future consignments due to a tarnished reputation, hindering the company’s expansion plans and potential growth.
  • Employee morale and ethics: Overlooking quality issues can create a culture of unethical behavior within the organization, leading to demotivated employees and potential employee turnover.
  • Long-term sustainability: Compromising on quality standards can undermine the company’s long-term success and sustainability in a competitive market.

Conclusion:

It is crucial to consider these potential consequences and make decisions that align with ethical principles and long-term business interests.

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UDAAN PRELIMS WALLAH
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