CASE PROBLEMS FOR BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Disobeying An Informal Order

DevAnand is working as a clerk in Collector’s office. Due to staff shortage, Dev also performs the task of raising
flag over the office building every morning and taking it down every evening, although it is not part of his official job
description.

One day a criminal turned politician Madan Puri dies. Years ago, Devanand’s best friend was murdered during a
riot allegedly orchestrated by Madan Puri.

Nonetheless, State secretariat passes an order to all District collectors, to keep National flag at “half-mast” over
their offices, to mourn the death of the Mr.Madan Puri.

DevAnand sees this news on TV, gets angry with such mockery of our national flag. He decides not to go to office
next morning and keeps the door key of rooftop with himself. He is confident, “no formal punishment can be given to
me, because this was not part of my official duty. At most Collector sahib will reprimand me informally but I don’t care
because Madan Puri killed my best friend.”

Do you think DevAnand has made the right decision? Yes/No/Why?

Returning unspent money

DevAnand is running an NGO to help street children. He receives government grant of Rs.2 lakh rupees for a
project to teach the “out of school” children, who work at tea-stalls, do boot-polishing etc. A year passes, but Dev
managed to utilize only 50,000 rupees from the grant. Despite his best efforts, he couldn’t convince many poor children
or their families to join his NGO’s program.

As per the grant rules, Dev has to return all the unspent money back to government by the end of March 31st.
But his colleague Pran suggests following:

If we honestly return Rs.1.5 lakh back, then government officials will think we are amateur, ineffective NGOs and
they’ll substantially reduce our grant for next year or even worse- they’ll not give us any project next time!

We should take help of CA Prem Chopra to manipulate our account books and show majority of the grant was
utilized for education.

Many other NGOs do the same thing- there is no problem – nobody will raise any objection, as long as we give
20% of the grant to SDM in charge of this project.

Although it sounds unethical but we won’t use this money for personal needs, we’ll use it on street children
only. Hence our act is fully ethical and moral.

What should DevAnand do with the money?

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 Misleading For Good Purpose

DevAnand is the inspector in charge of Rampur Police station. The police station building is in dire need of
repairs, but hasn’t received any grants for years. One day, a cyclone hits a nearby area, damaging most of the houses
and shops. Although Dev’s police station gets partially damaged, but most of the building remain intact . Government
sends a disaster assessment team to ascertain the level of damage and pay relief money. The DSP Mr. Pran, orders
DevAnand to do following:

 Hire some laborers and destroy the remaining parts of your police station building.
 When disaster assessment team comes, you tell them building collapsed by the cyclone, and ask them to give
priority in funding after all police station is one the most important public offices in a town.

Should DevAnand obey his boss’s order?

Private Matter Of Public Employee?

DevAnand is working as an under Secretary in the pension department. One day, his friend GuruDutt, an SBI PO,
narrates following incident:

For last two years, a retired Government employee Mr.Ashok Kumar is giving away 30% of his monthly pension
to Mrs.Bindu Chopra every month through cheque.

I found Mrs.Bindu Chopra happens to be the wife of Mr.Prem Chopra, a section officer in the pension office
under you (DevAnand.)

I feel something is fishy- may be this is part of a large bribe scam where senior citizens are forced to pay money
to clear their pension files from Prem Chopra, and have to submit bribes in his wife’s account.

DevAnand visits Mr.Ashok Kumar’s house but he is suffering from Alzheimer’s disease, unable to give coherent
answers. Frustrated DevAnand directly confronts Prem Chopra. But Prem says “Mr.Ashok Kumar was a friend of my
father. He has no relatives or children and my wife Bindu has been taking care of him like daughter since a long time.
Therefore, Mr.Ashok Kumar gives us money out of good will, so we can send our son to an expensive IIT coaching class
@Kota, Rajasthan. Besides this is a personal family matter and none of your damn business.”

Do you think DevAnand made a blunder or was he merely performing an ethical duty?

Political neutrality

Prem Chopra, a civil society activist, has launched a mass-movement to change Prime-ministerial form of
government to presidential form of government. Dev Anand is an undersecretary in the PMO. Before joining civil service,
he had done Ph.D on the demerits of presidential form of government. He is invited by a news channel for prime-time
debate. The newschannel anchor, Mr.Arnab Goswami assures DevAnand following:

 It’ll be only an educational-intellectual debate among scholars.

 No politicians from ruling or opposition party are invited in our show.
 You’re invited in your capacity as a scholar in political science and not as a bureaucrat.

Should DevAnand accept Arnab Goswami’s invitation for news-debate?

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 Political Neutrality Part.2

To curtail the mounting fiscal deficit, Finance Minister Pran Chindu decides to merge agriculture ministry with
forest ministry; coal ministry with oil ministry and reduce personnel in the central services by 30%. But opposition party
is hardly raising any objection –they are occupied with onion price rise issue. Media is too busy covering MS Dhoni’s new
hairstyle.

DevAnand, an employee in the Cabinet secretariat feels both Opposition party and media have failed to perform
their ethical duty to inform citizens about matters of public interest. Therefore, he starts writing anonymous blogs and
tweets to inform public about the negative consequences of Chindu’s austerity measures. Is DevAnand doing the right
thing?

Salary Hike Vs Team Spirit

DevAnand has been serving as the Chief fire officer in city for over 3 years. Because of his efficient management,
there were very few fire incidents, no lives were lost and property damage was minimum. He enjoys almost a celebrity
like status in local media and city dwellers. As the election year comes, Mayor Pran, with an aim to garner goodwill
among voters, frames a budget with 10% pay raise to fire bridge staff and 25% pay raise for the Chief fire Officer. Should
DevAnand accept it or not/Why?

Holding Charity Auctions in the Office

Pran, the bank employee, approaches Bank Manager DevAnand and says following:

My child is suffering from blood cancer. I don’t have health insurance policy and my salary is insufficient to meet
these medical expenses.

But over the years, I’ve been collecting autographed bats and balls of various cricketers.

I seek your permission to hold a charity auction in the office. I’ll also send fliers to clients of our bank. Everyone
is welcome to bid for these bats and balls, so I can raise money for the medical treatment of my child.

Three other bank employees-Prem Chopra, Madan Puri and Ranjith overhear this conversation. They also inform
DevAnand – indeed Pran’s financial situation is very bad and his child will die if the treatment is not done on time,
therefore permission should be given to hold this charity auction.

Should Dev give permission or not?

Spouse In The Same Office

DCP DevAnand marries Sub inspector Rosie. In the office, Rosie doesn’t directly report to DevAnad but Dev has
responsibility for signing off on her annual evaluation. Although Dev doesn’t give any preferential treatment to Rosie but
one of her colleague, Prem Chopra, complained several times to the DIG Pran: “Dev saab always gives highest ratings to
his wife and I’m always given average ratings despite my best performance in criminal investigations.“

DIG conducts inquiry, doesn’t find anything against DevAnand. Later Dev officially reprimands Prem Chopra for
this unprofessional behavior.

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 Frustrated Prem Chopra narrates this incident to his wife Bindu. Bindu decides to take matters in her own hands,
writes an anonymous email to the local press, informing how Rosie hasn’t legally divorced her first husband Marco, yet
she is staying with DCP DevAnand and gives vivid details of their “adulterous” live-in relationship.

Rita reporter, an expert on such masala news, starts giving ball by ball commentary in her newspaper about
Rosie’s past by interviewing her college friends, neighbors, relatives etc. Everybody in the town starts gossiping about
this. Dev asks his IT expert friend GuruDutt to investigate. GuruDutt digs out that email originated from Prem Chopra’s
home computer.What should DevAnand do: Reprimand Prem Chopra once more? Suspend him for indiscipline? Sue
him for defamation? Is doing nothing an option?

Private endorsement by Public Official

Prem Chopra runs a company that offers private security guards, CCTV, burglary alarm and other security
devices.

DCP DevAnand learns that everytime after a theft or robbery takes place, Police Inspector Pran advices the
victim and bystanders to install security devices from Prem Chopra’s company to make their home and shops secure
from criminals. Pran even tells them “When you goto Prem Chopra’s office, tell him I’ve sent you, he’ll give you special
discount.”

Dev confronts Pran about this matter. Pran justifies his action by saying:

Yes, I take money for Prem Chopra to endorse his security products for homes and offices.

No, I’m not doing anything unethical because I use this money to pay my informers and keep a check on criminal
elements. I don’t spent this money on myself or my family.

Even municipal buses and railway-wagons have advertisements, then why is an endorsement by a city official
unethical or illegal?

Besides, Prem Chopra’s security devices are very effective at preventing burglary.

Should DevAnand permit Pran to continue this endorsement activity? Yes/No/Why?

Man of Word or Man of Money?

DevAnand is a brilliant maths teacher in a private English medium school in Ahmedabad and gets yearly package
of Rs.3 lakhs. Another school at Baroda offers him package of Rs. 3.5 lakhs. Dev makes a verbal commitment to the
Baroda school principle, “Sure,I’ll join your school from next month.“

But when Dev submits his resignation to A’bad school, its Principle Mr.Pran requests him to stay and offers new package
of Rs.3.8 lakhs. Should Dev take back his resignation? yes/no/why?

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 Courage with a price tag

(Copy pasting a news report from TheHindu)

December 7, 2012, Chandigarh.

Robanjit Kaur, 23-year-old daughter of ASI Ravinderpal Singh was returning home after her IELTS coaching class when
Shiromani Akali Dal leader Ranjit Singh Rana and his goons started teasing her. She called up her father Mr.Ravinderpal
Singh, an ASI with Punjab Police.

When her father arrived and confronted the group, a heated argument followed and Rana pulled out his pistol and began
firing at both father and daughter. Both received bullet injuries and father collapsed.

Even as Ms. Kaur struggled to shift her father into a vehicle to take him to hospital, Rana and his gang returned with a
rifle and shot Ravinderpal Singh again in full public view.

Ms. Kaur said to media, “Rana kept kicking and hitting us in full public glare. I cried and pleaded for help but everyone
ran away. Even when the ambulance came, I had to lift my father into it as no one came to help me.”

End of news.

A Sociologist remarks: “Our government has not set up a system to encourage civilians to fight against criminal
acts. Why should someone risk injury or their life to save another if one’s life or livelihood is endangered? Government
needs to enact a new scheme named after you know who, to reward any civilian with Rs.10 lakh, a government job and
a 3 BHK flat, if he prevents a crime in a public place.”

Do you believe announcing big financial rewards to pedestrians who standup against a criminal, will change the
situation? Does or can courage have a price tag? Yes/No/Why?

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