{"id":161301,"date":"2022-01-12T21:14:09","date_gmt":"2022-01-12T15:44:09","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=161301"},"modified":"2022-01-12T21:14:09","modified_gmt":"2022-01-12T15:44:09","slug":"answered-upsc-mains-2021-gs-paper-4-case-study-1q-no-11","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-upsc-mains-2021-gs-paper-4-case-study-1q-no-11\/","title":{"rendered":"[Answered] UPSC Mains 2021 GS Paper 4 \u2013 Case Study 1(Q. No. 11)"},"content":{"rendered":"<p><span data-contrast=\"auto\">A reputed food product company based in India developed a food product for the international market and started exporting the same after getting necessary approvals. The company announced this achievement and<\/span><span data-contrast=\"auto\">\u00a0also indicated that soon the product will be made available for the domestic consumers with almost same quality and health benefits. Accordingly, the company got its product approved by domestic competent authority and launched the product in Indian market. The company could increase its market share over a period of time and earned substantial profit both domestically and internationally.\u00a0However\u00a0the random sample test conducted by the inspecting team found the product being sold domestically in variance with the approval obtained from competent authority. On further investigation it was also discovered that the food company was not only selling products which were not meeting the health standards of the country but also selling the rejected export products in the domestic market. This episode adversely affected the reputation and profitability of the food company<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">What action do you visualize should be taken by the competent authority against the food company for violating the laid down domestic food standard and selling rejected export products in domestic market?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">What course of action is available with the food company to resolve the crisis and bring back its lost reputation?<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Examine the ethical dilemma involved in the case.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>\u00a0Solution\u00a0<\/strong><\/p>\n<p><span data-contrast=\"none\">The given case study presents a\u00a0<\/span><b><span data-contrast=\"none\">contest between public interest and profitability<\/span><\/b><span data-contrast=\"none\">\u00a0in\u00a0corporate\u00a0governance\u00a0and highlights the problem of<\/span><b><span data-contrast=\"none\">\u00a0lack of ethics in\u00a0private\u00a0institutions<\/span><\/b><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">a)\u00a0<\/span><b><span data-contrast=\"none\">Following actions can be taken\u00a0<\/span><\/b><span data-contrast=\"none\">against the company by competent authorities:\u00a0<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"none\">Recall and destroy:<\/span><\/b><span data-contrast=\"none\">\u00a0As the products under question are eatable, they pose<\/span><b><span data-contrast=\"none\">\u00a0danger to public health<\/span><\/b><span data-contrast=\"none\">. Company should be instructed to recall products from the market and\u00a0<\/span><b><span data-contrast=\"none\">destroy them under supervision<\/span><\/b><span data-contrast=\"none\">\u00a0of authorities.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Monetary fine:\u00a0<\/span><\/b><span data-contrast=\"none\">A substantial<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-contrast=\"none\">monetary fine should be imposed\u00a0to\u00a0<\/span><b><span data-contrast=\"none\">emphasize\u00a0cost of\u00a0ignoring\u00a0public interest\u00a0<\/span><\/b><span data-contrast=\"none\">in\u00a0pursuit of\u00a0short-term\u00a0business profitability.<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Criminal proceedings\u00a0<\/span><\/b><span data-contrast=\"none\">against top officials should be based on\u00a0graded\u00a0response\u00a0<\/span><b><span data-contrast=\"none\">as per<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><b><span data-contrast=\"none\">consequential\u00a0impact\u00a0<\/span><\/b><span data-contrast=\"none\">on public health, such as<\/span><b><span data-contrast=\"none\">\u00a0carcinogenic\u00a0or\u00a0genetic\u00a0<\/span><\/b><span data-contrast=\"none\">impact<\/span><b><span data-contrast=\"none\">,\u00a0effect\u00a0on children<\/span><\/b><span data-contrast=\"none\">\u00a0etc.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Cancel the approval<\/span><\/b><span data-contrast=\"none\">\u00a0to sell domestically as well as\u00a0for\u00a0exports<\/span><b><span data-contrast=\"none\">\u00a0till review\u00a0and reapproval<\/span><\/b><span data-contrast=\"none\">.\u00a0This will help protect against<\/span><b><span data-contrast=\"none\">\u00a0loss of reputation for the country as a source,\u00a0<\/span><\/b><span data-contrast=\"none\">and promote<\/span><b><span data-contrast=\"none\">\u00a0respect for prescribed regulations.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><strong>b)\u00a0The company can take following course of action to resolve the crisis and regain its reputation:<\/strong><\/p>\n<ol>\n<li><b><span data-contrast=\"none\">Public apology\u00a0<\/span><\/b><span data-contrast=\"none\">should express genuine\u00a0<\/span><b><span data-contrast=\"none\">regret for wrong conduct<\/span><\/b><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Internal audit and enquiry\u00a0should be pursued to\u00a0<\/span><b><span data-contrast=\"none\">fix responsibility\u00a0for the decisions<\/span><\/b><span data-contrast=\"none\">\u00a0that led to the crisis.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Review company\u2019s\u00a0values\u00a0and\u00a0<\/span><b><span data-contrast=\"none\">process of value\u00a0inculcation among employees<\/span><\/b><span data-contrast=\"none\">, middle-management and\u00a0top-leadership.<\/span><b><span data-contrast=\"none\">\u00a0Changes\u00a0in leadership<\/span><\/b><span data-contrast=\"none\">\u00a0may be needed.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Changes in quality control\u00a0governance with\u00a0<\/span><b><span data-contrast=\"none\">direct line of communication<\/span><\/b><span data-contrast=\"none\">\u00a0between top-leadership and factory floor\u00a0can\u00a0<\/span><b><span data-contrast=\"none\">put quality norms on a\u00a0pedestal.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Communication\u00a0<\/span><\/b><span data-contrast=\"none\">of the internal\u00a0emphasis on\u00a0<\/span><b><span data-contrast=\"none\">quality\u00a0and health over short-term profits<\/span><\/b><span data-contrast=\"none\">\u00a0should reflect in\u00a0<\/span><b><span data-contrast=\"none\">benchmarking\u00a0<\/span><\/b><span data-contrast=\"none\">as per national and\u00a0<\/span><b><span data-contrast=\"none\">international best practices like 6-sigma.<\/span><\/b><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><strong>c)\u00a0The ethical dilemmas in the case are as follows:<\/strong><\/p>\n<ol>\n<li><b><span data-contrast=\"none\">Public health versus private profit:<\/span><\/b><span data-contrast=\"none\">\u00a0Corporates have\u00a0interests of private profits but they also have\u00a0responsibility towards society.\u00a0<\/span><b><span data-contrast=\"none\">Commerce without morality<\/span><\/b><span data-contrast=\"none\">\u00a0is a one of the seven Gandhian sins.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Kantian right\u00a0versus National Interest:<\/span><\/b><span data-contrast=\"none\">\u00a0Taking\u00a0<\/span><b><span data-contrast=\"none\">strict\u00a0action<\/span><\/b><span data-contrast=\"none\">\u00a0if found rightful\u00a0such as\u00a0criminal proceedings\u00a0<\/span><b><span data-contrast=\"none\">can affect investments<\/span><\/b><span data-contrast=\"none\">, create\u00a0<\/span><b><span data-contrast=\"none\">sensationalism\u00a0<\/span><\/b><span data-contrast=\"none\">and undermine\u00a0<\/span><b><span data-contrast=\"none\">reputation of India<\/span><\/b><span data-contrast=\"none\">\u00a0as source of food products-based exports.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Common Good\u00a0versus\u00a0Business Interest:<\/span><\/b><span data-contrast=\"none\">\u00a0Narrow focus on business interest has threatened common good from public health\u00a0and\u00a0exports.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"none\">Varying compliance with\u00a0standards<\/span><\/b><span data-contrast=\"none\">\u00a0for\u00a0exports and domestic market reflects\u00a0lack of\u00a0<\/span><b><span data-contrast=\"none\">respect for\u00a0domestic regulation\u00a0<\/span><\/b><span data-contrast=\"none\">and possibility of\u00a0<\/span><b><span data-contrast=\"none\">racial prejudices<\/span><\/b><span data-contrast=\"none\">\u00a0within company.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><span data-contrast=\"none\">The\u00a0<\/span><b><span data-contrast=\"none\">pursuit of value and not profits<\/span><\/b><span data-contrast=\"none\">\u00a0must guide the conduct of corporates.\u00a0<\/span><b><span data-contrast=\"none\">Trust and customer loyalty<\/span><\/b><span data-contrast=\"none\">\u00a0are\u00a0enviable\u00a0values\u00a0that\u00a0a company can\u00a0only\u00a0build\u00a0on foundation of\u00a0ethical governance.\u00a0<\/span><b><i><span data-contrast=\"none\">(422 words)<\/span><\/i><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A reputed food product company based in India developed a food product for the international market and started exporting the same after getting necessary approvals. The company announced this achievement and\u00a0also indicated that soon the product will be made available for the domestic consumers with almost same quality and health benefits. Accordingly, the company got&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-upsc-mains-2021-gs-paper-4-case-study-1q-no-11\/\">Continue reading <span class=\"screen-reader-text\">[Answered] UPSC Mains 2021 GS Paper 4 \u2013 Case Study 1(Q. No. 11)<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-161301","post","type-post","status-publish","format-standard","hentry","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":149,"cached_at":"","cached_date":1703663646},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=161301"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/161301\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=161301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=161301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=161301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}