Qtn. 1.

What according to you are the obstacles in ensuring Ethical

Accountability in India? (10)

Explanation: some of the obstacles in ensuring ethical accountability are:

i. Special expertise and lack of flow of information: Public servants are often
experts in their specific areas of functioning and it is difficult for any outside
agency to surpass them in their areas of specialization. They generate and
comprehend information but access to them is very limited for common men.
Although acts, like RTI and Citizens Charter are crucial, but universal use
need to be ensured.
ii. Less time devoted for audit: Oversight agencies, such as Auditors,
Regulators, Media etc. generally have less time to devote on one case, as
compared to full time of public administrators. So, sometimes they are not
able to seek all crucial information and process and use them effectively.
iii. Massive expansion of bureaucracy: Because of this, many times it is
difficult for political executives and senior officials to keep an eye on all of
their subordinates.
iv. Lack of coordination among various government departments, which lead
to poor information sharing and data processing. This also leads to
duplication of efforts and wastage of time and man resources.
v. Excessive monopoly and discretion: Excessive security in cases of wrong
decisions taken by public servants while using his/ her discretion. Security of
job and promotion is also a big deterrent to accountability.
vi. Normal tendency of taking Vigilance departments as a police
department, instead of a facilitator, from whom suggestions can be taken.
This leads to hiding of information and avoiding being candid while doing
work.
vii. Misinterpretation of roles and obligations: Setting of specific goals with
clear distribution of work and a focus of outcome oriented delivery of public
services is often found missing in the public departments. This provides an
obstacle in dealing with effective and quality product services delivery and
at the end leads to chaotic situation, without any inculcation of feeling of a
team work.
viii. Narrow loyalty towards the organization and superior authority: Instead
of being loyal towards the nation and public at large, many times public
servants are socialized into developing loyalty towards the organization they

serve and their superior authority. This leads to diluting and hiding of
information.
ix. Archaic procedures and rules: Many organizations, such as Police, Income
Tax, Railways etc. are following age old archaic procedures and their
department rules have not been amended so far. This has led to over
concentration of power in the hands of few officials.
x. Lack of feeling of self accountability: Self accountability is the best way
to ensure ethical accountability. But, due to lack of proper behavioural based
trainings in generating self accountability, public servants are not able to
acknowledge this fact.

Qtn. 2. As a business, the media is under constant pressure to sell and to

offer what sells, rather than what as the fourth state it ought to offer. How
much you agree with this statement? (10)

Explanation: I agree with this statement. The media has a dual character. It is
a medium as well as creator of news, attitudes and agenda. It conveys as
well as directs. It is in recognition of the directional role that the world over
political parties establish their own newspaper, news channels. Information is
often conveyed and commented upon with a view to shape the public
agenda, mould public opinion and push action along a particular course
towards a particular goal. The world over there is a tendency towards
concentration in the media business. As business, the media has been the
target of sharp criticism. The lure of more circulation, more advertising and
more profit, it is said, induces the media to cater to populist fears and
prejudices, entertain instead of enlighten, pander instead of lead.
However it is important to bear in mind three factors:
i. The media cannot survive without being a business
ii. Size of firms and concentration in markets are often the result of
exogenous factors like technological change rather than endogenous
corporate policies
iii. There are limits to what the government or business can offer to people,
what they ought to have rather than what they wish to have.
There is thus an intrinsic tension between the two roles of media, media as a
quasi public institution and media as business. This intrinsic tension erupts
occasionally within a newspaper or news channels, with the editor and the

proprietor taking different views of their roles, and over what and how
something should be reported.

Qtn. 3. Explain the following terms with suitable examples: (04x5)

a. Public Service
Any kind of services provided by the government during the process of
governance is public service. It is provided by government to people living
within its jurisdiction, either directly (such as, police services, army, Right to
work, PDS shops etc.) or by financing provision of services (such as,
providing subsidies for diesel, LPG, conditional cash transfers etc.). This is
associated with the presumption that certain services should be available to
all citizens, regardless of the income. It is an essential tool of the
government to establish a welfare state by the means of ensuring
transparency and accountability while delivering services.

b. Corruption
It is willful diversion of resources (either money or any other resources) by a
person from the intended purpose to other purposes or for his/ her own
benefit. ARC report called for inclusion of wilful violation of oath of
office ,abuse of authority unduly favouring or harming someone,
squandering of public money and obstruction of justice under the
Prevention of Corruption Act, 1988. Example of corruption may include from
using official stationary for own purpose to billon dollar scams like, Coalgate,
Common wealth game scams.

c. Public Procurement
Public procurement, also called government procurement, is the procurement
of goods and services on behalf of a public authority, such as a government
agency. Government procurement accounts for a substantial part of our
economy because of the phenomenon of a welfare state in India.
It may range from procurement of furniture or computers for daily use to
procurement of large turbines, ships, aircrafts, defence equipments etc.
Methods adopted for public procurement are tendering, e - tendering,
reverse auctioning, rate contracts, personal enquiries etc.

Public procurement is the largest grey area of ethics, where largest

corruption occurs. Example is the bofors scam, Common Wealth Game scam,
fodder scam etc.

d. Work Culture
Work culture is an integrational outcome of i. The behaviour and attitude of employees of the organization
ii. Organizational ideological goals
iii. Vision, mission and values of the organization and efforts taken to achieve
them
iv. Behaviour, system and beliefs of the employees
Good/ positive work culture aspires to achieve objectives and inculcate
feelings of team work and promote efficiency.
Nature of work culture:
i. Authoritative/ exploitative
ii. Benevolent
iii. Participatory
iv. Consultative

e. Quality of Service Delivery

Quality of service delivery defines the minimum standards of processes of
governance.
In India, the Sevottam model has been developed with the overarching
objective of improving the quality of public service delivery in the country.
The model has three components:
i. The first component of the model requires effective charter implementation
thereby opening up a channel for receiving citizens inputs into the way in
which organizations determine service delivery requirements. Citizens
Charters publicly declare the information on citizens entitlements; making
citizens better informed and hence empowering them to demand better
services.

ii. The second component of the model, Public Grievance Redress requires a
good grievance redress system operating in a manner that leaves the citizen
more satisfied with how the organization responds to complaints/grievances,
irrespective of the final decision.
iii. The third component Excellence in Service Delivery, postulates that an
organization can have an excellent performance in service delivery only if it
is managing the key ingredients for good service delivery well, and building
its own capacity to continuously improve delivery.
The ability of such an assessment model in influencing service delivery
quality will be a function of how tightly improvement actions are linked to
assessment results.

Qtn. 4. a. What are the ethical issues in International relation?(10)

Explanation: Ethics come into play in International Relations, whenever any

exchange (in forms of agreements, pacts, trade, funds, grants, loans etc.)
takes place. Ethical concerns are aroused when the interests of each and
every stakeholder need to be protected and promoted and a uniform
platform needs to be established for them, thus ensuring international peace
and development for all.
The main areas of ethical concerns in International relations are:
i. Ways of providing funds (grants & loans) to one country by another.
(sometimes, unsustainable rates are surcharged on loans due to sudden
tensions in relations)
ii. Climate change combating and mitigation agreements. (island nations and
smaller countries are worst to suffer due to climate change, but main
contributors are richer countries who are least to suffer)
iii. Dichotomy in Labour laws and rights (For example, some import bans
have been imposed by European Union on India due to child labor practices
in that sector.)
iv. Issues emerging out of human rights protection. (some countries,
especially western countries, define separate definitions of human rights for
their citizens and for migrants. Case of unethical treatments to one of Indian
diplomat in US or violent murder of Indian in Australia etc.)

v. Visa related issues. (Cases of excessive security checking at US Air port of

some of very famous Indian celebrities, such as Shahrukh Khan etc).
vi. Terrorism funding. (good vs bad terrorism, in which good terrorism is
promoted to end bad ones, but in long term, both types are bad for other
countries).
vii. Snooping and lack of transparency in information sharing.
viii. Corruption related issues, where countries are paid to support any
particular resolution in international fora.
ix. Interference in internal affairs of weaker countries by neo colonialism,
that is, the process of making economically weaker countries economically
dependent on neo colonialists.
x. Conflicts in IPRs (cases of patenting of neem, basmati rice, turmeric etc by
US, which were indigenous to India.)
xi. Non- sharing of equal profits of partnership and technologies in defence
pacts, thus making the procuring countries literally dependent on the
supplier country.
xii. Dominance and imposing via principle of hierarchy.
xiii. Violation of principle of identity and enforcing authority through
agencies, such as NATO etc.
xiv. Non acceptance of tribes of other countries. (cases of poor conditions
of Rohingyas, Romas etc who are forced to live a life of migrants in their own
countries).
xv. Non acceptance of amendments at international fora. (Eg, case of
reforms of UNSC, going on for long time, but till now, it has not been
accepted with open arms.)
xvi. State organized cyber crimes against other countries. (eg, Stuxnet worm
of US imposed on Iran.)

Qtn. 4. b. How can the Whistle-Blowing domain be expanded in India? Explain

with suitable examples.(05)

Explanation: Whistle blowers Act seeks to promote combating corruption by

keeping the names of initiators or whistle blowers of corruption as secret.
This will motivate others to come out and provide information about
incidents of corruption happening around them.

Expansion of Whistle blowing in India:

i. Empowering employees to expose internal corruption by ensuring them
total immunity and protection. SC ruled out that whistle blowers identity
should be protected totally.
ii. State support to whistle blowers through thorough implementation of the
act.
iii. Fair and impartial trial of cases exposed by whistle blowers.
iv. Expanding protection of whistle blowers in cases of private companies as
well. Right now, legal safeguards to individuals are guaranteed only in cases
pertaining to government establishments or where substantial public money
is involved.
v. Motivation to whistle blowers by appreciation and awards. Recent news on
Dinesh Thakur, who worked at Ranbaxy for four months and initiated blowing
the lid on the companys falsification of certification documents submitted to
drug controllers around the world. He was awarded $48.6 million for his
efforts.
vi. Whistle blowing should be included in the Companies act, which may
provide essential criteria for companies to have proper and well advertised
mechanisms for whistle blowing.
vii. Through advertisements, campaigns and raising awareness by posting
whistle blowing mechanisms on the companys portal and sites, celebrating
whistle blowing weeks and days.

Qtn. 5. How the strengthening of ethical and moral values in the governance
may be ensured?(10)

Explanation: Strengthening of ethical and moral values in governance:

i. Ensuring reflection of ethical and moral standards in the legal framework of
the government by specifying minimum obligatory standards and principles
of behaviour for public servants and properly framed laws, rules and
regulations for guidance, investigation and punishment in cases of non
compliance.
ii. Ethical guidance should be available to public servants by time to time
arrangements of trainings for upgradation of skills for ethical analysis and
moral reasoning and providing a mechanism for impartial advise in cases
where they used to face ethical dilemmas. An internal consultation process

mechanism, involving very senior and experienced bureaucrats should be

developed to assist nave officers.
iii. Instead of espirit de corps, a proper code of ethics should be evolved
with certain region based discretion. Government policies should clearly
state that below certain standards of public service value, the civil servants
action cannot be tolerated.
iv. Motivation through live case studies, practical examples, incentives,
applauds etc.
v. Individual public servants should be given responsibilities and in cases of
inaction, they should have to bear its onus.
vi. Protection in cases of exposing of wrong doings at all levels.
vii. Merit based promotions and providing timely boost ups to bring reforms.
viii. Adequate accountability mechanisms through use of technology. For
example, a vigilance week is being celebrated with the theme of: ensuring
accountability technology as an enabler. This will focus on improving
technology for ensuring internal as well as external accountability.
ix. Adequate and quick trial of cases of unethical behaviour and a proper
ethical check on the discretion power.
----------------Qtn. 6. The true value of corporate governance is much more than just
ensuring compliance with regulations. Critically comment.(10)
-----------------Explanation: Although Indian corporates have been focused on revisiting and
updating board-level policies and procedures by implementing them, but the
focus of most of the organisations have been on achieving legal compliance,
for instance, introducing the appropriate mix of executive and non-executive
directors on their boards. But beyond this, not much has been done
substantively. Most listed companies continue to view corporate governance
as a compliance-driven exercise an effort to ensure that they implement
the bare minimum that can keep them out of legal trouble. This, however, is
not appropriate.
The true value of corporate governance is much more than just ensuring
compliance with regulations. This is because the spirit of corporate
governance is about putting in place safeguards around any eventuality that
could have a serious negative impact on a company and its stakeholders. In
other words, while a CEO of any company with questionable integrity can

topple a company, it is also important to recognise that other risks such as

poor controls around financial processes, operational inefficiencies, and the
inability to compete effectively in the global marketplace, can also produce
disastrous results. The mandate should be to develop a framework for a
system of controls that could help companies achieve their stated business
objectives for various stakeholders and society at large. Making Corporate
Social Responsibility as mandatory, vibrant RTI, Pro active approach in
disclosing of assets and liabilities, merit based criteria for selection of
employees, providing assistance in compliance as well as social audit
generation of feelings of self accountability and self responsibility may
help in realizing the true values of corporate governance.
-----------------Qtn. 7. Open government is the governing doctrine which holds that citizens
have the right to access the documents and proceedings of the government
to allow for effective public oversight. How much you agree with this
statement? (10)
-------------------Explanation: I agree with this statement. Open government ensures a
transparent, accountable, information sharing and feedback seeking
governance process, which shares everything with the citizens, considering
them as its family members. In its broadest construction it opposes reason of
state and other considerations, which have tended to legitimize extensive
state secrecy.
There should be proper rules, regulations and mechanisms in place that call
upon government actors to justify their actions, act upon criticisms or
requirements made of them, and accept responsibility for failure to perform
with respect to laws or commitments. Governments embrace the importance
of providing citizens with open access to technology, the role of new
technologies in driving innovation, and the importance of increasing the
capacity of citizens to use technology. Governments seek to mobilize citizens
to engage in public debate, provide input, and make contributions that lead
to more responsive, innovative and effective governance.
Information on government activities and decisions is open, comprehensive,
timely& freely available to the public at their door steps. It ensures that
citizens, civil society and governments participate and work together in a
participative process. Governments need to proactively approach and
engage citizens and support civil society in order to increase their capacity to
participate. E - Governance and participative governance are ways to ensure
open governance.

The contemporary doctrine of open government finds its strongest

advocates in the pressure groups and vigilant citizens, which keen to counter
what they see as the inherent tendency of government to lapse, whenever
possible, into secrecy. For example, through RTI, public may seek concealed
information, which might have been not provided by the government itself.
This ensures effective public oversight.
----------------------Qtn. 8. Critically analyse the problems of policy making in India. Also propose
solutions.(10)
----------------------Explanation: Problems of policy making in India:
i. Excessive Fragmentation: One of the main problems with policy-making in
India is extreme fragmentation in the structure. For example, the transport
sector is dealt with by five departments/Ministries in the government of India
whereas in the US and UK it is a part of one department (Department of
Transport and Public Works in the US and Department of Environment,
Transport and Regions in the UK). Similar examples exist in the energy,
industry and social welfare sectors as well. Such fragmentation fails to
recognize that actions taken in one sector have serious implications on
another and may work at cross purposes with the policies of the other sector.
Besides, it becomes very difficult, even for closely related sectors, to align
their policies in accordance with a common overall agenda.
ii. Excessive Overlap: Another problem is the excessive overlap between
implementation, program formulation and policy making which creates a
tendency to focus on operational convenience rather than on public needs.
Policy-making in Indian ministries occurs at the levels of Director and above,
but the most important level (crucial for consideration of cross-cutting
impacts) is that of the Secretaries to the Government of India, who are their
Ministers policy advisers-in-chief. However, as mentioned earlier, the very
same Secretaries spend a large part of their time bogged down on routine
day-to-day administration of existing policy. Time is spent anticipating and
answering parliamentary questions, attending meetings and functions on
implementation issues etc. Partly the problem is symptomatic of overcentralisationexcessive concentration of implementation powers at the
higher levels of the Ministries.
iii. Lack of non-governmental inputs and informed debate: Often public policy
is made without adequate input from outside government and without
adequate debate on the issues involved. The best expertise in many sectors
may lie outside the Government. Yet the policy processes and structures of

Government have no systematic means for obtaining outside inputs, for

involving those affected by policies or for debating alternatives and their
impacts on different groups. Most developed countries have a system of
widespread public debate before a policy is approved. For example, in the US
, the legislature subjects a new policy initiative to extensive debate not only
in Committees but also in the Senate and House. Such debates not only
enable an assessment of different viewpoints but also help build up a
constituency in support of the policy through sound arguments. Probably the
only example of fairly systematic consultation of outside expertise in India is
in the process of formulating the Central Budget, where there is a long
tradition of pre-budget confabulations with chosen members of industry,
labour and academia.
iv. Policies are framed without taking feed backs: In India, governance is just
one way process. Proper provisions to take feedbacks from the people, who
bear the direct impacts of policies, are missing from their framing. There is
no effective way to capture past feedbacks and experiences, which may be
utilized to improve future policies and programmes.

Suggestions to improve public policy making:

i. Provision of a survey to capture the efficacy of previous policies and
address loopholes in future. Also, if a policy is successful in one region and
unsuccessful in other, then experiences from the successful implementation
may be used in other regions as well.
ii. Advertising and maturing two way governance process.
iii. Video conferencing or addressing people directly through satellites, in
which feedbacks and suggestions of common men could be taken.
iv. Networking of policy makers to common men through radio, television,
internet, mobile messages in local language.
v. Amending archaic laws in accordance with the current context.
vi. Outcome based approach instead of result based, where all possible
pros and cons should be analyzed.
vii. Integration and simplification of inter departmental interfaces and
information sharing.
viii. Implementation, formulation and policy making should be clearly and
markedly segregated and distributed.

ix. Citizens - civil societies - government debate as tri nodal model should
be promoted and provided a proper and periodic platform.
--------------------Qtn. 9. The concept of public and private governance is entering a phase of
convergence. How much you agree with this statement? 10)
---------------------Explanation: In the contemporary world, private sector is not mere market
mechanism propelled by unfettered competition. Truly competitive
companies, who care for reputations should have to be unequivocally
committed to the interests of stakeholders and society. The absence of
governance or deficit in trust results in diminished consumer, investor and
public confidence along with less efficient organizations. Private sector needs
support of public governance to win trust of people and stakeholders, for
harnessing public resources, for providing a platform to expand by ensuring
reliability to the people, for earning reputation and hence easily getting loans
and grants from public banks and markets through IPOs, FPOs, shares etc.
On the other hand, public governance needs capital, technological and
financial support from private sector. PPP is an excellent example of
integration of public and private governance. Public governance has to learn
how to ensure achievements of task focused, result oriented goal from the
private sector.
The need of the hour is to provide a platform where convergence of public
private governance may take place and which may lead to integration of
best practices from both sectors. The role of public governance should be to
discipline the private governance and act as a facilitator and optimizer,
considering the interests of the people and the role of private governance
should be to assist public governance and take responsibility towards the
society and nation. This may ensure true convergence of corporate
governance and public managerialism.

10. Examine the following statements and bring out what it means to you in
the present context. (10x3)

Qtn. a. The use of power need not necessarily be violent.

Explanation: The most effective exercise of power is that which irks least. A
non violent administrator or law giver professes his duties without getting
affected by fear or favour, anger or attachment.
It is truly said that with great power, comes great responsibilities and a
violent person may not be able to accomplish all responsibilities with utmost
satisfaction. Examples could be seen, where violent dictators, such as Hitler,
Napolean, Mussollini, British government in India all came to an end. Recent
case of Arab Spring further re establishes this fact. Emphasis on use of soft
skills in international arena by India, such as negotiations, peace talks, focus
on educational and cultural pacts is an example, where power has been
utilized effectively in non violent ways, thus earning a tag of soft power.
For true development of any country and true realization of the ideals of
constitution, the highest posts of governance need to be as less violent as
possible and adopting some violent means, such as lathi charges, tear gas
etc. only in extreme cases of grave public order hampering.
To ensure, non violent legislative and executive, proper methods of checks
(such as independent and impartial judiciary, right to vote, individual
fundamental rights) have been given in the constitution, which ensures that
it may not take the form of all pervasive and all powerful.

Qtn. b. Freedom and Responsibility are the twin aspects of citizenship in a

free society.

Explanation: Our Constitution has endowed us with very comprehensive

fundamental rights, which ensures freedoms in a very broad context. But,
those freedoms are not absolute. They are closely linked to responsibility,
some of which are mentioned in the fundamental duties. For instance, one
cannot enjoy right to life if one disturbs other in living their lives. Its ones
responsibility to profess ones right in such a way so as not to impose
constraints for others.
Therefore, Responsibility and freedom go together. If one does not want to
take responsibility, he/ she cannot have freedom either. Freedom means one
will have to be responsible for every act, for every breath; whatever he/ she
does or doesn't do, one will be responsible. For example, we have been given
freedom of expression and information, we should utilize this to fulfill our
responsibility by giving correct information during social audits and various
government surveys.

In the contemporary situation, as freedom has been assured by our

constitution and executive machinery, it is our responsibility to utilize that
freedom in achieving development of our country and the society.

Qtn. c. Work culture refers to the attitudes, values and behaviour of

individuals.

Explanation: When people join an organization, they bring with them their
unique attitudes, values and behaviours that they have been taught. Any
organisation with firmly established organisational culture would be taught
the values, beliefs and expected behaviours of that organisation. Just as
society moulds human behaviour, an organisation also moulds human
behaviour that is in tune with the prevalent set of norms and behaviour. In
this process, certain basic attitudes and beliefs about the people and their
work situations are slowly but firmly accepted in the organisation, which
becomes its 'Organisational Culture. A positive organizational culture
reinforces the core beliefs and behaviours that a leader desires while
weakening the values and actions the leader rejects.
In the present context, positive work culture is evident in the implementation
of Swatchh Bharat Mission in organizations, where attitudinal and
behavioural changes are inculcated in employees for ensuring time - bound
achievement of goals.
States like, Tamil Nadu, Kerala, Gujarat have shown better growth and
development due to dedicated behaviour, hard working values, positive
attitude and efficient work culture.

In the following questions, carefully study the cases presented and then
answer the questions that follow:

11. Mr. X started as an energy producer in 1990 and later on moved into
energy trading. The company that was making huge profits by the year 2000
and was also rated as one of the largest company on the Fortune 500,
unexpectedly collapsed in 2008. Mr. X had impressed the public by entering
into a unique concept of trading energy, and it deceived the public with false
profits.
Also, the company had huge debts, all of which were not shown on the
company accounts. To hide these large amounts of debt and losses, Mr. X

had made many partnerships with companies that were run by Mr. Xs
executives who profited from this deal and deceived the public. It used
creative accounting techniques and manipulated its books which kept the
investors in dark and led to an all time rise in its stock prices.
But by August 2008, the existing CEO of the company resigned, and it
reported huge losses in October 2008. By late 2008, it admitted that the
company had been manipulating its books and showing inflated profits. Mr. X
in December 2008, filed for bankruptcy and later the matter was
investigated and within a short span of time, the company had large
amounts of unpaid debt and worthless shares. It was also revealed that the
top executives of the company made huge profits by selling Mr. Xs shares at
the right time, thereby leaving all the losses to be borne by other investors.

Qtn. a. Analyse the above case in terms of importance of corporate

governance.(10)

Explanation:
Facts available in the case:
i. Mr. X is founder of the company.
ii. Mr. X was involved in deceiving the public by showing false inflated profits
by manipulating companys accounts.
iii. He was concealing companys debts and losses
iv. He revealed bankruptcy at last moment and thus left all the losses to be
borne by the investors.

Values involved:
i. Integrity of Mr. X
ii. Transparency of the process
iii. Accountability towards the stakeholders
iv. Reporting of the account.

Corporate governance is defined as the process through which a company is

related with the stakeholders.

Mr. X being the founder of the company (fact i) has the biggest responsibility
to share information with stakeholders in order to maintain reputation in the
market and get loans. Facts at ii, iii and iv would lead to erosion of
confidence and trust of the public. Lack of accountability and transparency in
the case lead to falsification of profits by maligning of account books. All
these question the key concepts of corporate governance, such as accountability, transparency, protection of stakeholders interests,
stakeholders right to be informed and integrity.
In such situation, corporate governance based on the underpinning of
stakeholders and investors interests comes into consideration. Corporate
governance includes the processes through which corporations' objectives
are set and pursued in the context of the social, regulatory and market
environment. Steps such as, monitoring of the actions, policies and decisions
of corporations and their agents might have ensured proper implementation
of provisions of corporate governance. In this case, corporate governance
may ensure justice for the investors by proper distribution of profits among
all stakeholders. Corporate governance if implemented in the above case,
have led to proper monitoring of records and timely revelation of bankruptcy.

Qtn. b. Suppose you have been appointed for the task of auditing the
account books of the company, what should be your course of action?(10)

Explanation:
i. I may form an internal auditing team consisting of professionals, who have
knowledge of accounting systems.
ii. I along with my team may enquire all the employees and related
departments individually by looking into proper asset liability match in the
balance sheet and check for compliance of balance sheet with annual profit
and loss statements. We may do the audit with the help of vouchers,
documents, information and explanations received from various authorities.
In case of any need, we might hire or take helps from chartered accountants.
iii. We may prepare a report based on the findings, which will be submitted to
the external auditing agency.
iv. We may arrange a meeting of all the stakeholders of the company and lay
the report in the meeting.

Qtn. c. What are the factors you would consider in reaching to the course of
action?(05)

Explanation: Following factors should be considered:

i. Malpractices going on in the company showing false profits, manipulating
account books.
ii. Reporting of the account books.
iii. Information gathered though enquiry of Mr. X and other employees.
iv. Past records.
v. Deviation from compliance of corporate governance.
vi. Integrity of the CEO.
vii. Periodicity of information sharing with the stakeholders.

12. Total sanitation campaign is launched in one of the backward district of

Bihar. Due to unhygienic environmental conditions in rural areas many
infectious diseases like typhoid, malaria and cholera spread which ruins the
health of the people. Women and girls are badly sufferers as they have to
wait for darkness for privacy and dignity. There are increasing instances of
sexual and physical assault on them when toilets are in remote location. But
the rural people, particularly the aged, do not want to change their
traditional practice of open defecation. Hence, total sanitation campaign
faces daunting challenges of adaptability especially in this educationally
backward district. Various villages of other districts have been benefitted by
this program of Ministry of Rural Development. The prime aim of this
program is to popularize sanitation and hygienic environment in the rural
areas. You are recently posted as the Sub-divisional Magistrate in that
district. The chief secretary of Bihar is showing keen interest in this project.
Considering your past performances, the administration is quite hopeful.

Qtn. a. How would you transform the minds of rural people which are loaded
with orthodox beliefs? (10)

Qtn. b. You have gathered information from various sources and a close
review of the performance of the total sanitation campaign in other districts
show that a total commitment on the part of key officials can bring out social
change. How will you implement it in your district? (10)

13. You are recently posted as an SDM in a remote district. You come to know
that the local MLAs followers of the area, who are mainly small contractors
and elected members of Gram Panchayat along with local officials, are
misusing MGNREGA funds. You find that they smoothly siphoned off funds
using fake job cards and without allocating bilateral cards to the villagers.
You also come to know that all this was done at the behest of the local MLA.
The state government has taken cognizance of the issue after a media report
highlighted the matter and has ordered inquiry into the scam.
You have been given the onus to enquire into the matter. The local MLA is
pressurizing you to file a false report. Some contractors and officials have
contacted and requested you not to mention their names in the report in
return for a hefty bribe. Recently, you have also started getting non
traceable threat calls.
Qtn. a. What are the available options with you? (10)
Qtn. b. Evaluate each of these options & choose the option which you would
adopt giving reasons.(10)
Qtn. c. What should be your course of action? (05)

14. You have been promoted as Additional Secretary in the ministry of

defence and throughout your career, you have earned great respect because
of your integrity. Defence minister trusts you and has given you great
discretion in taking decisions. In a deal involving direct government to
government contract with a major arms supplier, you are tasked with
speeding up the contract agreement and finalize the deal. The manufacturer,
who will benefit immensely if the process is expedited, on many occasions
has personally contacted you and expressed his frustration in the slow
movement of files in the ministry.
Recently, another issue has been emerged. Because of unexpected political
circumstances, the defence minister now wants to scrap the deal. From your
experience, you know that the present controversy is temporary and
somehow the deal will be inked later. You, who have few months of service
left, are in a dilemma. The deal, if signed, doesnt harm anyones interests.
The equipments are of world class and are sure to add value to the countrys

defence arsenal. You are arranging for your daughters marriage, for which
you need money. The person from the company who is in touch with you
comes to know about this and in one of meetings, he offers you a very costly
gift for your daughters marriage provided you speed up the finalization of
the deal. He insists that this gift should not be wrongly interpreted as bribe.
Also, you are in apprehension that the deal may not be inked before your
retirement.

Qtn. a. What are the available options with you? (10)

Solution: Available facts:

i. I am an additional secretary, known for my integrity and has discretion in
the current case.
ii. Defence minister has asked me to scrap the deal due to some unexpected
circumstances.
iii. I know the controversy is temporary and will pass soon.
iv. The equipments are of good quality.
v. The supplier has offered costly gift for my daughters marriage.

Concerned Values:
i. Integrity
ii. Accountability
iii. Loyalty towards the state
iv. Emotional conflict between daughters wedding vs trust of the defence
minister
v. Political morality
Following are the options available with me:
i. I speed up the agreement by explaining the benefits of the deal to the
defence minister; get it signed and accept the gift. (facts 2, 3 and 4)
ii. I get the agreement signed by explaining the benefits of the deal to the
defence minister but dont accept the gift. (facts 1 and 4)

iii. I explain to the supplier that the deal could not be concluded hastily
because of a temporary demand of scrapping the deal. And accept the gift
assuring him for his recommendation in future. (facts 2, 3 and 5)
iv. I explain to the supplier that the deal could not be concluded hastily
because of a temporary demand of scrapping the deal. I will not accept the
gift. (facts 1 and 3)
v. I scrap the deal and will not accept the gift. In future, I will make sure, that
this particular supplier may not get the contract as he has tried to bribe me.
(facts 2 and 5)

Qtn. b. Explain the ethical dilemma and cognitive dissonance present in this
case.(10)

Explanation: Ethical dilemma arises when there are more than one correct
ethical ways of doing a task exists.
Following are some ethical dilemmas:
i. Self accountability vs loyalty towards the government: although my
experience allows me to finalize the deal as the equipments are of good
quality, yet the loyalty towards the government and state forbids me in
doing so.
ii. Integrity vs political morality: my integrity may allow me to speed up the
process as sooner the country gets world quality arsenals, better the results
would be, but my political morality and subservience towards the political
arena prohibits me in doing so.
iii. Integrity vs emotional quotient: the costly gift may not be considered as
an attempt to bribe as it was offered because of my past records.
Cognitive dissonance arises due to conflict or disharmony between the
attitude and behaviour.
i. My attitude prevents me from accepting the gift, but my emotional
quotient may influence me to accept it.
ii. My attitude forces me to expedite the process of finalization of the deal,
but my behaviour prohibits this as ordered by the defence minister and also
as I am soon going to retire and the deal may not get signed during my job
tenure.

Qtn. c. What would be your course of action?(05)

Explanation:
i. I may explain the benefits of early conclusion of the deal to the defence
minister by telling him all the positive aspects of the deal, such as - the
arsenals are of world class quality and it would add value to the countrys
defence arsenal.
ii. I may show the cost benefit analysis of the deal through a small
presentation to persuade the defence minister.
iii. I may expedite the finalization of deal and get it signed soon.
iv. I will not accept gift from the supplier.

15. ABC Co. Ltd. is a socially responsible company. Its objectives, plans and
policies are made keeping in mind the interests of various stakeholders as
well as society. It currently decided to launch a new social program for the
benefits of homeless poor children of the city, but after cost estimation of the
project, it concluded that it cannot afford the associated costs of the program
in its current profit level. The other two available options for launching the
program are i) increase in prices of its products which would lead to
increase in profits and ii) decrease in wages of the employees. Either of the
two options is against the concept of social responsibility. The company,
therefore, decides to drop the program.

Qtn. a. Suppose, you have been recently transferred and promoted as the
General Manager of the company and you have been assigned with the task
to re-look into the viability of the launching of the program, what course of
action do you suggest for the company?(10)