The UPSC (Union Public Service Commission) examination is renowned as one of the most prestigious and challenging competitive exams in India. In the year 2020, the General Studies Paper 4, often referred to as GS 4, presented candidates with a diverse array of ethical dilemmas and situational questions. This paper aimed to evaluate the ethical and moral aptitude of aspiring civil servants, testing their ability to navigate complex issues with integrity and sound judgment. Through a series of case studies and theoretical inquiries, candidates were required to demonstrate their understanding of ethical principles and their practical application in governance and public administration. The UPSC GS 4 paper serves as a crucial benchmark for selecting individuals who possess not only the knowledge but also the ethical fortitude necessary to serve the nation with honesty, fairness, and dedication.
Q11. Parmal is a small but underdeveloped district. It has a rocky terrain that is not suitable for agriculture, though some subsistence agriculture is being done on small plots of land. The area receives adequate rainfall and has an irrigation canal flowing through it. Amria, its administrative centre, is a medium-sized town. It houses a large district hospital, an Industrial Training Institute and some privately owned skill training centres. It has all the facilities of a district headquarters. A trunk railway line passes approximately 50 kilometers from Amria. Its poor connectivity is a major reason for the absence of any major industry therein. The state government offers a 10 year tax holiday as an incentive to new industry.
In 2010 Anil, an industrialist decided to take benefits to set up Amria Plastic Works (APW) in Noora village, about 20km from Amria. While the factory was being built, Anil hired the required key labour and got them trained at the skill training centres at Amria. This act of his made the key personnel very loyal to APW.
APW started production in 2011 with the labour drawn fully from Noora village. The villagers were very happy to get employment near their homes and were motivated by the key personnel to meet the production targets with high quality. APW started making large profits, a sizeable portion of which was used to improve the quality of life in Noora. By 2016, Noora could boast of a greener village and a renovated village temple. Anil liaised with the local MLA to increase the frequency of the bus services to Amria. The government also opened a primary health care centre and primary school at Noora in buildings constructed by APW. APW used its CSR funds to set up women’s self-help groups, subsidize primary education to the village children and procure an ambulance for use by its employeed and the needy.
In 2019, there was a minor fire in APW. It was quickly extinguished as fire safety protocols were in place in the factory. Investigations revealed that the factory had been using electricity in excess of its authorized capacity. This was soon rectified. The next year, due to nationwide lockdown, the requirement of production fell for four months. Anil decided that all employees would be paid regularly. He employed them to plant trees and improve the village habitat.
APW had developed a reputation of high-quality production and a motivated workforce.
Critically analyse the story of APW and state the ethical issues involved. Do you consider APW as a role model for the development of backward areas? Give reasons. (250 Words, 20 Marks)
Tag: Case study
Case Summary:
- Parmal is an underdeveloped district, not suitable for agriculture despite having irrigation facilities and adequate rainfall due to rocky terrains.
- Amria, the district headquarter where there is an industrial institute and skill training centre but poor connectivity.
- The state government has already provided a 10 year tax holiday to start industry in this region.
- Anil, an industrialist, set up Arima Plastic Work (APW) in Noora village 20 Km away from Amria. He plans to use local labour, get them skilled at Amria training centre.
- APW started production in 2011 and met the production target to bring prosperity in the region.
- Government with APW support opened a primary health care centre and primary school. Moreover, APW used its CSR funding to set up women Self-help Group (SHG), subsidised primary education and procure ambulances for the use by its employees and the needy.
- In 2019 , there was a minor fire in APW due to its usage of excess electricity than its authorized capacity.
- During lockdown all employees were regularly paid and APW utilised their labour to plant trees and improve the village habitat.
Stakeholders involved in the case:
- Anil, the entrepreneur who started APW in the village.
- Local population of Amria HQ/Parmal district/ Noora village.
- Government that provides tax holidays to set up new industries in the region.
- Society at large.
Critical Analysis:
- APW, indicates a sign of an ethical driven organization that used available resources and labor force for its enterprise.
- Anit, who is owner of APW, shows the image of compassionate capitalism, where it is believed that growth of enterprise is invariably linked with growth of its employee and society where it operates.
- Skill Development of local population and their high morale leading to meeting production targets with high quality. APW brought prosperity , boosted greenery and renovated the village temple.
- Social consciousness of APW enterprise reflected with the using of CSR fund to set up womens SHG, subsidized primary education, and provide ambulances for use by the needy.
- A small glitch in operation i.e., overdrawing electricity then authorized limit lead to minor file in APW in 2019, that was rectified.
Ethical issues involved:
- Selflessness vs. Business Ethics: Selflessness is being more concerned about the needs and wishes of others than with one’s own. Business ethics talks about profit maximization and rapid growth instead. In the given case, Anil despite being a businessman, was less concerned about business ethics and instead showed selfless character in decision making.
- Accountability vs. Transparency: The case of accountability is worsened by the perceived lack of transparency in the system. Anil’s industry should have maintained transparency in utilisation of allocated resources as running businesses brings accountability towards stakeholders.
- Spirit of Service and Sacrifice vs. Professionalism: Spirit of Service and Sacrifice is the major quality required in public officials, while professionalism is the major quality required in a businessman or industrialist for boosting business growth. In the given case, Anil despite being a businessman showcased the quality of spirit of service and sacrifice & remained less professional in approach.
Reasons for considering APW as role model for the development of backward areas:
- The APW enterprise showed a robust model of private sector led growth utilizing the government incentive creating a win-win situation.
- Many backward regions of India had similar conditions like Amria/ where there is underdevelopment and only subsistence agriculture.
- APW leads by example, how the private sector can fill the gap left by the state in ensuring welfare of people even in small villages by transforming their life.
- APW ensures best utilisation of local resources with skill development and attempted inclusive development.
- APW would also take care of various problems like migration, education, health, local employment generation in villages.
- APW presented an ethical, social and environmental conscious organization focused on overall growth of the place and not just for their profits.
Reasons for APW not as a role model for the development of backward areas:
- Every backward region had its own unique issues. The APW model for all backward areas would be akin to the “one size fit all” approach.
- Some backward regions would require more government support than just tax holidays for new industry and private sector initiatives.
- Every private enterprise may not have APW like ethos and they might start over exploiting resources, if left unchecked by the government.
Hence, in this regard, the best way to strengthen the model of a mixed economy where the government will provide a business friendly atmosphere for industries to set up their operation in backward regions with regulation under the government protecting rights of people. This will result in proper checks and balances to private enterprise while ensuring welfare of people and inclusive development.
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