Mains Practice Questions

Case Study

Meera is a senior executive at a publicly listed company in India, specializing in renewable energy projects. The company is in the process of bidding for a government contract to build a large solar power plant in a remote region. The contract is highly competitive, with several top-tier companies vying for it, and winning it would bring significant financial gain and visibility to Meera’s company.

A few months prior, Meera’s brother-in-law, Rajiv, was appointed as a senior official in the Ministry of Renewable Energy, the very ministry responsible for overseeing and awarding the contract. Meera and Rajiv have a close relationship, and although she knows that Rajiv has a strong professional reputation, she is also aware that he is under considerable pressure to ensure the success of the government’s solar power initiatives.

Meera’s company is one of the top contenders for the bid, but she learns that Rajiv may be in a position to influence the decision-making process, and there is a possibility that Rajiv might help her company’s bid, albeit subtly, given their personal relationship. Meera feels conflicted: while she knows her company is capable of delivering on the contract, she is aware that her family connection with Rajiv could create a perception of conflict of interest and lead to accusations of favoritism.

Meera’s dilemma is compounded by the fact that the company’s shareholders are pushing for aggressive expansion and winning this contract could significantly increase the company’s market value. However, Meera is also deeply concerned about maintaining ethical standards, public perception, and the integrity of both her personal and professional reputation.

Questions:
a) What are the key ethical dilemmas involved in this situation?
b) What steps should Meera take to ensure that her involvement in the bidding process remains ethical and transparent, given her personal connection to Rajiv?
c) What are the potential risks of allowing personal relationships to influence corporate governance decisions, particularly in public sector contracts, and how can these risks affect the company’s long-term success?