Q.4 Big firms often undertake sub-contracting to complete large infrastructure projects in a timely manner. You recently joined one such firm as a manager responsible for awarding these contracts. Looking at the past records, you find that all contracts for the past few years have been awarded to a particular firm, X. Your superior has asked you to award an upcoming contract to the same firm. Although, not binding, company procedure maintains that sub-contracting work should be offered after competitive bids. This is to ensure that the firm most suitable for the project in terms of operations and finance gets the contract. When you discuss this with your superior, he insists that hiring of the firm X has been done as per legal norms of the company and no official rule has been violated. You decide to contact the owner of the firm X. After doing so, you realize that he is the nephew of your superior, who is also a shareholder in the company. (a) State the ethical issues involved in the case. (b) Does this form of transaction between two private parties constitute a conflict of interest? Justify. (c) Evaluate the possible ways of awarding contracts in such a situation with their merits and demerits. Also state which method would be more suitable in each situation. (20 Marks)

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5 responses to “Q.4 Big firms often undertake sub-contracting to complete large infrastructure projects in a timely manner. You recently joined one such firm as a manager responsible for awarding these contracts. Looking at the past records, you find that all contracts for the past few years have been awarded to a particular firm, X. Your superior has asked you to award an upcoming contract to the same firm. Although, not binding, company procedure maintains that sub-contracting work should be offered after competitive bids. This is to ensure that the firm most suitable for the project in terms of operations and finance gets the contract. When you discuss this with your superior, he insists that hiring of the firm X has been done as per legal norms of the company and no official rule has been violated. You decide to contact the owner of the firm X. After doing so, you realize that he is the nephew of your superior, who is also a shareholder in the company. (a) State the ethical issues involved in the case. (b) Does this form of transaction between two private parties constitute a conflict of interest? Justify. (c) Evaluate the possible ways of awarding contracts in such a situation with their merits and demerits. Also state which method would be more suitable in each situation. (20 Marks)”

1. 

   December 9, 2021

   Bhanu Joshi

   ISyOdQANazdk6B

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   1. 

      December 9, 2021

      Bhanu Joshi

      ISyOdQANazdk6B
   2. 

      December 15, 2021

      Staff @CD

      Bhanu

      Start by mentioning the facts of the case and the stakeholders. Then come to each part.
      Ethical dilemmas mentioned are fine, legal vs ethical can also be mentioned, as legally the company hasn’t violated any rule but ethically unfair.
      Demarcate the 2nd part, you have written well.
      3rd part is also fine, however I think in final conclusion you can mention talking to the senior first and taking him onboard with the idea of bidding, if he doesn’t agree then issue can be taken with higher-ups and at the same time contracts can be awarded through bidding process.
      Keep practicing. 🙂
2. 

   December 10, 2021

   muskan garg

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   1. 

      December 15, 2021

      Staff @CD

      Muskan

      First of all mention the facts of the case and the stakeholders involved (you, your senior, his nephew, other bidders, shareholders, customers etc)
      In part a, you have mentioned good points, in last points instead of mentioning violation of laws you can write legal vs ethical dilemma, as the company has not explicitly violated any rule but it is ethically unfair.
      3rd part is also decently written, although in demerits of 1st point you can mention some foundational values you will be overlooking.
      In final conclusion you can mention talking to the senior first and taking him onboard with the idea of bidding, if he doesn’t agree then issue can be taken with higher-ups and at the same time contracts can be awarded through bidding process.
      Keep practicing. 🙂