Revision summary
A possible human cure for a tribal liver disease has little market; Rs 50 crore R&D may not be recovered. Stakeholders include patients, the scientist, workers and owners. Suppressing the finding is unethical; unaided spend that sinks the firm is imprudent. The sound path is partnership with government, public science and philanthropy, with a binding access clause. If partners fail, publish for public labs rather than bury the lead or sell it to be shelved.
Model answer
Introduction
A laboratory accident of good news meets a profit-and-loss sheet. Tribal patients have a disease the market will not pay to cure. As CEO I still hold duties to workers, owners, regulators and those patients.
Body
Stakeholders
- Tribal patients with the incurable liver disease, who have almost no purchasing power.
- The scientist who found the lead, and the R&D team.
- Shareholders, lenders and the workforce whose wages depend on a going concern.
- Existing veterinary customers who use drug B.
- The State, ICMR-type public research, and possible public-private partners.
- You as CEO: profit is a duty, not a licence to ignore a preventable death.
Values and issues
- Beneficence and justice: a molecule that could save the poorest should not die only because they are poor.
- Fiduciary duty to the company: Rs 50 crore is not play money if it bankrupts the firm and throws out jobs.
- Transparency: do not hide the finding to protect the veterinary cash cow.
- Intellectual property: a patent can be a tool for partnership, not only a wall.
(a) and (b) Actions with pros and cons
- Option 1: Suppress the finding and continue selling veterinary B only.
- Merit: protects current profit and avoids a Rs 50 crore risk.
- Demerit: conceals a possible human therapy; ethically a betrayal of the scientist’s discovery and of patients. If the fact leaks, reputational ruin.
- Option 2: Fund the full human R&D from company cash alone and price the drug for a tribal market that cannot pay.
- Merit: maximum moral clarity if the science works.
- Demerit: may sink the firm, halt other useful drugs, and still fail if trials are negative. Heroism that destroys the company helps nobody in year three.
- Option 3: Open a structured partnership: licence or co-develop with government, ICMR, WHO-type programmes, a philanthropic foundation, or a larger firm, with a clear access clause for tribal patients (at-cost or free).
- Merit: shares cost and risk; uses public duty where the market is absent; keeps the company solvent; scientist stays engaged.
- Demerit: slower negotiations; partners may demand control; some profit is given up. Still the least bad mix of justice and prudence.
- Option 4: Ask the State for an advance market commitment, tax incentive, or orphan-disease style grant, while publishing the lead so that others may also try.
- Merit: honest science; public money for a public need; aligns with the National Health Mission logic of serving the poor.
- Demerit: political delay; competitors may free-ride. Free-riding is acceptable if patients live.
- Option 5: Sell the molecule outright to the highest bidder with no access condition.
- Merit: immediate cash, perhaps more than Rs 50 crore.
- Demerit: the buyer may shelf it (a veterinary rival) or price it as a luxury. Patients remain untreated. I would not choose this without a binding access covenant.
- Option 6: Create a not-for-profit subsidiary or patent pool for the human variant, keeping veterinary B as the commercial engine.
- Merit: ring-fences risk; states a public purpose; staff can see the firm’s character.
- Demerit: governance complexity; still needs external money.
What I would do
- Do not suppress. Thank the scientist, protect the data, and take the finding to the board as a duty item, not as a hobby.
- Seek co-development and public or philanthropic finance first; put tribal access in the contract.
- Keep veterinary production ethical and separate: do not raise animal-drug prices to secretly fund a vanity project without disclosure.
- If every partner refuses and the firm cannot bear Rs 50 crore, publish enough for public laboratories to try, rather than bury the light.
- Measure success as patients on a safe therapy, not as a press conference.
Flow diagram
flowchart TD FIND[Veterinary B human lead] --> NO[Do not suppress] NO --> PART[Public private philanthropic co-develop] PART --> ACC[Access for tribal patients] SOLO[Solo Rs 50 crore] --> RISK[Firm failure risk] SELL[Sell with no covenant] --> SHELF[Shelf or luxury price]
Conclusion
The market will not pull a tribal liver cure by itself. Suppressing the lead is the worst act. Solo bankruptcy is not required. As CEO I would partner, bind access, and if need be give the science to the public system — profit as a going concern, not as a veto on the poor.
Quick related
Students also ask
-
Case study. There is a disaster-prone State having frequent landslides, forest fires, cloudbursts, flash floods and earthquakes, etc. Some of these are seasonal and often unpredictable. The magnitude of the disaster is always unanticipated. During one of the seasons, a cloudburst caused devastating floods and landslides leading to high casualties. There was major damage to infrastructure like roads, bridges and power generating units. This led to more than 100000 pilgrims, tourists and other locals trapped across different routes and locations. The people trapped in your area of responsibility included senior citizens, patients in hospitals, women and children, hikers, tourists, ruling party's regional president along with his family, additional chief secretary of the neighbouring State and prisoners in jail. As a civil services officer of the State, what would be the order in which you would rescue these people and why? Give justifications.
Next question on this syllabus topic (2015 · Q10). View answer →
-
Is a private CEO obliged to become a charity?
The CEO is not obliged to bankrupt the firm. The CEO is obliged not to hide a cure and to seek public and partner routes that keep both patients and jobs alive.
-
Why not just raise the veterinary price to fund human trials?
Secretly taxing animal-keepers without disclosure is another injustice. Funding must be open and shared, not a hidden levy.
PYQ trend
When UPSC asked this
Related PYQs from other years, newest first. Open a question to read it.
-
2016 · Q9 · GS IV · 20 marks
Case study. ABC Ltd. is a large transnational company having diversified business activities with a huge shareholder base. The company is continuously expanding the generating employment. The company, in its expansion and diversification programme, decides to establish a new plant at Vikaspuri, an area which is underdeveloped. The new plant is designed to use energy efficient technology that will help the company to save production cost by 20%. The company's decision goes well with the Government policy of attracting investment to develop such underdeveloped regions. The government has also announced tax holiday for five years for the companies that invest in underdeveloped areas. However, the new plant may bring chaos for the inhabitants of Vikaspuri region, which is otherwise tranquil. The new plant may result in increased cost of living, aliens migrating to the region, disturbing the social and economic order. The company sensing the possible protest tried to educate the people of Vikaspuri region and public in general that how its Corporate Social Responsibility (CSR) policy would help overcome the likely difficulties of the residents of Vikaspuri region. In spite of this the protests begin and some of the residents decided to approach the judiciary as their plea before the Government did not yield any result. (a) Identify the issues involved in the case. (b) What can be suggested to satisfy the company's goal and to address the residents' concern? -
2016 · Q10 · GS IV · 20 marks
Case study. Saraswati was a successful IT professional in USA. Moved by patriotic sense of doing something for the country she returned to India. Together with some other like-minded friends, she formed an NGO to build a school for a poor rural community. The objective of the school was to provide the best quality modern education at a nominal cost. She soon discovered that she has to seek permission from a number of Government agencies. The rules and procedures were quite confusing and cumbersome. What frustrated her most were delays, callous attitude of officials and constant demand for bribes. Her experience and the experience of many others like her have deterred people from taking up social service projects. A measure of Government control over voluntary social work is necessary. But it should not be exercised in a coercive a corrupt manner. What measures can you suggest to ensure that due control is exercised but well meaning, honest NGO efforts are not thwarted? -
2016 · Q11 · GS IV · 20 marks
Case study. A fresh engineering graduate gets a job in a prestigious chemical industry. She likes the work. The salary is also good. However, after a few months she accidentally discovers that a highly toxic waste is being secretly discharged into a river nearby. This is causing health problems to the villagers downstream who depend on the river for their water needs. She is perturbed and mentions her concern to her colleagues who have been with the company for longer periods. They advise her to keep quite as anyone who mentions the topic is summarily dismissed. She cannot risk losing her job as she is the sole beard-winner for her family and has to support her ailing parents and siblings. At first, she thinks that if her seniors are keeping quiet, why should she stick out her neck. But her conscience pricks her to do something to save the river and the people who depend upon it. At heart she feels that the advice of silence given by her friends is not correct though she cannot give reasons for it. She thinks you are a wise person and seeks your advice. (a) What arguments can you advance to show her that keeping quiet is not morally right? (b) What course of action would you advice her to adopt and why? -
2015 · Q10 · GS IV · 20 marks
Case study. There is a disaster-prone State having frequent landslides, forest fires, cloudbursts, flash floods and earthquakes, etc. Some of these are seasonal and often unpredictable. The magnitude of the disaster is always unanticipated. During one of the seasons, a cloudburst caused devastating floods and landslides leading to high casualties. There was major damage to infrastructure like roads, bridges and power generating units. This led to more than 100000 pilgrims, tourists and other locals trapped across different routes and locations. The people trapped in your area of responsibility included senior citizens, patients in hospitals, women and children, hikers, tourists, ruling party's regional president along with his family, additional chief secretary of the neighbouring State and prisoners in jail. As a civil services officer of the State, what would be the order in which you would rescue these people and why? Give justifications. -
2015 · Q11 · GS IV · 20 marks
Case study. You are heading a district administration in a particular department. Your senior officer calls you from the State Headquarters and tells you that a plot in Rampur village is to have a building constructed on it for a school. A visit is scheduled during which he will visit the site along with the chief engineer and the senior architect. He wants you to check out all the papers relating to it and to ensure that the visit is properly arranged. You examine the file which relates to the period before you joined the department. The land was acquired from the local Panchayat at a nominal cost and the papers show that clearance certificates are available from the two of the three authorities who have to certify the site's suitability. There is no certification by the architect available on file. You decide to visit Rampur to ensure that all is in order as stated on file. When you visit Rampur, you find that the plot under reference is part of Thakurgarh Fort and that the walls, ramparts, etc., are running across it. The fort is well away from the main village, therefore a school here will be a serious inconvenience for the children. However, the area near the village has potential to expand into a larger residential area. The development charges on the existing plot, at the fort, will be very high and the question of heritage site has not been addressed. Moreover, the Sarpanch, at the time of acquisition of the land, was a relative of your predecessor. The whole transaction appears to have been done with some vested interest. (a) List the likely vested interests of the concerned parties. (b) Some of the options for action available to you are listed below. Discuss the merits and demerits of each of the options: You can await the visit of the superior officer and let him take a decision. You can seek his advice in writing or on phone. You can consult your predecessor/colleagues, etc., and then decide what to do. You can find out if any alternate plot can be got in exchange and then send a comprehensive written report. Can you suggest any other option with proper justification? -
2015 · Q12 · GS IV · 20 marks
Case study. You are recently posted as district development officer of a district. Shortly thereafter you found that there is considerable tension in the rural areas of your district on the issue of sending girls to schools. The elders of the village feel that many problems have come up because girls are being educated and they are stepping out of the safe environment of the household. They are of the view that the girls should be quickly married off with minimum education. The girls are also competing for jobs after education, which have traditionally remained in boys' exclusive domain, adding to unemployment amongst male population. The younger generation feels that in the present era, girls should have equal opportunities for education and employment, and other means of livelihood. The entire locality is divided between the elders and the younger lot and further sub-divided between sexes in both generations. You come to know that in Panchayat or in other local bodies or even in busy crossroads, the issue is being acrimoniously debated. One day you are informed that an unpleasant incident has taken place. Some girls were molested, when they were en route to school. The incident led to clashes between several groups and a law and order problem has arisen. The elders after heated discussion have taken a joint decision not to allow girls to go to school and to socially boycott all such families, which do not follow their dictate. (a) What steps would you take to ensure girls' safety without disrupting their education? (b) How would you manage and mould the patriarchic attitude of the village elders to ensure harmony in the intergenerational relations? -
2015 · Q13 · GS IV · 20 marks
Case study. A private company is known for its efficiency, transparency, and employee welfare. The company though owned by a private individual has a cooperative character where employees feel a sense of ownership. The company employs nearly 700 personnel and they have voluntarily decided not to form a union. One day suddenly in the morning, about 40 men belonging to a political party gatecrashed into the factory demanding jobs in the factory. They threatened the management and employees and also used foul language. The employees feel demoralized. It was clear that those people who gate-crashed wanted to be on the payroll of the company as well as continue as the volunteers/members of the party The company maintains high standards in integrity and does not extend favors to civil administration that also includes law enforcement agencies. Such incidents occur in the public sector also. (a) Assume you are the CEO of the company. What would you do to diffuse the volatile situation on the date of gate-crashing with the violent mob sitting inside the company premises? (b) What could be the long-term solution to the issue discussed in the case? (c) Every solution/action that you suggest will have a positive and a negative impact on you (as CEO), the employees, and the performance of the employees. Analyze the consequences of each of your suggested actions. -
2015 · Q14 · GS IV · 20 marks
Case study. You are the Sarpanch of a Panchayat. There is a primary school run by the government in your area. Midday meals are provided to the children attending the school. The Headmaster has now appointed a new cook in the school to prepare the meals. However, when it is found that the cook is from the Dalit community, almost half of the children belonging to higher castes are not allowed to take meals by their parents. Consequently, the attendance in the school falls sharply. This could result in the possibility of discontinuation of midday meal scheme, thereafter of teaching staff and subsequent closing down the school. (a) Discuss some feasible strategies to overcome the conflict and to create the right ambiance. (b) What should be the responsibilities of different social segments and agencies to create a positive social ambiance for accepting such changes?
More from this topic
Q12 · UPSC Mains 2025 · GS IV · 20 marks
Case study. Ashok is Divisional Commissioner of one of the border districts of the North East State. A few years back, Military has taken over the neighbouring country after overthrowing the elected civil government. Civil war situation is prevailing in the country especially in last two years. However, internal situation further deteriorated due to rebel groups taking over control of certain populated areas near own border. Due to intense fight between military and rebel groups, civilian casualties has increased manifold in recent past. In the meantime, in one night Ashok got information from the local police guarding the border check post that there are about 200-250 people mainly women and children trying to cross over to our side of the border. There are also about 10 soldiers with their weapons in military uniform part of this group who wants to cross over. Women and Children are also crying and begging for help. A few of them are injured and bleeding profusely need immediate medical care. Ashok tried to contact Home Secretary of the State but failed to do so due to poor connectivity mainly due to inclement weather. (a) What are the options available with Ashok to cope with the situation?(b) What are the ethical and legal dilemmas being faced by Ashok?(c) Which of the options, do you think would be more appropriate for Ashok to adopt and why?(d) In the present situation, what are the extra precautionary measures to be taken by the Border Guarding Police in dealing with soldiers in uniform?
Ethics Case Studies
Options range from pushing everyone back to opening the gate to armed men; both extremes fail. The dilemma is non-refoulement and medical duty versus sovereignty and the risk of a ruse. The better path is triage and shelter for civilians, especially women and children, and separate internment of disarmed soldiers pending the Centre. Border police should keep distance, seal weapons, separate camps, and avoid humiliation or leaks. Waiting for a dead phone while a child bleeds is not caution; it is omission.
Q11 · UPSC Mains 2025 · GS IV · 20 marks
Case study. Mahatma Gandhi National Rural Employment Guarantee Program, MGNREGA was earlier known as National Rural Employment Scheme, NREGA. It is an Indian Social Welfare Program that aimed at fulfilling the 'Right to Work' provisions made in the Constitution. MGNREGA was launched in 2006 under Rural Employment Sector by the Ministry of Rural Development. Main objective of the program is to give legal guarantee of wage employment to the adult members of rural households who are willing to do unskilled manual labour work subject to a maximum of 100 days per year for every household. Every rural household has the right to register under the scheme, job card is issued to the registered, Job Card holder can seek employment; State Government shall pay 25% of minimum wage for the first 30 days as compensatory daily unemployment allowance to the families and of wage for remaining period of the year. MGNREGA work was undertaken by various Gram Panchayats. You have been appointed as an Administrator Incharge of the District. You have been given the responsibility of monitoring MGNREGA work undertaken by various Gram Panchayats. You are also given the authority to give technical sanctions to all MGNREGA works. In one of the Panchayats in your jurisdiction, you notice that your predecessor has mismanaged the Program in terms of: (i) Money not disbursed to actual job-seekers.(ii) Muster Rolls of the Labourers not properly maintained.(iii) Mismatch between the work done and payments made.(iv) Payments made to fictitious persons.(v) Job Cards were given without looking into the need of person.(vi) Mismanagement of funds and to the extent of siphoning of funds.(vii) Approved works that never existed. (a) What is your reaction to the above situation and how do you restore the proper functioning of MGNREGA Program in this regard?(b) What actions would you initiate, to solve the various issues listed above?(c) How would you deal with the above situation?
Ethics Case Studies
The first duty is to protect records, tell workers the truth, and stop further theft. Arrears must reach real job-seekers while ghosts, fake works and siphoned funds go to vigilance and the police. Job cards should be re-verified without stripping genuine households. The predecessor deserves due process, not a media hanging or a cover-up. Social audit, geotagging and a public dashboard keep the repair from rotting again.
Q10 · UPSC Mains 2025 · GS IV · 20 marks
Case study. Rajesh is a Group A officer with nine years of service. He is posted as Administrative Officer in an Oil Public Sector undertaking. As an Administrative Officer he is responsible for managing and coordinating various administrative tasks to ensure smooth functioning of office. He also manages office supplies, equipment etc. Rajesh is now sufficient senior and is expecting his next promotion in JAG (Junior Administrative Grade) in the next one or two years. He knows that promotion is based on examination of ACRs/Performance Appraisal of last few years (5 years or so) of an officer by a DPC (Departmental Promotion Committee) and an officer lacking requisite grading of ACRs may not be found fit for promotion. Consequences of losing promotion may entail financial and reputational loss and set-back for career progression. Though he also puts his best efforts in official discharge of his duties, yet he is unsure of assessment by his superior officer. He is now putting extra efforts so that he gets thumping report at the end of financial year. As Administrative Officer, Rajesh is regularly interacting with his immediate boss, who is his reporting officer for writing his ACR. One day he calls Rajesh and wants him to buy computer-related stationery on priority from a particular vendor. Rajesh instructs his office to initiate action for procuring these items. During the day, the dealing Assistant brings an estimate of Rupees Thirty Five Lakhs covering all stationery items from the same vendor. It is noticed that as per delegated financial powers, as provided in the GFR (General Financial Rules) as applicable in that Organisation, expenditure for office items exceeding Rupees Thirty Lakhs requires sanction of the next higher authority (boss in the present case). Rajesh knows that immediate superior would expect all these purchases should be done at his level and may not appreciate such lack of initiative on his part. During discussions with office, he learns that common practice of splitting of expenditure (where large order is divided into a series of smaller ones) is followed to avoid obtaining sanction from higher authority. This practice is against the rules and may come to the adverse notice of Audit. Rajesh is perturbed. He is unsure of taking decision in the matter. (a) What are the options available with Rajesh in the above situation?(b) What are the ethical issues involved in this case?(c) Which would be the most appropriate option for Rajesh and why?
Ethics Case Studies
Splitting ₹35 lakh into smaller bills to avoid the boss’s sanction is a GFR violation, even if it is a common trick. The ethical issues are career fear, a named vendor, and the habit of collective cheating. Rajesh’s options include splitting, lawful phasing, written illegal orders, or a proper sanction. The right choice is a single proposal to the competent authority and a competitive purchase. A promotion that needs a false indent is not worth the integrity it costs.
Toppers' copies
Toppers' copies for this question will be uploaded soon.