GS4 · 20 marks · 250 words

You are posted as the General Manager (CSR) in a large public sector undertaking (PSU) in the mining sector. Your role involves evaluating and disbursing funds under the company's Corporate Social Responsibility (CSR) mandate, especially in districts affected by mining-related displacement. Your team has shortlisted three NGOs for a major livelihood promotion initiative: • Two are small, field-tested organizations with verifiable work in the affected tribal belt. • The third is a well-connected urban NGO, recently floated by a relative of a senior PSU board member. It has flashy brochures and political backing, but no track record in the region. During internal discussions, subtle signals are sent that favour the third NGO, with phrases like "strategic alignment" and "long-term stakeholder management." The CSR committee chair even jokes, "It's just CSR, not rocket science." Meanwhile, field officers caution you that the communities need culturally rooted, decentralized interventions and the urban NGO's one-size-fits-all proposal won't work. Some colleagues suggest approving all three, dividing funds equally. You must finalize your funding recommendation this week. Technically, all three proposals have processed minimum screening, though the field evidence differs widely. Your decision will affect both ground impact and organizational politics and will set a precedent for future CSR allocations. 1. What are the ethical concerns involved in the allocation of CSR funds in this case? 2. How would you assess the competing pressures of organizational politics and public interest? 3. What decision would you take, and how would you justify it ethically and professionally?

Answered by 5 toppers · CSE 2023–2025

Syllabus: Case Studies on above issues.

How toppers approached it

From all 5 answers · about 310 words · 60% drew a diagram.

Opening

  • No separate opening80%
  • A constitutional or legal provision20%

Body

  • Points and prose60%
  • Points40%

Close

  • No separate close60%
  • A quotation40%

The toppers’ answers

Pakshal SecretryAIR 8 · CSE 2025 · 314 wordsTheir whole copy

Opening · a constitutional or legal provision

Section 135 of Companies Act, 2013 calls for CSR from eligible companies. It also highlights principle of maximum public good, social welfare and no conflict of interest in CSR operation.

Body · points

Ethical Concerns

  1. Conflict of interest in allocation of funds
  2. Pressure from company to choose its interest
  3. Violation of CSR obligation in spirit while following in letter
  4. Casual approach and Apathy of the chairman
  5. Lack of proper planning and long term vision of companies CSR operation.
  6. Commerce without morality by the company
  7. Dereliction of Duty by state → not monitoring proper CSR compliance
  8. Work culture issue of the company.
  9. Lack of comparsion and empathy of Board towards underdeveloped rural areas

Assessing Competing pressure

  1. Organisation politics
  • → In long term would do more harm to company
  • → Would lead to loss of reputation
  • → Result into public scrutiny of company
  • → Against Gandhian Trusteeship Model
  • → will further degrade work culture
  1. Public welfare
  • → Need to be prioritised
  • → Would ensure long term vision for company
  • → Improve ESG compliance of company In line with compassionate capitalism model

Decision I would Take

  1. I would ensure unbiased field trial of NGO.
  2. Will prioritise allotment of funds to rural NGO based on merit
  3. Would flag organisational politics in any report
  4. Call for long term CSR planning

Reason

  1. Ensure public welfare → greater good approach
  2. Ensures trusteeship of the company - Gandhian idea
  3. Lead to creation of long term impact of CSR

Professional Justification

  1. In long term better & positive image of company
  2. No legal issue for conflict of interest
  3. Improve ESG governance of the company
  4. Focuses on stakeholder rather than shareholder.

Close · a quotation

"A company is as strong as it is compassionate" - Narayan Murthy

More on Conflict of Interest

A private interest bearing on a public duty, and the disclosure or recusal that answers it.

All GS4 questions on Conflict of Interest