Ranjeet is running a Non-Government Organization (NGO) to help deprived children. He receives government grants of ₹2 lakh for a project to educate the "non-school" going children who work at small shops, doing casual jo
CS Professional · Ethics, Governance and Sustainability · PYQS · December 2019
Ranjeet is running a Non-Government Organization (NGO) to help deprived children. He receives government grants of ₹2 lakh for a project to educate the "non-school" going children who work at small shops, doing casual jobs etc. for the financial year 2018-19. On the completion of financial year Ranjeet managed to utilize only ₹50,000 from the grants. Inspite of his best efforts he was unable to persuade many street dwelling and poor children or their parents to join his NGO initiative. There exists a clause in grant rules that Ranjeet has to return all the unspent money back to the fund providers at the end of March 31st, 2019. However his advisor Roshan advised him following: (i) If we honestly return ₹1.5 lakh back, then fund providers will think that we are inefficient and ineffective NGO and they may not grant us adequate funds in coming years or in the worse case they may not sanction us any further projects. (ii) We may discuss our CA Ranjan to manage our account books and show that most of the grants has been utilised for the purpose it was given. (iii) Many other recipients of grant are also adopting this practice and no one raised objection so far, as long they give 10 percent of the grant to the in-charge of the project supervision desk. (iv) Though it may be considered unethical but we may use the grant money in coming years for the purpose for which it was disbursed. Hence we may not have a guilt feeling of unethical and immoral conduct. Answer the following questions: What should Ranjeet do with the money?
Answer & Explanation:
It will never be the valid justification to commit any unethical act by saying 'Others are also doing it.' Two wrong acts cannot make a right act i.e. one manipulating books of account to keep the amount of grant money not utilized for legitimate purpose till given date and other bribing to the in-charge of the project supervision team. The life of lie and deception is very low especially when manipulating the books of account. In the present case Ranjeet was not able to utilize three fourth of the grant money. It implies that either Ranjeet did not tried hard to utilise the money or the granting body had exaggerated the amount of grant required to educate non-school going children or both. In any case, if Ranjeet keeps the unspent amount of grant, Government will continue to provide the grant money to educate the non-school going children which is not being utilized fully and other NGO and the in-charge of the project will keep amassing wealth by unethical means. Therefore Ranjeet should return the unspent amount of grant to the Government.
Topics: Ethics
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