If I conceal their offences
or mistakes, I will not be doing my duty properly and this may one day get me into trouble.
When I forward the reports of my subordinates, they are punished and I feel sorry for it.
What should I do in such cases?

You can forgive the minor mistakes of your servants and subordinates. This cannot bring
in any trouble. Keep your conscience clean. Warn them whenever they commit mistakes. As
you are in the Vyavaharic field, you will have to punish those who commit serious mistakes.
But, be unbiased. Have fear of God. If poor servants are fined, give them some money from
your own pocket. Love them. They will not commit mistakes in future.

From "May I answer that" by Swami Sivananda (1987-1963). More Informations on Swami Sivananda: on the Website of Divine Life Society, Photographs of Swami Sivananda, German Pages on Swami Sivananda
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