Ethical Standards

Suppose one of your close friends, who is also aspiring for civil services, comes to you for discussing some of the issues related to ethical conduct in public service. He raises the following points:
In the present times, when unethical environment is quite prevalent, individual attempts to stick to ethical principles may cause a lot of problems in one’s career. It may also cause hardship to the family members as well as risk to one’s life. Why should we not be pragmatic and follow the path of least resistance, and be happy with doing whatever good we can?
When so many people are adopting wrong means and are grossly harming the system, what difference would it make if only a small minority tries to be ethical? They are going to be rather ineffective and are bound to get frustrated.
If we become fussy about ethical considerations, will it not hamper the economic progress of our country? After all, in the present age of high competition, we cannot afford to be left behind in the race of development.
It is understandable that we should not get involved in grossly unethical practices, but giving and accepting small gratifications and doing small favours increases everybody’s motivation. It also makes the system more efficient. What is wrong in adopting such practices?
Critically analyse the above viewpoints. On the basis of this analysis, what will be your advice to your friend?