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Analysis of Sears, Roebuck & Co, the Auto Center Scandal

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Submitted By okev14
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Business Ethics
Case Study

Sears, Roebuck & Co, the Auto Center Scandal

Ethical Issues

1. The first issue that presents itself is the aggressive, Profit seeking approach been taken by Sears in their implementation of an extremely tight incentive system within their Auto centers to increase productivity and reduce cost.

2. Sears was acting very unethical as they disregarded stake holders such as employees, customers and partners in their efforts to reel in profits.

3. Sear president and managers tactically combative approach to criticism from the different interest groups
Discussion of Issues

Sears, Roebuck, and Co, is a well developed and reputable group of companies in the United States of America. Entering the 1980s the market had undergone several changes in demand and customer affection. One of the roles of an effective management is the detection of these before mentioned changes and the appropriate implementation of measures to combat or position one’s self to remain unaffected or benefit from the before said . Did Sears take the right approach in responding to the changes in their market? From a consequentialist view perspective where the moral worth of an action is determined only by its resulting outcome, it can strongly be argued that post the outcome of this approach taken by Sears in the implementation of an incentive system in their extremely task and accuracy focused Auto Centers was an accident waiting to happen. The production background of these centers are such that customers bring Automobile related parts to be inspected or replaced, they are advice by agents at a desk who do inspection and who depend on Auto mechanics to further inspect and carryout necessary repairs. These jobs require the dissemination of accurate information and…...

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