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

1357 Words Feb 13th, 2014 6 Pages
FACULTY OF ENGINEERING AND COMPUTING SCHOOL OF ENGINEERING

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
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Consequentially speaking, Sears’s operated extremely unethical and resulted in law suits and a loss of trust by employees, partners and Customers. as their profit approach has totally shadowed their judgment and the bigger picture.
The Deontological argument on this approach would believe a judgment in such a situation should be made on the morality of an action based on the action's adherence to a rule or rules. A business is expected to operate within the confines of the law or legal system. But also a business is expected to operate ethically, the problem that lies however is the classification of the ethical framework that should be developed, whilst the law is written on paper the morality of business decisions are usually a basis of discretion. Did Sear’s act outside the confines of law in implementing such an incentive matrix? Many may argue no as a business has to do what is necessary to remain viable and competitive and once it does not contrast with the contract signed by employees. Was the decision ethical when measured on the possible outcome? No as it was clear the level of aggression these employees would have to adapt to protect themselves from a reduction in salary. The onus cannot be left to the employees to decide when it comes to what is right and wrong in business practices.








Sears reputation for…