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Sears Case Study

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Question 1) Identify the ethical issues using a consequentialist and a deontological perspective. Using a consequentialist perspective, I can understand to a certain degree why Sears implemented their new productivity incentive plans in all of their auto centers. This approach focuses on the results, or consequences, of the action or decision. Upper management’s primary goal was to increase profits as much as possible after years of declining sales and profits. In order to achieve this result, they decided to develop more of a commission based pay for everyone involved in the auto center in order to motivate employees to achieve higher sales. Using this new approach would likely result in positive results for all stakeholders …show more content…

These unethical decisions could increase in number if it were a particularly slow day or week where the auto center was struggling to meet its quotas. Question 5) Explain how “diffusion of responsibility” played a part in this case. Diffusion of responsibility played a major role in how this whole problem started and continued to get worse. Upper management created the incentive program, and when doing so they had to have some kind of idea about what might occur because of these new quotas. They had to know that if they didn’t include any ethical aspects to the program, then there would probably be cases of unnecessary repairs taking place because of the pressures of meeting the quotas. But since they said nothing either way regarding this issue when they implemented the program, they could brush of blame and responsibility for these problems by simply claiming that all they did was implement the program, they didn’t tell employees to perform unnecessary repairs so therefor they didn’t believe it was their fault. The mechanics and service advisors also diffused responsibility for their actions by claiming they were just doing what had to be done to keep their jobs. They would charge customers for unnecessary repairs and would think to themselves that they are only doing it because management has backed them into a corner and given them no other options. Also, since management said nothing

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