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Ethics in the Workplace Case Study

Sears, Roebuck, and Co.: The Auto Center Scandal

Latoya Thomas

on 27 November 2012

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Transcript of Ethics in the Workplace Case Study

Ethical Decisions in the Workplace Introduction Can you count on them? Analyzing and Evaluating Alternatives Recommendations Sears, Roebuck, and Co.: The Auto Center Scandal Learning Team C (Latoya T., Michelle P., Quentin W., Stephanie B.) PHL/323

November 26, 2012

Ashanti South Key Problems and Issues Problems Symptoms Conclusion • Honesty is the best policy Roles of Key Players References Foreign Country Alternatives Learning Team C Video archeology. (2010). 1992 Commercial Sears Roebuck and Co - You can count of me. Retrieved on November 18, 2012 from http://youtube.com Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right (4th ed.). Hoboken, NJ: Wiley. Retrieved on November 8, 2012. Plan of Action Globalization Effects Determining the Ethical System Root Unresolved Issues Any Questions? Daniels, L. (2011). Sears Holding Corp. "Twin Titanics" or turnaround-which way are Sears and Kmart headed? Retrieved on November 19, 2012 from http://news.medill.northwestern.edu/chicago/news.aspx?id=185901 Nguyen, H. (2009). Sears closes O.C. store. The Orange county register. Retrieved on November 19, 2012 from http://retail.blog.ocregister.com/2009/02/26/sears-to-close-oc-store/7115/ •What happened in 1992 with Sears, Roebuck, and Co.? •Why was the situation unethical? • Customers • Sears, Roebuck, & Co. • Investors • Stockholders • Employees • Community • Business owners should always think before they act •Business owners should think about their stakeholders • Unfortunately, many overseas assignments end early and unsuccessfully because of the expatriate manager’s (and his or her family’s) inability to adjust to the foreign work environment • One alternative Sears will have to do is provide adequate support and cross-cultural training to their managers who are assigned to work overseas • Sears will have to provide clear and easily understandable guidelines to the traveling managers including ethical issues that may arise • Each manager that is sent overseas should receive foreign language training for each country they are sent to • Globalization has a huge effect on alternatives • When Sears takes globalization into account they must make sure they have familiarized themselves with each of the different cultures they will be conducting business with • Needless to say almost every different culture will have to have a set of guidelines that is acceptable in that particular culture Gellene, D. (1992, September 2). Sears expected to settle auto repair charges. Los Angeles Times. Retrieved on November 11, 2012 from http://articles.latimes.com/1992-09-02/business/fi-6284_1_auto-repair-centers New Charter University. (2012) Corporate social responsibility and Business ethics. Retrieved on
November 9, 2012 from https://new.edu/resources/corporate-social-responsibility-and-business-ethics Qureshi, M. (2010, August 31). Relationship between rewards and employee’s performance.
Journal of International Academic Research. Retrieved on November 10, 2012 from
http://uedpress.org/Journal-of-International-Academic-Research.html • Sears CEO and Chairman Edward A. Brennan should have been honest and communicated with their stakeholders (consumers, employees, shareholders and community) when the company began to experience financial difficulties • The CEO and chairman should have been honest during the news conference instead of denying fraud had occurred • Ensure that all employees are paid based on the work that they are performing • Commission based salaries of service providers and mechanics • Mechanics cut corners to maximize hourly pay (productivity incentive plan) • CEO and Chairman mislead stakeholders by assuring them new incentive plan would be reversed, was never resolved • Goal based theory (also known as consequentialism theory) • Employees practiced entitlement based ethical theory • Rights based theory Duty-based theory

Moral obligation or commitment to act in a certain manner with a clear right and wrong being determined by outside authority- management • Discontinue commissioned based salaries of the service providers and mechanics • Give each employee either a salary or hourly base pay • Give each employee (especially mechanics) a reasonable amount of time to complete assigned task that will enable them to make the necessary repairs without rushing and possibly half doing a job • Ensure managers implement good ethical conduct while meeting Sears’ company goals •Hire a more ethical CEO that will make sure that this unethical behavior never happens again
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