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Business Ethics - Sears Auto Centres Case Study

Essay by   •  October 9, 2010  •  Case Study  •  552 Words (3 Pages)  •  2,109 Views

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Ethical businesses look at the moral implications of their actions, from product development to manufacturing to distribution, in order to stay competitive. Many issues fall under the rubric of business ethics; for instance, human rights, environmental protection, worker health and safety, labor standards, and marketing. Business ethics likewise is concerned with a business compliance with internal regulations and government mandates. A truly ethical company looks beyond its own ethical practices to the practices of its business partners and vendors.

Business Ethics Sears Auto Centres Case Study 1) The ethical issues involved in Fraud„h Giving false and misleading statements „hthe Sears case were as follows: „h False advertising „h Failure to clearly state parts and labour on invoice „h Failure to return parts Some of these are often still used but Sears ethical issues involved all of these. 2) In this case the management played a strict role. They were in charge of the mechanics behaviour, and I believe a training course or meetings was set up between management and workers teaching them what is expected from them. In the case study we learn that employees were given a sort of obligations to sell a certain amount, if not they risk their job. That shows us how much power they had teaching employees fraud and how to give misleading information to customers. 3) Sears response to the allegations were very good I think, they were not slow with the case, they knew exactly how to deal with the problem and accusations. For example towards the end of the case Sears admitted it was their fault in a certain way, saying they were honest mistakes. This means that it is there responsibility and they apologise to the nation. I think it has resolved problems but, obviously Sears will not go back operating like before, theyÐŽ¦d loose a high percentage of customers. However, as a result sears did do a good job dealing with the allegation. 5) Sears long-term impact on the scandal is not very good. I would see it losing

its reputation for quality service, the nation would instead go somewhere else. However, the Sears Auto Group might be able to maintain annual sales by giving reasonable prices to its remaining customers and as a result I think it can still come out with some sort of profit, but certainly not like before. 6) I think BrennanÐŽ¦s comment is obvious and most companyÐŽ¦s do have some ways of measuring performance,



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