Manager's Ethical Dilema

A Manager's Ethical Dilemma

Abstract

“Sears, Roebuck, and Co.: The auto centre scandal” presented in Trevino & Nelson is an ethical dilemma case based upon the ethical conduct of a manger in an auto industry of Sears, Roebuck, and Co. Here the key issue was that to increase the sales and profit of the Sears, commission and products sales quotas were introduced for its employees that led in giving wrong advices to its customers regarding unnecessary repairing of vehicle parts and when this issue came into light, the CEO Edward A. Brennan denied the issue by calling it fraud which seems really unethical that later led the Sears to bad reputation of the company. If the managers act unethical then it is sure employees as well would act unethical  and also the employees attitude and behavior has impact on the customers that results in financial problems to the firms and so is the case here.

 So, this paper deals with the unethical conduct of the CEO of the Sears and the steps of decision making process ethically and the philosophical approaches that Sears would have approached for and also it reflects to whether a manager should risk the reputation of company by behaving unethically with the customers or not? And after having analyzed the case it is found that deontological approach was considered by the Sears’ employees and I prefer it to go for virtue ethics approach to ensure better ethics and morals of the employees.

Introduction

The case “Sears, Roebuck, and Co.: The auto centre scandal” is an ethical dilemma case based upon the ethical conduct of a manger in an auto industry of Sears, Roebuck, and Co. (Trevino & Nelson, 2011). Here the key issue was that to increase the sales and profit of the Sears, commission and products sales quotas were introduced for its employees that led in giving wrong advices to its customers regarding unnecessary repairing of vehicle parts and when this issue came into light through California Department of Consumer Affairs, the CEO Edward A. Brennan denied the issue by calling it fraud and even mentioned that it will eliminate its pay system while in real it did not do it (Trevino & Nelson, 2011). Here such statement by the CEO and greed to earn huge profit despite of customers’ bulk of complaints seems unethical which later led the Sears to bad reputation of the company (Trevino & Nelson, 2011) as everything is based on customers and it is they who bring life to the business (Telling, 1986). If the managers act unethical then it is sure employees as well would act unethical (Harvey, 1988) and also the employees attitude and behavior has impact on the customers that results in financial problems to the firms (Rucci, Kirn & Quinn, 1998) and so is the case here. So, this paper deals with the unethical conduct of the CEO of the Sears and the steps of decision making process ethically and the philosophical approaches that Sears would have approached for and also it reflects to whether a manager should risk the reputation of company by behaving unethically with the customers or not?