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System Of Inquiry Target Corp. Essay

2996 words - 12 pages

System of Inquiry:Sears, Roebuck, and Co.Dirk HopsteinUniversity of PhoenixPHL323, Ethics in ManagementMarch 4, 2010Sears, Roebuck, and Company (Sears) opened its doors in the 1800s and expanded rapidly due to the goods and services it provided. During Sears' rapid growth, it was also gaining an impeccable reputation with the public. Sears had a large U.S. market share until the 1980's when it had to start competing with Wal-Mart. Even though Sears attempted to regain some of that market share by lowering prices, their earnings kept declining. It was in 1991, when Sears introduced its productivity incentive plan, which caused Sears to not only lose more revenue but the public trust. Add to that, lawsuits which began with the State of California to be sold by 41 other states due to complaints of faulty workmanship and overselling products and services in their auto care centers which customers did not need.This paper reviews the Sears Auto Center scandal I will discuss the facts, symptoms, and root causes of the problems, what worked, what did not work, and review 7 crucial questions about the Sears case study. I will conclude with alternatives and recommendations regarding what Sears could have done to have a better outcome than the one which created their scandal.In 1992, the big question asked was what was going to be the long term impact from this scandal. If I take today's current events in business scandals, I think I can sum it up as a huge impact. Sears decided in one campaign to increase production and revenue and capitalize on greed. Today, it is not uncommon for companies and organizations to have policies on ethics, behavior and business relations. The business world evolved to more and more greed, now looking back at the Sears scandal I realize it was unfair, unethical, and greedy motives but nothing compared to today's scandals. Sears soon learned that the impact from their 1991 scandal would soon be a start to many shading dealings that Sears would take part in. In 1999, Sears was in another scandal around credit card and bankruptcy scandal. The impact from the companies first blemish was it was a start of their unethical business practices (Newsweek, 1999).The ethical issues from the standpoint of a deontological are it should not have happened or occurred. There are too many gray areas. The deontological is about truth at all times. There is no deviation from truth even if it causes pain or wrong. The consequentiality would have believed this was the right decision since it gave employees and the company an opportunity to make more money and ultimately get ahead even if it was slightly wrong for the customers.The first management issue was the decision to switch employees over to salary and incentive pay. Management did not explore or adhere to the multiple problems with this concept/idea. The employees now held the...

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