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Ethics in the Workplace

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Ethics in the Workplace – Sears Auto Center
Ethics in the workplace and sometimes the lack thereof can significantly influence the success of an organization. Effective leaders often approach ethical dilemmas by identifying alternative actions and their consequences on stakeholders. The aftermath of the disasters caused by Enron, WorldCom, and other businesses, once prominent companies, resulted in a significant loss of confidence in business leader’s conduct. Organizations in today’s highly competitive business environment must develop an ethical culture to withstand the ever increasing scrutiny by customers, governmental regulatory agencies, and their competition. In order for companies effectively to navigate through the ethical …show more content…

Due to slumping sales, and an ever increasing loss of market share to other discount retailers, the Sears, Roebuck and company devised a plan to reverse the downward spiral of its United States (US) retail business and auto service centers nationwide. The plan was to develop and implement an incentive compensation program at its auto centers in an attempt to increase productivity, improve sales of parts and services and ultimately regain lost market share that will eventually translate into increased revenue and corporate profits. The basis of the program was to supplement an auto service technician’s hourly base pay by a fixed dollar amount for meeting established hourly production quotas. In addition, the compensation plan for auto center services advisors were amended to include commissions for selling product specific services in excess of their established quotas. These concepts appear to be an effective short-term solution to the immediate problem by enticing service technicians and advisors to increase productivity and sales. These concepts however, had two major issues with negative effect on the organization:
1. Employees can receive mix messages regarding the ethical culture of the organization. The formal position of the organization is to conduct business in a fair and honest manner. Pressure by the management to increase productivity and sales, can in fact, result in a conflict with the

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