Sears Auto Center Scandal
LGST001 – Ethics and Social Responsibility
Sears Auto Center Scandal
Managing Business Ethics Text (pp.207 - 210)
Ethical Decision-making Issue:
Should Sears remove its commission-based compensation scheme?
Group Stand:
The majority of the group believes that Ellen should be removed from the team.
Support for Motion:
Rawl's theory/Egalitarianism
The underlying inequality is that car owners are paying for repair services they do not require while Sears benefits by earning higher profits. This is a result of information asymmetry given that the repair advisors are in a more knowledgeable position regarding the available and required services, and clients act upon their advice. Thus, there is an opportunity for advisors attempting to increase their own commission to recommend more than necessary services.
Based on the Consumer Protection (Fair Trading) Act in Singapore, it is unlawful for a trader to "do or say anything, or omit to do or say anything, if as a......
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Approximate Word Count: 1478
Approximate Pages: 6 (250 words per double-spaced page)
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