A Manager's Ethical Dilemma Essay Example | Topics and Well Written Essays - 750 words

A Managers Ethical Dilemma - essay ExampleA new commission component was added to the compensation of mechanics. The mechanics after the changes were paid a base salary and could earn more based on commission incentives. This new system sooner of helping the company it brought lots of troubles because the workers at the unshakable began to transaction in an wrong manner. Ethics privy be defined as a system of moral principles that leads to decisions between right and wrong (Dictionary, 2012). In 1992 the California Department of consumer affairs accused Sears of violating the states Auto Repair Act. The agency jeopardise to take away the firms license to operate. Soon thereafter other states began to take homogeneous stances against Sears. The managerial changes at Sears created an unhealthy works environment that negatively impacted the actions of the workers. The mechanics at Sears began to act unethically because they saw an opportunity to cheat the system and earn more mo ney based on the incentive plan the company created. The mechanics at the auto centers had been systematically misleading customers and charging them for unnecessary doctors. The investigation made by the California department of consumer affairs concluded that the reason that the irregularities and consumer abuse occurred was based on the new compensation system. The actions of Sears leave a lot to be desired from this business entity. Sears created an undesirable working environment that gave incentives to the workers to cut corners and lower the quality of the service to the customers. The mechanics at the firm were a snowflake corrupt and they decided that their personal well being was more important than satisfying the auto repair needs of the customers. The mechanics would overcharge the customers in order to increase their overall level of compensation. Sears should have prevented this port by providing adequate training and development in ethical manners. The company coul d have also prevented the unethical actions by establishing penalties to the mechanics for customers that are not satisfied. An unethical mechanic would think twice about overcharging a customer if the person knows that doing so might result in an economic penalty. Sears could improve the ethical bestow of its employees by applying deontological ethics to its business operations. Deontological ethics deals with obligation as deriving from reason or as residing primarily in certain specific rules of conduct rather than in the maximization of some considerably (Thefreedictionary, 2012). In order to implement the use of deontological ethics Sears must develop a new compute of ethics for its employees. The statute of ethics will establish what is acceptable behavior by the employees and what it unacceptable behavior. The code of ethics will also incorporate rules that the employees must follow in regards to their ethical conduct. The changes made by the Sears following the revelatio n of the scandal were not adequate due to the fact that the firm included inside its new pay structure an incentive component that could be exploited by an unethical employee. The firm claimed it eliminated incentive pay, but following the changes an employee of the firm made a complaint to a senator that the firm was tranquilize using incentive pay to its mechanics and that the policies were hurting his ability to provide quality service to the customers without overcharging them. The octet steps of Trevino and Nelson decision making framework can help Sears revolve the problem. The firm