Ethics in Sear auto-car

By- Pravendra Kumar

DCA to shutdown 72 Sears Auto Centers and there were similar charges against Six local Sears Auto Centers and several other states including Florida, Illinois, and New York

Charges were that Sears Auto Recommending unnecessary repairs and services.

Critics of Sears that there were not enough safeguards to protect Customers

Company claiming that no part replaced unless it was necessary and were legitimate.

Sales goals turned into Conditions of Employment and that the managers were busy with charts and graphs

Edward announcement of eliminating incentive compensation system he also ensured that no overcharging would occur.

Edward paid $8 millions to settle claims in California and gave auto center customers $50 coupons that cost around $ 3 millions.

The total cost including legal bills & LOST sales is estimated to be $ 60 Million

Sears Planned to spinoff its three nonretail divisions All state, coldwell Banker and Dean Witter.

New CEO Arthur C. Martinez began to bring a turnaround in the company.

Martinez said. “I want to revisit and intensify the theme of our customers being the center of our universe”.

What are the unethical ways and means used by the employees of the sears auto centers to increase their business of repairs and services of automobiles?

Do you agree with the argument put forward by sears auto services that many repairs carried out by the company were legitimate preventive maintenance

Why did California DCA Authorities charge that problems at the sears Auto Centers were not not confined to a few isolated events, but constituted Systematic Consumer Fraud?

The changes in the compensation System at Sears Auto Centers after 1990 and the overall thrust to make every employee from the sales force to the chairman's Suite focus on profit are the major reasons for the unethical ways and means adopted by the employees, do you agree with the statement ? Explain your answer.

What are the your comments on the vision of the new CEO Arthur C Martinez? Is he moving in the right direction?

Clean business ethics because Lose in business Decrease in the value of the company Spot on the image of the company Long term vision

Do good and get good or vice-versa.

Do you feel that small and large Auto garages in India /Mumbai follow similar Unethical Ways and means of making money or are they more honest than their

counter parts in USA?

Problems ???

Minor problems and more repairs

Charged for parts that were not installed

Replacing original part by duplicate ones