CHAPTER 3CHAPTER 3

Selling EthicallySelling Ethically

“Always do right—this will gratify some and astonish others.”

“Always do right—this will gratify some and astonish others.”

Mark TwainMark Twain

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3Moral StandardsMoral Standards

Ethics are moral standards by which actions and situations can be judged Honesty Fairness

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3What is right? What is wrong?What is right? What is wrong?

Values congruity is a level of agreement among different people about the values that are important

Salespeople interact with many different people Reaching agreement on what is ethical can be a

challenging task

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3Ethical ConflictEthical Conflict

Each party in a sales transaction brings a set of expectations Which set of interests does the salesperson

choose to satisfy—corporate interests or the customers’ interest?

How do the values of the salesperson affect these decisions?

What are the consequences of the various sales alternatives available to the salesperson?

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3Multiple Business RelationshipsMultiple Business Relationships

The role as a boundary spanner requires salespeople to manage multiple relationships both internally and externally

Salespeople interact with: Their sales managers

Other marketing personnel

A variety of nonmarketing personnel within their organization (internally)

Customers and prospects in the field (externally)

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3Sources of ConflictSources of Conflict

Conflict may exist between salespeople and others within the sales organizational relationship Norms represent standards of behavior that

groups expect of their members (Refer to Table 3.1)

Moral types are classes of people who are grouped according to the values that they hold

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3Classification of Moral Types Classification of Moral Types

Moral Type Key Goals In Life

Hedonist Physical pleasures

Profit maximizer Making money

Socialite Being a social butterfly/party animal

Politician Power and glory

Self-actualizer Spiritual values

Craftsperson Technical expertise

Company person Belonging to the organization

Games person Prestige, glory, and fame

Refer to Table 3.2--Classification of Moral Types

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Three Qualities forEthical Decision-making

Three Qualities forEthical Decision-making

1. Ability to recognize ethical issues and think through consequences

2. Self confidence to seek others’ points of view

3. Willingness to make ethical decisions when there’s no obvious solution

Figure 3.1Ethical Decision Making Framework

Figure 3.1Ethical Decision Making Framework

Ethical SituationEthical

Situation DecisionDecision OutcomesOutcomes

Characteristics of theDecision-Maker

Characteristics of theDecision-Maker

Significant InfluencesSignificant Influences

Click on each component

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Ethical ProblemsFaced By Salespeople

Ethical ProblemsFaced By Salespeople

Bribery

Fairness

Honesty

Price Deception

Product Deception

Personnel Decisions

Confidentiality

Advertising Deception

Manipulation of Data

Purchasing Decisions

Refer to Table 3.4-- Ethical Issues Faced by Salespeople

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3CRM and Privacy IssuesCRM and Privacy Issues

Five recognized fair information practices pertinent to privacy Notice Choice consent Access Security Enforcement

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3Codes of EthicsCodes of Ethics

Corporate benefits: Allow salespeople to identify what their firm recognizes

as acceptable business practices Help salespeople to inform others that they intend to

conduct business in an ethical way Can be an effective internal control of behavior Generate greater drive and effectiveness in employees Allow a company to attract high caliber people more

easily Help salespeople avoid confusion in determining what is

ethical

Refer to Table 3.5--Ethical Standards Salespeople Should Follow

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3Codes and Excuses Codes and Excuses

Four types of excuses:

“I was told to do it”

“Everybody’s doing it”

“My actions won’t make any difference”

“It’s not my problem”

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3Codes and PerformanceCodes and Performance

Does the behavior or result achieved comply with… 1. organizational standards of behavior as

specified in the code of ethics?

2. professional standards of behavior as specified in an industry code?

3. all applicable laws, regulations, or government codes?

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How Sales Organizations CanSupport Ethical Practices

How Sales Organizations CanSupport Ethical Practices

Follow steps provided by the Federal Sentencing Guidelines

Follow Caux Round Table (CRT) principles

Establish and enforce ethical codes

Provide seminars and training in ethics

Consult ethics advisors

Ultimately,the individual salesperson is responsible for his actions

Ultimately,the individual salesperson is responsible for his actions