CHAPTER 3 CHAPTER 3 Selling Ethically. “Always do right—this will gratify some and astonish...
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Transcript of CHAPTER 3 CHAPTER 3 Selling Ethically. “Always do right—this will gratify some and astonish...
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