1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Ethical and Legal Responsibilities of Sales Managers The likelihood of unethical behavior is directly proportionate to the size of the carrot. Michele Marchetti

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 17-1 Evaluating the Ethical Status of a Business Decision Questions to help a sales executive evaluate the ethical status of proposed actions: Is this sound from a long-run point of view? Would I do this to a friend? Would I be willing to have this done to me? (The Golden Rule) Would I want this action publicized in national media? Would I tell others about it? Who is damaged by the action?

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 17-2 The American Marketing Association’s Code of Ethics Professional Conduct Marketers’ professional conduct must be guided by: The basic rule of professional ethics: not knowing to do harm; The adherence to all applicable laws and regulations; The accurate representation of their education, training and experience; and The active support, practice and promotion of this Code of Ethics. Honesty and Fairness Marketers should uphold and advance the integrity, honor and dignity of the profession by: Being honest in serving consumers, clients, employees, suppliers, distributors and the public. Not knowingly participating in conflict of interest without prior notice to all parties involved; and Establishing equitable fee schedules including the payment or receipt of usual, customary and/or legal compensation for marketing exchanges. Rights and Duties of Parties in the Marketing Exchange Process Participants in the marketing exchange process should be able to expect that: Products and services offered are safe and fit for their intended uses;Communications about offered products and services are not deceptive; All parties intend to discharge their obligations, financial and otherwise, in good faith; and Appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning purchases.

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Laws and Regulations Affecting Sales Executives Price discrimination Clayton Antitrust Act (1914) and Robinson-Patman (1936) Unfair competition Bribes Misleading information (about products, competitors) Green River Ordinances Enacted by many cities to regulate door-to-door salespeople from firms located outside the city Cooling-Off Laws Protects consumers requiring a time period (usually 3 days) to cancel contract, return merchandise for refund.