1. CHAPTER 5
Ethics: The Foundation for Relationships in Selling

2. BASIC ETHICAL ISSUE
“Why would any company violate the moral contract it has with customers and risk the loss of goodwill built up over many years?”

3. Making Ethical Decisions
Business ethics = Principles and standards that guide business behavior
Help translate values into appropriate and effective behaviors
No single uniform code of ethics for all salespeople
Many businesses, professional associations, and certification agencies have established codes
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4. Making Ethical Decisions
Character and integrity strongly influence personal selling relationships.
Your character is based on internal values.
Character is based on internal values and resulting judgments.
Ethical decisions reflect the strength of your character.
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5. Foundation of Relationships in Selling
Ethics in business reflect:
Personal character and values
Company policy and practices
Management as role model
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6. Code of the National Association of Sales Professionals
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7. Character Development
Colleges and universities are taking a more active role in character development.
Courses that focus on ethics are becoming common.
Despite a growing interest in business ethics, unethical behavior has become common.
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8. Half-Truths Influencing Erosion of Character
We are in it only for ourselves.
Corporations exist to maximize shareholder value.
Companies need to be lean and mean.
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9. Factors Determining Ethical Behavior of Salespeople
FIGURE
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10. Management as Role Model
Ethical standards filter down from the top.
An organization’s moral tone is set by management.
Moral tone is the most important determinant of employee ethics.
Managers must infuse ethical values in subordinates.
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11. Company Policies and Practices
Company policies and practices have major impact on conduct
Developing ethical policy statements forces company to take a stand
Policies should include distributor relations, customer service, pricing, product development, etc.
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12. Additional Policy Areas
Sharing confidential information
Reciprocity
Bribery
Gift giving
Entertainment
Business defamation
Use of the Internet
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13. Sales Manager as Role Model
A salesperson’s actions often mirror the sales manager’s behavior.
Sales managers are responsible for interpreting company policy.
Values such as integrity and honesty must receive constant manager support.
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14. Salesperson’s Personal Values
Values = Ultimate reasons people act as they do
Foundation for attitudes and behavior
Development and refinement of values = Lifelong process
Customers have negative view of salespeople who lack integrity
FIGURE
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15. Values Conflict Three basic choices:
Ignore the influence of your values. Engage in the unethical behavior
Voice strong opposition to the practice.
Refuse to compromise your values. Be prepared to deal with the consequences.
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16. Laws, Contracts, and Agreements
Legal system plays a role in preventing unethical behavior
Cooling-off laws = Reconsider a buying decision
Uniform Commercial Code = Law influencing buyer-seller transactions
Contract = Promise(s) enforceable in court
Ethics = Beyond the letter of the law
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17. The Uniform Commercial Code
UCC = Major source of laws influencing sales and marketing
Primary areas:
Definition of a sale
Warranties and guarantees
Salesperson and reseller
Financing of sales
Product consignment
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18. Personal Code of Ethics
Some general guidelines include:
Personal selling = An exchange of value
Relationship comes first; tasks second
Be honest with yourself and others
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19. Exercising Care with CRM Data
CRM software allows storage of transaction data and personal data.
Record facts; not opinions or conclusions.
CRM data can be “mobile.”
Do not store anything you do not want the customer to see.
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20. The Trust Factor
Transactional sales = Focus is on trust in the product
Consultative sales = Focus is on trust in the salesperson
Strategic alliance sales = Focus is on the other company and its values
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21. Ethical and Legal Issues: International Business
Culture Issues
Beliefs, values, knowledge, ethnic customs, and objects used to adapt to an environment
Cultural barriers can impede acceptance in foreign countries and interpersonal relationships
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22. Ethical and Legal Issues: International Business
Doing business in global marketplaces continues to be a minefield.
The Foreign Corrupt Practices Act prohibits U.S. companies from using bribes or kickbacks.
High ethical standards depend on strong management leadership.
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