1. 5 Selling Today Ethics: The Foundation for Relationships in Selling
10th Edition
CHAPTER
Manning and Reece 5
Ethics: The Foundation for Relationships in Selling

2. Making Ethical Decisions
Business ethics: principles and standards that guide behavior in the world of business
They help translate your values into appropriate and effective behaviors
No one uniform code of ethics for all salespeople, but many businesses, professional associations, and certification agencies have established written codes
See a primer on business ethics on the Web at:
See the Website

3. Code of the National Association of Sales Professionals
FIGURE
5.1

4. Character Development
Colleges and universities are beginning to play a more active role in character development
Courses that focus on ethics are becoming quite common
Despite a growing interest in business ethics, unethical behavior has become all too common

5. Enron—A Classic Case in Ethics
Largest U.S. corporation to file bankruptcy
Enron culture emphasized
Risk-taking
Personal ambition over teamwork
Earnings growth at any cost
Dishonest practices eroded company character
But, it was listed as number5 in Fortune 2002 list! Why?

6. Half-Truths Influencing the Erosion of Character
We are in it only for ourselves
Corporations exist to maximize shareholder value
Companies need to be lean and mean

7. Management as Role Model
Ethical standards filter down from the top
Organization’s moral tone, set by management, is most important determinant of employee ethics
Managers must infuse ethical values in subordinates

8. Company Policies and Practices
Company policies and practices can have a 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.

9. Trust: The St. Paul

10. Mutual of Omaha’s Values for Success
Openness and trust
Teamwork (win-win)
Accountability/ownership
Sense of urgency
Honesty and integrity
Customer-focus
Innovation and risk
Caring/attentive (be here now)
Leadership
Personal and professional growth
Read more about their values at: careerlink.org.

11. Discussion Questions How would you react to each of the following?
Your company has a set amount for mileage reimbursement, but your sales manager tells you to inflate your expense account to make up for the rising costs of transportation.
You are meeting with a customer and he asks you to take him to lunch. You get the impression that he wants you to pay, but your company has a strict “no gifts” policy.

12. Additional Policy Areas
Sharing confidential information
Reciprocity
Bribery
Gift giving
Entertainment
Business defamation
Use of the Internet

13. International Bribery: Where Do You Draw the Line?
The text states:
“Salespeople who sell products in foreign markets need to know that giving bribes is viewed as an acceptable business practice in some cultures. However, bribes or payoffs may violate the U.S. Foreign Corrupt Practices Act (FCPA).”
To learn what is acceptable and what is not, visit the FCPA Enforcement Website.

14. Sales Manager as Role Model
A salesperson’s actions often mirror those of the sales manager
Sales managers are responsible for interpreting company policy
Values such as integrity and honesty must receive constant manager support

15. Personal Values
Values are deep personal beliefs and preferences, representing the ultimate reasons people have for acting as they do
Values serve as foundations for our attitudes
Attitudes serve as foundations for our behavior
FIGURE
5.3

16. When Values Conflict You have three basic choices:
Ignore the influence of your values and engage in the unethical behavior
Voice strong opposition to the practice that is in conflict with your value system
Refuse to compromise your values and be prepared to deal with the consequences

17. Laws, Contracts, and Agreements
Legal environment plays a role in preventing unethical behavior
Cooling-off laws
Uniform Commercial Code—law influencing buyer-seller transactions
Oral and written contracts
Beyond the letter of the law

18. The Uniform Commercial Code
TABLE
5.1

19. Develop a Personal Code of Ethics
Some general guidelines:
Personal selling must be viewed as an exchange of value
Relationship comes first, tasks second
Be honest with yourself and others

20. Exercising Care with CRM Data
CRM software allows storage of transaction data and personal info
Record facts, not opinions or conclusions
CRM data is “mobile” and other people may see or use it
Do not store anything you do not want the customer to see

21. The Trust Factor
In transactional sales, the focus is on trust in the product
In consultative sales, the focus is on trust in the salesperson
In strategic alliance sales, the focus is on the other company and its values