Transcript chapter 3 - Bob McDonald

CHAPTER 3
Selling Ethically
“Always do right—this will gratify
some and astonish others.”
Mark Twain
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Moral Standards
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Ethics are moral standards by which actions
and situations can be judged
 Honesty
 Fairness
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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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Ethical 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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Multiple 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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Sources 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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Classification of Moral Types
Moral Type
Key Goals In Life
Hedonist
Profit maximizer
Socialite
Politician
Physical pleasures
Making money
Being a social butterfly/party animal
Power and glory
Self-actualizer
Craftsperson
Company person
Spiritual values
Technical expertise
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 for
Ethical 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 3.1
Ethical Decision Making Framework
Characteristics of the
Decision-Maker
Ethical
Situation
Decision
Significant Influences
Click on each component
Outcomes
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Ethical Problems
Faced 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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CRM and Privacy Issues
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Five recognized fair information practices
pertinent to privacy
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Notice
Choice consent
Access
Security
Enforcement
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Codes 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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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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Codes 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 Can
Support 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