Ethical and legal issues in selling Chapter 4 Ethical and legal issues in selling Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Definition of ethics Rules-based ethics Deontological ethics focuses on actions rather than outcomes. This is a moral judgement of acting right or wrong regardless of the results. Outcomes-based ethics Teleological ethics focuses on the outcomes. This is the moral judgement that the results justify what was done. Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Influences on ethical behaviour Personal code The behaviours that a person adopts to be their own code of conduct. This code is normally applied to all our actions, including those that we are expected to undertake as part of a job. This is called moral congruence. Community standards Commonly held views that are shaped by the media, government, academics, spokespeople and industry leaders. Some of these views relate to selling and the community’s expectations of sales activities. Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Influences on ethical behaviour cont. Organisational standards The behavioural expectations of the organisation . For sales activities, these standards are usually set by industry bodies such as the Australian Marketing Institute, the Australian Direct Marketing Institute and the Advertising Federation of Australia. Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Making ethical decisions Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Ethics in selling Sales people and their customers overpromising overselling trading information telling the truth gifts and entertainment Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Ethics in selling cont. Sales people and their competitors criticising the competition altering competitor’s merchandise displays obtaining competitive information Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Ethics in selling cont. Sales people and their employers sales competitions expense accounts entertainment expenses vehicle use conflict of interest (second job) changing jobs use of Internet and email for personal gain Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Ethics in selling cont. Sales people and their workmates taking customers from others blowing the whistle Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Legal regulation of selling Restrictive trade practices misuse of market power exclusive dealings resale price maintenance contracts that restrict competition Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Legal regulation of selling cont. Consumer protection fair trading unconscionable conduct false representations not specifying full cash price falsely offering prizes bait advertising referral selling pyramid selling demanding payment for unsolicited goods Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent

Legal regulation of selling Product safety and information safety standards product information standards conditions and warranties disclaimers and returns for faulty goods policies signs that say ‘No refund, No return’ or misrepresent consumers’ legal rights Copyright  2006 McGraw-Hill Australia Pty Ltd PPTs t/a Selling: Managing Customer Relationships 3e by Peter Rix Slides prepared by Mark Vincent