CHAPTER 3 Selling Ethically

“Always do right—this will gratify some and astonish others.” Mark Twain

Moral Standards Ethics are moral standards by which actions and situations can be judged Honesty Fairness

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

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?

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)

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

Classification of Moral Types Key Goals In Life Hedonist Physical pleasures Profit maximizer Making money Socialite Being a social butterfly/party animal Politician Power and glory Self-actualizer Spiritual values Craftsperson Technical expertise Company person Belonging to the organization Games person Prestige, glory, and fame Refer to Table 3.2--Classification of Moral Types

Three Qualities for Ethical Decision-making Ability to recognize ethical issues and think through consequences Self confidence to seek others’ points of view 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 Outcomes Significant Influences Click on each component

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

CRM and Privacy Issues Five recognized fair information practices pertinent to privacy Notice Choice consent Access Security Enforcement

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

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”

Codes and Performance Does the behavior or result achieved comply with… organizational standards of behavior as specified in the code of ethics? professional standards of behavior as specified in an industry code? all applicable laws, regulations, or government codes?

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