Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel

Sales Management Management’s Social Responsibilities Organizational Stakeholders Customers Community Creditors Government Owners Managers Employees Suppliers

Sales Management Management’s Social Responsibilities Economic Responsibilities Produce Goods and Services Maximize Profits Legal Responsibilities Fulfill their Economic Goals Within a Legal Framework

Sales Management Management’s Social Responsibilities Ethical Responsibilities Act with Equity, Fairness & Impartiality Respect the Rights of Individuals Discretionary Responsibilities Voluntary & Guided by Company’s Desire to Make Social Contributions

Sales Management Management’s Ethical Responsibilities “Ethics” A set of moral principles and values that governs the behavior of a person or a group with respect to what is right and wrong.

Sales Management Management’s Ethical Responsibilities What is an Ethical Dilemma? There is no uniform codification of ethics so differences and dilemmas about proper behavior can occur. A situation when all of the choices for a solution to a problem have some element that could create negative ethical or personal consequences.

Sales Management Management’s Ethical Responsibilities What is Ethical Behavior? Being honest Maintaining confidence and trust Following the rules Conduct yourself in proper manner Treat others fairly Loyalty to company and associates Carry your share - 100% effort

Sales Management Level of Sales Pressure Management’s Ethical Responsibilities Company to Salesperson dilemmas: Level of Sales Pressure Setting Sales Goals (realistic/obtainable) Management Style

Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: Territorial Decisions Expanding Territories Decreasing Territories Creating House Accounts

Sales Management To Tell The Truth? The Ill Salesperson Management’s Ethical Responsibilities Company to Salesperson dilemmas : To Tell The Truth? Performance At Termination The Ill Salesperson Alcohol or Drug Abuse Treatment Employee Rights

Sales Management Employee Rights Management’s Ethical Responsibilities Company to Salesperson dilemmas : Employee Rights Termination-at-will Privacy Sexual Harassment

Sales Management Reason to Respect Employee Rights Management’s Ethical Responsibilities Company to Salesperson dilemmas : Reason to Respect Employee Rights High quality of work life Attracting/Retaining good people Avoid costly back-pay and awards Establish balance between employee and employer rights/obligations

Sales Management Misuse of Company Assets Moonlighting Salesperson’s Ethical Responsibilities Salesperson ethics re: The Company Misuse of Company Assets Automobiles Expense Accounts Samples Damaged merchandise credits Moonlighting

Sales Management Cheating Affecting Fellow Salespeople Salesperson’s Ethical Responsibilities Salesperson ethics re: The Company Cheating Contests Holding Sales Overloading Customer Affecting Fellow Salespeople Taking Customers

Sales Management Bribes or Gifts Misrepresentation Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer Bribes or Gifts Offering Buyer Originated Misrepresentation “Sales Puff” vs. Statements of Fact Legal Ramifications

Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Stay Legal Know capabilities and characteristics of company products and service Statements of Praise vs. Statements of Fact Educate Customers before the Sales State Product Capabilities Accurately Know Technical Specifications

Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Stay Legal Avoid Exaggerated Product Safety Claims Know Federal and State Laws Keep Current with Design Changes and Revisions Avoid Opinions Stick to Testing Statistics Never Overstep Authority (Pricing or Policy)

Sales Management Price Discrimination Tie-in Sales Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer Price Discrimination Customers who buy similar quantities should receive same pricing Tie-in Sales Violates Clayton Antitrust Act

Sales Management Exclusive Dealership Reciprocity Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer Exclusive Dealership Purchase from one manufacturer - Clayton Act Reciprocity “I’ll Buy Yours If You’ll Buy Mine” FTC and Justice Scrutinize

Sales Management Sales Restrictions Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer Sales Restrictions “Cooling Off” Laws - 3 days Green River Ordinances

Sales Management International Ethical Issues U.S. Laws Do Not Stop at The Border Employees of American Business Should Know the Law Stick to Features and Benefits and Sell to Companies Not Individuals

Sales Management Selling Ethics Surveys Indicate Managers’ Experience Most Managers: Face Ethical Problems Believe Managers and Employees Should Be More Ethical Are More Ethical with Friends than Strangers Lower Ethics to Meet Job Goals

Sales Management Selling Ethics Surveys Indicate Managers’ Experience Most Managers: Are Aware of Ethical Issues in Industry and Company Believe Ethics Can Be affected by Supervisors and Company Environment

Sales Management Selling Ethics Some Guidelines: Management Practices Help Responsiveness Some Guidelines: Top Management Takes Lead CEO, President, Vice Presidents Must Champion Carefully Select Leaders Establish/Follow Code of Ethics

Sales Management Selling Ethics Some Guidelines: Management Practices Help Responsiveness Some Guidelines: Establish/Follow Code of Ethics Principle Based Policy Based Create Ethical Structures Ethical Committee Ethical Ombudsman

Sales Management Selling Ethics Some Guidelines: Management Practices Help Responsiveness Some Guidelines: Encourage Whistle Blowing “Silent Witness” Program Create Ethical Sales Environment Actions of Top-Level Managers

Sales Management Selling Ethics Some Guidelines: Management Practices Help Responsiveness Some Guidelines: Establish Control Systems Low Bid Review Process Expense Report Audits