1. Customer Service Operations
Learning Block 5 Jobs and Legal Concerns in Customer Service

2. Course Agenda Customer Service Overview
Communication Skills in Customer Service
The Order Process
Returns and Reverse Logistics
Jobs and Legal Concerns in Customer Service

3. Learning Block Agenda Customer Service Responsibilities and Job Types
Laws, Rules, and Policies
Trust and Ethics
Common Laws
Legal and Regulatory Concerns

4. Description
There are several distinct job roles that comprise customer service operations.
Ethical conduct and adherence to legal requirements are critical to successful customer relations.
(Page 19)

5. Learning Objectives Recognize job positions in customer service
Explain employees’ roles in identifying, recording, and reporting issues and concerns associated with potential violations in the supply chain, including violations by employees, management, vendors, or customers
Implement key aspects of work-related rules, government regulations, and corporate policies
Apply common laws in customer service operations
(Page 19)

6. Unit 1: Customer Service Responsibilities and Job Types
Examples of typical customer service tasks:
Sales
Assist customers in deciding which products or services to purchase
Obtain and pass along sales leads
Clerical Tasks
Record customer service issues and transactions
Processing client account information
Job-related Responsibilities
Deal with customer complaints
Handle cash and process orders
Answer client questions

7. Jobs in Customer Service
Customer service jobs are critically linked to every function in the supply chain.
Feedback from customers can aid continuous improvement.
Customer service strongly influences customer ordering decisions and, as a result, a company’s financial performance.

8. Jobs in Customer Service
Customer Service Assistants and Representatives
Assistants are entry-level positions responsible for answering basic customer questions and helping customers find products or services.
Representatives work more closely with customers, answering queries and providing sales support.
Customer Service Supervisors
Supervisors delegate work, instruct team members, and resolve complex customer issues.
Customer Service Managers
Managers monitor team performance and are responsible for hiring, training, developing, mentoring, and coaching employees,
Additional Roles
New roles have emerged that place greater emphasis on customer satisfaction and incident resolution
Ex.: Customer care agents, case managers
Sales roles may include a customer service component
Representatives may sell products and also guide customers throughout the order management process
Ex.: Order management clerks

9. Unit 2: Laws, Rules, and Policies
Employers and employees are responsible for knowing laws, regulations, and policies.
Typically companies create policy and procedure documents that cover the following areas:
General employee information
Company expectations
Employees’ rights
Safety and security policies
Personal conduct expectations

10. Legal Responsibility
Companies must familiarize themselves with the laws applicable to the industry.
Lawmaking bodies include several levels of government, from townships and cities to state and federal regulators.
Regulations may differ from one locality to another, making compliance a complex and challenging task.

11. Unit 3: Trust and Ethics
To establish trust, customer service personnel must be calm, honest, and prompt when working with customers.
Personnel should also abide by the highest ethical standards.
Figure 42. Trust and ethics. Developed by LINCS in Supply Chain Management Consortium.

12. Ethical Responsibility
Ethics are moral principles that guide behavior.
Examples of legal and ethical conduct include the following:
Honesty and Integrity
High standards of honesty and integrity should be established and maintained in all business relationships, both inside and outside organizations.
Professionalism
Companies should strive to maintain high standards of professional competence.
Responsible Management
This requires using resources to provide maximum benefits to employers.
Service in the Public Interest
This type of ethical conduct includes using the authority of offices only for company purposes and benefits and rejecting any improper business practices.
Conformity to the Law
Laws for companies and individuals include the laws of various levels of government, companies’ rules and regulations, and contractual obligations.

13. Unit 4: Common Laws
In the U.S., the Department of Labor administers and enforces mandates and regulations that cover workplace activities and environments.
Examples of domains covered by common laws:
Human rights
Food safety
Hazardous products and materials
Environmental protection

14. Consequences of Not Following Laws and Policies
The following are examples of consequences that may arise when laws are not obeyed.
Employees or customers are injured or killed.
Employees lose their jobs.
Companies lose profits or are forced out of business.
Pollution and disease afflict communities.
Economic conditions worsen.
Companies are fined, and employees are jailed.

15. Unit 5: Legal and Regulatory Concerns
Customer service personnel have certain legal responsibilities to customers.
Compliance failures can impact the entire supply chain.
Example: A customer places an order for 24-hour delivery to meet their business requirements. A disgruntled employee at the buyer’s company intentionally sends the product to the wrong address. It eventually arrives at the customer two weeks later.
The customer’s business is harmed because the delivery arrived after it was expected to be sold or used in production.
The buyer’s reputation for reliability and trustworthiness is damaged.

16. Summary
Customer service personnel may assume a variety of tasks, depending on the company’s strategic and operational requirements.
Employers are responsible for keeping employees aware of relevant regulations at all levels of government.
Employees must ensure their day-to-day activities meet the company’s ethical and legal standards.
Legal issues in customer service can impact the performance of the entire supply chain.

17. Supplemental Optional Resources
The optional supplemental resources listed below may be used to reinforce the content covered within this learning block.
Futrell, C. M. (2013). Fundamentals of selling: Customers for life through service (13th ed.). New York, NY: McGraw-Hill/Irwin.
Johnston, M. W., & Marshall, G. W. (2009). Relationship selling (3rd ed.). New York, NY: McGraw-Hill/Irwin.
Sheldon, D. H. (2006). World class sales and operations: A guide to successful implementation and robust execution. Ft. Lauderdale, FL: J. Ross Publishing.

18. Practice Questions
1. Human rights and food safety laws are examples of which type of law? 
State
Common
International
Community
2. Every organization, firm, or business is governed by:
A judge of a federal court
The president of the company
The rules and regulations set by the local, state, and federal governments
The House of Representatives

19. Practice Questions 3. The term legal refers to: A court of law
Company rules governing start and finish times
Any action that is permitted by the laws of the company
Any action that is permitted or required by the laws of a governing body
4. The reason that laws, rules, and company policies need to be known and understood is that:
They are nice to know
They directly affect employees
They can occasionally be useful
It is not necessary to know about laws, rules, and company policies

20. Practice Questions
5. To establish trust with customers, customer service providers must act in which manner? 
Report every issue to management
Be calm, communicate thoroughly, and respond quickly when situations arise
Report difficult customers to the legal department
Ignore customer complaints
6. Ethics provides guidance for which of the following?
Questions relating to the fairness, justness, rightness, or wrongness of an action
Questions relating to salaries and benefits
Questions relating to the quantity of products produced by a company
Questions relating to food safety

21. Practice Questions
7. In the U.S., the Department of Labor administers and enforces: 
All laws
Federal laws that impact the workforce
All federal laws
Specific company policies
8. Typically, who is responsible for monitoring team performance and providing training?
Customer service administrators
Clerks
Customer service managers
Sales managers

22. Practice Questions
9. The purpose of being aware of the legal and regulatory concerns of order management and customer service is to help employees:
Earn more money
Understand the human resources side of the organization
Get more vacation time
Conduct themselves in a professional manner and ensure that customers’ expectations are fulfilled
10. Employee mistakes must be brought to the attention of management for resolution to avoid: 
Unhappy customers and possible legal action
Competitive disadvantages
More new rules
Salary cuts or decreases