1. CHAPTER 3
Selling Ethically

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

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

4. 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

5. 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?

6. 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)

7. 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

8. 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

9. 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

10. Figure 3.1 Ethical Decision Making Framework
Characteristics of the
Decision-Maker
Ethical
Situation
Decision
Outcomes
Significant Influences
Click on each component

11. 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 Ethical Issues Faced by Salespeople

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

13. 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

14. 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”

15. 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?

16. 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

17. Ultimately, the individual salesperson is responsible for his actions