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

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

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

4. 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

5. 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.

6. 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.

7. 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

8. 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

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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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)

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

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