1. Ethics THE FOUNDATION FOR RELATIONSHIPS IN SELLING C H A P T E R 5

2. 5 Copyright  2004 Pearson Education Canada Inc. 5-2 Learning Objectives Discuss the influence of ethical decisions on relationships in selling Describe the factors that influence the ethical conduct of sales personnel Compare legal versus ethical standards

3. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-3 Learning Objectives (Continued) Explain how role models influence the ethical conduct of sales personnel Discuss the influence of company policies and practices on the ethical conduct of salespeople Explain how values influence behaviour List three general guidelines for developing a personal code of ethics

4. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-4 Ethics are… Rules of conduct used to determine what is good or bad. They are moral principles or values concerned with what ought to be done—a person’s adherence to honesty and fairness.

5. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-5 Caveat Emptor... Caveat emptor is the philosophy that states, “Let the buyer beware.”

6. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-6 Factors Determining Ethical Behaviour of Salespeople Municipal, provincial, and federal laws Role model provided by top management Company policies and practices Role model provided by sales manager Personal values of salesperson Ethical conduct of salespeople

7. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-7 Relevant Sales Issues Price Fixing Bid Rigging Price Discrimination Predatory Pricing Canada’s Competition Act

8. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-8 Relevant Sales Issues (Continued) Misleading Advertising Double Ticketing Resale Price Maintenance Canada’s Competition Act

9. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-9 Relevant Sales Issues (Continued) Refusal to deal Exclusive dealing Tied Sales Canada’s Competition Act

10. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-10 Relevant Sales Issues (Continued) Pyramid Selling Referral Selling Bait and Switch Selling Canada’s Competition Act

11. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-11 Sales Guidelines Sharing Confidential Information Reciprocity Should be provided to cover

12. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-12 Reciprocity… is a mutual exchange of benefits, as when a company buys products from its own customers.

13. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-13 Sales Guidelines (Continued) Bribery Gift giving Entertainment Business Defamation Should Be Provided to Cover

14. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-14 Gift Giving Guidelines Do not give gifts before doing business with a customer. Do not use the gift as a substitute for effective selling methods. Never convey the impression you are “buying” the customer’s business with gifts.

15. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-15 Gift Giving Guidelines (Continued) When gift giving is done correctly, the customer will clearly view it as symbolic of your appreciation. Be sure the gift is not a violation of the policies of your firm or of your customer’s firm.

16. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-16 Guidelines for a Personal Code of Ethics Personal Selling must be viewed as an exchange of value Relationships come first, the task second Be honest with yourself and others

17. C H A P T E R 5 Copyright  2004 Pearson Education Canada Inc. 5-17 CPSA Sales Institute Code of Ethics www.cpsa.com