Chapter 2 Pro Sell

CHAPTER 2.
ETHICS FIRST … THEN

CUSTOMER RELATIONSHIP
Pro. Selling-Chapter 2 1
Learning Objective
After studying this Chapter, you should be able:
 Describe management’s social responsibilities
 Explain what influences ethical behavior
 Understand the principle set forth in the CPSA Code of
Ethics
 Describe management’s role in dealing with ethical
responsibilities
 Discuss ethical dealing among salespeople, employers
and customers
 Explain how to demonstrate social responsibilities
Agenda
 Management’s Social Responsibilities
 What Influences Ethical Behavior
 Management’s Ethical Responsibilities
 Ethics in Dealing with Salespeople
 Salespeople’s Ethics when Dealing with Their Employers
 Ethics in Dealing with Customers
 The International Side of Ethics
 Managing Sales Ethics
1- Management’s Social Responsibilities
Social responsibility:
To be management’s
obligation to make choices and
take actions that contribute to
the welfare and interests of
society as well as to those of
the organization
1.1. Organizational Stakeholders
 A stakeholder is any group within or outside the

organization that has a stake in the organization’s
performance.
 Each stakeholder has a different interest in the

organization (CCC GOMES)
Customers Owners
Community Managers
Creditors Suppliers
Government Employees
Major Stakeholders in the Organization’s
Performance
1.2. An Organization’s Main
Responsibilities
 Economic : Be profitable
 Legal : Obey the law
 Ethical : Do what is right
 Discretionary: Contribute to community &

quality of life
An Organization’s Main Responsibilities
1.2. How to demonstrate social responsibility
 Taking corrective action before it is required
 Working with affected constituents to resolve mutual

problems
 Publicly admitting mistakes
 Helping to correct environmental problems
 etc
2. What Influences Ethical Behavior?
The Individual’s Role
 Level one : Pre-conventional -acts in own best interest
A few operate here
 Level two : Conventional - upholds legal laws

Most people operate here
 Level three: Principled -lives by own code
Less than 20% reach level three
The Organization’s Role

 At best, most employees in firm operate at level two
 How will handle situation if no policies and procedures?
3. Management’s Ethical Responsibilities
 Ethics is the code of moral principles and values

that govern the behaviors of a person or a group
with respect to what is right or wrong.
 Ethics sets standards as to what is good or bad

in conduct and decision making
 Ethical behavior refers to treating others fairly
What is an Ethical Dilemma?
 A situation in which each alternative choice

or behavior has some undesirable
elements due to potentially negative
ethical or personal consequences
4. Ethics in Dealing with Salespeople
Five ethical considerations faced by sales managers
 Level of sales pressure
 Decisions affecting territory
 To tell the truth?
 The ill salesperson
 Employee rights
+ Privacy
+ Discrimination in Employment ( Race or color; Religion; Sex;

Age; etc)
5. Salespeople’s Ethics in
Dealing with Their Employers
 Misusing company assets
 Moonlighting
 Cheating
 Affecting other salespeople
 Technology theft
6. Ethics in Dealing with Customers
 Bribes
 Misrepresentation
 Price discrimination
Sales of Goods Act
Selling the same quantity of the same product to different

buyers at different prices
 Tie-in sales
To buy a particular line of merchandise, a buyer may be
required to buy other, unwanted products
Clayton Act
Ethics in Dealing with Customers (Cont)
 Exclusive dealership
 Reciprocity
Buying a product from someone if the person or organization
agrees to buy from you
 Consumer protection
7. Managing Sales Ethics
 Follow the organization’s leader
 Leader selection is important
 Establish a code of ethics
 Create ethical structures

 Encourage whistle-blowing
 Create an ethical sales climate
 Establish control systems
The International Side of Ethics
 Guidelines for conducting international

business may be different or even nonexistent
 It is important to keep up to date on the law

and be aware of how authorized representatives
are conducting business
Summary of Major Selling Issues
 Ethical behavior pertains to values of right
and wrong
 Ethical decisions and behavior are typically

guided by a value system
 An important individual characteristic is

one’s level of moral development
 Corporate culture is an organizational

characteristic that influences ethical behavior
Summary of Major Selling Issues
 Social responsibility in business means profitably

serving employees and customers in an ethical and
lawful manner.
 Ethical standards and guidelines for sales

personnel must be developed, supported, and
policed.
 Research suggests that socially responsible

organizations perform as well as – and often better
than – organizations that are not socially responsible.
THE END
THANK YOU

Chapter 2 Pro Sell

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CHAPTER 2.

ETHICS FIRST … THEN

 What Influences Ethical Behavior

 Management’s Ethical Responsibilities

 Ethics in Dealing with Salespeople

 Salespeople’s Ethics when Dealing with Their Employers

 Ethics in Dealing with Customers

 The International Side of Ethics

 Managing Sales Ethics

 A stakeholder is any group within or outside the

 Each stakeholder has a different interest in the

 Legal : Obey the law

 Ethical : Do what is right

 Discretionary: Contribute to community &

 Taking corrective action before it is required

 Working with affected constituents to resolve mutual

 Publicly admitting mistakes

 Helping to correct environmental problems

 Level two : Conventional - upholds legal laws

 Level three: Principled -lives by own code

Less than 20% reach level three

The Organization’s Role

 Ethics is the code of moral principles and values

 Ethics sets standards as to what is good or bad

 Ethical behavior refers to treating others fairly

 A situation in which each alternative choice

 Level of sales pressure

 Decisions affecting territory

 To tell the truth?

 The ill salesperson

+ Discrimination in Employment ( Race or color; Religion; Sex;

 Misusing company assets

 Affecting other salespeople

Selling the same quantity of the same product to different

 Leader selection is important

 Establish a code of ethics

 Create ethical structures

 Guidelines for conducting international

 It is important to keep up to date on the law

 Ethical decisions and behavior are typically

 An important individual characteristic is

 Corporate culture is an organizational

 Social responsibility in business means profitably

 Ethical standards and guidelines for sales

 Research suggests that socially responsible

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