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CHAPTER

10th Edition

Selling Today

Manning and Reece

Ethics: The Foundation


for Relationships
in Selling
5-1

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
Discuss the influence of company policies
and practices on the ethical conduct of
salespeople
5-2

Learning Objectives
Explain how role models influence the
ethical conduct of sales personnel
Explain how values influence behavior
Discuss guidelines for developing a
personal code of ethics

5-3

Discussion Questions
What do you think are the most
common ethical dilemmas that
salespeople face?
How do you think the average
salesperson performs in each of those
situations?

5-4

Making Ethical Decisions


Business ethics: principles and standards that guide
behavior in the world of business
They help translate your values into appropriate and
effective behaviors

No one uniform code of ethics for all salespeople, but


many businesses, professional associations, and
certification agencies have established written codes
See a primer on business ethics on the Web at:
See the
Website

5-5

Code of the National Association


of Sales Professionals FIGURE

5.1

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Character Development
Colleges and universities are beginning to
play a more active role in character
development

Courses that focus on ethics are becoming


quite common
Despite a growing interest in business
ethics, unethical behavior has become all
too common
5-7

EnronA Classic Case in Ethics


Largest U.S. corporation to file bankruptcy
Enron culture emphasized
Risk-taking

Personal ambition over teamwork


Earnings growth at any cost

Dishonest practices eroded company character


But, it was listed as number5 in Fortune 2002
list! Why?
5-8

Fortunes 2002
Company Rankings
Top 500

Best to Work For

1. Wal-Mart

1. Edward Jones

2. Exxon-Mobil

2. Container Store

3. General Motors

3. Alson & Bird

4. Ford

4. Xilinx

5. Enron

5. Adobe Systems

6. General Electric

6. American Cast Iron Pipe

7. Citigroup

7. TD Industries

8. Chevron-Texaco

8. J. M. Smucker

9. IBM

9. Synovus Financial

10. Phillip Morris

10. Wegmans Food Markets


5-9

Half-Truths Influencing the


Erosion of Character
We are in it only for ourselves
Corporations exist to maximize
shareholder value
Companies need to
be lean and mean

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Factors Determining Ethical


Behavior of Salespeople

FIGURE

5.2

5-11

Management as Role Model


Ethical standards filter down from the top
Organizations moral tone, set by
management, is most important
determinant of employee ethics
Managers must infuse ethical
values in subordinates

5-12

Company Policies and


Practices
Company policies and practices can
have a major impact on conduct
Developing ethical policy statements
forces company to take a stand
Policies should include distributor
relations, customer service, pricing,
product development, etc.
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Trust:
The St. Paul

5-14

Mutual of Omahas
Values for Success
1. Openness and trust
2. Teamwork (win-win)

3. Accountability/ownership
4. Sense of urgency
5. Honesty and integrity

6. Customer-focus
7. Innovation and risk
8. Caring/attentive (be here now)

9. Leadership
10. Personal and professional growth
Read more about their values at: careerlink.org.

5-15

Discussion Questions
How would you react to each of the following?
Your company has a set amount for mileage
reimbursement, but your sales manager tells
you to inflate your expense account to make up
for the rising costs of transportation.
You are meeting with a customer and he asks
you to take him to lunch. You get the
impression that he wants you to pay, but your
company has a strict no gifts policy.
5-16

Additional Policy Areas


Sharing confidential
information
Reciprocity

Bribery
Gift giving
Entertainment
Business defamation
Use of the Internet
5-17

International Bribery:
Where Do You Draw the Line?
The text states:
Salespeople who sell products in foreign
markets need to know that giving bribes is
viewed as an acceptable business practice
in some cultures. However, bribes or
payoffs may violate the U.S. Foreign
Corrupt Practices Act (FCPA).
To learn what is acceptable and what is not,
visit the FCPA Enforcement Website.
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Sales Manager as Role Model


A salespersons actions often mirror those of the
sales manager
Sales managers are responsible for interpreting
company policy
Values such as integrity
and honesty must receive
constant manager support

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Personal Values
Values are deep personal beliefs and
preferences, representing the ultimate reasons
people have for acting as they do
Values serve as foundations for our attitudes
Attitudes serve as foundations for our behavior
FIGURE

5.3

5-20

When Values Conflict


You have three basic choices:
1. Ignore the influence of your
values and engage in the
unethical behavior
2. Voice strong opposition to the practice
that is in conflict with your value system

3. Refuse to compromise your values


and be prepared to deal with the
consequences
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Laws, Contracts, and


Agreements
Legal environment plays a role in
preventing unethical behavior
Cooling-off laws

Uniform Commercial Codelaw


influencing buyer-seller
transactions
Oral and written contracts
Beyond the letter of the law
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The Uniform Commercial Code


TABLE 5.1

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Develop a Personal
Code of Ethics
Some general guidelines:
Personal selling must be viewed as an
exchange of value
Relationship comes first, tasks second
Be honest with yourself
and others
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Exercising Care with CRM Data


CRM software allows storage of
transaction data and personal info
Record facts, not opinions or conclusions

CRM data is mobile and other


people may see or use it
Do not store anything you do
not want the customer to see

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The Trust Factor


In transactional sales, the focus is on trust
in the product
In consultative sales, the focus is on trust
in the salesperson
In strategic alliance sales, the focus is on
the other company and its values

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