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Ethics: The Foundation for Relationshipsin Selling

Selling TodaySelling Today10th Edition

CH

AP

TE

R Manning and Reece

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Code of the National Association of Sales Professionals

Code of the National Association of Sales Professionals FIGURE 5.1

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Character DevelopmentCharacter Development

• Colleges and universities are beginning to play a more active role in __________________________

• Courses that focus on ethics are becoming ________________

• Despite a growing interest in business ethics, ______________ has become all too common

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Enron—A Classic Case in EthicsEnron—A 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 number 5 in Fortune 2002 list! Why?

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Fortune’s 2002Company Rankings

Fortune’s 2002Company Rankings

Top 500

1. Wal-Mart

2. Exxon-Mobil

3. General Motors

4. Ford

5. Enron

6. General Electric

7. Citigroup

8. Chevron-Texaco

9. IBM

10. Phillip Morris

Best to Work For

1. Edward Jones

2. Container Store

3. Alson & Bird

4. Xilinx

5. Adobe Systems

6. American Cast Iron Pipe

7. TD Industries

8. J. M. Smucker

9. Synovus Financial

10. Wegmans Food Markets

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Half-Truths Influencing the Erosion of Character

Half-Truths Influencing the Erosion of Character

• We are in it only for ___________

• Corporations exist to ___________ shareholder value

• Companies need tobe ____ and _____

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Factors Determining Ethical Behavior of Salespeople

Factors Determining Ethical Behavior of Salespeople

FIGURE 5.2

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Management as Role ModelManagement as Role Model

• Ethical standards filter down from the top

• Organization’s moral tone, set by management, is most important determinant of employee ethics

• Managers must infuse ethicalvalues in subordinates

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Company Policies and Practices

Company Policies and Practices

• Company _______ and _______ can have a major impact on conduct

• Developing _________ statements forces company to take a stand

• Policies should include distributor relations, customer service, pricing, product development, etc.

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Mutual of Omaha’sValues for SuccessMutual of Omaha’sValues 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.

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Additional Policy AreasAdditional Policy Areas

• Sharing confidential information

• Reciprocity

• Bribery

• Gift giving

• Entertainment

• Business defamation

• Use of the Internet

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International Bribery:Where Do You Draw the Line?

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 ModelSales Manager as Role Model

• A salesperson’s actions often _____ those of the sales manager

• Sales managers are responsible for interpreting __________________

• Values such as integrityand honesty must receiveconstant _________ support

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Personal ValuesPersonal 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

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When Values ConflictWhen Values Conflict

You have three basic choices:

1. Ignore the influence of yourvalues and engage in theunethical 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

Laws, Contracts, and Agreements

• Legal environment plays a role in preventing unethical behavior

• Cooling-off laws

• Uniform Commercial Code—law influencing buyer-seller transactions

• Oral and written contracts

• Beyond the letter of the law

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The Uniform Commercial CodeThe Uniform Commercial CodeTABLE 5.1

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Develop a PersonalCode of Ethics

Develop a PersonalCode of Ethics

Some general guidelines:

• Personal selling must be viewed as an ___________ of value

• Relationship comes first, tasks second

• Be honest with yourselfand ___________

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Exercising Care with CRM DataExercising 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 otherpeople may see or use it

• Do not store anything you donot want the customer to see

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The Trust FactorThe 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