5 ethics: the foundation for relationships in selling chapter 5 ethics: the foundation for...
TRANSCRIPT
5Ethics: The
Foundation for Relationships
in Selling
CH
AP
TE
R
5Ethics: The
Foundation for Relationships
in Selling
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 5-2
BASIC ETHICAL ISSUE
“Why would any company violate the moral contract it has with customers and risk the loss of goodwill built up over many years?”
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Making Ethical Decisions
Business ethics = Principles and standards that guide business behavior
Help translate values into appropriate and effective behaviors
No single uniform code of ethics for all salespeople
Many businesses, professional associations, and certification agencies have established codes
5-3
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Making Ethical Decisions
Character and integrity strongly influence personal selling relationships.
Your character is based on internal values.
Character is based on internal values and resulting judgments.
Ethical decisions reflect the strength of your character.
5-4
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Foundation of Relationships in Selling
Ethics in business reflect: • Personal character
and values
• Company policy and practices
• Management as role model
5-5
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Code of the National Association of Sales Professionals
5-6
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Character Development
5-7
Colleges and universities are taking a more active role in character development.
Courses that focus on ethics are becoming common.
Despite a growing interest in business ethics, unethical behavior has become common.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Half-Truths Influencing Erosion of Character
5-8
We are in it only for ourselves. Corporations exist to maximize shareholder
value. Companies need to be lean and mean.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Factors Determining Ethical Behavior of Salespeople
5-9
FIGURE 5.2
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Management as Role Model
5-10
Ethical standards filter down from the top. An organization’s moral tone is set by
management. Moral tone is the most important determinant
of employee ethics. Managers must infuse ethical values in
subordinates.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Company Policies and Practices
5-11
Company policies and practices have 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.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Additional Policy Areas
5-12
Sharing confidential information Reciprocity Bribery Gift giving Entertainment Business defamation Use of the Internet
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Sales Manager as Role Model
5-13
A salesperson’s actions often mirror the sales manager’s behavior.
Sales managers are responsible for interpreting company policy.
Values such as integrity and honesty must receive constant manager support.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Salesperson’s Personal Values
5-14
Values = Ultimate reasons people act as they do Foundation for attitudes and behavior Development and refinement of values = Lifelong
process Customers have negative view of salespeople
who lack integrity
FIGURE 5.3
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Values Conflict
5-15
Three basic choices:
1. Ignore the influence of your values. Engage in the unethical behavior
2. Voice strong opposition to the practice.
3. Refuse to compromise your values. Be prepared to deal with the consequences.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Laws, Contracts, and Agreements
5-16
Legal system plays a role in preventing unethical behavior
Cooling-off laws = Reconsider a buying decision Uniform Commercial Code = Law influencing
buyer-seller transactions Contract = Promise(s)
enforceable in court Ethics = Beyond the letter
of the law
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Uniform Commercial Code
5-17
UCC = Major source of laws influencing sales and marketing
Primary areas:– Definition of a sale– Warranties and guarantees– Salesperson and reseller– Financing of sales– Product consignment
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Personal Code of Ethics
5-18
Some general guidelines include:
Personal selling = An exchange of value
Relationship comes first; tasks second
Be honest with yourself and others
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Exercising Care with CRM Data
5-19
CRM software allows storage of transaction data and personal data.
Record facts; not opinions or conclusions. CRM data can be “mobile.” Do not store anything you do not want the
customer to see.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
The Trust Factor
5-20
Transactional sales = Focus is on trust in the product
Consultative sales = Focus is on trust in the salesperson
Strategic alliance sales = Focus is on the other company and its values
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Ethical and Legal Issues: International Business
5-21
Culture Issues• Beliefs, values, knowledge, ethnic
customs, and objects used to adapt to an environment
• Cultural barriers can impede acceptance in foreign countries and interpersonal relationships
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Ethical and Legal Issues: International Business
5-22
Legal Issues• Doing business in global marketplaces
continues to be a minefield.• The Foreign Corrupt Practices Act prohibits
U.S. companies from using bribes or kickbacks.
• High ethical standards depend on strong management leadership.