5 ethics: the foundation for relationships in selling chapter 5 ethics: the foundation for...

22
5 Ethics: The Foundation for Relationship s in Selling C H A P T E R 5 Ethics: The Foundation for Relationship s in Selling

Upload: jasper-booth

Post on 25-Dec-2015

228 views

Category:

Documents


3 download

TRANSCRIPT

Page 1: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

5Ethics: The

Foundation for Relationships

in Selling

CH

AP

TE

R

5Ethics: The

Foundation for Relationships

in Selling

Page 2: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: 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?”

Page 3: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 4: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 5: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 6: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Code of the National Association of Sales Professionals

5-6

Page 7: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 8: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 9: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Factors Determining Ethical Behavior of Salespeople

5-9

FIGURE 5.2

Page 10: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 11: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 12: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 13: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 14: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 15: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 16: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 17: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 18: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 19: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.

Page 20: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 21: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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

Page 22: 5 Ethics: The Foundation for Relationships in Selling CHAPTER 5 Ethics: The Foundation for Relationships in Selling

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.