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Pro. Selling-Chapter 2 1

CHAPTER 2.

ETHICS FIRST … THEN

CUSTOMER RELATIONSHIP


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

Community

Creditors

Government

Owners

Managers

Employees

Suppliers


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 discriminationSales of Goods Act

Selling the same quantity of the same product to different buyers at different prices

Tie-in salesTo 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

ReciprocityBuying 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 - · pdf filepro. selling-chapter 2 2 learning objective after studying this...

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