Chapter
17
Ethical and Legal
Responsibilities of
Sales Managers
The likelihood of unethical
behavior is directly
proportionate to the size of the
carrot.
Michele Marchetti
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Fig. 17-1 Evaluating the Ethical
Status of a Business Decision
 Questions
to help a sales executive evaluate the
ethical status of proposed actions:
 Is this sound from a long-run point of view?
 Would I do this to a friend?
 Would I be willing to have this done to me? (The
Golden Rule)
 Would I want this action publicized in national
media?
 Would I tell others about it?
 Who is damaged by the action?
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Fig. 17-2 The American Marketing
Association’s Code of Ethics

Professional Conduct
Marketers’ professional conduct must be guided by:





Honesty and Fairness
Marketers should uphold and advance the integrity, honor and dignity of the profession by:




The basic rule of professional ethics: not knowing to do harm;
The adherence to all applicable laws and regulations;
The accurate representation of their education, training and experience; and
The active support, practice and promotion of this Code of Ethics.
Being honest in serving consumers, clients, employees, suppliers, distributors and the public.
Not knowingly participating in conflict of interest without prior notice to all parties involved; and
Establishing equitable fee schedules including the payment or receipt of usual, customary and/or
legal compensation for marketing exchanges.
Rights and Duties of Parties in the Marketing Exchange Process
Participants in the marketing exchange process should be able to expect that:


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Products and services offered are safe and fit for their intended uses;Communications about offered
products and services are not deceptive;
All parties intend to discharge their obligations, financial and otherwise, in good faith; and
Appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning
purchases.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Laws and Regulations
Affecting Sales Executives
 Price

discrimination
Clayton Antitrust Act (1914) and Robinson-Patman (1936)
 Unfair
competition
Bribes
 Misleading information (about products, competitors)

 Green

River Ordinances
Enacted by many cities to regulate door-to-door
salespeople from firms located outside the city
 Cooling-Off

Laws
Protects consumers requiring a time period (usually 3
days) to cancel contract, return merchandise for refund.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.