Part V
SALES FORCE LEADERSHIP
Chapter 10:
Sales Force Ethics
Part B:
Moral decision structure. To behave
normally in a given situation, a person must:
Part A:
Characteristics
of decision
maker facing
ethical choices
Recognize
Part C:
Convert
alternatives,
affected parties
outcomes.
intentions into
action (decisions
and/or behavior)
Demographics
Behavioral
Positional
Determine
Give Priority
the morally best
alternative:
ethical theories
moral judgment
stages
to moral values
and intend to do
what is morally
right.
Situation Moderators
Societal
ethical
standards
Organization culture
Peers
Customers
Superiors
Legislation
Figure 10-1: A Model of Ethical Decision Making
Outcomes
Job
performance
Rewards and
punishments
Feedback and
learning
TO LOOK OR NOT TO LOOK
Assume you are taking a make-up final exam in a
separate room and you need an A to pass the course,
otherwise you might have to go to summer school and
delay graduation for three months. You are 99% certain
that your professor will not check in on you while you
are taking the test and you have your textbook and
notes in your book bag, which is sitting next to you on
the floor. You are stumped on a few questions (enough
so that you probably won’t get your A). If you looked in
your notes and text, you would answer them correctly.
Do you look?
TO LOOK OR NOT TO LOOK
Assume the same situation, but that if you
got your A on the test you would receive $5,000
(in addition to graduating).
Now would you look
in your notes?
Examples of Pressures Facing
Sales Managers
 Incentives to provide favorable earnings reports
 High rewards for short –term profits at expense of
long-term growth
 Greed
 Reputation
 Other?
Purchasing Agent’s Ratings of Sales Activities and
Correlations With Career Impact and Supplier Choice
Salesperson Behavior
Gifts to Current Customers:
1.
Give purchaser who was one of best customers
a gift worth $50 at Christmas
2.
Gave one of best customers a $25 Christmas
gift.
3.
Buys lunch for a purchasing agent
4. Gives every customer a present worth
$10 at Christmas
5.
Provides entertainment for purchasing agent
such as tickets to sporting events.
Puts Own Interest First:
1.
Quotes higher than normal price for product
during temporary shortage situation
2.
Lets it be know he has information about a
competitor if purchasing agent is interested.
3.
Hints if order is placed, price might be lower
on next order, when it is not so.
Ethicality Ethicality
Ethicality
Mean
Career
Supplier Choice
1.87
.33
.53
2.26
3.77
.57
.34
.65
.25
2.77
.57
.55
2.63
.59
.55
1.75
.12
.52
1.90
.38
.61
1.29
.19
.22
Purchasing Agent’s Ratings of Sales Activities and
Correlations With Career Impact and Supplier Choice
Salesperson Behavior
4.
5.
6.
7.
Only stresses positive aspects of product,
omitting possible problem purchasing
agent’s firm might have with it.
Grants price concession to purchasing agent
of company he owns stock in.
Attempts to sell product to purchasing agent
that has little or no value to buyer’s company.
Uses “back-door”selling instead of going
through purchasing department.
Gifts to Prospects:
1.
Gave purchaser who had not done business
before Christmas present worth $10
2.
Gave purchase who had not bought from
the firm a Christmas gift worth $25
3.
A $50 Christmas gift sent to purchaser who
has been called on but had not placed an order.
Ethicality Ethicality
Ethicality
Mean
Career
Supplier Choice
1.97
.16
.43
1.80
.36
.64
2.06
.38
.40
1.67
.21
.44
2.13
.53
.54
1.72
.47
.61
1.63
.38
.41
Purchasing Agent’s Ratings of Sales Activities and
Correlations With Career Impact and Supplier Choice
Ethicality Ethicality
Ethicality
Mean
Career
Supplier Choice
Salesperson Behavior
Pressure or Coercion:
1.
In reciprocal buying situation, salesperson hints
unless order is forthcoming, prospect’s
sales to firm might suffer.
2.
Attempts to use economic power of firm to
obtain concessions from the buyer.
3. Attempts to get purchasing agent to divulge
competitor’s bid in low bid buying situation.
4.
Exaggerated how quickly order will be
delivered to get the sale.
Preferential Treatment:
1.
In shortage situation allocates product
shipments to purchasing agent he personally liked.
2.
Grants concessions to purchasing manager
depending on how much he likes manager.
3.
Give preferential treatment to customers who
are also good suppliers.
Note: 5 = very unethical; 1 = very ethical.
1.61
.19
.50
1.99
.29
.57
1.64
.26
.36
1.68
.33
.51
1.91
.40
.67
2.24
.35
.55
2.97
.67
.68
Correlations over.25 are significant at 0.01 level.
Ethical Checklist
Recognize the Dilemma
Get the Facts
List the Options
Make Your Decision
Is it a Gift or a Bribe?
* Have you or your colleagues ever offered potential
clients personal gifts valued at more than $100 in
exchange for their business?
100%
90%
88.60%
80%
70%
60%
Yes
No
50%
40%
30%
20%
10%
0%
11.40%
Is it a Gift or a Bribe?
In your opinion, would a personal gift valued at $100 $500 given to a potential client by a salesperson
constitutes a bribe?
100%
94.00%
90%
80%
70%
60%
Questionable/Bribe
Acceptable
50%
40%
30%
20%
10%
0%
6.00%
Table 10-1
Eight Ways to Keep You Sales Force Honest
1.
Get support from top management showing that they
expect you to follow the spirit and letter of the law.
2.
Develop and distribute a sales ethics policy.
3.
Establish the proper moral climate. If the bosses follow the
rules, then the troops are apt to do likewise.
4.
Assign realistic sales goals. People who try to meet an
unfair quota are more likely to rationalize their way to a
kickback scheme.
5.
Set up controls when needed. Watch people who live above
their income.
6.
Suggest that salespeople call for help when they face
unethical demands.
7.
Get together with your competition if payoffs are an
industry problem.
8.
Blow the whistle if necessary.
Honesty
“The reputation of a thousand years
is determined by the conduct of one hour.”
Japanese Proverb
“There is no pillow as soft
as a clear conscience.”
Blanchard and Peale
“When in doubt, tell the truth.
It will confound your enemies
and astound your friends.”
Mark Twain